Al Khaliji Commercial Bank has announced that it would provide up to 100% financing of the subscription amount for customers who wish to subscribe to the Initial Public Offering (IPO) of Mesaieed Petrochemical Holding Company (MPHC) at a low rate of 3.5%.

The 22-day IPO subscription period of the MPHC will be available until 21^st January 2014.

MPHC, a wholly-owned subsidiary of Qatar Petroleum, plans to raise QAR 3.23 billion by offering 323.19 million ordinary shares at QAR 10.2 per share, including the listing fee of QAR 0.2, to the public, which represents a 26% stake in the company. The minimum subscription for individual investors is 50 shares and the maximum is one million.

@The Peninsula

Qatar’s foreign trade surplus fell 4.2% to QAR 30.9 billion, figures from the Ministry of Development Planning and Statistics (MDPS) revealed.

The trade balance of goods, which represents the difference between exports and imports, showed a  decrease of QAR 1.3 billion. The total export of goods, including export of domestic origin and re-exports, amounted to QAR 39.8 billion, showing a drop of 0.9%.

The major decrease in exports caused mainly because of the drop in petroleum gases and other gaseous hydrocarbons. The Ministry data shows that the major increase in exports was mainly from petroleum oils and oils obtained from bituminous minerals, excluding crude oil that showed a rise of 10.1%.  On the other hand, decreases occurred mainly in petroleum oils and crude oils obtained from bituminous minerals and petroleum gases as well as other gaseous hydrocarbons, which includes LNG, condensates, propane and butane, by 3.2% and 0.9% respectively.

The main countries of exports destination for Qatar were Japan, with a share of 29% of total exports, South Korea with 17% and India with 9% of total exports.

Motor cars and other passenger vehicles, aircraft spare parts, and telephone sets and mobiles were the main imported commodity groups. The US was the leading country of origin with a share of 11% of total imports, followed by China with 9 % Germany and UAE  with 7% each.

Exports to South Korea, India and China declined. Exports to South Korea and India dropped by 6.4% each and exports to Singapore declined by 2.6%. The imports from UAE declined by 5.1%.

@The Peninsula

Qatargas has become the first company in Qatar to be recognised as a Gold Partner of the Institute of Chemical Engineers (IChemE), the highest level of corporate partnership awarded by IChemE to companies that demonstrate a sustained commitment to the process industries and to career development as an employer.

The initial IChemE accreditation for Qatargas was awarded in 2012 for a period of two years and now this reaccreditation as a Gold Corporate Partner extends for four years, Qatargas said in a press release.

“This award gives Qatargas increased recognition as a top employer in the chemical engineering community,” said Chief Operating Officer,  Qatargas Engineering and Ventures, Sheikh Khalid bin Abdulla Al Thani. ‘Through this partnership, Qatargas seeks to inspire the next generation and ensure that the pipeline of young chemical engineers keeps flowing and encourages students to consider a career in chemical engineering.”

Learning and Development Department Manager, Adnan Al Shaibi, said, “Qatargas will continue to offer development opportunities for national graduates under Individual Development Plans (IDPs) as well as those who have successfully reached their established positions. As scheme administrators for promoting and supporting IChemE registration in Qatargas, we are committed to our employees’ investment in their future roles of becoming professionals and acquiring a globally-recognised accreditation,” he added.

The accreditation indicates that Qatargas’ training and development programme meets the highest standards and that the company has committed qualified staff and resources to the professional development of engineers, the release said. Being a Gold Corporate Partner of IChemE offers Qatargas an advantage in recruiting new talent and retaining qualified chemical engineers.

@QNA

With rate of erosion stopping or getting reversed, Qatar’s banks are set to post rising Net Interest Income growth figures in 2014, a new report has shown.

Net Interest Margins have been showing strength with the rate of erosion generally slowing down or stopping completely, Beltone Financial said in a report.

The average margin of banks under coverage troughed at 2.87% in 2012 and rose to 3.08% in 2013. Excluding Qatar Islamic Bank, the trough was seen in 2013.

The margin stabilisation can allow banks to capture more profit and loss effect of the loan growth. Overall loans and private sector loans are growing at a healthy rate despite slowdowns in public sector borrowing. “We hold the view that as banks move into a new Net Interest Margin regime, namely a flat one, revenue growth can reflect the loan growth more,” Beltone said.

Two leading private banks in Qatar are raising Tier 1 perpetual bonds, which can sustain private sector credit growth. This will increase real estate credit ceilings reached in multiple banks and had been effectively reigning in overall growth rates in the private banks in 2012 and 2013. This is in the current context of domestic private loan growth already above public loan growth for the first time in several quarters, the report said.

On managing domestic and external risks ahead of FIFA World Cup 2022, Beltone said it sees a risk of higher funding costs in the country. The banking sector in Qatar is largely dependent on foreign liabilities to finance strong demand for credit.

Data shows that commercial banks’ foreign liabilities account for as much as 25% of total assets in Qatar, compared to only 5% for Saudi Arabia and 18% for the UAE.

Most of these foreign liabilities are in the form of wholesale funds, which are predominantly short term in nature.

“On the asset side, we are wary of credit dollarisation, with the share of foreign currency denominated credit to the public sector reaching around 50%, albeit down from 80% Beltone said. “Any limited access to external funds could therefore force highly externally leveraged banks to liquidate some assets or seek dollar-denominated funds from the Central Bank to finance domestic lending requirements.”

@Gulf Times

Qatar Development Bank (QDB) held its eighth Al Dhameen dialogue session with partner banks to identify ways to enhance the Indirect Lending Initiative for small and medium enterprises that do not have a credit history or enough guarantees to acquire finance. The session was presided over by Abdulaziz bin Nasser Al-Khalifa, CEO, QDB, and attended by 14 representatives of partner banks and financial institutions based in Qatar.

The session comprised of seminars, during which representatives of partner banks briefed QDB officials on major challenges and ways to enhance Al Dhameen and highlighted customers’ feedback. The team showcased achievements during the last three years, including 2013, and highlighted efforts towards the programme development with partners, Enterprise Qatar, Bedaya Centre and Qatar Business Incubation Centre. The session was concluded with a detailed demonstration about the performance of Al Dhameen.

Al Dhameen was established by QDB to encourage banks to finance promising SMEs held back by a limited credit history and insufficient collateral. Qatar-based private sector companies are eligible for guarantees of up to 85% of the loan amount.

“Al Dhameen came a long way since it was established three years ago, when it had only one partner,” said Abdulaziz bin Nasser Al-Khalifa. “The programme managed to achieve huge success in a relatively short period of time, with the support of its 14 partners.”

He added, “In line of our commitment to enhance the quality and efficiency of Al Dhameen, QDB administration seeks to continue hard work to enhance the programme as an effective tool to support SME sector, through gathering of stakeholders regularly to discuss ways to develop Al Dhameen.”

Through Al Dhameen, QDB aims at supporting private and SME sectors in line of its efforts to achieve economic diversification in Qatar and lower dependency on hydrocarbons sector as a major source of income.

As part of this programme, the bank held many workshops for owners of enterprises to become familiar with available investment opportunities in the SME sector. The bank also organised training programmes targeting customer relationships managers in partner banks, to enhance their skills in credit and project evaluation.

Qatar’s economic growth accelerated by 6.2% in 2013 compared to 2012, according to figures released by the Ministry of Development Planning and Statistics. This occurence was spurred by double digit growth in trade, hospitality, construction, transport and communication, financial services, real estate and business services as well as domestic services. QNB Group expects real GDP growth to pick up further during 2014 to 6.8%, as the implementation of large infrastructure projects accelerate and the growing population boosts domestic demand.

The hydrocarbon sector, which consists of crude oil and raw gas production, expanded to 1.8% in 2013 owing to higher production of natural gas because of LNG facilities returning to full operational capacity after some downtime for maintenance during the last year.

The non-hydrocarbon sector grew 9.5% in 2013, driven by a strong growth in services. Transport and communication was the fastest growing sector (13.9%), owing to the Ramadan period which boosted travel and tourism, as well as higher mobile subscribers which is a key characteristic of stronger growth in private consumption boosted by the larger population. The financial, real estate, and business services sector grew rapidly (10.5%), as well as real estate services. The non-hydrocarbon sector was further boosted by the construction sector, which accelerated to 13% as Qatar’s infrastructure development programme is gathering momentum.

This large infrastructure investment programme will have a direct effect on GDP growth through higher investment spending and an indirect effect through population growth. A new wave of expatriate workers coming to Qatar is in response to higher labour demand for infrastructure projects. Indeed, population continued its double digit growth (11.4%) in 2013, driven by the large increase in infrastructure spending. The larger population will continue to drive economic growth by boosting domestic demand, services as well as investment in housing and other infrastructure. Similarly, small and medium-sized enterprises, such as hotels, education, medical services, retail and restaurants are expected to flourish to cater to the growing population.

There are some concerns of economic overheating arising from the infrastructure programme. Those concerns can be alleviated by considering the latest GDP data for the construction sector which indicates that pricing for building materials are falling. This leads to the conclusion that there is no excess demand for building materials and no shortage in supply that could lead to potential bottlenecks in the implementation of those programmes.

Overall, QNB Group expects real GDP growth to accelerate further to 6.8% in 2014, as highlighted in QNB Group’s latest Qatar Economic Insight report, owing to the implementation of additional large infrastructure projects, like the Lusail real estate development, the new Doha Port, the new Hamad International Airport and the Doha Metro Rail project. The key driver of growth will therefore continue to be the non-hydrocarbon sector which is expected to grow from 42% of nominal GDP in 2012 to more than 50% by 2015.

Stenden University Qatar (SUQ) will host the first major international tourism conference of its kind in Qatar – Tourism in Tomorrow’s World: What the future holds for tourism in the region, in conjunction with Al Rayyan Tourism Investment Company (ARTIC), which is part of Sheikh Faisal bin Qassim Al Thani’s Al Faisal Holding Group and the European Tourism Futures Institute. It will be under the patronage of the Prime Minister His Excellency Sheikh Abdullah bin Nasser bin Khalifa Al Thani and in partnership with Qatar Tourism Authority (QTA).

The event was launched by Professor Robert Coelen, Vice President International and Executive Dean of Stenden University Qatar, Hassan Al-Ibrahim, Director of Strategy Development, QTA, and Nicolas Frangos, Chief Operating Officer, ARTIC.

To be held at the Renaissance Doha City Centre Hotel from 23^rd-24^th February 2014, the conference will cover every sector of tourism and hospitality, from family to business tourism, cultural, sun and beach, sports, education, health and environmental tourism. It will address topical issues like political tourism following the Arab Spring as well as new industry developments and trends in the GCC along with factors which can affect tourism in the region.

The purpose of the conference is to underline the importance of tourism for Qatar and the region, focussing on Qatar’s recent tourism growth and showcasing its authentic culture, identity and heritage and focus on sustainability.

The conference, which will become an annual event, will feature internationally renowned tourism experts as keynote speakers including United Nations World Tourism Organisation (UNWTO) Secretary General, Dr. Taleb Rifai, Chairman, QTA, Eng. Issa Al-Mohannadi and top local and international tourism experts and academics. Speakers from Arab Spring areas will also be invited to discuss the challenges facing political tourism in the region.

On a global scale, tourism is significantly one of the largest industries in the world which constitutes 9% of the world’s GDP and provides 260 million jobs. QTA has predicted there will be up 127,000 hospitality jobs in Qatar by 2030.

As Qatar emerges as a tourism hub in the region – with 81 hotels currently in Doha and another 110 under construction – the conference will highlight the importance of the tourism industry as a career choice.

In addition, Qatar’s endeavors to diversify its economy in line with Qatar National Vision 2030 and its extensive construction and infrastructure development, hotels are becoming the virtual ambassadors for Qatar’s tourism industry as business people from across the world flock to Qatar.

Current SUQ students will take part in panel discussions during the conference.

Professor Robert Coelen said, “This dynamic conference is the first of its kind in the region and will attract the world’s leading experts in hospitality and tourism to discuss important key trends and the crucial role Qatar is to play in this sector in the near future.”

He continued, “Hospitality and tourism will be an increasingly important aspect of Qatar’s economic diversification and it is vital we ensure our young people are properly educated and trained to take on meaningful careers. Working closely with government, hotels and businesses throughout Qatar we want ensure that young people working in the industry are of world-class standards with the ability to become the leaders in their fields in the future.”

Hassan Al-Ibrahim said, “QTA’s strategic priorities include developing the tourism sector through stakeholder engagement and inclusion in implementing the National Tourism Strategy 2030 and hence we have developed strong relationship with Stenden University Qatar through various initiatives.”

He added, “Sectorial human capital development is also a priority of QTA. With the amount of hotels and other tourism products and services currently under development, Qatar’s hospitality industry will be able to offer young people ambitious roles in international groups to provide a meaningful career path for life.”

Recently a team of SUQ students and faculty members participated in the international Bahrain Universities’ Model United Nations Conference . Two teams of SUQ students – Team High Flyer and Team Fast Rider – also took part in the Bedaya Shell Enterprise Business Simulation Challenge, where Team High Flyer placed third out of nine participating universities. The students will be honoured for their achievements in a ceremony.

Shareholders of Mesaieed Petrochemical Holding Company (MPHC) will be eligible for profit share, His Excellency Minister of Finance, Ali Sherif Al-Emadi said. “The profits are being distributed under instructions from His Highness the Emir,” he said.

Ali Sherif said MPHC did well in 2013. In 2012, the company earned a net profit of approximately QAR 1.6 billion.

“Last year’s profits are greater than this. The profit details will be announced after completing auditing and other regulatory processes,” Ali Sherif  said.

MPHC, a wholly-owned subsidiary of Qatar Petroleum (QP) and an umbrella entity for Q-Chem I, Q-Chem II and Qatar Vinyl Company, is offering 323.19 million ordinary shares, which forms 26% stake at QAR 10.2 per share, which includes a QAR 0.2 listing fee.

The IPO is primarily reserved for Qatari private individuals with minimum subscription at 50 shares and a maximum of one million. Although Qatari private institutions or corporations are excluded from this offering, Qatar Foundation and the General Retirement and Social Insurance Authority have been allowed to participate in the subscription.

The government will distribute 750 shares of MPHC as a gift to each disadvantaged citizen, including those receiving social security benefits and people with special needs.

Ali Sherif urged Qataris to invest in MPHC, which holds a lot of promise.

To encourage Qataris to hold MPHC shares for longer term, “incentive” shares will be given to nationals who subscribe to the IPO after five and ten years, which is 2018 and 2023 respectively, provided they retain at least 50% of their shares purchased in the offering at all times.

Based on H.H the Emir’s directive, the company has been re-evaluated at QAR 12 billion. Originally, a group of experts evaluated MPHC at QAR 16.7 billion.

Ali Sherif said the Ministry of Finance, in association with Qatar Central Bank, has ensured that local banks will provide financial assistance to Qataris subscribing to MPHC initial public offer. “The banks have done a good job. They have offered financial assistance of 100%,” the Minister said.

Ali Sherif said applicants who are legally underage will not directly get such financial assistance. But they can claim bank finance either through their parents or legal guardians.

Confirming that MPHC initial offer was in compliance with Islamic Shariah, the minister said, “Opinion by three eminent Islamic scholars has been provided in the company prospectus.”

Al-Emadi said, “It is too early to assess the performance of the IPO sale.”  The maiden offer is part of QP’s ten-year investment and savings programme.

On whether the IPO sale would be extended, he said, “There is absolutely no need for that. The IPO schedule provides lot of flexibility to Qatari applicants. Also, local banks have eased the process by offering financial assistance.”

@Gulf Times

Qatari shipbuilder Nakilat Damen Shipyards Qatar (NDSQ) announced that it has laid the keels for two 16-metre long Stan Tugs, part of a seven-vessel order for marine services provider, Nakilat Svitzer Wijsmuller (NSW).

A small ceremony to mark this step in the shipbuilding process was held at NDSQ’s facilities located at Erhama bin Jaber Al Jalahma Shipyard in Qatar’s Port of Ras Laffan.

NDSQ is a joint venture between Qatar Gas Transport Company (Nakilat) and Dutch shipbuilder Damen. The company began operation in 2010 and builds ships in steel, aluminium and fibre reinforced plastic, up to 170 metres in length.

The two twin-screw Stan Tugs have a bollard pull of 15 tonnes and will be used for mooring vessels visiting the Port of Ras Laffan.

NDSQ is also currently building five other vessels for the NSW order which are two 28 metre Azimuth Stern Drive (ASD) Tugs, two 31 metre ASD Tugs and one 22 metre glass reinforced plastic Pilot Boat. The Stan Tugs, the ASD Tugs and the Pilot Boat will be delivered to NSW for use at Ras Laffan.

Abdullah Fadhalah Al Sulaiti, Managing Director, Nakilat and Chairman, NDSQ and NSW, said, “This milestone further confirms the strong contribution that NDSQ’s shipbuilding operations are making towards Qatar’s industrial sector.”

The NSW is a 70:30 joint venture between Nakilat and Svitzer Middle East. The vessels operated by NSW include tug boats, pilot boats, line boats and crew boats.

NSW offers a range of services including towing, escorting, berthing, pilot support, line handling services afloat and ashore, emergency response and marine maintenance support.

Nakilat is the world’s largest gas transport company with a shipping fleet of 56 LNG vessels. It also manages and operates four LPG carriers.

@The Peninsula

UAE-based Air Arabia announced an expansion of services to Doha as it celebrated a decade of travel to Qatar.

The low-cost carrier said it has increased its existing twice daily services between Sharjah and Doha to three times daily, becoming one of the frequent fliers between the two countries.

Air Arabia, which entered Qatar with a regular service to Doha in 2004, said that the number of weekly flights will increase to 21 non-stop services.

Adel Ali, Group CEO, Air Arabia , said, “We are delighted to celebrate the New Year by launching an additional flight to Doha, which has always been a key market for us. Having completed a decade long operations in this very exciting market is a key milestone for us and it is our ambition to further expand our services from Doha beyond Sharjah to connect Air Arabia ‘s other hubs.”

Ali added: “As we continue to play a vital role in connecting the nations, we have ambitious plans to strengthen operations to all airports within the GCC, offering enormous choice for customers seeking to travel around the region, where air travel is the only viable mode of transport.”

The airline now operates 154 weekly flights within the Gulf.

Air Arabia, reported a 9% drop in net profit, contrary to analyst forecasts.

The Sharjah-based carrier made a net profit of AED 206 million (USD 56 million) in 2013 compared with AED 226 million in 2012.

Three analysts polled had forecast profit of AED 241.3 million.

The low-cost carrier cited a seasonal slowdown in travel during Ramadan.

Revenue reached AED 854 million, an increase of 6%.

Air Arabia carried 1.5 million passengers, an increase of 11%, it said.

@www.arabianbusiness.com

Doha Insurance received regulatory approval for the issuance of 24.26 million new shares to shareholders through a rights issue.

The company would seek the approval of the shareholders at the next Extraordinary General Assembly expected to be held on 17^th February 2014, the company said in a filing to Qatar Exchange.

Sheikh Nawaf bin Nasser bin Khaled Al Thani, Chairman, Doha Insurance, said, “The company has received lately the written approval from both Qatar Central Bank and the Ministry of Economy and Commerce to increase the capital of the company from  QAR 257.4 million to QAR 500 million by issuing 24,260,000 new shares to the shareholders through a rights issue offered at QAR 18 per share, QAR 10 being par value and a premium of QAR 8.”

Sheikh Nawaf said the company is currently in the process of arranging the next Extraordinary General Assembly for the purpose of seeking shareholders’ approval of the capital increase.

The new rights issue comes as part of the company’s vision to increase financial solvency and further improve its credit rating. “We hope this will enable the company to be in a better position to compete for a considerable stake in the mega projects both locally and internationally,” he said.

The capital increase is worth QAR 436.7 million (USD 119.9 million), with funds aimed at strengthening the company’s ability to work at home and abroad.

Qatar is in the middle of a construction boom with the country planning to spend as much as USD 140 billion on infrastructure projects, including a new airport, stadiums, roads and railways, as it prepares to host the FIFA World Cup 2022.

The insurer has no state ownership. This is in contrast to most other insurance and financial services firms listed in the country, who are partially owned by sovereign investment funds.

Previously, shareholders of Qatar Insurance approved a QAR 963.2 million rights issue as well as a 20% stake sale to Qatar Holding, a unit of sovereign wealth fund, Qatar Investment Authority.

@The Peninsula

Within the framework of continuous cooperation between Qatar Railways Company (Qatar Rail) and Ministry of Municipality and Urban Planning opened an office at the Buildings Permit Compound at Doha Municipality, which aims to facilitate all the procedures of developing properties located within Qatar Rail’s projects.

Eng Hassan Ahmed Al-Marwani, Director of Permits, Qatar Rail

“Qatar Rail opened this office to facilitate work-flow and save time for people,” said Eng. Saad Ahmed Al-Muhanadi, Chief Executive Officer, Qatar Rail. ”The new office will provide people with services, explanations and answers to their queries and will also facilitate the procedures in relation with status and studies of the properties that people want to develop and are located within the sites of Qatar Rail projects.”

He added, “The new office will provide citizens, residents and investors hassle-free service without the trouble of visiting the headquarters of Qatar Rail.”

He confirmed that Qatar Rail projects are major supporters of Qatar National Vision 2030 and serves the four pillars of this vision.

Eng. Hassan Ahmed Al-Marwani, Director of Permits, Qatar Rail said, “Since the opening of Qatar Rail Office at the buildings permit compound at Doha Municipality, we have noticed positive results as it has facilitated buildings permits applications of the properties’ owners that are affected by the metro project.”

Eng. Hassan Ahmed thanked all the staff of the Ministry of Municipality and Urban Planning, especially His Excellency Sheikh Abdul Rahman Bin Khalifa Al Thani,  Minister of Municipality and Urban Planning, Eng. Mohammed Ahmed Al-Sayed,  Director, Doha Municipality, Eng. Hamad Habib Al-Qahtani, Director of Technical Affairs, Doha Municipality, Eng. Abdulla Al-Sada, Head of Buildings Permits, Doha Municipality and Eng. Mubarak Mahboub Al-Naaimi, General Supervisor of Buildings Permits Compound.

Qatar Rail will grant several tenders including that of the civil works for the Doha Metro (elevated and at grade lines), the Lusail Light Rail Transit as well as tenders for executing the first phase of the Long Distance Passenger and Freight Rail.

Qatari investors are to travel to Ireland to explore opportunities in areas such as financial services, infrastructure, SMEs, innovations and R&D, visiting Irish Prime Minister Enda Kenny, said.

Addressing top Qatari businessmen at an event hosted by Qatar Businessmen Association (QBA), in the presence of  Qatar’s Minister of Economy and Commerce, His Excellency Sheikh Ahmed bin Jassim bin Mohammed Al Thani, Enda said that a Qatari investment entity will visit Ireland in March 2014 to look at opportunities in Ireland.

The Irish Premier, who is leading a trade delegation from his country, earlier met with Qatar’s Prime Minister and Interior Minister His Excellency Abdullah bin Nasser bin Khalifa  Al Thani, representatives of Qatar Investment Authority and several other agencies, including Qatar Airways.

“The doors of Ireland are wide open for Qatari businessmen. Now we are focussing on this part of the world. At the same time we are looking for opportunities in Qatar as well,” he said.

Enda who said Ireland’s economic gloom is a thing of the past added that the country saw a 2% growth rate and just issued a ten-year bond. With a 2% growth rate and creating over 58,000 new jobs last year, the investor confidence is really high in the country, he said. “We see our economy and businesses becoming more competitive. There is dynamic growth and a transparent tax regime. Ireland has a world class R&D sector.”

QBA Board Member Chairman, Sheikh Hamad bin Faisal Al Thani, noted Qatar’s political stability, security and economic prosperity has led the country to become a major hub and attractive destination for regional and international investments.

Qatar’s preparations to host the FIFA World Cup 2022  have opened up huge opportunities in the country. We invite Irish companies to participate in those projects, he said.

Sheikh Faisal bin Qassim Al Thani, Chairman, QBA, and Julie Sinnamon, CEO, Enterprise Ireland, signed a Memorandum of Understanding to boost future bilateral business opportunities.

Earlier, Minister of Economy and Commerce H.E Sheikh Ahmed bin Jassim bin Mohamed Al Thani met Irish Minister, Enterprise, Jobs and Innovation, Richard Bruton. They reviewed ways of developing investment opportunities, boosting commercial exchange between Qatar and Ireland as well as means of benefiting from mutual investment opportunities.

Exports between the two countries consisted mainly of plastic products, organic chemicals, iron and steel and aluminium products, while imports comprised electrical appliances, electronic equipment, cereals, flour, starch, essential oils, cosmetics and pharmaceutical products, among other products.

Trade exchange between the two countries increased from QAR 291.5 million in 2010 to QAR 334.75 million in 2013.

@The Peninsula

Doha Bank and Ooredoo have signed an agreement that will upgrade the bank’s network infrastructure, enhancing its customer experience and reinforcing security.

The Service Level Agreement ensures that Ooredoo’s diversified data network will be available at all times, providing Doha Bank’s customers with round-the-clock access to ATMs, customer service call centres and Internet banking services.

The agreement will help Doha Bank’s back office functions with uninterrupted and secure access to manage information exchange among the bank’s headquarters, branches, and ATMs across Qatar to provide seamless service to clients across all customer interactions.

The agreement was signed by Doha Bank Group, CEO, Dr. R. Seetharaman and Chief Sales and Services Officer, Ooredoo, Mohamed Saleh al-Marri.

Dr. Seetharaman said, “Doha Bank aims to make banking services work for customers like it never has before. This agreement will enhance mobility and extend our high security protocols, enabling our customers to interact with the bank and complete transactions at any time, any place and from any device, with even more ease of access and functionality.”

Mohamed Saleh said, “Providing Doha Bank with cutting-edge network technology is in line with our strategy to deliver full support to Qatar’s leading businesses. This agreement ensures that Doha Bank’s network is ready to meet the rising demand for personal and corporate financial services and particularly to support customers as they access their financial data online and through mobile devices.”

This agreement extends an earlier partnership that enables Doha Bank customers to check and pay their Ooredoo bills at any Doha Bank ATM across the country. Using the D-Cardless service, Doha Bank customers can also pay Ooredoo bills with a cash deposit at any Doha Bank ATM.

Doha Bank’s electronic banking suite also includes ATMs, Internet banking via DBank Online, phone banking via DBank Dial, SMS banking, e-remittances to recipients around the world, e-branches that offer self-service banking solutions and the DBank Mobile banking solution.

Ooredoo and Doha Bank said their customers can expect more enhancements in the coming months.

@Gulf Times

The bilateral trade volume between Indonesia and Qatar in 2013 is expected to surpass the USD 1.6 billion record set in 2012, Indonesian Ambassador Deddy Saiful Hadi said. Deddy Saiful disclosed that trade volume had reached USD 1.3 billion, a 9% increase from 2012.

“We do not have the complete figures as of now but we are expecting it to go beyond the 2012 level,” he said.

An 11%  increase in the total Indonesian exports to Qatar amounting to USD 83 million was also recorded. Imports from Qatar totalled USD 1.3 billion, an 8%  increase compared with 2012.

However, Deddy Saiful noted that despite the increase in the total trade volume of the two countries, Indonesia is still in deficit of about USD 1.2 billion. He pointed out that this deficit is normal because of Indonesia’s huge demand for oil and gas. “Deficit is given since we really need that commodity.”

Indonesia is trying to increase its exports to Qatar mainly on infrastructure-related raw materials such as cement, nails, steel, and similar products. It exports other products such as electronics, motor vehicles, like Toyota and Suzuki cars which are being assembled in Indonesia, petrochemicals and furniture.

The country also also exports fruit and vegetables such as lettuce and mangoes to Qatar, but only in small volumes.

The Embassy has announced that it will open an outlet for high-end Indonesian home decorations and furniture at Ezdan Mall.

“These are original Indonesian-made products made by our small and medium enterprises,” said Muhammad Al Aula, Third Secretary at the Embassy. “We want to introduce and showcase some of our new quality products in the Qatari market.”

Expecting that more buildings and hotels will be built in the coming years, Embassy officials believe that these structures will also need good interiors and furniture.

The envoy had earlier disclosed that they are focussing on improving their non-oil exports to Qatar ranging from consumption products to a variety of construction materials.

Indonesia’s non-oil exports reached USD 88 million in 2012, a 26% increase from USD 74 million in 2011. Products ranged from shoes, electronics, building and construction materials, furniture and food items.

About investments, Deddy Saiful emphasised that Qatar National Bank continues to expand its operations after investing USD 180 million to buy Kasawan Bank. From 20 in 2012, it now has 43 branches.

“It is a good sign. It is a very good judgment of QNB because it will influence other potential Qatari investors,” he said. “We hope the Qatar Investment Authority will also do the same knowing they prefer brown field investments.”

While Indonesian ministers and government officials have visited Qatar recently, the Embassy said it is in the process of inviting high ranking Qatari officials to visit Indonesia.

@Gulf Times

Rent increase in Qatar is likely to slow down QNB said, citing a drop in land prices. There is already evidence of this as annual rent inflation has slowed to 5.6% from 6.7%.

Data on land transactions published by the Ministry of Justice show that the cost of land fell in 2013. “The fundamental driver for real estate prices is the cost of land. If land prices rise, the price for villas, apartments and other real estate prices are likely to go up,” QNB said.

The slowdown in rental inflation helped keep overall Consumer Price Index down at 2.8%.

Food, beverage and tobacco prices, which account for 13% of the overall inflation weight, rose 2.6%, but were down 0.7%.

“We expect a further pickup in population growth to drive consumer demand, leading to a rise in non-rent inflation. Indeed, planned heavy investments in major projects in 2014 are likely to accelerate economic growth, which could lead to supply bottlenecks pushing up prices. The strong inflows of expatriates needed to work on projects are likely to increase demand pressures throughout the domestic economy,” QNB said.

The number of people living in Qatar grew by 11.4% in 2013 to 2.05 million. Population growth has been driven by the large ramp-up in infrastructure spending in preparation for FIFA World Cup 2022.

“The larger population will lead to higher economic growth by boosting aggregate demand investment in housing and services,” QNB said.

Large infrastructure projects such as the Lusail real estate development, New Doha Port, Hamad International Airport and the Doha Metro will support growth.

“Thus the key driver of growth will therefore continue to be the non-hydrocarbon sector, which is expected to grow from 42% of the nominal GDP in 2012 to more than 50% by 2015,” QNB said.

According to QNB, Qatar’s international reserves stood at USD 39.6 billion in 2013, up USD 6.4 billion since 2012. “As a result, the import cover stood well above the IMF-recommended level,” QNB said. Qatar’s international reserves have been steadily rising.

@Gulf Times

Qatar Petroleum (QP) and Total SA held a joint technical workshop covering operational and research-oriented aspects for acid stimulation treatments of oil and gas wells, a commonly practiced technology that allows enhancing well productivity.

The event was attended by around 30 engineers, researchers, and senior managers from QP and Total.

In addition, a specialist from Total headquarters in France was also present to share expertise with the workshop participants.

The exchange of technical information between the two oil and gas companies, their extensive experience, as well as know-how on state-of-the-art guidance and methodologies led to very fruitful discussions during the event.

Dr. Nasser al-Mohannadi, Research and Technology Manager, QP, said, “This workshop was organised as part of the ongoing joint Qatar Petroleum-Total Research and Development project in the domain of acid stimulation. It clearly shows that our research activity has a practical impact on our operations.”

The objective of the joint workshop was to share methodologies to enhance hydrocarbon production while reducing water flow. The outcomes and conclusions of the workshop are expected to have a direct impact on acid stimulation operations in Qatari oil and gas fields.

In the related research project, a joint QP-Total team is performing state-of-the-art laboratory experiments on acid stimulation at the Total Research Centre in Qatar, at the Qatar Science & Technology Park (QSTP). This will contribute towards developing world-class research capabilities at QSTP and help build a knowledge-based economy, as highlighted in Qatar National Vision 2030.

Dr. Philippe Julien, Director, TRC-Q said, “The workshop was a result of the excellent relationship that QP and Total have. It was an excellent opportunity to share our different practical experiences and to drive clear recommendations to our operations and our research teams in both companies. There is no doubt that this technical domain is fully in line with the oil and gas Qatar National Research Strategy to have an optimal exploitation of hydrocarbon resources in Qatar.”

@Gulf Times

Qatar Islamic Bank (QIB) has implemented the International Bank Account Number (IBAN) for its customers. In line with directives issued by Qatar Central Bank, the adoption of the IBAN standard will facilitate easy processing of electronic payments by minimising delays and extra costs associated with incorrect account numbers, the bank said.

IBAN is an expanded version of the basic bank account number, giving precise information about the country, the financial institution and the account number. Every IBAN is globally unique and contains 29 digits, starting with a country designation for the relevant banking institution (QA for Qatar), followed by a double-digit verification number, the specific bank code (QISB for QIB) and the core account number made up of 21 digits.

IBAN has gone live for receiving an electronic payment from any bank within or outside Qatar, sending an electronic payment to any bank within Qatar, and sending an electronic payment to a bank in any other country that has adopted the IBAN system, which is currently more than 50 countries worldwide.

IBAN will become compulsory for cross-border money transfers after the expiry of the transition period when banks will reject transfers that do not contain a valid IBAN.

QIB customers can find their IBANs printed on their bank statements, as well as in Internet banking accounts, via the QIB mobile application or by contacting QIB’s call centre.

General Manager, Personal Banking Group, QIB, D. Anand said, “The implementation of IBAN will not only bring more efficiency to cross border transactions, but will also result in the facilitation of domestic electronic transfers. With the use of IBAN, any input errors are immediately recognised, leading to fewer rejections and minimising transaction delay. This will result in faster credit and throughput times. In addition, the implementation of IBAN will enhance the safety and efficiency of electronic banking payments.
This is an important strategic move for Qatar. With the guidance of the Qatar Central Bank, QIB is now part of the global network of banks that have adopted IBAN, thereby aligning it with the ongoing evolution of the world’s banking systems.”

@Gulf Times

Retaining talent will be a challenge for organisations in Qatar, which is a high-growth economy with a small local population and a transient expatriate base, said panellists at a seminar organised by KPMG  at Sharq Village in Qatar. This is because managing a multinational workforce presents unique challenges for organisations in Qatar where workers from different regions often have different expectations and behaviour.

“Those HR directors who have their eye on future should be thinking about taking talent debate to the boardroom. They should be identifying talented people and take a longer term view on their talent base of how to nurture and develop it,” a panellist said.

Rajesh Menon, Head of Management Consulting, KPMG Qatar, said, “Emerging economies continue to close the gap with the developed world and their increasing growth rates make them an attractive destination for businesses worldwide. However, these markets are characterised by high price sensitivity, local needs and intense competition which brings with them unique challenges.”

Some of the main performance related risks discussed at the seminar included long term sustainability of the business model, investing and retaining the best staff, understanding the key regulatory changes in their industry and how to implement them into their business and managing technology-related issues.”

Simply creating a business case with a positive net present value and internal rate of return might not be enough to succeed in a developing market, KPMG said.

Business elements delivered from the right people to the right service model need to be thoroughly thought through, tested and validated. Organisations should think longer-term about their business model, their processes and how they will deliver services to their customers, KPMG said.

A degree of planning is a key element of success in a fast-paced market like Qatar, it said. With high reward comes high risk. Anticipating risks through planning can lead to enhanced business management and performance. Organisations that are able to balance the level of planning and execution tend to perform better. For example, when they implement a new system and undertake organisational change, they are much better prepared to manage the change, it said.

The world consumption in emerging markets is expected to grow at a compounded annual growth rate of 6.3% compared to 1.8% in developed markets.

Abdulla al-Subaie,CEO, Barwa Group, was among the panellists. Speakers included Jaideep Ghosh, Strategy Partner, KPMG, India, Dr. Mahbub Zaman, Associate Professor, University of Manchester and Mark Spears, Global Head, KPMG’s People & Change Advisory.

@Gulf Times

Qatar Financial Centre (QFC) has strengthened its insolvency regime to enhance certainty in the financial landscape in a bid to woo more foreign investments, a move that would also see a new breed of Qatar-based insolvency practitioners. This has been made possible with the QFC Authority (QFCA) amending its insolvency legislation as part of modernising the financial infrastructure of the country.

“The bigger picture is that new insolvency legislation will bring in more certainty, which in turn will attract more foreign investments,” a senior QFCA official said.

The move to amend insolvency legislations comes at a time when the corporate sector of Qatar, which has embarked on a mammoth capital expenditure drive for infrastructure upgrade ahead of FIFA World Cup 2022,  needs assured and transparent funding.

Creditors will also look for guaranteed returns on investments, the official said. He added that the insolvency regime across the Gulf region has been at a nascent stage.

Among several other provisions, the new insolvency rules provide for the creation of a register of insolvency practitioners and sets out how insolvency practitioners can qualify to appear on the register, a QFCA spokesman said.

Insolvency practitioners are those licensed and authorised to act on behalf of an insolvent individual, partnership or company.

There are no specific Qatar-based insolvency practitioners. As of now two London-based insolvency practitioners, Joanne Kim Rolls and Steven John Parker, have been registered and been approved by the QFCA, but they are not based out of Qatar.

More amendments have been made to update the existing insolvency regulations, the QFCA spokesman said. The rules also allow a company to voluntarily apply to be struck off the register of companies under certain conditions, he said.

The QFCA has amended Single Family Office (SFO) and Special Company (SC) regulations as part of broad efforts to make the legal environment more appealing with simplified procedures as well as allowing more flexibility to QFC firms’ operations.

“An attractive legal environment is fundamental to the QFC’s standing as a world-class financial centre. The new regulations and rules underline our commitment to offer firms a highly competitive platform from which to conduct business in Qatar, the region and internationally,” Shashank Srivastava, CEO and Board Member, QFCA, said.

An SFO is a private company dedicated exclusively to the investment, legacy and financial needs of one wealthy family. The amendments to the SFO regulations contain a number of clarifications including, but not limited to, the definition of a single family. They also set out the requirements for establishing an SFO and distinguish between the requirements related to the licensing of SFOs and incorporation of a company as an SFO. The SFO rules contain details about the operation, licensing and registration,  criteria for recognition of an eligible firm and describe the procedures and requirements for amending the Articles of Association or transferring the shares in a SFO.

The SC regulations provide the legislative framework for special purpose companies and holding companies. Special purpose companies are entities created to fulfil specific objectives or purposes. A holding company usually refers to one that does not produce goods or undertake trading services itself. Rather, its purpose is to hold and otherwise deal with both tangible and intangible property including shares and a variety of assets for other companies.

The amendments to the SC regulations include a number of clarifications to definitions, such as transaction, special purpose companies, holding companies, holding company activities and the entities which can hold shares in SPCs as nominees. The new rules detail further the operation of the SC regulations and in particular provide for the incorporation, licensing and registration of special companies, the approval of support service providers, the application of various aspects of the companies regulations and insolvency regulations to special companies and various notification requirements placed upon special companies by the QFCA and the companies registration office.

“We keep our legal environment under constant review, draw on best practice from around the world and respond promptly to client and practitioner commentary on existing and new legislation,” said David Dhanoo, Chief Legal Officer and Board Secretary, QFCA.

@Gulf Times