The FIFA World Cup 2022 in Qatar will probably not be played in the traditional months of June and July, Jerome Valcke, Secretary General, FIFA, has said.

There has been controversy around plans to stage the month-long tournament in Qatar’s intense summer heat, prompting calls to move the event to the winter. Qatar has said it will use cooling technology to make the environment pleasant for players and fans.

Valcke, who is FIFA President Sepp Blatter’s Deputy, told France Info that he thinks the event will be played between mid November and mid January at the latest. “If it’s played between November 15^th and the end of December, that is when the weather is most favourable,” he said.

The tournament is traditionally held in June and July, but concerns have been raised over the potential health risks of staging a World Cup during the intense heat.

Moving the tournament could also create problems for lucrative club competitions such as Europe’s Champions League while affecting American broadcasters, which have deals with domestic sports leagues that play through the first months of winter.

Sepp said that no decision on the scheduling will be made until after the World Cup in Brazil.

“As the event in Qatar will not be played until eight years’ time, the consultation process will not be rushed and will be given the necessary time to consider all of the elements relevant for a decision,” FIFA said in a statement.

“Consequently, no decision will be taken before the forthcoming FIFA World Cup Brazil 2014 as agreed by the FIFA Executive Committee.”

The FIFA Executive Committee is due to meet at its headquarters in Zurich, Switzerland.

The organising committee for Qatar’s first World Cup said in a statement that it would be ready to host the tournament at any time of the year.

“During the FIFA Executive Committee meeting it was agreed that FIFA would enter a period of consultation on the ideal time of year to host the World Cup in Qatar, with a recommendation expected after the World Cup in Brazil,” said the Qatar 2022 Supreme Committee.

“We await the outcome of this consultation period. We will be ready to host the World Cup regardless of the outcome,” it said.

@CNN

Qatar Islamic Bank (QIB) is planning to support Qatari companies that wish to invest in Ireland, which exited the joint European Union and International Monetary Fund bailout programme. Moreover, the Shariah-principled lender will also help Irish firms already present in Qatar as well as those that are planning to set up joint ventures or subsidiaries.

This was disclosed by QIB chairman Sheikh Jassim bin Hamad bin Jassim bin Jaber al-Thani after his meeting with Ireland’s Prime Minister Enda Kenny. It was the only meeting that the Irish premier had with any of Qatar’s banking institutions, the bank said.

Also on the agenda was a discussion about capital markets and development of Islamic financial products in Ireland.

“Follow-up high level meetings have already been scheduled for the near future, for both parties to discuss opportunities,” a QIB spokesman said.

This move by the bank is to help local companies have their presence in Ireland because of the attractive tax-efficient alternatives compared to some other EU countries.

With Qatar’s rapid development, it has become a growing investment and business destination for Irish firms and professionals, especially in the construction and services industries.

The Irish delegation is also considering financing opportunities and attracting new foreign direct investments from Qatar.
Attending the meeting were other senior members from the Irish government along with QIB’s senior management team. Their meeting was described as “very fruitful” as they discussed avenues of collaboration in the future, including mutual opportunities in both Qatar and Ireland.

Highlighting that Ireland’s economy is expected to grow 2% this year, Kenny had said as the economy becomes more competitive, it will continue to attract more foreign investments from Qatar.

The trade exchange between Qatar and Ireland was QAR 334.75 million in 2013 and QAR 291.5 million in 2010.

@Gulf Times

Local banks have scaled up their assistance to small and medium enterprises as the country looks to engage SMEs actively in nation-building and enhance private sector involvement in the economy.

The state-owned Qatar Development Bank (QDB) is a catalyst to SME development by designing a programme – Al Dhameen, which encourages banks to extend financial assistance to promising SMEs, which otherwise would have gone largely non-funded because of limited credit history or insufficient collateral.

QDB has signed agreements with local banks making them partners in the Al Dhameen programme, an industry source said. “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, CEO, QDB at a recent dialogue session with partner banks in Doha. “The programme managed to achieve huge success in a relatively short period of time, with the support of its 14 partners,” he said.

Local banks have equipped their SME units with trained personnel so that the small and medium enterprises development programme achieves the desired national objectives. Bankers said SME development would be top priority along with infrastructure financing in the years ahead.

Al Dhameen guarantees banks’ risk-sharing in case the financed project fails partially or fully. It also encourages banks to finance small and medium enterprises that are promising but cannot provide the required collaterals or accounting documents that prove their eligibility to receive finance.

QDB said Al Dhameen reflects its commitment to assist start ups and existing companies with a lack of collateral to obtain access to funds for growth in their businesses.

Qatar-based private sector companies are eligible for guarantees of up to 85% of the loan amount, but not exceeding QAR 15 million.

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

All main sector business activities are eligible for support under Al Dhameen with the exception of the following – agriculture, fishing and livestock, non-oil mining and quarrying, wholesale and retail trade, financial and insurance activities and real estate activities.

Al Dhameen is not intended to provide direct finance to SMEs. Instead, it offers the business owner facilities to receive finance from a partner bank, through issuance of guarantees in favour of the bank.

Any Qatari project, SMEs or joint ventures, including foreign investors, whose annual turnover does not exceed QAR 30 million can apply for finance from banks under the Al Dhameen programme.

Existing companies are eligible for guarantees of up to 75% of the unsecured outstanding principal and financing limits, of up to QAR 15 million, under Al Dhameen. Although QDB guarantees the loan to the partner bank, the sponsors are liable for the full loan amount.
Al Dhameen can also be in the form of project financing loans for manufacturing, where the maximum duration is eight years including a two year grace period. Financing for services have a maximum period of five years, including a one year grace period.

Ooredoo has reached a milestone of providing broadband fibre to more than 100,000 customers in Qatar, putting the country on track to becoming one of the best-connected nations in the world.

More than 80% of homes in Qatar now have an Ooredoo Fibre connection and the service continues to roll out to new areas every week.

In a global study based on figures from the FTTH Council, Qatar was recognised as having the fastest nationwide rollout of fibre in the world in 2012, judged by the percentage of homes passed by fibre and the number of homes connected in the year.

In line with its promise to ensure that as many people as possible have access to world-class fibre services, Ooredoo has continued to offer the widest possible range of packages for customers, so that people are able to switch from copper to fibre services and enjoy faster speeds, greater reliability and pick the package that best suits their needs.

As well as improving Internet services for customers, Qatar’s national embrace of fibre is also transforming the digital entertainment industry. For as little as QAR 17 per month, Ooredoo’s fibre customers have access to high definition Mozaic TV service, including hundreds of live channels in unmatched picture quality with the ability to pause, rewind and record. This advanced TV service also gives instant access to thousands of videos and TV series from the on demand catalogues.

Home users and business customers can access the fastest Internet speeds – the 100Mbps plan – for just QAR 650 per month, with basic fibre packages starting at QAR 233 for home broadband and voice services.

To enable more people to keep track of Qatar’s “fibre revolution,” Ooredoo has launched a real-time online fibre availability map, enabling customers to track the rollout progress of the network.

The map, which is live on Ooredoo’s website, allows customers to find out whether they qualify to upgrade their service by checking if they are in a fibre-ready “green” area and shows customers how to apply for a fibre upgrade.

The fibre rollout is part of a wider customer service revamp. Ooredoo’s investment in fibre will continue throughout 2014. In addition to expanding the network across Qatar, Ooredoo is planning a large infrastructure investment and capacity-building programme in the lead-up to FIFA World Cup 2022.

For home customers and businesses, this infrastructure creates an enormous opportunity to contribute to growth of a knowledge-based economy, positioning Qatar as a technology hub and becoming one of the best connected nations in the world.
Full details of all plans, pricing and offers are available on www.ooredoo.qa/en/fibre along with the fibre availability map.

@Gulf Times

With the International Maritime Organisation (IMO) deciding to regulate maritime transport’s emission rate from 2015, RasGas is planning to convert more than a dozen of its diesel-powered energy carriers into LNG-powered vessels.

The IMO’s regulations to cut the emission rate of the ships will force thousands of ship owners to convert their vessels into the clean LNG-powered engines.

RasGas has a fleet of  27 LNG carriers. They include 14 conventional carriers, 12 Q-Flex and one Q-Max carrier. The conventional carriers are already powered by steam plants. However, using new technology, RasGas is planning to convert its Q-Flex and Q-Max vessels. Currently, these 13 vessels are being powered by slow-speed diesel engines, which can fire only heavy fuel or marine gas oil. The idea is to convert them to be able to use gas as fuel that has been directly vaporised from LNG.

“A prototype will be soon be tested and if the results are positive, RasGas management will decide whether to convert all the Q-Flex and Q-Max vessels,” a report published in the latest edition of RasGas’ in-house journal noted.

According to IMO, about 90% of world trade is carried by sea. The most widely used marine fuels are heavy fuel oil, which has a high sulphur content and diesel. The stricter environmental regulations are persuading ship owners to consider alternatives, like LNG.

LNG is one of the best alternatives. Shipping Intelligence Weekly reported that there are some 58,000 cargo ships sailing across international waters, of which only around 300 ships are powered by LNG. Of these, around 240 were LNG carriers drawing on their cargo.

IMO rules require a cut in sulphur dioxide emissions to 0.1% in special emission control area zones, including the Baltic and North Seas as well as North American and Canadian coastal waters and worldwide to 3.5%. Thousands of ships will be affected by the new limits, and a global sulphur content limit of 0.5% could be in place by 2020. The decision will be made in 2018.

Some owners plan to install scrubbers to remove sulphur oxides from exhaust gases. Others may buy low-sulphur fuels. Yet others are ordering new LNG-fuelled ships.

LNG’s environmental credentials include virtually zero sulphur oxide emissions, reductions of up to 95% for nitrogen oxide emissions and 20% for carbon dioxide emissions when compared with conventional shipping fuels. According to the RasGas report using current estimates, around 90,000 vessels worldwide could potentially convert to LNG.

But there are challenges. LNG fuel has a lower energy density than oil, so LNG-powered ships other than LNG carriers are less likely to be used on longer journeys unless their owners are ready to double their fuel-storage capacity — a major obstacle for long-distance trade.

@The Peninsula

Al Meera Consumer Goods Company (QSC) has signed an agreement with Shannon Engineering for the construction of two new Al Meera stores in Al Muraikh and Jeryan Nejaima.

Guy Sauvage (right), CEO, Al Meera with Hany Abdel Fattah, GM, Shannon Engineering

The agreement was signed by Guy Sauvage, CEO, Al Meera and Eng. Hany Abdel Fattah, General Manager, Shannon Engineering Company.

The new agreement is part of Al Meera’s expansion plan to reach all areas in Qatar. The company recently announced the construction of seven new shopping stores at Rawdat Ekdeem, Al Azizia, Zakhira, Al Wajba, Muaither, Al Wakra, and Al Thumama, to meet the different needs of Qatar’s residents. Accordingly, Al Meera plans to open ten branches by the end of 2014.

Guy Sauvage and Dr. Mohammed Al-Qahtani, Deputy CEO, Al Meera, expressed their pleasure for signing the agreement with Shannon Engineering. Al Meera officials noted that the focus of the company’s strategy is for the “Favourite Neighbourhood Retailer” slogan  to be well translated.

“The decision to build two more new branches aligns with our expansion policy to make everyone very close to Al Meera stores in every corner of Qatar,” Guy Sauvage added. “Al Meera is not only building state-of-the-art stores, but also rehabilitating its old branches and maintaining them to fully comply with the new innovative concept to promote new standards of a comfortable shopping experience in all the branches in Qatar”.

According to Guy, the new branches will be contemporary buildings following the design of other branches that have recently opened, as well as the concept of malls which includes a supermarket, many shopping outlets and a number of restaurants to serve the diverse needs of customers.

Eng. Hany Abdel Fattah said that the construction of the two new stores is a testament to the commitment of Al Meera to help the country develop into a world-class shopping hub. He said, “We are glad to be part of this cooperation. Our company will construct both branches in line with our commitment to modernisation in building and designing complexes, taking into consideration the Qatari market requirements. We are ready to collaborate with Al Meera and share our expertise to serve the big retailer’s expansion and modernisation plans.”

Qatar Central Bank (QCB) plans to issue conventional and Islamic government bonds worth a combined QAR 24 billion (USD 6.6 billion), a much larger amount than it has offered in past quarterly debt auctions.

Local currency debt will be sold in three and five-year tranches. The conventional bonds will be worth QAR 13 billion, while the rest of the issuance will be in the form of sukuk, QCB said on its website.

The large issue is designed to replace part of an even bigger issue of QAR 50 billion which is worth three-year government bonds that were issued in 2011, as part of QCB’s efforts to manage loose money market liquidity.

QCB launched quarterly bond sales worth a total of QAR four billion, allocated directly to banks. It has also conducted monthly auctions since 2011, consistently draining QAR four billion despite occasional build-ups of excess liquidity.

The Minister of Finance His Excellency Ali Sherif Al Emadi said that volumes drained from the market through local currency debt issues might be changed.

The world’s top liquefied natural gas exporter may need more active management of money market liquidity as it plans to spend some USD 140 billion on infrastructure, partly in preparation to host the FIFA World Cup 2022.

The International Monetary Fund has said QCB needs to start managing liquidity fluctuations through more flexible open market operations.

@Reuters

Despite a significant increase in spending, Qatar’s fiscal position remains “strong” with a projected surplus of 3.9% of the country’s GDP in 2013-14, a new report has shown.

A testament to the buoyancy of Qatar’s hydrocarbons earnings is seen in the fact that capital spending can double and a budget surplus still be in prospect, said Samba Financial Group in its latest economic monitor. In 2012, Qatar’s capital expenditure of USD 13.7 billion left a surplus of USD 22.3 billion, it said.

Qatar’s capital spending is likely to have grown well above budget as the authorities look to make up for lost time on the infrastructure front. In recent years, disbursements on capital spending have consistently undershot budgeted spending, a situation that is set to change this year as the FIFA World Cup 2022 draws closer, the report said.

A key component of the National Development Strategy is to reduce the budget’s dependence on oil and gas exports, notwithstanding the fact that its gas reserves will last for at least for 150 years at historical rates of extraction, Samba said.

Indeed, there has been good progress on this front with a solid rise in investment income, which includes corporate and business income tax and other revenue streams.

Although a part of this increase is explained by a change in accounting practices, it is certainly an encouraging trend.

The government’s objective is to finance its entire budgetary operations through non-hydrocarbon revenue by 2020. Though Qatar is still some way off this objective (Samba forecasts the non-oil deficit to be 17% of GDP in 2013), the International Monetary Fund believes Qatar is the only Gulf country currently running a non-oil fiscal deficit consistent with an “equitable intergenerational allocation of its oil revenues.”

Specific fiscal targets aside, Qatar was the first of the GCC nations to set up a medium-term budgetary framework with the aim of giving its spending some predictability and tying the budget to its extensive development plans.

The pattern in the GCC is that medium-term development plans tend to be undermined by fiscal laxity and ad hoc spending decisions.
According to Samba, Qatar’s nominal GDP may scale up to USD 211.4 billion in 2014 and USD 219.9 billion in 2015, with a real GDP growth of 5.6% and 5.8% respectively.

Preliminary estimates from the Qatar Statistics Authority show that real GDP growth reached 6% in the second quarter of 2013, following 6.1% in the first. The bulk of the growth can be attributed to the non-hydrocarbon sector, which grew at 9.9% in the second quarter following 10.6% growth in the first quarter.

@Gulf Times

Emir Sheikh Tamim Ibn Hamad Al Thani has given orders to grant work visas to 20,000 Palestinians, the Palestinian Ambassador to Qatar said.

The move comes after 20 years in which Palestinians were prevented by Qatari authorities from acquiring visas to work in the prosperous Persian Gulf Emirate, according to the Ambassador.

Muneer Ghannam said that Palestinian Authority Prime Minister Rami Hamdallah, who met with Sheikh Tamim, had requested that Qatar allow Palestinian specialists to work in Qatar  to help reduce unemployment rates in Palestine.

The Emir of Qatar responded positively and eventually approved the entry of 20,000 Palestinians to work in his country.

The Palestinian Ministries of labour and foreign affairs will coordinate with their Qatari counterparts to determine what specialists the Qatari labour market can absorb, according to the Ambassador. The two Ministries will soon publish a list of vacancies in Qatar.

Workers and specialists who plan to take advantage of the Qatari announcement will have to sign a contract through the Palestinian Ministries of Labour and Foreign Affairs, added the Ambassador.

If a Qatari employer decides later to end the contract for whatever reason, he explained, the Palestinian will return to his homeland and will not be allowed to work again in Qatar until two years have passed.

The Ambassador highlighted that the Palestinian Authority Minister of Interior, Said Abu Ali and his Qatari counterpart signed an agreement detailing all employment conditions and regulations.

QNB Group recorded robust growth in profitability, with a net profit for 2013 amounting to QAR 9.5 billion (USD2.6 billion), up by 13.7% compared to 2012. These results include the financial results of QNB ALAHLI in Egypt, in which the Group completed the acquisition of a controlling stake amounting to 97.12% in March 2013.

Based on the strong financial results, the Board of Directors is recommending to the General Assembly the distribution of a cash dividend of 70% of the nominal share value (QAR 7.0 per share). The financial results along with the profit distribution are subject to Qatar Central Bank’s approval.

The Group’s cost control policy and strong revenue generating capability allowed it to maintain an efficiency ratio (cost to income ratio) of 20.4%.

Total assets increased by 20.9% to reach QAR 443 billion (USD 121.8 billion). This was the result of a strong growth rate of 24.3% in loans and advances to reach QAR 311 billion (USD 85.3 billion).

The Group was able to maintain the ratio of non-performing loans to gross loans at 1.6%. At the same time QNB Group increased customer funding by 24.3% to QAR 336 billion (USD 92.2 billion). This led to the Group’s loan to deposit ratio to reach 93%.

In order to diversify its source of funds, QNB Group announced the successful completion of a bond issuance under its Euro Medium Term Note (EMTN) programme in the international capital markets. Under this program a USD one billion tranche was issued with a seven-year maturity and an attractive coupon rate of 2.875%. QNB Group also announced the completion of its highly successful dual tranche US dollar bond amounting to USD 1.5 billion under EMTN in the international capital markets. Under this programme, two tranches were issued . One tranche of USD 750 million with a three-year maturity and another tranche of USD 750 million with a five-year maturity.

Total Equity increased by 12.0% to reach QAR 54 billion (USD14.8 billion). Earnings per share reached QAR13.5 (USD3.70), compared to QAR11.9 (USD3.27) in December 2012.

The capital adequacy ratio stood at 15.6%, higher than the regulatory requirements of Qatar Central Bank and the Basel Committee. The Group is keen to maintain a strong capitalisation to support future strategic plans.

Qatar National Bank (QNB) participated in an entrepreneurship networking workshop organised by The Bedaya Centre, in Katara. The one-day workshop enabled organisations to participate and discuss how to develop and help finance start up businesses. This is an important component in stimulating and driving the participation of SME’s in the Qatar economy.

The Bedaya Centre, a non-governmental organisation with a mission to connect people in the 18-30 age group with enterprise and financing opportunities, organises career development workshops on a monthly basis but with different themes. Each month, one of the country’s institutions, companies, or organisations participate in the workshop, where all entrepreneurs will have the chance to introduce themselves and their business concept.

At the latest workshop, Hamad Al-Jamali, Acting AGM for SME, QNB, emphasised the importance of the Business Banking programme which has recently been launched for all small and medium companies. The programme is an innovative platform featuring detailed business solutions by QNB that will enable all current and future business owners to expand or start a business by granting them easy, convenient and fast access to finance their small to medium sized businesses.

Dolphin Energy has signed a long term agreement with Gasal Qatar to provide it with the required quantities of nitrogen, up to a cumulative instantaneous flow rate of 10,000 normal cubic metres per hour to help enhance operational safety and reliability.

The nitrogen contract quantity agreement was signed at Dolphin Energy Tower in West Bay by Adel Ahmed Albuainain, General Manager, Dolphin Energy Qatar and Manuel Binoist, CEO, Gasal.

The 15-year agreement will be effective for two years after signing the contract. Dolphin Energy and Gasal will provide necessary infrastructure, modifications and miscellaneous works.

Adel Ahmed said, “We are delighted to sign this agreement as it marks another significant milestone in the history of Dolphin Energy. We have a track record of working with best in class entities and welcome Gasal to the list of Dolphin Energy’s partners.This agreement will ensure the smooth flow of the nitrogen gas required for Dolphin Energy’s operations to further enhance the level of safety and security.”

Manuel added, “Gasal is proud to have been selected by Dolphin Energy for the supply of its nitrogen requirements in Ras Laffan. This long term supply agreement, using Gasal’s extended pipeline network, provides both parties with an opportunity to reinforce their respective industrial footprint and develop operational synergies. It is also a demonstration of Gasal’s commitment and efforts to promote energy efficiency and support the development of the Qatari industry.”

The ceremony was attended by Bernardo Neri, Commercial Director, Gasal, Jerome Guichard, Large Industries Project Owner Representative, Gasal,  Detlef Wintershole, Industrial Director, Gasal  and Sahbi Amara, Business Development Manager, Gasal  as well as a number of senior managers from Dolphin Energy including, Ibrahim Jeham al-Kuwari, Deputy General Manager, Ajlan Eid al-Enazi, Public Relations, Abdulla al-Hassan al-Sulaiti, Business Support Manager and Hamad Abel, Senior Manager.

@Gulf Times

Growth outpaced expectations in Qatar in 2013, while 2014 is widely expected to see an uptick in economic activity, as the non-energy sector further expands on the back of high levels of infrastructure spending and consumer demand.

Perhaps the most significant event of 2013 was the transition of power from Qatar’s Emir, Sheikh Hamad Bin Khalifa Al Thani, to his son, Sheikh Tamim bin Hamad Al Thani. Sheikh Tamim is expected to follow the policy line of his father, with a focus on economic diversification, underpinned and funded by the country’s natural resources, along with maintaining strong social services.

In the economic sphere, growth gained momentum in the second half of 2013. According to the Ministry of Development Planning and Statistics (MDPS), GDP increased by 6.2%, primarily because of activity outside the energy industry. The non-mining and quarrying sectors grew by an annualised 9.5% in the third quarter, compared to the 1.8% for oil and gas. The higher rate of economic activity prompted the MDPS to revise its forecast for GDP growth.

A report prepared by Qatar National Bank early in the new year forecast that Qatar’s economy would maintain its steady rate of advance, with GDP predicted to increase by 6.8% in 2014, thanks in part to the rising pace of infrastructure spending and private sector activity. Again, much of the growth in the coming year is expected to be driven by the non-energy sector, with increasing investments in infrastructure being one of the locomotives for expansion.

The construction sector, which grew by 13% is set to carry forward this momentum into the new year and beyond, with expansion forecast at 15% or more in 2014. Though not as strong, the outlook for tourism and hospitality, finance, real estate and manufacturing also appears bright. Qatari banks are expected to finance infrastructure development, while at the same time looking abroad for expansion opportunities. Telecom provider Ooredoo is also likely to focus on its international investments.

In the energy sector, output is anticipated to remain steady. Qatar is looking to boost liquefied natural gas (LNG) sales to Europe, where a slowly improving economic outlook combined with some reluctance to further increase reliance on Russian gas could pave the way to higher export levels.

This potential increase in sales may counter a possible drop off in exports to other markets, as countries such as the United States and Australia expandtheir own LNG export facilities. The latter in particular is perceived to be a potential source of competition, given that it is well-positioned to serve Asian markets, which until now have had few alternatives to Qatari gas.

Inflation edged up toward the end of 2013, hitting 2.8%, on the back of rising accommodation and energy costs. Though inflation remained relatively subdued in 2013, there could be more price pressures in 2014.

Consumer demand is expected to climb, while the boost in construction activity across the Gulf may drive up labour and material costs. Demand could also be fed by an expected number of expatriate workers coming to Qatar, many to be employed on infrastructure developments or projects linked to the FIFA World Cup 2022, with the influx having the potential to push up rental costs for accommodation and other services.

While Qatar’s preparations for the mega football event will continue to attract headlines along with large investments in 2014 as work ramps up on stadiums and supporting facilities, far more economic activity will be taking place as other infrastructure projects are rolled out and consumer demand helps fuel growth in the financial and services sectors.

@Oxford Business Group

Qatar Central Bank’s (QCB) annual update of  2013 real estate price index indicates the country’s real estate market prices are heading to record high points. The update shows that the index has touched a high 189.8%, up by 21%.

After reporting a drop, the index rose to a new high of 178.6 points.

The index, that tracks the price movement of the country’s real estate market, reached a peak in 2013 with 190.4 points before dropping to 178.8 points. The index further slipped to 174.2 points rose marginally reaching 176.9 percent.

According to experts who track the country’s real estate market, real estate deals in the country last year were worth QAR 45.5 billion.

In the run up to FIFA World Cup in 2022, Qatar plans to invest more than USD 140 billion over the next five years in transport infrastructure to transform Qatar. Currently, availability of housing is scarce and with an increase in population forecasted in Doha, construction of affordable residences will increase.

QNB’s  Macro Economic Outlook 2013-14 noted large public sector infrastructure projects will  require a significant expansion in the labour force. As a result, population is expected to grow by an annual average rate of 10%. This will inevitably result in upward pressure on rents, which account for nearly one third of the Consumer Price Index. Rents have recovered from their trough and the rate of rental increases has been increasing in recent months while non-rent inflation has fallen. QNB forecasts inflation to increase in to 3.8% in 2014, mostly driven by higher housing costs.

Deloitte noted in its latest report on Qatar’s construction market that affordable accommodation is currently performing well in the market.

Demand for hotel accommodation is also anticipated to increase as more visitors are expected to visit Qatar in the run-up to the FIFA World Cup 2022, when the number of visitors will peak. Golden Tulip, Hilton Worldwide and the Starwood Group are actively considering investments in this sub-sector in Qatar.

With millions of visitors and football fans anticipated in 2022, Qatar has planned for the development of several hotels in the next few years. The expected influx of visitors also creates the opportunity for the development of commercial units, such as various shopping malls around Qatar.

@The Peninsula

IAG Cargo announced that it has signed a long-term commercial agreement with Qatar Airways to purchase capacity on Qatar Airways-operated air cargo freighters, effective from 1^st  May 2014.

Qatar Airways will operate five B777F flights a week between Hong Kong and London on behalf of IAG Cargo, providing continuity of service for IAG Cargo customers.

Willie Walsh, CEO, IAG, commented, “We are delighted to reach this agreement with Qatar Airways. This new partnership is an important step forward for us and enhances our relationship with Qatar. It allows us to continue delivering significant capacity for our customers through the important gateway of Hong Kong. This agreement ensures our customers in Hong Kong will see a smooth transition from the current arrangements to the Qatar Airways flights. With the ongoing arrival of our next generation aircraft, IAG Cargo’s customers will now benefit from increased belly-hold capacity as well as the deployment of freighter services on capacity constrained routes.”

The agreement marks a transition for IAG Cargo and follows the company’s decision to transfer freighter operations from its current provider, Global Supply Systems.

IAG Cargo connects 350 destinations worldwide, serving the world’s economic hubs with cargo-friendly wide-bodied planes. Through its Constant Climate network, it has one of the largest networks globally for handling temperature-sensitive air cargo.

Qatar Airways is already a partner with IAG through the oneworld global alliance which it joined in October 2013. The airline is taking delivery of a further three B777F aircraft during 2014.

Akbar Al Baker, CEO, Qatar Airways, commented, “Qatar Airways is pleased to be furthering our relationship with IAG Cargo. The growth in the cargo market has fuelled Qatar Airways’ massive expansion in this business and this exchange with IAG Cargo allows us both to deliver optimal level of service, convenience and flexibility to our worldwide cargo customers. Hong Kong is a key market on our route map and so we have continually made investments in the capacity operating on the route. Qatar Airways Cargo is currently undergoing significant development and growth with the introduction of new aircraft and freighter routes. The opening of our brand new facility at Hamad International Airport will soon see 1.4 million tonnes of cargo being handled annually. Our expansion plans and innovation initiatives will definitely support IAG Cargo to deliver a high-level of service to their customers.”

Sub-Saharan Africa (SSA) continues its rapid growth momentum. According to the latest QNB Group estimates, the subcontinent grew by 5% in 2013 and is expected to reach 6-6.5% in 2014 on the back of high investment spending and a growing middle class. This makes it the second fastest economic growth performance in the world and raises the question: could SSA be the next China? According to QNB Group, strong infrastructure investment and continued prudent macroeconomic policies will be essential if the African subcontinent is to achieve double-digit growth and reach emerging market status.

The economic renaissance of the African subcontinent started in the mid-1990s. Following years of corruption and economic mismanagement, a new generation of African leaders started on the difficult path of structural reforms with support from the International Monetary Fund (IMF) and the World Bank. This required bringing inflation under control, increasing tax collections, reducing wasteful subsidies, and redirecting government spending toward long-term investments in human capital, like education and health. At the same time, the international community granted most SSA countries generous debt relief that enabled them to exit from an unsustainable debt burden accumulated during the 1970s and 1980s.

The results of this economic renaissance have been remarkable. From stagnation and high inflation in the 1980s, several African countries have managed to grow rapidly for the last two decades under moderate inflation. Countries like Ethiopia, Mozambique, Rwanda, Tanzania and Uganda on average quadrupled their real GDP growth rates, while bringing inflation generally down to single digits. More importantly, this has enabled millions of Africans to escape poverty and reach middle class status.

Behind the macroeconomic statistics though, an even more interesting story about the SSA economic renaissance emerges. While SSA economic growth was primarily linked to international commodity prices in the past, for products like cocoa, copper and crude oil, the new growth drivers are increasingly linked to a rising African middle class. For example, SSA is the fastest-growing mobile phone market in the world. Mobile licenses grew at an average compound annual growth rate of 44% between 2000-12, according to the GSM Association. This has unleashed a digital dividend that extends from mobile banking in Kenya to the launch of smart taxi cabs in South Africa.

Another important driver is the rise of the African consumer. According to a 2012 study by McKinsey & Company, the SSA consumer industries will grow by USD 400 billion during 2012-20, representing the single-largest business opportunity in the subcontinent. This growth is driven by Africa’s population, which is the fastest growing and youngest in the world, being increasingly urbanised, educated and digitally-savvy.

What is stopping SSA from growing faster and becoming the next China? According to QNB Group, the next phase of the African renaissance will need to be driven by large infrastructure investment and continued prudent macroeconomic policies to support the rapid growth in other sectors of the economy. As many have experienced while traveling in Africa, airports are overcrowded, electricity supply is unreliable, ports are inadequate and roads are mostly unpaved. What is needed is to fill this infrastructure gap to enable the subcontinent to reach double-digit growth. This will need skillful policies for governments to finance such large investments while avoiding another unsustainable debt burden that could cripple the fiscal discipline achieved during the last two decades. With strong infrastructure investment and continued prudent policies, the African subcontinent will undoubtedly turn into an economic might.

Qatar Islamic Bank (QIB) recorded a net profit of QAR 1.34 billion in 2013, up 7.6% compared to QAR 1.24 billion posted in 2012.

Announcing the full-year results of the bank, Sheikh Jassim bin Hamad bin Jassem bin Jaber Al Thani, Chairman, said in line with the improved profitability, the Board of Directors have proposed a profit distribution  of 40% of the nominal share value (QAR 4 per share) to the shareholders.

The financial results for 2013 along with the proposed distribution are subject to approval of Qatar Central Bank and QIB’s General Assembly, he said.

Total assets of the Bank has increased by 5.7% compared to 2012 and now stands at QAR 77.4 billion. Financing activities continue to be the major growth driver and have now reached QAR 47.1 billion, representing a 9.3% growth.

Customer deposits of the Bank registered a strong growth of 16.7% and now stand at QAR 50.4 billion compared to QAR 43.1 billion in 2012, allowing the Bank to effectively fund its asset growth.

Total Income for the year in 2013 has reached QAR 3144 million, which is 1.3% higher than QAR 3105 million generated in 2012. Income from financing and investing activities has grown by 5% to reach QAR 2804 million at the end of 2013 compared to QAR 2666 million in 2012, reflecting a healthy growth in the Bank’s core operating activities.

QIB was able to bring down the ratio of non-performing financing assets to gross financing assets to 0.9% compared to 1.6% in 2012, reflecting the quality of the Bank’s financing assets portfolio and its effective risk management framework.

The strong operating performance has enabled the Bank to pursue a conservative impairment policy by allocating QAR 360 million towards improving the provision coverage on financial investments and financing activities compared to QAR 491 million in 2012. As a result, the coverage ratio for non-performing financing assets reached 94% in 2013 up from 62% in 2012.

Total Shareholders’ Equity of the Bank increased by QAR 386 million to reach QAR 11860 million, helping the Bank to improve its capital adequacy ratio to 16.5%.

Sheikh Jassim commented, “The Bank has increased business volumes across all market segments, which had positive impact on QIB’s end of year financial results, solidifying its position as a leading bank in Qatar. QIB has managed to implement successful risk management during 2013 strengthening all prudential ratios and building a strong foundation for future business expansion.”

He added, “QIB keeps on supporting the local economy, investing in local talent and continues to be a good corporate citizen by supporting government initiatives and donating to the ones in need.”

Sheikh Jassim expressed his deep gratitude to QIB’s shareholders and clients for their trust in the Bank, and his appreciation to the Board of Directors and employees for their contribution and continuous efforts towards achieving positive results.

@The Peninsula

Growth in loans and deposits improved in 2013. Loans climbed by 1.3%. Deposits also expanded by 2.8%. Going forward, we expect activity in the banking sector to pick up in the coming months.

The banking sector’s loan-to-deposit ratio (LDR) decreased to 105%. Going forward, some banks will be issuing Tier 1 bonds. The Commercial Bank of Qatar (CBQ) raised QAR two billion in Tier 1 notes while Doha Bank (DB) announced it will be raising QAR two billion in Tier 1 bonds in 2014 to improve its capital adequacy ratio (CAR) as well as provide additional funds aiding loan book growth.

Public sector deposits receded by 0.6%, while private sector deposits gained by 4.5%. Delving into segment details, the government institutions’ segment, which represents 54% of public sector deposits, retreated by 6.6%. However, the government segment expanded by 6.6%. The semi-government institutions’ segment followed in the footsteps of the government segment growing by 9.2%. On the private sector front, the companies & institutions’ segment expanded by 7.3% and the consumer segment ticked up by 2%.

The overall loan book exhibited improved performance. Total domestic public sector loans marginally picked up by 0.9%. Public sector loans grew by 9.7%. The government segment’s loan book grew by 2.8%. On the other hand, the government institutions’ segment, which represents 64% of public sector loans, declined by 2.5%. We believe public sector loan growth will be the primary driver of the overall loan book in 2014. Our assumption is based on the expected uptick in project mobilisations in the coming months. Private sector loans ticked up by 1.5%. The Industry segment posted the biggest growth, up 15.8%, while the Consumption and others’, which contributes 29% to private sector loans, loan book retreated by 2.4%. Real Estate, which contributes 29% to private sector loans, rebounded 3%.

Specific loan-loss provisioning stood at 1.4%.

Qatar National Research Fund (QNRF), a centre of Qatar Foundation Research and Development, awarded grants totalling USD 1,388,000 to undergraduate students in Doha.  The research grants are part of Qatar’s goal of continuing prosperity through development of a knowledge-based economy.

The 15^th cycle of the Undergraduate Research Experience Programme (UREP) saw 39 proposals receiving grants, out of the 126 proposals that were reviewed, a 31% success rate. The programme gives undergraduate students the opportunity to acquire invaluable hands-on experience by participating in innovative research.  Each proposal was evaluated under strict criteria by three independent peer reviewers.

QNRF’s Executive Director, Dr. Abdul Sattar Al-Taie, expressed his delight at the breadth and depth of research undertaken. He said, “UREP’s latest cycle attracted 42 proposals under the engineering and technology discipline, followed by an impressive 40 in social sciences, arts and humanities, 23 in the medical and health related discipline and 20 in the natural sciences.”

Dr. Al-Taie added, “One of QNRF’s core missions is assisting Qatar’s youth to pursue a career in research.  The ability to develop a research culture is a critical building block for Qatar’s future.”

Proposals awarded by QNRF were submitted by students from Qatar University, Texas A&M University at Qatar, Ahmed Bin Mohamed Military College in Qatar, Weill Cornell Medical College in Qatar and Northwestern University in Qatar.

“The latest cycle saw grants awarded to 145 students, 44 of whom are Qatari students,” said Sunitha Shyam, Training Programmes Manager, QNRF. “This is really encouraging and I am particularly pleased to see such a high number of female Qatari students participate in UREP. Supporting young women in Qatar to further develop skills in science and research is a key area for QNRF so we are extremely happy that 27 Qatari females participated.”

The students will carry out research on a wide spectrum of topics that are of benefit to Qatar.  The research projects include a study of biodiversity in date palms from different regions in Qatar, building a hybrid-renewal energy generation system for eco-friendly buildings in Qatar, improving Doha’s residential neighbourhood by promoting healthy communities, a study to engage and empower Qatari women and examining the transition of Doha’s Fareej Al Asmakh to a living heritage district.

Mannai HED, the heavy equipment division of Mannai Trading Co., has sold Qatar’s first 300-tonne Grove all-terrain crane to ConXion, the Qatar-based logistics and heavy equipment specialists.

The new high-capacity crane offers essential reach and power to both lift and lower materials and to move them horizontally. The acquisition gives ConXion a significant competitive advantage, particularly for the completion of signature high-rise projects in Qatar, and comes at a time when the demand for such cranes in Qatar is at an all-time high.

ConXion provides logistics expertise and the transportation of cargo, heavy equipment and industrial products across Qatar and the GCC. As a key partner in the construction industry, it is expanding its fleet of specialised vehicles, particularly high-elevation cranes, as the number of construction and infrastructure projects in Qatar continues to grow.

Mannai HED is a distributor and provides after-sales support for a number of internationally renowned heavy equipment lines including Grove Cranes, JCB units, TCM forklifts, Massey Ferguson agricultural equipment, Daewoo buses, DAF trucks and Eicher trucks.

Khalid Yousef, General Manager, Mannai HED Operations, said, “The sale of this Grove crane comes at a time of increasing demand from the construction industry for high capacity cranes which will be crucial to help Qatar meet its targets for infrastructure and real estate development. At Mannai HED we work closely with our partners to understand their needs and we make strategic investments to help them to realise Qatar’s vision for the future using the world’s best equipment, supported by a first-class after-sales service. We look forward to a continued strong partnership with ConXion in the future.”

Badr Ahmed Al Emadi, Managing Director, ConXion Logistics Services and Heavy Equipment, said, “The expansion of construction in Qatar provides many investment opportunities. We are proud to work with Mannai HED to provide our clients with the latest, most specialised equipment in the world, which underlines our commitment to the development of Qatar in line with the Qatar National Vision 2030.”