June Cover - Qatar Today's TOP TEN Companies on the QE

j u n e 2 0 1 2 Qatar today 37

masraf al rayan

woQod mawashi industries Qatar

national leasing holding company

1 2 3 4 5

Qatarindustrial

manufacturingcompany

Qatar national cement

company

doha insurance company

doha bank Qatar islamic

insurance company

96 7 8 10

cover story Qt top ten

Qatar today j u n e 2 0 1 238

t the end of 2011, the Qatar Exchange (QE) price in-dex finished at 8,779.03 points – a gain of 1.12% on its closing value in 2010 and one of 26.2% on its 2009 closure. Major indicators such as the general index,

market value, total trading value, total trading volume and the number of transactions making up the traded volumes all increased in the twelve-month period.

The total traded volume of shares (in 252 trading days) increased to 2.3 billion during 2011 – a 10% in-crease on 2010, which had one less trading day. The daily average of traded shares rose to 9.1 million com-pared with 8.3 million in 2010. The value of traded shares was QR83.4 billion in 2011 – a 24% increase on 2010, while the daily average traded value was QR331 million compared to QR268 million in 2010.

Sixteen of the 42 companies listed finished the final day of trading in 2011 at a higher value, while 26 stocks declined from their end-2010 price. Total subscribed shares reached 9.663 billion, a 5% increase. The mar-ket capitalisation of the 42 listed companies increased to QR457 billion – an increase of 1.6% from 2010.

So amidst all the global negativity, who were the drivers of all this growth on the QE? The QE is com-prised of 42 listed companies with just 9% owner-ship interest from overseas – a statistic which may be analysed in more detail if the 2011 trend continues. Qatar Today and AlShall Economic Services provide your one-stop-shop on the most lucrative shares on the QE over the past five years. We have collaborated once again to review the QE’s Top Ten.

after some respite in 2010, the global economy returned to sentiments of uncer-tainty in 2011, as focus switched from the private financial sector to individual

countries, particularly in the us and europe. after a general improvement in the performance of most stock market indexes in 2010, fears of sovereign debt-default led to a regression in their performances in 2011. however, in a show of remarkable

defiance, the Qatar exchange managed to buck that trend and was one of the only markets to finish the year in the black.

A


“We retained the same calculation methodology as in previous years,” said Camille Raphael, General Manager of AlShall Economic Services. “We tried to ascertain which companies would have brought an investor a better return had the investor bought one share in that company at the beginning of 2007 and sold it at the end of 2011, including any addi-tional shares they may have received for free during this period.”

Calculation methodology“To the share market price appreciation,” he contin-ued, “we added the amount of cash that the company distributed to its shareholders from its net profits over the period under study as well as the attractive-ness of the company’s shares based on revenue and net profit growth, with the rationale that the value of a company (hence its share price) could potentially in-crease if the company’s sales revenues and net profits keep increasing extraordinarily year over year.

“Lastly, liquidity of the stock expressed in terms of average traded volume and number of transactions was taken into consideration, given that if someone would like to exit the investment, they should be able to do that with relative ease,” he added.

For calculations of price per share, cash distribu-tions, net profit and revenue growth, Al Shall looked at total shares held at the end of 2011 on the basis of the purchase of one share in that company at the begin-ning of 2007, and the computations were made on a per share basis. This was done to offset any ownership dilution from corporate actions such as mergers and acquisitions or capital increases. It should be noted that from time to time, Qatar listed companies dis-tribute cash to their shareholders during the year, de-pending on their previous year’s performance (what is referred to as cash dividends), as well as free share dividends.

“We also decided to measure all financial and trad-ing performance as an average of the five-year period, to mitigate extraordinary one-time performances, and assess the listed companies during a period that has seen both boom and gloom,” said Raphael.

AlShall understands that it calculated the rankings based on a selection of financial measurements, that

may or may not be the best criteria to assess the at-tractiveness of a company, but it feels it needs to use a holistic lens to be fair to all companies.

“It is important to diversify the financial measure-ments in conjunction with statement analysis to achieve a more objective approach in determining a company’s rank,” said Raphael.

Relevant to an investor’s point of view, the overall ranking of companies was based on seven financial indicators in line with their respective weighted aver-age criteria. The weights used are 20% each for price growth, dividend yield and liquidity, while net profit growth, revenue growth, return on equity and return on assets are weighted at 10% each.

Price growth Historical data on year-end share closing prices and share dividend distributions for the past five years are used to assess each company’s ranking in terms of price growth (or average yearly portfolio value increase based on one share purchased in each com-pany at the beginning of 2007). Gulf Warehousing Company (59.7%) was by far the best in terms of price growth, followed by Mawashi and National Leasing Holding Co.

Dividend yield Dividend yield demonstrates how much a company pays out in dividends each year in relation to its av-erage market capitalisation. Masraf Al Rayan (7%) achieved the highest ranking in this category, followed by Doha Bank and Doha Insurance Co (both 5.4%). It is also evident that six of the Top Ten come from the financial sector.

Liquidity The measure of liquidity should indicate how easily shares can be purchased or sold on the QE based on average trading volume per year and the number of trades per day. Generally speaking, companies with both a high daily volume of traded shares and a high number of trades have better liquidity than those with light trading volumes and a low number of trades. Masraf Al Rayan ranked first on this criterion, fol-lowed by last year’s top performer, Mawashi.

“it is important to diversify the financial measurements in conjunction with state-ment analysis to achieve a more objective approach in determining a company’s rank.”

Camille Raphael

General ManaGerAlShAll Economic SErvicES

(con’D on P.42)



QE is opEn for businEss

“one important thing in early 2012 was the readiness of the Qe venture

market, which is the market estab-

lished for small enterprises.

we’ve created the environment and from a technical

and regulatory perspective we’re ready to go. we’re

now engaging with potential

listing candidates.”

he Qatar Exchange (QE) maintained its position as the best-performing market in the GCC and Arab region in 2011. It is a well-regulated en-vironment that uses state-of-the-art NYSE Euronext technology to support transpar-

ency and accuracy, which makes trading an efficient experience overall.

The QE aims to support the country’s economy by providing a market for issuers to raise capital to grow their businesses and an environment for investors to cultivate the opportunities they see in the listed companies. The QE currently has 42 listed compa-nies, which aggregate for a market capitalisation of QR457 billion ($126 billion). It understands that to grow, to attract more companies and investors to its table, it needs to set that table right, and QE Chief Ex-ecutive Officer, Andre Went explains that reform and diversity are key to that drive.

“We defined a five-year strategy in 2009 which in-corporated three phases,” says Went. “Phase one was the reform of the cash market; phase two is to launch derivatives and a central counterparty, and phase three is to try to generate more international business development. We’re currently in phase one.”

Reform of the cash marketFollowing a strategic partnership agreement in 2009 between Qatar Holding and NYSE Euronext, a Euro-American corporation that operates multiple securi-ties exchanges, the Doha Securities Market (DSM) was renamed the Qatar Exchange. It was hoped NYSE Euronext’s experience and reputation would give the market some added features and credibility in a global context.

“The partnership has three components,” says Went. “One is the shareholding partnership – NYSE Euronext has a 20% stake in the exchange, so they work in developing the exchange (the other 80% is represented by Qatar Holding); second is a technical aspect where IT services like Universal Trading Plat-form (UTP) are being arranged; and the third is a ser-vices agreement where ‘knowledge transfer’ is being done on an ongoing basis, so we have a number of ex-perts coming from Europe, some on a consultancy ba-sis. In all three areas, the partnership is going great.”

Went is adamant that to improve the liquidity of the cash market and to secure the confidence of traders –both in Qatar and abroad – there had to be alignment with global standards in all areas, from the trading in-frastructure to the settlement of transactions. Apart from attracting investors from Europe, Asia and the US, the exchange is also starting a campaign to attract more expatriates living in Qatar to look into invest-ing in QE. So what changes has the QE implemented in the past 12 months to affect its strategy of enticing

tandre WentcEo,QATAr EXchAnGE


more investors to trade on the exchange?“In 2010, we started implementation of a new trading system

called UTP, which is a state-of-the-art technology in line with in-ternational standards. We also made a change in the ‘post-trade’ – or the settlement of transactions – where in the past the mon-etary side of those transactions was handled by a private bank; it’s now handled by the Qatar Central Bank (QCB). We have also increased our number of registered brokers from seven to 10.

“We also introduced a delivery-vs-payment (DVP) system, which is a set of rules on how a transaction is settled. It ensures you receive your shares at exactly the same time you pay for them, and of course the other way round – when you sell your shares you lose control of them at precisely the same time as you receive your settlement. Towards the end of 2011 we implement-ed the T-bills market, which is the very first step towards the development of a bond market.

“Early last year we made some changes in terms of the trading hours,” Went adds. “A half-hour was added in the morning and the afternoon, so now we’re open from 9.30am to 1:00 pm for continuous trading; this adds a bit more overlap with the Asian and European markets.

“We also decided to change the ‘tick sizes’ in the market – tick sizes are the smallest increment in which you can enter orders into our order book. It used to be ten dirhams, but we related it more to the price of the shares. For example, for low-priced shares up to QR25, the tick size is one dirham; for QR25-50 it’s 5 dirham and above QR50 it’s 10 dirhams.”

Diversity of investment opportunitiesThe QE is now past the half-way marker in its five-year plan, so where does Went see the exchange at this intermediate stage? How is it performing in line with its stated mission of offering di-versity in the range of investment and trading opportunities?

“We are seeing satisfactory progress in the cash markets - some things we would like to see done a little bit quicker, but then our T-bills market has been implemented ahead of time. The next major step will clearly be derivatives, but we first need to fina-lise the cash-market phase and ensure that sufficient liquidity is available in the market.

“One important thing in early 2012 was the readiness of the QE Venture Market, which is the market established for small enterprises. We’ve created the environment, and from a tech-nical and regulatory perspective we’re ready to go. We’re now engaging with potential listing candidates. This is the only such market in the region – it follows a similar principle to the Alter-native Investment Market (AIM) of the London Stock Exchange, which allows smaller companies to float shares with a more flex-ible regulatory system than is allowed on the main market.

“The bond market would fit very well in any situation finan-cially,” says Went. “It’s a different way to raise capital and it hasn’t a high-risk profile – definitely not the bonds that are issued by the State of Qatar or Qatari companies; it’s very secure and well rated. I think the uncertainty after the financial crisis adds to the demand for these kinds of instruments. Bonds and sukuks, are very secure instruments which wouldn’t be impacted by the financial crisis; if anything, the demand for them increases.

“The hopes for the remainder of this year would be to launch exchange-traded funds (ETFs). We are in discussions with the regulator about the implementation of other instruments and measures, such as real estate investment trusts (REITs), liquid-ity provision, securities lending and borrowing, and direct elec-tronic access, which will be important steps in the development of the exchange. Then going forward we will start looking at the derivatives market – we can’t focus on this until we see results in the cash market.”

Went also reveals that the exchange is looking at a Sharia com-pliant index for those who require such an investment tool.

“It is part of the product development – a Sharia-compliant index can be used to enhance and develop other products like ETFs, and further down the road derivatives that are linked to an index.”

Performance There are 42 companies listed on the QE, but it has just 20 con-stituents. It’s normal for any market to have a so-called “blue-chip index” that reflects the largest and the most actively traded companies. Inclusion is statistically determined by such factors as liquidity in the market, velocity and market capitalisation, and constituents are reviewed every six months.

The QE maintained its position as the best-performing mar-ket in the GCC and Arab region in 2011. After a 24% increase in 2010, the index grew by 1.12% in 2011 – the only market in the re-gion to post a positive return. The year ended with a total market capitalisation of QR457 billion ($126 billion) – a 1.59% increase on 2010.

“We have seen some swings in the past, but 2011 brought a lot of stability, both on the QE Index and the Total Return Index (TRI),” says Went. “If you look at some of the other markets in the region, QE has clearly been the best-performing market in the region.”

The exchange is being developed to attract traders and investors from Qatar and abroad, so how much is the market here being stimulated by foreign interest?

“The economy of Qatar is clearly very attractive - it’s develop-ing very well,” says Went. “Foreign investors (both institutional and retail) make up about 8% of the market capitalisation of QE, but in terms of annual turnover, they account for about 35%.”

One aspect which encourages foreign investment is a well-regulated marketplace, where investors can feel at ease with the environment in which they are placing their money. The State of Qatar has been trying to get all regulatory authorities under the same umbrella for some years now and the plan is to have a single regulator in the near future.

When asked for an outlook on the future, Went says: “The strength of QE is directly related to the strength of the Qatari economy and the integrity of the capital market in Qatar as the country continues to grow and develop in line with Vision 2030, and as liquidity continues to flow into Qatar the positive im-pact this will have on QE will only further enhance our strong and robust trading environment and give investors increasing confidence in our listed companies.”

(Interviewed by Rory Coen)



Net profit growth Net profit growth is calculated on a cumulative shares held basis, to reflect whether the shareholder’s original claim over each com-pany’s net profit has increased or decreased over the five-year peri-od, and on average by how much. This is done to offset any possible dilution resulting from corporate action.

Healthcare company, Medicare Group ranks the highest, achiev-ing a remarkable 942% average increase per share held, with

Masraf Al Rayan in second place on 178%.

Net Revenue growth Revenue growth is one of the basic criteria to assess a company’s attractiveness, with the assumption that the higher the revenue growth, the more the potential for future profits. Qatari German Co. for Medical Devices significantly led the rankings in this category with its cumulative shares held multiplied by revenues per share growing at an average of 855%. Last year’s top performer in this cat-

(con’D From P. 39)

Source:AuDiTED FinAnciAl STATEmEnTS For ThE PAST FivE yEArS (2007-2011), QATAr EXchAnGE AnD AlShAll cAlculATionS

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egory, the gas transportation company Nakilat, slipped down one place despite registering an average growth of 375%.

Return on equity Return on equity measures the ability of the company to gener-ate sufficient returns for the capital invested by its shareholders. Woqod (62.6%) and Industries Qatar (34.5%) maintained their top two positions as in last year’s ranking in this category.

Return on assetsROA determines the company’s ability to utilise its assets effec-tively and efficiently, thus earning a good return from them. In this criterion – crucial to asset-intensive companies – Industries Qatar (28%) ranked best followed by Woqod (23.4%), which was again similar to last year.

Financial sector inching upIt is important to note that the rankings apply to only 32 of the

01 02 03 04 05 06 07 08 09 10

01 02 03 04 05 06 07 08 09 10

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al l

easi

ng

ho

ldin

g c

o.

72

.1%

u

nit

ed

Develo

pm

en

t c

o.

64

.4%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

62

.2%

Q

ata

ri invest

ors

Gro

up

6

2.0

%

Barw

a r

eal E

state

co

. 6

1.1%

Q

ata

r Te

leco

m (

Qte

l)

47.

2%

6

2.6

%

Qata

r F

uel (W

oq

od

)

3

4.5

%

ind

ust

ries

Qata

r

3

1.2

%

Qata

r E

lectr

icit

y &

Wate

r c

o.

2

5.7

%

un

ited

Develo

pm

en

t c

o.

2

3.6

%

Qata

r n

ati

on

al B

an

k

2

3.0

%

Qata

r n

ati

on

al c

em

en

t c

o.

2

1.2

%

Do

ha B

an

k

21.

2%

A

hli

Ban

k

2

0.5

%

nati

on

al l

easi

ng

ho

ldin

g c

o.

20

.3%

Q

ata

r Te

leco

m (

Qte

l)

ind

ust

ries

Qata

r 2

8.0

%

Q

ata

r F

uel (W

oq

od

) 2

3.4

%

Qata

r n

ati

on

al c

em

en

t c

o.

17.

0%

Qata

r is

lam

ic in

sura

nce c

o.

16

.6%

Q

ata

r in

du

stri

al m

an

ufa

ctu

rin

g c

o.

14

.5%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

10

.9%

A

l K

hale

ej Ta

kafu

l G

rou

p.

9.9

%

nati

on

al l

easi

ng

ho

ldin

g c

o.

9.7

%

Qata

r c

inem

a &

Film

Dis

t. c

o.

9.7

%

un

ited

Develo

pm

en

t c

o.

9.6

%

masr

af

Al r

ayan

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

Barw

a r

eal E

state

co

.

Q

ata

r G

as

Tra

nsp

ort

co

. lim

ited

(n

akila

t)

nati

on

al l

easi

ng

ho

ldin

g c

o.

Qata

ri G

erm

an

co

. fo

r m

ed

ical D

evic

es

m

ed

icare

Gro

up

Q

ata

ri invest

ors

Gro

up

Q

ata

r is

lam

ic B

an

k

ind

ust

ries

Qata

r

average return

on assets

net revenue growth

liQuidity average

return on eQuity

Ave

rag

e R

OE

20

07

–2

011

Ave

rag

e R

OA

20

07

–2

011



42 listed companies on the QE, because only those that have been listed since the beginning of 2006 – and have at least five years of recorded public disclosure – were selected.

So with the criteria defined and the 32 companies assessed in each one, who were the 2011 top-performing companies in the QE over the past five years?

This year’s top performers came from various industries. Six of last year’s top 10 companies are included in this year’s rankings. Islamic Bank, Masraf Al Rayan – which was excluded from the

calculations last year given its recent listing – takes top spot from fuel supplier Woqod, which slips to second position.

The financial sector showed a major improvement in terms of rank-ings with four companies in the Top Ten – Al Rayan, Doha Insurance Co., Doha Bank and Qatar Islamic Insurance Co. Woqod has consis-tently been in the Top Ten to date, while the industrial sector is rep-resented by Industries Qatar and Qatar Industrial Manufacturing Co. Two companies come from the consumer services sector – Ma-washi, the meat and livestock trading company, and National Leasing

SourcE: AuDiTED FinAnciAl STATEmEnTS For ThE PAST FivE yEArS (2007-2011),

QATAr EXchAnGE AnD AlShAll cAlculATionS

01 02 03 04 05 06 07 08 09 10 01 02 03 04 05 06 07 08 09 10

01 02 03 04 05 06 07 08 09 10

163

.9%

Qata

r c

inem

a &

Film

Dis

t. c

o.

14

3.7

%

Al m

eera

co

nsu

mer

Go

od

s c

om

pany

108

.2%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

5

6.1

%

Gu

lf W

are

ho

usi

ng

co

.

45

.8%

masr

af

Al r

ayan

35

.1%

m

ed

icare

Gro

up

33

.5%

A

hli

Ban

k

27.

5%

Q

ata

r F

uel (W

oq

od

)

2

5.5

%

Sala

m in

tern

ati

on

al in

vest

men

t l

imit

ed

2

5.0

%

Qata

r o

man

invest

men

t c

o.

u

nit

ed

Develo

pm

en

t c

o.

52

7.5

%

E

zd

an

real E

state

co

. 1

84

.7%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

90

.0%

D

lala

Bro

kera

ge &

invest

. ho

ldin

g c

o.

72

.1%

in

du

stri

es

Qata

r 4

4.8

%

Q

ata

r G

en

. in

sura

nce &

rein

sura

nce c

o.

42

.3%

Q

ata

r G

as

Tra

nsp

ort

co

. lim

ited

(n

akila

t)

25

.3%

n

ati

on

al l

easi

ng

ho

ldin

g c

o.

19

.8%

A

l m

eera

co

nsu

mer

Go

od

s c

om

pany

18

.0%

m

asr

af

Al r

ayan

1

6.3

%

1.

66

%

m

asr

af

Al r

ayan

0

.88

%

Sala

m in

tern

ati

on

al in

vest

men

t l

imit

ed

0

.84

%

Do

ha in

sura

nce c

o.

0

.81%

Q

ata

r in

sura

nce c

o.

0

.76

%

Th

e c

om

merc

ial B

an

k o

f Q

ata

r

0.7

4%

Do

ha B

an

k

0

.70

%

Qata

r in

tern

ati

on

al is

lam

ic B

an

k

0.6

5%

Ah

li B

an

k

0.6

4%

A

l K

hale

ej Ta

kafu

l G

rou

p

0.6

4%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

un

ited

Develo

pm

en

t c

o.

257.

2%

G

ulf

Ware

ho

usi

ng

co

. 1

06

.8%

Q

ata

ri G

erm

an

co

. fo

r m

ed

ical D

evic

es

9

8.8

%

Do

ha in

sura

nce c

o.

81.

8%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

59

.2%

E

zd

an

real E

state

co

. 4

2.0

%

Qata

r F

uel (W

oq

od

)

37.

1%

nati

on

al l

easi

ng

ho

ldin

g c

o.

34

.3%

in

du

stri

es

Qata

r 2

9.2

%

Aam

al c

om

pany

26

.0%

6

5.0

%

un

ited

Develo

pm

en

t c

o.

3

9.2

%

Qata

r F

uel (W

oq

od

)

3

8.3

%

Qata

r E

lectr

icit

y &

Wate

r c

o.

3

3.1

%

ind

ust

ries

Qata

r

3

0.5

%

nati

on

al l

easi

ng

ho

ldin

g c

o.

2

9.7

%

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eera

co

nsu

mer

Go

od

s c

om

pany

2

9.4

%

Qata

r is

lam

ic in

sura

nce c

o.

26

.1%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

2

5.0

%

man

nai c

orp

ora

tio

n

22

.7%

Q

ata

r n

ati

on

al B

an

k

in

du

stri

es

Qata

r 4

4.6

%

u

nit

ed

Develo

pm

en

t c

o.

25

.0%

Q

ata

r F

uel (W

oq

od

) 1

7.6

%

Qata

r n

ati

on

al c

em

en

t c

o.

17.

0%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

16

.3%

Q

ata

r is

lam

ic in

sura

nce c

o.

15

.3%

Qata

r in

du

stri

al m

an

ufa

ctu

rin

g c

o.

14

.8%

Al m

eera

co

nsu

mer

Go

od

s c

om

pany

12

.9%

m

an

nai c

orp

ora

tio

n

12

.5%

n

ati

on

al l

easi

ng

ho

ldin

g c

o.

11.

6%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

m

asr

af

Al r

ayan

Barw

a r

eal E

state

co

.

in

du

stri

es

Qata

r

Qata

r n

ati

on

al B

an

k

Qata

r G

as

Tra

nsp

ort

co

. lim

ited

(n

akila

t)

T

he c

om

merc

ial B

an

k o

f Q

ata

r

A

l m

eera

co

nsu

mer

Go

od

s c

om

pany

n

ati

on

al l

easi

ng

ho

ldin

g c

o.

Qata

r is

lam

ic B

an

k

% D

ivid

en

d Y

ield

20

11/2

010

RP

S G

row

th 2

011

/20

10

top 10 companies in terms of dividend

yield 2011/2010

top 10 companiesin terms of price growth 2011/2010

top 10 companies in terms of earnings

per share growth 2011/2010

Pri

ce

Gro

wth

20

11/2

010

EP

S G

row

th 2

011

/20

10


Holding Co.

Comparative performance The QE finished 2011 with a 1.12% gain. The Dow Jones Index took the lead last year however, by gaining about 5.5% from the end of 2010, but this was an exception in a very poor year in the markets. Losses on other key markets included -24.6% in India and -21.7% in China.

In the GCC, the Bahraini market was the biggest loser with losses of about -20.1%. Conditions in all markets could have been much worse had it not been for the outcome of the December 9 Euro-leaders’ summit conference, which provided some provisional assurance. Their failure could have resulted in more major regressions

(Brief on each of the Top Ten companies from page 46)

01 02 03 04 05 06 07 08 09 10

01 02 03 04 05 06 07 08 09 10

163

.9%

Qata

r c

inem

a &

Film

Dis

t. c

o.

14

3.7

%

Al m

eera

co

nsu

mer

Go

od

s c

om

pany

108

.2%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

5

6.1

%

Gu

lf W

are

ho

usi

ng

co

.

45

.8%

masr

af

Al r

ayan

35

.1%

m

ed

icare

Gro

up

33

.5%

A

hli

Ban

k

27.

5%

Q

ata

r F

uel (W

oq

od

)

2

5.5

%

Sala

m in

tern

ati

on

al in

vest

men

t l

imit

ed

2

5.0

%

Qata

r o

man

invest

men

t c

o.

u

nit

ed

Develo

pm

en

t c

o.

52

7.5

%

E

zd

an

real E

state

co

. 1

84

.7%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

90

.0%

D

lala

Bro

kera

ge &

invest

. ho

ldin

g c

o.

72

.1%

in

du

stri

es

Qata

r 4

4.8

%

Q

ata

r G

en

. in

sura

nce &

rein

sura

nce c

o.

42

.3%

Q

ata

r G

as

Tra

nsp

ort

co

. lim

ited

(n

akila

t)

25

.3%

n

ati

on

al l

easi

ng

ho

ldin

g c

o.

19

.8%

A

l m

eera

co

nsu

mer

Go

od

s c

om

pany

18

.0%

m

asr

af

Al r

ayan

1

6.3

%

1.

66

%

m

asr

af

Al r

ayan

0

.88

%

Sala

m in

tern

ati

on

al in

vest

men

t l

imit

ed

0

.84

%

Do

ha in

sura

nce c

o.

0

.81%

Q

ata

r in

sura

nce c

o.

0

.76

%

Th

e c

om

merc

ial B

an

k o

f Q

ata

r

0.7

4%

Do

ha B

an

k

0

.70

%

Qata

r in

tern

ati

on

al is

lam

ic B

an

k

0.6

5%

Ah

li B

an

k

0.6

4%

A

l K

hale

ej Ta

kafu

l G

rou

p

0.6

4%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

un

ited

Develo

pm

en

t c

o.

257.

2%

G

ulf

Ware

ho

usi

ng

co

. 1

06

.8%

Q

ata

ri G

erm

an

co

. fo

r m

ed

ical D

evic

es

9

8.8

%

Do

ha in

sura

nce c

o.

81.

8%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

59

.2%

E

zd

an

real E

state

co

. 4

2.0

%

Qata

r F

uel (W

oq

od

)

37.

1%

nati

on

al l

easi

ng

ho

ldin

g c

o.

34

.3%

in

du

stri

es

Qata

r 2

9.2

%

Aam

al c

om

pany

26

.0%

6

5.0

%

un

ited

Develo

pm

en

t c

o.

3

9.2

%

Qata

r F

uel (W

oq

od

)

3

8.3

%

Qata

r E

lectr

icit

y &

Wate

r c

o.

3

3.1

%

ind

ust

ries

Qata

r

3

0.5

%

nati

on

al l

easi

ng

ho

ldin

g c

o.

2

9.7

%

Al m

eera

co

nsu

mer

Go

od

s c

om

pany

2

9.4

%

Qata

r is

lam

ic in

sura

nce c

o.

26

.1%

Q

ata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

2

5.0

%

man

nai c

orp

ora

tio

n

22

.7%

Q

ata

r n

ati

on

al B

an

k

in

du

stri

es

Qata

r 4

4.6

%

u

nit

ed

Develo

pm

en

t c

o.

25

.0%

Q

ata

r F

uel (W

oq

od

) 1

7.6

%

Qata

r n

ati

on

al c

em

en

t c

o.

17.

0%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

16

.3%

Q

ata

r is

lam

ic in

sura

nce c

o.

15

.3%

Qata

r in

du

stri

al m

an

ufa

ctu

rin

g c

o.

14

.8%

Al m

eera

co

nsu

mer

Go

od

s c

om

pany

12

.9%

m

an

nai c

orp

ora

tio

n

12

.5%

n

ati

on

al l

easi

ng

ho

ldin

g c

o.

11.

6%

Qata

r c

o. f

or

meat

& l

ivest

ock T

rad

ing

(m

aw

ash

i)

m

asr

af

Al r

ayan

Barw

a r

eal E

state

co

.

in

du

stri

es

Qata

r

Qata

r n

ati

on

al B

an

k

Qata

r G

as

Tra

nsp

ort

co

. lim

ited

(n

akila

t)

T

he c

om

merc

ial B

an

k o

f Q

ata

r

A

l m

eera

co

nsu

mer

Go

od

s c

om

pany

n

ati

on

al l

easi

ng

ho

ldin

g c

o.

Qata

r is

lam

ic B

an

k

top 10 companies in terms of

return on assets (roa)

2011/2010

RO

E 2

011

/20

10

Ave

rag

e R

OA

20

11/2

010

top 10 companies in terms of

returnon eQuity (roe)

2011/2010

top 10 companies

in terms of liQuidity 2011/2010

top 10 companies

in terms of revenue per

share growth 2011/2010

Al ShAll Economic SErvicS QSc iS A PrivATE QATAri ShArEholDinG comPAny ProviDinG

DiFFErEnT Economic, BuiSnESS AnD corPorATE FinAncE ADviSory SErvicES To locAl AnD

rEGionAl inSTiTuTionS. iT hAS BEEn ESTABliShED in lATE 2002 By Al ShAll conSulTinG comPAny

KScc, A KuWAiT-BASED PrivATE conSulTinG comPAny, AlonG WiTh oThEr PArTnErS, AS A STrATGic

Arm in QATAr in orDEr To ProviDE ThE SAmE rAnGE oF ESTABliShED SErvicES in KuWAiT.



“the availability of financial and

other relevant information that

is made publicly available in a com-

prehensive and timely manner is

vital to the proper functioning of a

market.”

milhan Baig

Head of Valuation

SerViceSDEloiTTE QATAr

MarkEt EfficiEncy

ver the past year, the value traded on the QE increased by about a quarter to reach QR83.5 billion. This increase was largely driven by the services and bank-ing sectors. However Milhan Baig, Head of Valuation Services at

Deloitte Qatar, intimates that since last year the num-ber of transactions making up the traded volumes only increased by about 6% (1.05 million to 1.12 mil-lion transactions), which implies a relatively greater increase in the value per transaction compared to the actual number of transactions.

“It may be argued that as the increase in traded value is driven by a relatively small number of trans-actions, the share values involved portray the senti-ments of only a small number of investors, who may have, for example, greater confidence in or a better understanding of the market as opposed to the overall pool of potential investors,” says Baig.

“Under the Efficient Market Hypothesis (EMH), at any given point in time the quoted prices of shares listed on an exchange in an efficient market should fully reflect all available information, and they should be appropriately priced based on the ‘overall’ senti-ments of the market. If we conceptually consider QE in the context of the EMH and the key attributes of efficient markets, it might seem reasonable to as-sume that shares listed on QE might be priced differ-ently if they were listed on more developed markets, given the following factors that impact the efficiency of a market: the availability of timely and relevant information; and the volume and frequency of trans-actions which capture the market’s reaction to that information,” says Baig.

“The availability of financial and other relevant in-formation that is made publicly available in a compre-hensive and timely manner is vital to the proper func-tioning of a market, as it provides investors with the basis on which to form decisions to buy and sell quot-

ed shares, affecting demand, supply and ultimately pricing. As such, investor relationship management functions and adequate governance procedures, with transparency in financial reporting as well as ample existence of equity analyst reports, sustain the avail-ability of quality information and contribute to the existence of a more efficient market overall.

“Greater volumes (size) and frequency (timing) of transactions generally depict fluidity in a market, which leads to more up-to-date and relevant pricing of quoted shares, which gives investors a relatively higher level of confidence in the available market data,” he says.

More efficiency through increased participationBaig argues that the level of transactions and informa-tion available is generally much lower than for more developed markets such as the LSE, NYSE, NASDAQ and Nikkei, and as such might be considered less ef-ficient. An improvement in market efficiency may be achieved through increasing the number of com-panies listed on QE and providing more information relevant to those companies. This, as well as the intro-duction of margin trading and short-selling, could fa-cilitate more transactions, which ultimately develops more market efficiency.

“It is also interesting to note that of the total 42 companies listed on the QE, the average foreign own-ership interest held in the companies is only around 9%. Allowing a larger pool of local and global investors to buy and sell shares listed on QE may be another way to increase the level of transactions,” he contends.

In summary, Baig maintains that facilitating mar-ket efficiency should be a vital concern for any emerg-ing economy and there are certain initiatives that can be taken to facilitate this. From a share pricing or val-uation perspective, investors and speculators need to be, as ever, aware of the factors fundamental to mar-ket efficiency and should apply a degree of subjectiv-ity when considering the valuation of listed company shares in an emerging economy such as Qatar.

{The opinions expressed here are the views of Milhan Baig and do not necessarily reflect the views and opin-ions of Deloitte & Touche (M.E.)}

o


ow has Masraf Al Rayan performed in the past 12 months?We grew our total assets at a rate of 59.4% last

year; our net profit also went up by 16.3% to QR1.41 billion, with earnings per share of QR1.88. (Please see attached tables.)

How are you leveraging Qatar’s eco-nomic growth to perform the way you are doing? We are the fastest-growing bank in Qatar. Masraf Al Rayan has been sustaining this excellent growth trend since its inception, and this is something that we expect to maintain in both the short and the longer terms, as we are blessed with well-diversi-fied customers in both sources and the use of funds.

What were the key changes/decisions your company had to make recently to keep performing and how difficult was it to make these changes/decisions?

When Masraf Al Rayan was established, there was a clear vision and strategy to implement a Sharia-compliant work en-vironment to facilitate the best possible performance, versus the conventional, traditional methods. We are continuously being innovative and forward-looking in our strategies for delivering the best pos-sible services to our customers whilst maintaining and providing internation-ally acclaimed standards in a familiar local environment.

Have you noticed fresh competition? How do you feel about this, and what are you doing to keep on top of it?We operate in a free-market economy and we therefore, acknowledge that competi-tion is an integral part of the landscape. It is also something that we welcome, as it creates more innovation in the industry and better services for customers. But we are continuously improving our market share by the day.

Masraf al rayanfa i lu r e n ot a n o p t i o n

H

1 n o t e l i g i b l e l a s t y e a r

1 D i v i D e n D y i e l D

1l i q u i D i t y

2n e t P r o f i t

g r o w t h

m as r a f a l r aya n was l au n c h e d i n o c to b e r 2 0 0 6 a n d i s p r i m a r i ly e n g ag e d i n t h e p r ov i s i o n o f ba n k i n g , f i n a n c i a l a n d i n v es t m e n t s e r v i c es i n ac c o r da n c e w i t h i s l a m i c s h a r i a p r i n c i p l es . i ts s t r at e g i c v i s i o n o f t h e f u t u r e i s to b e a l e a d i n g a n d i n n ovat i v e i n t e r n at i o n a l i s l a m i c f i n a n c i a l i n s t i t u t i o n w i t h c o r p o r at e , r e ta i l , s m e a n d p r i vat e ba n k i n g , as w e l l as t r e as u ry. a l r aya n i n v es t m e n t i s t h e i n v es t m e n t a r m o f m as r a f a l r aya n , w h i c h c o m p l e t es t h e c i r c l e f o r m as r a f a l r aya n as a f u l l- f l e d g e d i s l a m i c ba n k . g r o u p c e o a d e l m u s ta faw i d i s c u ss e d h ow t h e ba n k r e ac h e d t h e # 1 r at i n g .

mASrAF Al rAyAn AchiEvED nET

ProFiT oF Qr1,408 million – A

16.3% incrEASE on 2010. ToTAl

ASSETS rEAchED Qr 55,271 mil-

lion in 2011 – A GroWTh rATE

oF 59.4% on 2010. FinAncinG Ac-

TiviTiES incrEASED To Qr 34,766

million – uP 38.7% on 2010. cuS-

TomEr DEPoSiTS incrEASED To

Qr 46,264 million – GroWTh oF

71.2%. ToTAl ShArEholDErS’ EQ-

uiTy rEAchED Qr 8,504 million

– uP 13.3% on 2010, WhilE ThE

DiviDEnDS PAiD To ShArEholD-

ErS For 2011 rEAchED Qr1.10 PEr

ShArE.

“we always finish #1 in the efficiency category in the local banking

industry, so the word failure is not in our dictionary”

adel mustafawii

GrouP ceomASrAF Al rAyAn



1l a s t y e a r

4 P r i c e g r o w t h

5D i v i D e n D

y i e l D

2a v g r e t u r n o n a s s e t s

1a v g r e t u r n

o n e q u i t y

9n e t P r o f i t

g r o w t h

oqod has been profitable since establishment and was the first Qatari com-pany, to pay a dividend in its first financial year. Its

strategy is to be the best downstream en-ergy company in the region as measured in terms of customer and employee satisfac-tion and shareholder earnings.

“We pride ourselves on the continua-tion of the success and development that has been registered since the Company’s inception,” says Abdullah bin Hamad Al-Attiyah, Chairman of Woqod.

During the financial year ending

December 31, 2011, Woqod managed to maintain positive net profit rates that ex-ceeded 7.5% to reach QR1,155 million.

Despite the 20% increase in the paid-up capital of the company during 2010 through the distribution of bonus shares, earning per share (EPS) for 2011 increased by 7.5% to reach QR27.77 per share against QR25.83 in 2010.

“Based on the results achieved for this period and on our expectations for developments in the global economy and their impact on the local, regional and international levels during the upcom-ing period, and in view of the company s

Are there any inhibitors to your growth here in Qatar? What changes would you like to see which might boost your own performance and that of your industry?No. The local economy is growing at a high double-digit rate, supported by the LNG expansion and the government’s huge in-frastructure spending; banks are financing this historic growth and development for the country, as it is our duty to take part in the nation-building mission.

What are your Company’s goals for the

coming year?Chief among our goals for 2012 is to sustain our current high growth levels on all our business books by aligning with the nomi-nal GDP growth rate of the country.

What makes a leader different from an entrepreneur? What qualities must one have to be an inspirational leader in a large organisation?Leaders inspire others to do the right thing. We also strategically think and plan for the institutions that we lead.

Lastly, we lead by example and also

depend on the goodwill and reputation of our staff. At Masraf Al Rayan, we believe that our human resources are our greatest assets.

How do you deal with failure? There s a perception that a failure culture within an institution is proactive, as it means staff are willing to try something different maybe a little too risky for the good of the company. We always finish #1 in the efficiency catego-ry in the local banking industry, so the word failure is not in our dictionary

2

“we pride ourselves on the continuation of the success and development that has been registered since the company’s inception.”

mohamed tuRki al-soBai

Vice-cHairMan and ManaGinG director

WoQoD

WoQod f u e l l i n g e n e r gy n e e d s

W

wo Q o d i s a p u b l i c s h a r e c o m pa n y l i s t e d o n t h e Q ata r e xc h a n g e s i n c e 2 0 0 2 . t h e c o m pa n y i s r es p o n s i b l e f o r t h e d i s t r i b u t i o n o f f u e l w i t h i n Q ata r . t h i s i n c lu d es d i es e l , g as o l i n e a n d av i a-t i o n f u e l t h r o u g h a f l e e t o f m o r e t h a n 1 5 0 r oa d ta n k e r s . i t t r a d es i n s h i p -to - s h i p b u n k e r i n g , b i t u m e n i m p o rtat i o n a n d d i s t r i b u t i o n , lu b r i c a n ts a n d m o d e r n s e r v i c e s tat i o n s . wo Q o d a l s o d i s t r i b u t es a l l l p g i n Q ata r .


ow has the company performed over the past 12 months?Last year saw a continu-ation of the successful

journey that began in 2010, thanks to the efforts of the Mawashi team in all depart-ments. Our profits doubled to QR64 million compared to the same period in 2010 and we are now focusing clearly on our future expansion plans.

The idea of a company takeover in 2011 was a major challenge for the staff and made them feel insecure, but I confronted

the challenge by raising morale and reas-suring them that we were the best people to run the sector. In fact I made it clear to the government that we had manoeuvred a difficult corner and it rewarded the new Board of Directors by cancelling the take-over and entrusting them with continuing its work in this sector.

But Hassad Food Company was actu-ally instructed to begin the takeover process. What were the reasons for the intended takeover? Was it just a matter of the company’s declining profits or

future plans and projects,” Al-Attiyah continued, “the Board of Directors rec-ommended to distribute cash dividends of QR415.8 million according to a rate of 100 % of the value of the paid-up nominal capital, i.e. QR10 per share, in addition to 25% bonus shares. This recommendation takes into account the company’s current financial liquidity and the future funding needs for capital projects that were adopted for the year 2012.”

However, it reported that its net profit fell 10.5% to QR241 million in the first quar-ter this year. The decrease in net profit was due to a “decline in sales” for certain petro-leum products following completion of the New Doha International Airport and gas projects, among others.

Announcing the first quarter results

Woqod, Vice-Chairman and Managing Di-rector Mohamed Turki Al-Sobai said the company’s assets totaled QR7.6 billion in March, up 20.6% on 2011, while equity reached QR4.6 billion in March, up 18% on 2011.

As a result of the increase in capital base through the issuance of 25% bonus shares in 2011, earnings per share reached QR4.6 in Q1 2012 compared with QR6.5 in the same period last year.

Al-Sobai said Woqod was currently en-gaged in some 31 key projects in Qatar. They include setting up new petrol stations, vehicle inspection centres and Sidra stores, Woqod Tower (Dafna), product supply pipelines, new deals for supply of lubricants and expansion of the LPG distribution network

3

DurinG ThE FinAnciAl yEAr

EnDinG DEcEmBEr 31 2011, WoQoD

mAinTAinED PoSiTivE nET ProFiT

rATES ThAT EXcEEDED 7.5% To

rEAch Qr1, 155 million. DESPiTE

ThE 20% incrEASE in ThE PAiD-uP

cAPiTAl oF ThE comPAny DurinG

2010 ThrouGh ThE DiSTriBuTion

oF BonuS ShArES, EArninG PEr

ShArE (EPS) For 2011 incrEASED

By 7.5% To rEAch Qr27.77 AGAinST

Qr25.83 in 2010.

“i don’t like the word failure – i prefer to say experience. an initial

mistake is not a failure but a lesson, though if the mistake is repeated

then it is a failure. “ ahmed nasseR sRaiya al-kaaBi

ManaGinG directormAWAShi

MaWasHia j o u r n e y o f s u c c ess

m awas h i h as s u c c ess f u l ly m a n ag e d to t u r n w h at was p e r c e i v e d by t h e Q ata r i g ov e r n m e n t to b e a n u n d e r p e r f o r m i n g c o m pa n y i n to o n e t h at i s h i g h ly p r o f i ta b l e . i n fac t, t h e r e w e r e p l a n s f o r t h e g ov e r n m e n t to s t e p i n to r e f o c u s t h e c o m pa n y. Q ata r to day m e t i ts m a n ag i n g d i r e c to r , a h m e d n ass e r s r a i ya a l- k a a b i , to f i n d o u t m o r e a b o u t t h e a ba n d o n e d ta k e ov e r as w e l l as i ts p l a n s f o r t h e f u t u r e .

4l a s t y e a r


8D i v i D e n D

y i e l D


2l i q u i D i t y

5n e t P r o f i t

g r o w t h

7n e t r e v e n u e

g r o w t h

H



were there other reasons?At the end of 2009 profits were QR18 mil-lion and starting to decline, and for that reason the government decided to step in to protect shareholders’ equity. But thanks to the efforts of the new Board of Directors and staff at Mawashi, we turned things around to become the third most profitable company.

Last year you were aiming to cover the whole Gulf market. How far have you got with this?Mawashi is made up of a parent company and some subsidiaries. The parent com-pany signed an agreement to import Aus-tralian meat to the UAE under an exclusive distribution deal, and has also signed an agreement with Wellard, the world’s larg-est livestock transporter. We have other transport agreements but we really want to acquire some livestock carriers of our own, as we have the resources to invest here. We are planning to acquire two ships (with the capacity to carry 75,000 and 15,000 head of livestock respectively) to transport animals from neighbouring countries such as Sudan and Somalia. We intend to set up a specialist transportation company within Mawashi.

Our investments in Georgia are growing and Georgian meat is already on sale in the market. We have focused this year on bring-ing in Georgian breeding females, which are highly regarded by Qatari breeders. We see this as a production line to increase Qatar’s animal stocks.

What are the main changes or decisions the company has recently been forced to make to maintain its performance, and how hard has it been to make them? All our decisions follow exhaustive study as to whether they will increase our profits, and we will not abandon any of our tradi-tions for financial reasons. Take the ex-ample of our decision this year to increase imports from Sudan. Last year we were only dealing in agricultural and animal products, but now we have started to export Sudanese sheep as well as various kinds of Sudanese fodder, including compounds. The com-pany’s output was initially modest, but even that decision was only taken after research into the Sudanese market, and it shows in the Sudan project’s substantial profits.

Have you noticed the emergence of any new competition? Competition in any sector always means

better service for consumers. There are other companies working in the refrigerat-ed meats trade and competition is good for innovation and development. We innovate when we see something missing in Qatar, such as meat processing. The distinguish-ing feature of our products is that they are fresh, whereas everything else in the mar-ket is frozen. We work on the basis that we have no competitors on the same scale as us, so we measure ourselves against inter-national companies.

Are there any obstacles to growth here in Qatar? What changes would you like to see to help improve the performance of Mawashi and the meat sector as a whole?The economy in Qatar is supportive and en-

couraging. Our monthly sales figures have been showing continuous growth, and we’ve been seeing a big increase in the number of companies coming here. We are optimistic about the prospect of a boom in real estate and construction, and foodstuffs activity. I hope that foreign capital will be allowed into the Qatari market and that the market will be open and free to flourish; that there will be a slight easing of the foreign invest-ment laws; and that it will happen gradually

so that Qatari investors can compete with the foreigners.

How is a business leader different from an entrepreneur? What are the quali-ties a person needs to be an inspiring leader in a big corporation?A leader, in my view, is someone who can create and manage a team, outline an objec-tive (or vision) and make it happen. A leader creates a kind of confidence in his employ-ees so that they work enthusiastically and share the vision of the future of the business. The best leader was the Prophet Muham-mad (pbuh), who communicated the idea of Paradise to his followers and made them see it as a reality. An entrepreneur, however, is an inventor; he needs someone with leader-ship qualities to keep his business going and translate his idea into reality.

There is a view that a ‘culture of fail-ure’ within an organisation is a positive thing, because it means the employees are prepared to try something differ-ent, even though it may be risky. What is your opinion on this?I have no time for failure and I don’t like the word failure – I prefer to say experience . An initial mistake is not a failure but a les-son, though if the mistake is repeated then it is a failure. A person has to be allowed to fail in order to do anything, and if a leader is afraid of failure he simply won’t act at all. So let’s call it a ‘culture of experience’ .

What are your goals for the year ahead?We have a poultry project here in Qatar where local production meets no more than 30% of requirements – which we are just starting to get up and running. We are also planning to get into food processing in liai-son with the Qatar National Food Security Programme (QNFSP). 2011 was a year of fo-cusing on our core activity. but now that we have established our success and boosted the company’s profits, there are no limits to our ambitions for the future

M a w a s h i ’ s p r o f i t s :2 0 0 9

QR18 M i l l i o n

2 0 1 0

QR32 M i l l i o n

2 0 1 1

QR64 M i l l i o n

iT iS ThE SEconD TimE in iQ'S EiGhT yEAr hiSTory ThAT GrouP rEvEnuES EXcEEDED ThE

Qr12 Billion mArK. ThE GrouP rEcorDED rEvEnuE oF Qr12.3 Billion For ThE yEAr EnDED

DEcEmBEr 31, 2010, AnD Qr3.9 Billion in ThE FourTh QuArTEr, rEPrESEnTinG A yEAr-on-

yEAr incrEASE oF 25.1%. WiTh Full yEAr nET ProFiTS ToTAlinG Qr5.6 Billion, ThE GrouP

hAS AchiEvED iTS SEconD hiGhEST EArninGS on rEcorD.

(Interviewed by Ezdhar Ali)


heikh Falah bin Jassim bin Jabr Al Thani, Chair-man of the Board of Di-rectors, recently revealed how the company per-formed up until the end

of 2011. “NLHC witnessed a growth in profits

in 2011 of QR215 million – an increase of 20% compared with QR179 million in 2010,” he said.

Total operating revenues reached QR602 million – an increase of 41% on 2010. Total equity increased by 17%, jumping to QR762 million, while earnings per share rose to QR6.53 per share, a 20% increase on 2010. The Board of Directors at NLHC also rec-ommended approval of distributing a cash dividend of 35% (QR3.50 per share) – a total of QR115,453,800.

“Our success is not out of the void, nor was it reached with ease,” said NLHC Chief Executive Officer Hamad Abdulla Al-Emadi. “In fact, the strategic objectives were vigilantly set. The plans were meticu-lously laid down and processed with steadi-ness and faith towards attaining objectives which strictly complied with our values and principles.”

NLHC is aiming to expand the scope of its work and get involved in real estate de-velopment, infrastructural works, machin-ery, and hospitality services.

“We all share a firm belief that the gigan-tic accomplishments attained in 2011 will sooner or later reflect their positive impact upon the company,” added Al-Emadi. “Our financial results during this year have been nothing but an actual translation of efforts. Our focal objective for 2012 is simplified to address the capability to elaborate a stably-structured company with the potential to withstand all challenges in the future.”

NLHC recently successfully completed a rights issue process to increase capital. The subscription was 245% of the offered shares, and they managed to collect QR1.2 billion, bringing the total to 41 million shares at QR29.50 per share.

Sheikh Falah bin Jassim stated that NLHC had taken all necessary measures to ease the process of the rights issue for share-holders. The rights issue met with a massive response from the shareholders, showing their confidence in the strong equity of the company and its ability for continuous development and sustainable growth in ac-cordance with its business plans

national lEasing Holding coMpanya c a lc u l at e d e f f o rt

s

4

n at i o n a l l e as i n g h o l d i n g c o m pa n y ( n l h c ) was es ta b l i s h e d i n 2 0 0 3 as a Q ata r i s h a r e h o l d i n g c o m pa n y. i ts s h a r e c a p i ta l i n 2 0 0 9 was Q r 3 2 9 , 8 6 8 , 0 0 0 c o m p r i s i n g o f 3 2 , 9 8 6 , 8 0 0 s h a r es at Q r 1 0 p e r s h a r e . i t p r ov i d es a w i d e r a n g e o f p r o d u c ts a n d s e r v i c es i n c lu d i n g fac i l i t i es f o r l e as e a n d fac i l i t i es f o r r e n t a n d r e n t i n g l e a d i n g to ow n e r s h i p f o r i n d i v i d ua l s a n d f i r m s i n ac c o r da n c e w i t h i s l a m i c s h a r i a r e g u l at i o n s w h i c h s u i t t h e f i n a n c i a l r e Q u i r e m e n ts o f l a r g e , m e d i u m a n d s m a l l f i r m s .

nlhc WiTnESSED A GroWTh in

ProFiTS in 2011, AmounTinG To

Qr215 million – An incrEASE

oF 20% comPArED WiTh Qr179

million in 2010. ToTAl oPErAT-

inG rEvEnuES rEAchED Qr602

million – An incrEASE oF

41%. ToTAl EQuiTy incrEASED

By 17%, WhilE EArninGS PEr

ShArE roSE By 20%. ThE BoArD

oF DirEcTorS rEcommEnDED

APProvAl oF DiSTriBuTinG A

cASh DiviDEnD oF 35% (Qr3.50

PEr ShArE) – A ToTAl oF

Qr115,453,800.

“our rights issue met with a massive response from the shareholders,

showing their confidence in the strong eQuity of the company and

its ability for continuous develop-ment and sustainable growth in

accordance with its business plans”

sheikh falah Bin Jassim Bin JaBR al-thani

cHairMan and ManaGinG directornATionAl lEASinG holDinG comPAny

3l a s t y e a r


7D i v i D e n D

y i e l D


5l i q u i D i t y

6n e t P r o f i t

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5n e t r e v e n u e

g r o w t h



ndustries Qatar (IQ) and Qatar Petroleum (QP) are intertwined by their ownership, opera-tions and management,

where QP holds 70% of the share capital of IQ and IQ’s board members are the same as the QP Board members. Furthermore, the Chairman and Managing Director of QP serves concurrently as Chairman and Managing Director of IQ, as well as Qatar’s Minister of Energy and Industry, to ensure full coordination between QP/IQ and key national policies.

IQ recorded revenue of QR16.5 billion for the year ended December 31, 2011, rep-resenting a year-on-year increase of 34%. This increase can be primarily attributed to resilient prices across all key products as price inflation benefited the group by QR3.4 billion. The Board of Directors rec-ommended a total annual dividend distri-bution for the year ended December 31, 2011 of QR 4.1 billion, equivalent to a pay-out of QR7.50 per share and representing 75% of nominal value.

In addition to the record revenue, the group also registered its highest net profit. Full-year net profit of QR7.9 billion was significantly ahead of the previous record, in 2008, of QR 7.3 billion. Profit margins during the year were also extremely strong, averaging almost 48%.

“The financial year was noteworthy for the group as it contained a significant number of milestones and achievements,” said HE Dr Mohamed bin Saleh Al-Sada, Minister of Energy and Industry, and Chairman and Managing Director, IQ.

“As we have promised, we have de-livered,” he added. “In the financial and operational performances achieved, we witnessed further evidence of IQ’s ongo-ing quest for excellence. The group also proved its ability to execute and advance its various strategies, leading to greater fi-nancial and operational integration among group companies and enhanced the devel-opment of the domestic economy through the employment of qualified and trained nationals, while at the same time continu-ing to achieve strong financial results,” said Abdulrahman Ahmad Al-Shaibi, Chief Coordinator of IQ.

“Last year was undoubtedly a decisive year as IQ recorded its highest revenue and net profit since its establishment, with rev-enue exceeding QR16 billion and net profit of approximately QR8 billion. And, with the completion of that year, we are now able to reflect with admiration on the goals achieved, the successive accomplishments and ongoing progress made,” he said.

In early 2012, IQ received an AA- rating from Standard & Poor’s, in recognition of the group’s strong competitive advantages

industriEs Qatarr i d i n g t h e wav e o f s u c c ess

i

5 2 l a s t y e a r

1 0 P r i c e g r o w t h

1a v g r e t u r n o n

a s s e t s

2a v g r e t u r n

o n e q u i t y

i n d u s t r i es Q ata r was i n c o r p o r at e d as a Q ata r i j o i n t s to c k c o m pa n y i n 2 0 0 3 a n d h as b e c o m e a n i n d u s t r i a l g i a n t w i t h i n t e r es ts i n t h e p r o d u c t i o n , d i s t r i b u t i o n a n d sa l e o f a w i d e r a n g e o f p e t r o c h e m i c a l f e rt i l i s e r s a n d s t e e l p r o d u c ts , t h e s e c o n d l a r g es t o f t h i s t y p e i n t h e r e g i o n . i ts p r o d u c ts a r e s o l d i n ov e r o n e h u n d r e d c o u n t r i es wo r l dw i d e .

iQ rEcorDED rEvEnuE oF Qr16.5

Billion For 2011, rEPrESEnT-

inG A yEAr-on-yEAr incrEASE

oF 34%. ThiS incrEASE cAn BE

PrimArily ATTriBuTED To rE-

SiliEnT PricES AcroSS All KEy

ProDucTS AS PricE inFlATion

BEnEFiTED ThE GrouP By Qr3.4

Billion. ThE BoArD oF DirEc-

TorS rEcommEnDED A ToTAl

AnnuAl DiviDEnD DiSTriBuTion

For ThE yEAr EnDED DEcEmBEr

31, 2011 oF Qr 4.1 Billion, EQuivA-

lEnT To A PAyouT oF Qr7.50 PEr

ShArE AnD rEPrESEnTinG 75%

oF nominAl vAluE.

“iQ proved its ability to execute and advance its various strategies,

leading to greater financial and op-erational integration among group companies and enhanced the devel-

opment of the domestic economy through the employment of Quali-

fied and trained nationals.”

aBdulRahman ahmad al-shaiBi

cHief-coordinator inDuSTriES QATAr


and debt protection metrics, to add to the Aa3 rating received from Moody’s in 2011. Both ratings were predicated on the group’s excellent cost positioning, largely due to competitively-priced gas feedstocks, prod-uct and end-market diversification, posi-tive debt metrics and very important pub-

lic policy role. The ratings were assigned a “stable outlook”, reflecting the expectation that key assumptions, including the group’s importance, debt levels and cost position would not be materially compromised. Both ratings place IQ one notch below the sovereign rating of Qatar and in a very se-

lect group of international petrochemical and chemical companies.

Moody’s rating reflects the highly com-petitive cost structure of the group’s ven-tures, and IQ’s role in enabling two key poli-cies of Qatar: economic diversification and wealth distribution.

l-Ansari explained that QIMC is currently draw-ing up a new strategy to enable it to keep pace with the economic up-

swing in the country. This also applied to QIMC s subsidiary companies, for which a clear vision and new five-year strategies had to be set.

“Our new strategy calls for certain standards to be met,” said Al Ansari. “Our management has been trying to apply total quality standards and obtain ISO 9001:2008 certifications for QIMC and its subsidiaries.”

QIMC is also applying for a credit rating, but purely for evaluation purposes and not with the aim of borrowing money.

InvestmentsQIMC commissioned a consultancy ser-vices bureau to review the company last

year. It had always been operating accord-ing to a particular strategic view with a particular set of policies and procedures, so it felt this needed to be re-examined.

“We have put in place a new company structure and new policies and proce-dures,” said Al-Ansari. “We have also rebranded the company to reflect its stra-tegic direction of improving its market position and expanding through small and medium-size projects, while remain-ing interested in entering into large-scale projects.”

AspirationsAl-Ansari said: “QIMC has a broad indus-trial base covering petrochemicals, min-erals, food processing and construction materials, and is continually working to di-versify its portfolio of projects. The board promises shareholders that it is up to the task of revitalising the company and carry-

QiMcs t r at e g i es to k e e p pac e w i t h p r o g r ess

a

6 5 D i v i D e n D y i e l D

9 l a s t y e a r


a s s e t

Q ata r i n d u s t r i a l m a n u fac t u r i n g c o m pa n y was es ta b l i s h e d i n 1 9 9 0 w i t h c a p i ta l o f Q r 2 0 0 m i l-l i o n ( $ 5 5 m i l l i o n ) h e l d 2 0 : 8 0 by t h e s tat e a n d t h e p r i vat e s e c to r , w h i c h was pa i d i n f u l l by 2 0 0 2 , t h e n r a i s e d i n 2 0 0 6 to Q r 3 0 0 m i l l i o n a n d i n 2 0 1 0 to Q r 3 9 6 m i l l i o n . Q ata r to day m e t c e o a b d u l r a h m a n b i n a b d u l l a h a l-a n sa r i to f i n d o u t m o r e a b o u t t h e s t r at e g i es t h at h av e m a d e t h e c o m pa n y s u c c ess f u l .

“Qimc is ready to keep pace with the coming economic boom. we have a lot

of expansion projects initiated on the basis of market research and in

anticipation of an economic boom.”

aBdulRahman Bin aBdullah al-ansaRi

cHief executiVe officerQATAr inDuSTriAl mAnuFAcTurinG comPAny



ing out future projects in a more expeditious manner.”

He explained they had completed the first stage of four, that of reviewing the compa-ny’s position. The second stage is identify-ing options and alternatives; then drawing up the strategy is stage three before finally determining the overall organisational framework.

New projectsAl-Ansari talked about a number of expan-sion projects, initiated on the basis of mar-ket research and in anticipation of an eco-nomic boom.

“We are ready to keep pace with the com-ing economic boom,” he said. “QIMC has a lot of projects lined up linked to develop-ment in Qatar.”

He gave the example of the Qatar Sand Treatment Plant, which is geared to pro-duce 40,000 tonnes of sand per day, com-pared with the country’s current daily con-sumption of 18,000 tonnes.

Another example is the ongoing expan-sion at Qatar Acids Co.’s sulphuric acid plant to meet increasing consumption in Mesaieed Industrial City (MIC) and other key industries. He also said that Gasal Com-pany, which specialises in manufacturing industrial gases, had been able to cover MIC’s overall requirements and was plan-ning to invest hundreds of millions of dol-lars in setting up an industrial gas network to cover the entire Ras Laffan Industrial City.

“We will set up industrial gas plants in Ras Laffan on the same lines as those in Mesaieed, and will supply the installations there with industrial gases,” he said.

QIMC’s expansion plans include Qatar Plastic Products Co., along with a wooden tile-producing factory due to come into operation at the end of the year. Work on setting up the Qatar Aluminium Extrusion

Co. is now complete, and the project is wait-ing to be linked up to the national grid. The raw materials will be provided by Qatalum, making its output – 8,000 tonnes per year of it – 100% Qatari.

“It is the only factory of its kind in Qa-tar,” said Al-Ansari. “We expect demand to increase in the period ahead, which is what led us to start thinking about expanding the project even before it actually entered pro-duction,” a reference to the fact that the al-uminium extrusion plant has been built to accommodate production lines with a total capacity of 24 tonnes a year. “We are cur-rently working to add two production lines alongside the existing one. The second line will be ready at the end of the current year, and the third during 2013.”

Meanwhile, the company has started to implement the KLJ Organic-Qatar project to produce chlorinated paraffin, caustic soda and hydrochloric acid, with an expect-ed start date in the first quarter of 2014.

AcquisitionsAl-Ansari revealed a new activity that

QIMC intends to get into as part of its new strategy, which is acquisitions.

“We have come to the view that acquir-ing existing enterprises that complement our own activities and fit with our strategy and aspirations could be of interest,” he ex-plained. “We have appointed a team to work on this, and have made a start by taking a 51% stake in an Italian factory operating in Qatar. We are in the final stages of conclud-ing the deal.”

He indicated that the investment fund available for such acquisitions stood at around QR200 million, while QIMC’s total investment in its subsidiaries was roughly QR1 billion.

“We have a number of acquisition proj-ects under consideration that will be an-nounced in the near future,” Al-Ansari continued. “There are negotiations going on to acquire companies both in Doha and elsewhere.”

Furthermore, the CEO announced, the company would be setting up a 100,000 sq. metre project in the Industrial Area, “QIMC Logistics Village”, to provide logistical sup-port to QIMC and its subsidiaries.

First quarter resultsQIMC’s profits were up in the first quar-ter of this year and were expected to im-prove further by the end of the first half, the CEO said, but he was quick to point out that first quarter results don’t give a good idea of the company’s performance for the rest of the year because a lot of op-erational costs fall during the first quar-ter and do not recur during the rest of the year, thus depressing the Q1 profit margin compared with the remainder of the year. He noted that QIMC has companies due to come into production during the coming months, which again suggests that there will be a rise in returns and profits to come

2 0 1 1 i n f i g u r e sn e t p r o f i t

QR206 M i l l i o n

D i v i D e n D

QR118.8 M i l l i o n

s h a r e h o l D e r s ’ e q u i t y

QR1,253 M i l l i o n

Qimc’S ProFiTS WErE uP in ThE FirST QuArTEr oF 2012 AnD WErE EXPEcTED To imProvE

FurThEr By ThE EnD oF JunE, BuT FirST QuArTEr rESulTS Don’T GivE An AccurATE iDEA

ThE comPAny’S PErFormAncE BEcAuSE A loT oF oPErATionAl coSTS FAll DurinG ThE FirST

QuArTEr AnD Do noT rEcur DurinG ThE rEST oF ThE yEAr, ThuS DEPrESSinG ThE Q1 ProFiT

mArGin comPArED WiTh ThE rEmAinDEr oF ThE yEAr.



ow has QNCC per-formed over the past 12 months?Sales income fell because of reduced demand for

cement, washed sand and quicklime during the year in view of the negative impact of the global financial crisis on the local mar-ket and against a backdrop of new competi-tion in the market, with the entry of anoth-er Qatari company producing appreciable quantities of cement, and another company producing washed sand. In addition, Qatar Steel ceased to take deliveries of quicklime last June, having previously been our prin-cipal quicklime customer. These factors had a direct effect of reducing the compa-ny’s sales income over the past year.

However the company managed, through its own production lines, to meet the local market’s requirements for different prod-ucts while maintaining the same high qual-ity and stable prices, and this has made a tangible contribution to the development boom in Qatar.

We set up a new calcium carbonate pro-duction unit with a capacity of 250 tonnes per day to meet Qatar Electricity and Wa-ter Company (QEWC)’s requirements, in

line with the government policy of trying to source strategic materials within the country. By the end of 2011 the project had reached the performance testing stage. We already had a contract with QEWC to sup-ply all its calcium carbonate requirements, amounting to about 250,000 tonnes per year, for 25 years with an option to renew.

What are the main changes or decisions QNCC has recently been forced to make to maintain its performance, and how hard has it been to make them?

During the past year we have gone a long way towards meeting the corporate gov-ernance standards required by the Qatar Financial Markets Authority (QFMA) in order to achieve the desired objectives of transparency, openness and probity. We are one of the first public shareholding compa-nies in Qatar to introduce the QFMA’s cor-porate governance regime. Our administra-tion was overhauled, with the introduction of comprehensive modern systems cover-ing various areas, by consultancy bureau Ernst & Young, which was appointed by the Board at its meeting last December. We also contracted Al Mannai Trading Company to install an Enterprise Resource Planning

Qatar national cEMEnt coMpanyc o n f r o n t i n g c h a l l e n g es

H

7

d es p i t e t h e i m pac t o f t h e g lo ba l f i n a n c i a l c r i s i s a n d n e w c o m p e t i t i o n i n t h e lo c a l m a r k e t l e a d -i n g to a fa l l i n r e v e n u e , Q ata r n at i o n a l c e m e n t c o m pa n y ( Q n c c ) m e t lo c a l d e m a n d f o r c e m e n t, was h e d sa n d a n d l i m e . Q ata r to day m e t Q n c c g e n e r a l m a n ag e r m o h a m e d a l i a l- s u l a i t i to ta l k a b o u t t h e c o m pa n y ’s ac h i e v e m e n ts a n d i ts f u t u r e p l a n s .

SAlES incomE FEll BEcAuSE oF

rEDucED DEmAnD For cEmEnT,

WAShED SAnD AnD QuicKlimE

DurinG ThE yEAr in viEW oF

ThE nEGATivE imPAcT oF ThE

GloBAl FinAnciAl criSiS on ThE

locAl mArKET AnD AGAinST A

BAcKDroP oF nEW comPETiTion

in ThE mArKET, WiTh ThE EnTry

oF AnoThEr QATAri comPAny

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TiTiES oF cEmEnT, AnD AnoThEr

comPAny ProDucinG WAShED

SAnD.

“there is no such thing as failure, but there are challenges and risks. as far as we areconcerned at Qncc,

we tend to go looking for chal-lenges; we confront them and get

to grips with them in order to make something out of every situation, even a negative situation. and the

most important challenge we face is the issue of a healthy environment”

mohamed ali al-sulaiti

General ManaGerQATAr nATionAl cEmEnT comPAny

3 a v g r e t u r n o n

a s s e t

6a v D r e t u r n o n

e q u i t y

n o t e l i g i b l e l a s t y e a r



(ERP) system to improve performance in the company s various activities, the posi-tive benefits of which will be seen in the years to come.

What changes would you like to see in Qatar to help improve the performance of QNCC and the building materials sec-tor as a whole?The infrastructure for importing through the ports is still not meeting the country’s needs, and we would like to see Mesaieed Port expanded to keep up with the country’s development boom and avoid the current bottlenecks where ships have to queue up before they are allowed into the port to un-load. We would also like the road network to be modernised, especially to and from pro-duction areas, and for special roads to be built for transporting heavy, bulky goods.

What are your goals for the year?To keep pace with plans for the country’s development over the crucial years ahead,

we are making efforts to raise the produc-tive capacity of our cement plants. Manage-ment is looking at new options for increas-ing output, achieving maximum economy and efficiency in the various production op-erations, seizing every possible opportunity to increase sales of washed sand using the large quantities stored on site, and clearing the way to exploit the company’s available productive capacity so as to achieve an at-tractive economic return. We will also ex-plore all available options to deal with the fallout from Qatar Steel’s termination of quicklime deliveries to prevent any further damage to the company. We will continue to implement the ERP IT system in all de-partments and sections to enhance perfor-mance within various business activities in all locations.

How is a leader different from an entre-preneur? What are the qualities a per-son needs to be an inspiring leader in a big corporation?

The most important qualities of an in-spiring leader are that he should have a clear vision of the goals he is steering his workers firmly towards; that he should be skilled in the arts of communication, planning and motivation; that he should be able to win the confidence of others and be prepared to take risks; and that he should achieve his goals with the fewest possible losses.

There is a view that a ‘culture of fail-ure’ within an organisation is a positive thing, because it means the employees are prepared to try something differ-ent, even though it may be risky. What is your opinion on this?

There is no such thing as failure, but there are challenges and risks. As far as we are-concerned at QNCC, we tend to go looking for challenges; we confront them and get to grips with them in order to make something out of every situation, even a negative situ-ation. And the most important challenge we face is the issue of a healthy environment

oha Insurance Company (DIC) is a Qatari share-holding company which is engaged in the business of insurance and reinsur-

ance. Its capital base is QR234 million ($65 million).

During 2006, DIC established an Islamic Takaful branch under the brand name “Doha Takaful” to carry out insurance and reinsur-

ance activities in accordance with Islamic Sharia principles.

DIC is the latest qualitative addition to the Qatari national insurance market. With a fresh approach to the concept of security and protection, DIC is sharply focused on delivering tailor-made products to suit the specific needs of clients. It has been assigned an interactive credit rating of BBB+ stable by Standard & Poor’s

8doHa insurancE coMpanyi n s u r i n g c o m p e t i t i v e n ess

d


5 l a s t y e a r

d o h a i n s u r a n c e c o m pa n y was f o r m e d i n 2 0 0 3 , i n r es p o n s e to t h e n e e d f o r g r ow t h i n t h e i n s u r a n c e s e c to r . t h e c o m pa n y i s s t i l l i n i ts i n fa n c y b u t h as g r e at v i s i o n s f o r e x pa n s i o n i n s t r at e g i c a r e as .

DohA inSurAncE comPAny’S

FinAnciAl STATEmEnTS For

ThE yEAr EnDED DEcEmBEr 31,

2011 rEvEAlED A nET ProFiT oF

Qr65.8m in 2011 vErSuS Qr60.7m

in 2010. ThE comPAny’S EArn-

inGS PEr ShArE AmounTED To

Qr3.66 in 2011 comPArED To

Qr3.37 in 2010. ThE FinAnciAl

STATEmEnTS For ThE ThrEE

monTh PErioD EnDED mArch

31, 2012 rEvEAlED A nET ProFiT

oF Qr21.2 million in comPAri-

Son To Qr19.2 million For ThE

corrESPonDinG PErioD in

2011ThE EArninGS PEr ShArE

(EPS) AmounTED To Qr0.91 AS oF

mArch 31, 2012 vErSuS Qr1.07 oF

ThE SAmE PErioD in 2011.



oha Bank had a highly satisfying business year in 2011, according to R Seetharaman, Group Chief Executive Officer.

“We had demonstrated our resilience dur-ing the 2008 crisis, and in 2012 Doha Bank will continue to be mindful of global and regional risks,” he said. “Our results are largely attributable to the bank’s strategy to innovate, diversify and capitalise on market synergies, as it continues to increase share-holder value.”

Doha Bank posted full-year net profit of QR1.24 billion in 2011, up 18% on the year before. The bank’s total assets rose to QR52.4 billion last year, an increase of 11% compared with 2010. Loans and advances rose to QR30.7 billion in 2011, representing growth of 15.7 %. Customers deposits grew by 2.8% to QR31.7 billion in 2011, while shareholders’ equity totalled QR7.1 billion in 2011, an increase of 17.3%. Earnings per share were QR6.03, while the average re-turn on shareholders’ equity and the aver-age return on assets were 22% and 2.49% respectively. The bank’s non-performing

loans (NPLs) were 3.3% of total loans.Doha Bank’s quarterly results were an-

nounced recently, where net profits of QR390 million for the first quarter of 2012 marked a 7.4% increase on the same period last year. Loans and advances grew by 13.1% to reach QR29.5 billion, as at March 31, 2012, while total assets increased by QR5.9 billion, a growth of more than 12.8% since March 31, 2011. Customer deposits and un-restricted investment accounts registered growth of 11.8%.

International rating agencies Moody’s, Standard & Poor’s, Capital Intelligence and Fitch Ratings assigned a stable outlook for the bank owing to its consistently strong fi-nancial fundamentals, asset quality and ro-bust liquidity. In addition to this, Standard & Poor’s maintained the rating on Doha Bank Assurance Company. Doha Bank As-surance Company LLC (DBAC), has been given a counterparty credit and insurer fi-nancial strength rating of BBB with a stable outlook by Standard and Poor’s, on success-ful utilisation of its relationship with Doha Bank and continuation of its strong ratios

doHa bankp r o m ot i n g i n n ovat i v e s t r at e g i es

d

9

d o h a ba n k i s t h e l a r g es t p r i vat e c o m m e r c i a l ba n k i n Q ata r . i t c o m m e n c e d i ts d o m es t i c a n d i n t e r n at i o n a l ba n k i n g s e r v i c es i n 1 9 7 9 . i t p r ov i d es i n d i v i d ua l s a n d c o m m e r c i a l , c o r p o r at e a n d i n s t i t u t i o n a l c l i e n ts w i t h ways to m a n ag e t h e i r f i n a n c i a l l i v es .

DohA BAnK PoSTED Full-yEAr

nET ProFiT oF Qr1.24 Billion in

2011, uP 18% on 2010. ThE BAnK’S

ToTAl ASSETS roSE To Qr52.4

Billion lAST yEAr, An incrEASE

oF 11%. loAnS AnD ADvAncES

roSE To Qr30.7 Billion in 2011,

rEPrESEnTinG GroWTh oF 15.7%.

cuSTomErS DEPoSiTS GrEW By

2.8% To Qr31.7 Billion in 2011,

WhilE ShArEholDErS’ EQuiTy

ToTAllED Qr7.1 Billion in 2011,

An incrEASE oF 17.3%. EArninGS

PEr ShArE WErE Qr6.03, WhilE

ThE AvErAGE rETurn on ShArE-

holDErS’ EQuiTy AnD ThE AvEr-

AGE rETurn on ASSETS WErE

22% AnD 2.49% rESPEcTivEly.



e q u i t y



ow has QIIC per-formed over the past 12 months?QIIC’s performance has been excellent, with

premium growth of roughly 17%, a 30% dividend to shareholders for 2011, and an insurance surplus refund to policyholders of 20% of subscriptions (premiums paid during 2011).

Moreover, the company is doing all it can to reach the maximum possible num-ber of companies and corporations within Qatar with the aim of broadening its ser-vice base.

The growth we have achieved comes as a result of the prosperity and growth tak-ing place in Qatar. Insurance moves in step

with economic and urban development, since insurance services cover all stages from planning to completion.

What are the main changes or deci-sions QIIC has recently been forced to make to maintain its performance, and how hard has it been to make them? Has the company had to abandon any of its traditional practices or beliefs in order to stay ahead of the competi-tion?QIIC has lowered its premiums in order to be competitive, which is not something it has traditionally done. It regards the pre-miums policyholders pay as subscriptions, and at the end of each year, depending on the results of the insurance business, the

Qatar islaMic insurancE coMpany (Qiic)o u ts ta n d i n g p r o f i ts d es p i t e c o m p e t i t i o n

10 n o t e l i g i b l e l a s t y e a r

4 a v g r e t u r n o n

a s s e t

Q ata r i s l a m i c i n s u r a n c e c o m pa n y ( Q i i c ) c a m e i n t e n t h p l ac e , h av i n g h a d to c o p e w i t h t h e e n t ry o f a l a r g e n u m b e r o f c o m p e t i to r s i n to t h e Q ata r i m a r k e t, ac c o r d i n g to t h e c o m pa n y ’s g e n e r a l m a n ag e r , a l i i b r a h i m a l a b d u l g h a n i , w h o says t h at t h e c o m pa n y i s t ry i n g to b r oa d e n i ts c l i e n t bas e .

“in the insurance field success is measured by results, and it depends

on following the basic technical rules of the business. failure to

stick to these means failure in per-formance, as failing to follow the

basics is taking a gamble that could lead to success for a short time but

usually ends in failure.”

ali iBRahim al aBdul ghani

General ManaGerQATAr iSlAmic inSurAncE comPAny

H


company gives them back the surplus of these subscriptions, which in 2011 came to 20%. In other words, the subscriptions the company charges are only estimated, based on expected levels of risk.

Have you noticed the emergence of any new competition? How do you feel about that, and what are you doing to beat your off rivals?Fifteen new entrants to the Qatari market have been licensed by the Qatar Financial Centre, some in insurance and some in re-insurance, and they have taken a large vol-ume of various types of insurance, such as health and engineering. This is not a good sign for us, as they are not Qatari companies and are not investing in the local market, and there is no knowing whether they are in it for the long-term. In other words, if they make losses they might simply close their of-fices and leave.

Are there any obstacles to growth here in Qatar? What changes would you like to see to help improve the performance of QIIC and the insurance sector as a whole?

There are no obstacles to growth, because the Qatari economy is strong and vigorous,

but among the changes we would like from government agencies or companies is pref-erential treatment for Qatari companies over foreign ones, because the success of local companies is in the interests of the national economy. We would also like to see the formation of an umbrella group of Qa-tari insurance companies that would enable them to consult and work together to con-front external challenges. It could be called the Association of Insurance Companies, or any other name the authorities were happy with, to make this umbrella grouping known.

What are your goals for the year ahead?QIIC’s goals for the coming year are to ex-pand its services to all economic, industrial and commercial sectors by developing its insurance programmes and improving its services.

How is a business leader different from an entrepreneur? What are the quali-ties a person needs to be an inspiring leader in a big corporation?A successful leader is someone who achieves continuous, steady success, whereas an en-trepreneur is a businessman with a number

of businesses, in some of which he is ex-tremely successful while in others his per-formance is modest or weak. So a successful leader is also an entrepreneur, but not the other way around. The marks of an inspir-ing leader are constant improvement, pre-cision in delivery, and close monitoring of every aspect of the work.

There is a view that a “culture of fail-ure” within an organisation is a positive thing, because it means the employees are prepared to try something differ-ent, even though it may be risky. What is your opinion on this?In the insurance field success is measured by results, and it depends on following the basic technical rules of the business. Fail-ure to stick to these means failure in perfor-mance, as failing to follow the basics is tak-ing a gamble that could lead to success for a short time but usually ends in failure.

At QIIC we work according to the rules of Sharia law because they form the basis of our work as an Islamic insurance company. We see the company as a brick in the edifice of the Islamic economy that we believe is from Allah and holds good for all times and places

Qiic’S PErFormAncE hAS BEEn EXcEllEnT, WiTh PrEmium GroWTh

oF rouGhly 17%, A 30% DiviDEnD To ShArEholDErS For 2011, AnD An

inSurAncE SurPluS rEFunD To PolicyholDErS oF 20% oF SuBScriP-

TionS (PrEmiumS PAiD DurinG 2011). morEovEr, ThE comPAny iS DoinG

All iT cAn To rEAch ThE mAXimum PoSSiBlE numBEr oF comPAniES

AnD corPorATionS WiThin QATAr WiTh ThE Aim oF BroADEninG iTS

SErvicE BASE.

June Cover - Qatar Today's TOP TEN Companies on the QE

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