Private Sector - May 2012

protecting brands qatar success story

market research qe venture market intellectual property

taxation

MAY 2012

ww

w.privatesectorqatar.com

/en

News10 UPDATESGet to know about the latest events and happenings in Qatar that will have an impact on SMEs and large enterprises.

Success Story28 MAKING EXCELLENCE A HABITSheikh Naif Bin-Ali-Al-Thani, Chairman, National Group, talks to us about his journey and what are his plans for the future.

SMEs22 WALK THE TALK: PROMOTING SMES Mouyaed Makhlouf, Regional Director, MENA, IFC talks to Private Sector about their work in the region and what programmes they have to encourage SMEs.

26 WHAT IS YOUR STYLE?Elias Mazzawi, Managing Director, EMS MENA, highlights the important points for managing an SME.

ManagementShelf Life14 PRODUCTSTake a look at the new launches that make your work life easier. It’s not like you need an excuse!

30 LENDING A HANDAparna Shivpuri Arya caught up with Colin Milton, Deputy Director, Listings Department, Qatar Exchange, to know about their latest initiative, QE Venture Market, for SMEs.

Investment

32 BEYOND THE DROP The Qatar National Vision 2030 aims at enhancing the role of the private sector in the economy. Howard Kitson, Country Head, Mashreq-Qatar tell us about the country’s efforts to promote SMEs as part of the national vision.

Business Growth

SMEs16 THE ONE STOP SHOPQatar Development Bank (QDB) launched it’s SME Toolkit to help and promote entrepreneurs and startups in Qatar. We bring you a snapshot of the event.

Business setup36 KNOW YOUR NEIGHBOURHOODBefore setting up a business, it is important to match your expectations with what the demands of the targeted market are. Bedaya Centre tells us how to go about with your market research.

SME Toolkit

16

contentsMay 2012

38 GET READY FOR THE MARKET How do you know that your CV caters to the expectations of the job market? Elsbeth Blekkenhorst and Danielle Maynard-Duttenhofer, Founders, Global Women Qatar, explain to us how to get our CV in order for the Qatar market.

Human Resource

Entrepreneurs34 REWARDING SUCCESSEnterprise Qatar (EQ) hosted the EO Majlis and the Ernest & Young Entrepreneur Award 2011. We bring you highlights of both these events.

36

48

42

Legal40 PROTECTING WHAT’S YOURSIn the last decade, Qatar has made real progress towards putting in place regulations for intellectual property. David Harper, Associate, Clyde &Co, explains to us the importance of Trademarks for business.

48 ECONOMIC LANDSCAPE Qatar has prospered in the last several years and held its own during the tumultuous times in the region. We take a look at consumer confidence in the country.

Country Update

Industry Watch54 WINDS OF CHANGEThe Arab Spring has affected a lot of economies in the region but has also given rise to the entrepreneurial spirit of the region.

Tax44 GET THE NUMBERS RIGHTWhat does the new tax law (Law No.21 of 2009) mean for SMEs? Paul Smith, Partner, Price WaterHouse Cooper, answers some of the key questions.

Marketing42 ON YOUR MARKSFollowing up our previous article on Trademarks, Mark Hill and Fiona Robertson, Media Lawyers, therightslawyers, talk about creating and protecting brands.

About town52 FOSTERING INCLUSIvE DEvELOPMENT Qatar recently hosted the UNCTAD XIII, where discussions were held on various aspects of development. Private Sector brings you the highlights from the international event.

April was a busy month for us, with events galore and the usual editorial deadlines. But we are here again, with another issue, filled with interesting discussions and informative articles on various aspects of doing business in Qatar.

Last month, QDB launched its SME Toolkit, supported by IFC and powered by IBM. It was an engaging event with panel discussions and presentations. The event was packed with enthusiastic entrepreneurs and businessmen, wanting to know how they can leverage from the

toolkit. We had even set up laptops outside for people to get a feel of the toolkit. The panel discussion had experts from all fields, who gave advice on how to start and manage a business. With 90% of enterprises in the region being SMEs, there couldn’t be a better time to start this initiative. The toolkit provides information right from the business idea to the management stage.

The other big event last month was of course the UNCTAD XIII and the World Investment Forum. The theme of the thirteenth session was Development-centred globalisation: Towards inclusive and sustainable growth and development. This fits perfectly with Qatar’s vision and the country was also handed over the presidency of UNCTAD for the next four years- a first for the Arab region!

Keeping up with the theme, we saw panel discussions on women development, technology, international trade, investment and much more.

Moving on, we also got talking to the Chairman of the National Group to know about his journey and what is his mantra for success. We also bring you a detailed article on the taxation system in Qatar and what do SMEs need to take notice of. Carrying forward our agenda to support SMEs, we met up with Qatar Exchange to know about their new initiative for SMEs. And if you are looking for a job and a little lost on how to prepare your CV, don’t forget to read our article by Global Women Qatar.

Like I said earlier, there will never be a better time to be an entrepreneur or startup in Qatar. So jump on the bandwagon !

We hope you will enjoy the read and soon we’ll be expanding our team! You’ll get to meet them in our next issue.

So keep reading!

editorial

Join the ride

Aparna Shivpuri Arya, Editor (English), Private Sector Qatar

Talk to us:E-mail: [email protected] Twitter: @PrivateSectorQA Facebook: www.facebook.com/PrivateSectorQatarLinkedIn group: Private Sector Qatar

PublisherDominic De Sousa

Group COONadeem Hood

Managing DirectorRichard Judd

[email protected] +971 4 440 9126

EDITORIAL

Editor - EnglishAparna Shivpuri Arya

[email protected] +971 440 9133

Editor - ArabicBasel Al Bannoud


Contributing EditorsMike Byrne


ADVERTISING

Commercial DirectorChris Stevenson


Sales DirectorFrancis Morgan


CIRCULATION

Database and Circulation ManagerRajeesh M


OPERATIONS AND DESIGN

Operations DirectorJames Rawlins


Production ManagerJames P Tharian


Art DirectorKamil Roxas


Head of DesignFahed Sabbagh


PhotographerCris Mejorada


DIGITAL SERVICESwww.smeadvisor.com

Digital Services ManagerTristan Troy Maagma

Web DevelopersJerus King Bation

Erik BrionesJefferson de Joya

Louie Alma


Published by

1013 Centre Road, New Castle County,Wilmington, Delaware, USA

Branch OfficePO Box 13700

Dubai, UAE

Tel: +971 4 440 9100Fax: +971 4 447 2409

Printed byAl Warq Printing Press, Qatar

Distributed byDar Al Sharq Distribution

© Copyright 2012 CPIAll rights reserved

While the publishers have made every effort to ensure the accuracy of all information in this

magazine, they will not be held responsible for any errors therein.

QDB BriDgeD the gap to starting my own Business through aL Dhameen.

Do you have a promising business or new business idea? But do you also have trouble finding the funding that you need? Ask us about Al Dhameen Indirect Lending Program from QDB. We will guarantee up to 85% of your business loan*, leaving you free to focus on developing your business. Click on www.qdb.qa or visit one of our partners listed below.

* Guarantees of up to 85% are for new businesses. Exiting businesses can get guarantees of up to 75%. Terms and Conditions apply.

QDB_Al_Dhameen_Bridge_270x207mm.indd 1 24.01.12 16:29

For more information, please visit www.privatesectorqatar.com/en

Dr. Hessa Al Jaber

Dr. Jaber is the Secretary General of ictQATAR.

Abdulaziz N. Al-Khalifa

Mr. Al-Khalifa is the Executive Director, Strategic Planning and Control at Qatar Development Bank (QDB).

Raed Al-Emadi

Mr. Al-Emadi is the Deputy CEO, Silatech.

Bassam Salman

Mr. Salman is Executive Assistant, Qatar Chamber of Commerce & Industry.

George M. White, Ph.D.

Dr. White is Associate Teaching Professor of Entrepreneurship at Carnegie Mellon University-Qatar.

Hamad Mohammed Al-Kuwari

Hamad AL-Kuwari is the Managing Director of Qatar Science & Technology Park.

Ms. Amal Al-Mannai

Ms. Al-Mannai is the Executive Director of the Social Development Center (SDC).

Hamad Al Abdan Al-Marri

Eng. Hamad Mohamed Al Abdan is the Chief Business Operation Officer at Enterprise Qatar.

Professor Nitham M. Hindi

Professor Nitham M. Hindi, is the Dean of College of Business and Economics at the Qatar University.

Gail Gosse

Gail Gosse, is the Dean of the School of Business at College of North Atlantic-Qatar.

AdvISoRy BoARd

13 major Qatar plastic companies participate in NPE 2012 USA

Under the auspices & organisation of TASDEER, the exporting arm of Qatar Development Bank (QDB), 13 major Qatar companies took part in the exhibition “Plastic Industry 2012” in the United States, Conference Center in Orlando, Florida, from 1-5 April.

The Bank through TASDEER bore all expenses and the financial cost to all 13 companies, under the QDB pavilion. Commenting on this occasion, Mr. Mansoor Bin Ibrahim Al-Mahmoud, CEO of QDB said that the participation of 13 Qatari companies representing different sectors of the plastics industries, reflect the importance of this sector to the national economy diversified away from energy products.

Meanwhile, Mr. Hassan Khalifa Al Mansouri – Executive Director of Tasdeer – Qatar Export Development Agency at Qatar Development Bank said that NPE 2012 is one of the most important events dedicated to the plastic industry and is aimed at discovering new plastic manufacturing technologies. He went on say that the event offers unrivalled process innovations to help automotive component manufacturers’ rise up to face the modern day challenges that lie ahead of them.

He assured that NPE 2012 featured the full stream of assembly technology products for all manufacturing processes. Apart from this, it is the center for business networking, the source of knowledge, the

meeting place for industrialists to share ideas and comments as well as a stage for the newcomers from Qatar’s academic institutions to debut their performances in technologies.

“The main objective of these companies from Qatar in the NPE 2012 was to develop the nation’s manufacturing industry with special attention given to the Small and Medium Industry (SMIs) to further develop and keep ahead with the competitive environment. The event showcased latest innovation and products for related industry which attracted thousands of visitors from different parts of the worlds,” Al Mansouri added.

news

10 may 2012

Qatar’s GDP set to grow

Challenge of inclusive growth ahead of UNCTAD XIII

QNB Group has updated its forecasts for the Qatari economy for the period 2012-13, based on the recent release of full year 2011 GDP data by Qatar Statistics Authority. The update includes various oil price scenarios. Nominal GDP is forecast to surge by 19.8% in 2012 and rise by a further 5.4% in 2013 to QR 798bn as the non-hydrocarbons sector takes over from hydrocarbons sector as the main driver of growth.

The baseline forecasts assume that oil prices will average USD 120 per barrel in both 2012 and 2013. Qatari crude oil prices have averaged USD 119/barrel for the first quarter of 2012, with an average of USD 125/barrel in March 2012.

Given recent oil price volatility, it is important to consider the impact on our forecasts of various oil price scenarios. If the oil price in 2013 were to fall below to USD 110/barrel, then GDP would

contract by 1.3%. Conversely, if oil prices rose from USD 120/barrel in 2012 to USD 130/barrel in 2013, then Qatar’s nominal GDP would grow by about 12.2%, more than double the baseline growth forecast, which assumes prices average USD 120/barrel in 2012-13.

In its baseline scenario, QNB Group expects that hydrocarbon GDP will represent 59% of total GDP in 2012, compared to 58% in 2011 due to higher prices and increases in output. In 2013, the share of hydrocarbon GDP will fall back to 58% as QNB Group expects hydrocarbon prices and production to level off while the non-hydrocarbon sector grows strongly.

In the non-hydrocarbon sector, QNB Group forecasts growth of 15.4% in 2012 and 8.9% in 2013, with the corresponding values of QR308bn and QR333bn.

The sectors with the highest contribution to non-hydrocarbon GDP are financial services, representing 26% in 2012, followed by government services and manufacturing, both with 22%.

QNB Group expects government services to grow by

37% in 2012 reaching QR 67bn, mainly due to salary increases for Qatari government employees.

Based on QNB Group’s baseline forecasts for 2012 and 2013, GDP per capita will be USD 112,929 and USD 114,340 respectively, which will rank Qatar as the richest country in the world.

The United Nations Development Programme (UNDP) has highlighted inclusive growth as a challenge to equitable globalisation, ahead of the thirteenth session of the United Nations Conference on Trade and Development (UNCTAD XIII). As the host and President of UNCTAD, Qatar has the opportunity over the

next four years to ensure that human development indicators of developing countries are converging faster with those of the industrialized world.

Ahead of UNCTAD XIII, the UNDP Administrator Helen Clark sent a message to the conference stating,

“Economic growth needs to be inclusive and equitable to enhance resilience to crises and reduce poverty and inequality. Growth needs to occur in the sectors where the world’s poor are trying to make their living, like agriculture, and employment creation needs to fit the definition of decent work.”

news

631

19.8%

5.6%

42%

58%

41%

59%

42%

58%

756

798

11may 2012

Save the date!date Event Location7-8 may 2nd annual mep summit and awards intercontinental hotel, doha

10 may made in italy 2012 doha exhibition center

10-16 may spe international production and operations conference and exhibition (poce)

qatar national convention centre (qncc), doha

21-22 may qatar construction logistics tba

22-24 may international exhibition of toys doha exhibition center

23-25 may cityscape qatar qatar international exhibition centre

24-26 may mother, baby and kids show doha exhibition center

27-30 may Fttx summit middle east oryx rotana hotel, doha

28-29 may the 2nd middle east sme Forum 2012 grand hyatt, doha

2 June "hya" abaya exhibition June 2012 doha exhibition centre

3-7 June world stadium congress 2012 tba

news

MAy-JUNE 2012

Business funding clinicsBedaya Center for Entrepreneurship

and Career Development successfully ran their first business funding clinic at their premises in Katara. The clinics target entrepreneurs at all stages of their business, whether they just have an idea and require feedback or are at a more mature stage of their business and require advice on funding and setting up their company. The clinics are one to one sessions where entrepreneurs can:• Discuss their business confidentially• Ascertain whether they are ready to go

through the investment process• Get advice on how to get investment

ready• Find out about additional support

available

In their first week they met with nine entrepreneurs who were a combination of established and first time entrepreneurs. Their businesses covered a range of areas including technologies, lifestyle, retail, construction and marketing. Although the entrepreneurs had many questions on the legal requirements to setup a company in Qatar as well as funding options available, the majority of them used the sessions as a sounding board for their business idea, discussing whether their proposition is business viable in the region.

At the end of each session, the advisor sets out an action plan with the entrepreneur which includes identifying improvement areas either for the individual

(presentation skills, communication skills, Investment awareness and readiness and so forth) or their business (build the business model, conduct market analysis and so forth). In some cases businesses would be at an investment funding stage and we would then shortlist them to pitch in front of investors in our business funding events. Out of the nine people they met, three of them have been shortlisted to pitch.

The business funding clinics are free sessions run on Monday mornings between 8 AM and 12:30 PM and Tuesday afternoons between 4 PM and 6 PM at thirty minute slots per session. To book slots please email business advisor Yasmeen Hasan at [email protected].

12 may 2012

shelF liFe

Be everywhereMotorola Solutions, Inc. announced the availability in Europe, Middle East and Africa region of the rugged DS3500-ER series of extended range scanners offering the flexibility to easily scan and capture barcode information from both near and extended distances for warehouse management and other applications in the harshest industrial environments.

The rugged DS3500-ER can be used both indoors and outdoors for asset management, inventory management, picking, traceability, shipping and

receiving applications in warehouses, distribution centers, manufacturing plants or warehouse-style retail stores. Designed for scan-intensive industrial applications, the ergonomic DS3500-ER series is available either corded or in a Bluetooth cordless version with FIPS 140-2 validation enabling greater worker mobility and enhanced security.

HTC released their latest device the HTC One X into the Middle East market earlier this month. The first device from this manufacturer that comes with the long-awaited Android 4.0 (Ice Cream Sandwich).

The HTC One X is powered by a 1.5 GHz Nvidia Tegra 3 chipset with 1GB of RAM and 32GB of internal storage. It fashions a beautiful 4.7 inch multitouch screen protected with Corning Gorilla Glass, and a pixel resolution of 720x1280.

The phone comes with an 8 MP camera that allows you to shoot High Definition videos at 30 frames per second and take great quality still photos at the same time, along with geo-tagging, face and smile detection.

The audio features of the device are powered by Beats Audio for the ultimate listening experience. HTC also packed this phone with many other features like NFC, GPS, Radio and lots more. And they’re releasing it into the Middle East market with a wide variety of accessories.

Ice cream sandwichin your pocket

An exceptional series Canon Middle East unveiled the

latest range of versatile, stylish and

easy-to-use PowerShot A series

models designed to help users

capture impressive images and HD

movies – anytime, anywhere. Each

model combines Canon’s leading

lens technology, a slim and stylish

design and a range of stand-out

technologies that make taking

photos and recording HD movies

easier than ever before.

The new models feature a 28mm

wide-angle lens that help to capture more

of the scene, from group gatherings to

eye-catching landscapes, while the 5x

optical zoom on the PowerShot A810,

PowerShot A1300, PowerShot A2300,

PowerShot A2400 IS and PowerShot

A3400 IS lets users get closer to a distant

subject. For zooming in even further and

capturing more, the PowerShot A4000 IS

features a powerful 8x optical zoom in a

slim, compact body. By detecting motion

and merging multiple images into one

blur free image, Digital IS mode featured

in the PowerShot A810, PowerShot

A1300 and PowerShot A2300 minimises

blur for sharp, clear shots.

For even more advanced stabilisation,

the PowerShot A2400 IS, PowerShot

A3400 IS and PowerShot A4000 IS

feature an optical Image Stabiliser with

Intelligent IS technology.

14 may 2012

Get your FREE* copy of Private Sector every month!

subscribe to private sector for valuable business advice that will help develop your business. maximise your opportunities and growth through our initiatives spanning magazine, events, website and social media.

Be part of a community of forward-looking businesses. Subscribe to Private Sector today!

* business decision makers in qatar are eligible for the complimentary subscription. international and bulk subscriptions will be charged nominally. please send the details to [email protected]. our distribution team will be in touch with you.

For more information about advertising and other partnership opportunities, please visit www.privatesectorqatar.com/enFor marketing ideas and opportunities, please contact [email protected]

Full name:company: Job title:address:country:city:p.o.box number:phone number:mobile phone number:Fax number:e-mail:website:subscribe to: english arabic

THE oNE SToP SHoP

According to Abdulaziz Al Khalifa, Executive Director of Strategic Development

and Planning, “The SME Toolkit is the single-window solution to access information about initiating, managing and developing enterprises.”

At a workshop attended by more than 100 people, QDB unveiled the localised and freely-available version of IFC’s SME Toolkit web platform in Qatar in both English and Arabic. The SME Toolkit Qatar offers entrepreneurs free,

online, and around-the-clock access to expert information, interactive tools and educational resources to help them implement sound business management practices, access finance, and enter new markets. Available at qatar.smetoolkit.org, the SME Toolkit Qatar supports the efforts of the Qatari government’s National Vision 2030 to enable the private sector and enhance the contribution of the private sector, especially outside of the hydrocarbon sector.

Speaking at the launch ceremony, QDB’s CEO Mr. Mansoor E. Al Mahmoud said, “We are delighted to launch the Qatari version

of SME toolkit in cooperation with IFC and support from IBM. SMEs all over the world and, particularly in developing economies, face challenges to access relevant information to make sound business decisions. We envisage that this toolkit will serve as online one-stop shop for private sector enterprises and entrepreneurs in Qatar to access relevant, up-to-date information to start, manage and grow their businesses.”

He added “This Toolkit, which is customised with locally relevant content to serve the needs and requirements of Qatari private sector enterprises, will be implemented through various Qatari institutions and organisations engaged in the development and promotion of private sector SMEs in Qatar. This toolkit is yet another milestone for all of us, as part of

In April, Qatar Development Bank (QDB) and IFC launched the SME

Toolkit Qatar – an online platform to support and promote the

private sector in Qatar.

sme toolkit

16 may 2012

sme toolkit

our commitment to promote the private sector ecosystem in the country”

The Global version of IFC’s SME Toolkit was launched in 2002 and is available in 32 countries and 18 languages. Its various websites worldwide receive a combined five million unique visitors annually. In many places it is the largest online business support resource in the local language.

“Smaller businesses are a vital part of all economies in this region,” said Mouayed Makhlouf, IFC Regional Director for the Middle East and North Africa. “This toolkit will give them the support and know-how they need to grow and create jobs, helping drive economic growth.”According to Mouayed, only 15 % of SMEs in the region have access to finance and IFC aims to provide financing and advisory services through the toolkit.

In 2006, IFC partnered with IBM to strengthen and expand the SME Toolkit’s capabilities. To date, IBM has invested more than USD three million to co-develop the product on an open-source platform, offering innovative and collaborative features.

Bashar Kilani, Territory manager, IBM, spoke about the role of IBM in promoting SMEs “SMEs are one of the fastest-growing segments we work with. We are very keen to help SMEs to become larger companies. IBM has invested a lot in the know-how available in this toolkit. The SME toolkit is available to many companies around the world and we will continue to improve and contribute to the toolkit.” IBM has also set up its office in Doha in April 2012.

Moving forward, in order to understand the challenges entrepreneurs face in Qatar and how the SME Toolkit can fill that gap, Maha al Essa, one of the co-founders, 974Design, presented her case. She talked about her experience as an entrepreneur in Qatar and what were the challenges and lessons learnt. 974Design was established in 2010 by three Qatari women to provide the local market with a new approach to design.

The important step in their lives came when they faced the question of what they wanted to do in life. Maha said that a quote by Richard Branson- “A business has to be involving, it has to be fun and it has to exercise your creative instincts,” helped them decide that they wanted to venture into the field of design.

They prepared their business plans by attending workshops that helped them develop a good business plan and pooled their funds to finance the idea.

Talking about why they decided to be entrepreneurs, Maha was quick to point out that it was about risk and self expression. They wanted to challenge themselves to be the best in the Qatari market and at the same time wanted to do something that they were passionate about.

But it wasn’t all a bed of roses and the team faced challenges in penetrating the Qatari market and to get people to trust a local agency in comparison to big international organisations. However they overcame the challenge. “As a startup we relied a lot on two main things word of mouth, getting projects and meeting potential clients through our friends and family and social media, We believed it was an important aspect in growing our company, sharing our thoughts, ideas and work with people around the world,” said Maha. Another tactic that they used, was to ask people around them, with experience, who

have taken risks in their own field, what sort of solutions did they come to, how can it be applied to their situation and field.

Maha did have a word of advice for all the entrepreneurs and startups present in the audience. “Always document everything you do, even after meeting send an e-mail to your clients recapping what was agreed on in the meeting. Because throughout a project you may never know what happens, project managers tend to change, team members tend to change.” When asked what would have helped, Maha was quick to reply that some legal help would have done them good. They did not know what kind of contracts should they sign, what elements should be included and so forth.

Keeping all these challenges and questions in view, it was the perfect time to introduce the SME Toolkit. Amna Al-Sultan, from QDB took the stage to take the audience through the various aspects of the toolkit. Demo laptops were placed in the foyer, for the audience to get a feel of the toolkit themselves.

As pointed out earlier, the toolkit is a one stop shop, a hub for information to help entrepreneurs who want to start their business or want to expand. The toolkit currently provides international and local content relevant to the Qatari market. It offers online training, interactive tools, resources (external links) to entrepreneurs and startups.

17may 2012

sme toolkit

“We believe the toolkit is useful for every business throughout the business life cycle. The first phase is developing the idea- the entrepreneur needs information on the market. There is market overview which gives information on the different sectors of the economy, such as publications, reports, links and profile of each sector to find information on the current status of the sector and the prospect in the near future,” explained Amna.

The toolkit provides information on how to write a business plan. It also provides information on the next phase of business – implementing and setup. “If you go to legal and insurance and click on incorporation you will find all information on pre registration, registration, business structure, how to establish and close a business in different sector and a step by step guide on registering a company in Qatar,” said Amna. There is also a section on human resource to get information on hiring and recruiting local and foreign employees.

User can also find downloadable excel worksheets, where they can plug in the numbers and get result instantly.

To grow and run your business, there is no better way than giving your business visibility and help you match with other businesses. Also, entrepreneurs can register their business in the toolkit’s business directory, which will allow them to access special content which will be available soon.

The SME toolkit is available in both, English and Arabic. Also, the toolkit can be accessed through the mobile phone. This is just the first phase and new features will be added- blog, quizzes, calendar of events, expert opinion, training courses-all of which will be announced soon- so stay tuned!

Since the evening was all about promoting and encouraging entrepreneurs, there was an expert panel discussion, on the various aspects of being an entrepreneur in Qatar. The panel included, Andre Van Zijl, QNB, Munther Al Dawood, SDC, Raed Al Emadi, Silatech,

Abdulaziz Khalifa, QDB, Mouyaed Makhlouf, IFC, Sammi Fakhoury, Al Tamimi & Co,

The panel discussion started with Abdulaziz highlighting the importance of the SME sector. “SMEs are very important for Qatar but their contribution to GDP is quite low, so we do understand that there is a problem. We do not have a proper ecosystem to help SMEs in Qatar,” Abdulaziz added.

We have to diversify the economy, and then we have to support the SMEs. All the institutions on the table are trying their best to develop an ecosystem and there is a need to diversify the economy.”

Mouyaed continued on that point and said that about 90% of the businesses globally are SMEs and contribute 50% of employment and access to finance is an issue. But he encouraged the audience to not give up, do the research, study the market and there are enough success stories “Look at Aramex- small company from Jordan, which is global now. If one can do it, many can do it too,” he added.

Talking from experience, Andre said that it is difficult because banks have their own lending policies. A lot needs to be done before SMEs come to the bank and ask for support. From a banking perspective, he suggested that we should always go back to the basics, do the basic financial analysis. It is important to realise that as we approach World Cup 2022, it is time to support the sub contractors and SMEs. Andre highlighted the importance of networking. “It is very important to connect with people. When you are starting a new business, it always helps to know people.”

Talking about the legal framework, Sami said that pledge of movable asset is a very important aspect which needs to be solved, through an asset register providing the banks with the right security for financing.

Munther highlighted how SDC has a number of programmes to support entrepreneurs and SMEs and have had a few successful case studies. It has training programmes, established in collaboration with ILO to educate the entrepreneurs and impart skills to manage. “Being a successful entrepreneur is not an easy job and is a combination of experience with skill. So get enough training, be committed, have a good business plan, study the best practices and lastly always keep risk management in mind,” Munther advised.

Raed said that the Arab spring has brought about more entrepreneurs in the region because the risk-taking spirit has kicked in. He used the example of Tunisia where successful businesses have managed to survive the turmoil. According to him everybody is looking at SMEs as solution for job creation. Raed also cautioned that to be successful, you need to pick your partner carefully. When things are fine, it’s okay, but just as other commitments, when things are down, you need a technically sound partner, they are legally aware and financially secure.

Abdulaziz summed up the panel discussion by highlighting that most of the advice given by the panellist can be adhered to just by using the SME Toolkit!

18 may 2012

Mansoor Bin Ibrahim Al-Mahmoud, CEO, QDB, gives the welcome speech

sme toolkit

Mr. Basher Kilani, Territory Manager, IBM Middle East

Participants networking

Participants exploring QDB’s SME ToolkitPanel discussion

Maha Al-Essa, one of the co-founders, 974Design, talks about her entrepreneurial experience

19may 2012

sme toolkit

Abdulaziz Khalifa, QDB Munther Al Dawood, SDC Raed Al-Emadi, Siltatech Mouyaed Makhlouf, IFC Andre van Zijl, QNB Sami Fakhoury, Al-Tamimi & Co

Amna Al-Sultan presents the SME toolkitTime for audience prizes

20 may 2012

For more than a century, Carnegie Mellon University has been inspiring innovations that change the world. Consistently top ranked, Carnegie Mellon has more than 11,000 students, 90,000 alumni and 5,000 faculty and staff globally.

In 2004, Qatar Foundation invited Carnegie Mellon to join Education City, a groundbreaking center for scholarship and research. Students from 39 different countries enroll at our world-class facilities in Education City.

Carnegie Mellon Qatar offers undergraduate programs in biological sciences, business administration, computational biology, computer science and information systems. Carnegie Mellon is firmly committed to Qatar’s National Vision 2030 by developing people, society, the economy and the environment.

Learn more at www.qatar.cmu.edu

Excellence. At Carnegie Mellon.

smes

International Finance Corporation (IFC), the private sector arm of the World Bank, has been actively working

on promoting SMEs globally as well as in the MENA region. Private Sector got talking to Mouyaed Makhlouf,

Regional Director, MENA, IFC, about the role of IFC and how SMEs can make use of the SME Toolkit.

How is the private sector important for an

economy? And within the private sector,

what is the role of SMEs?

The private sector plays a critical role in

development and growth. It provides about 90%

of jobs worldwide.

The role of SMEs in promoting economic

growth and spurring job creation is becoming

more prominent now than ever. Many countries

are recognising the importance of this sector

in the context of the current global economic

slowdown and rising unemployment.

To give a few examples from across the globe,

SMEs contribute to:

• 48% of GDP and 54% of employment in the

United States

• 60% of GDP and 83% of employment in

China;

• And the numbers are as high as 86% of GDP

and 95% of employment in Chile

A recent study by the World Bank shows that

SMEs are the biggest contributors to employment

across 99 developing countries surveyed. This

study also shows that SMEs account for over 80%

of net job creation and 67% of employment in

developing countries.

In MENA, SMEs represent between 80 to

95% of all local enterprises, and account for up

to around 40% of all private sector employment.

Supporting the SMEs is hence an integral part of

the growth and jobs equation in the region.

What is the role of IFC, its investments and

advisory services in SME promotion?

Recent events have deepened the

development challenges in the region and

brought renewed attention to the consequences

of youth unemployment.

The public sector can no longer be the main

provider of jobs in the region – promoting private

sector led growth is critical

IFC is helping SMEs through its investment and

advisory services.IFC investment services address

market failures to finance SMEs through:

• Debt and equity investments in SME- focused

banks

• Risk-sharing facilities to encourage SME

lending

• Trade lines to finance capital equipment and

inventory imports and exports

• Mobilisation of private funding, equity and

debt guarantees

• Build leasing and franchising

• Equity investments through private equity funds

WALkTALkthe

promoting SmEs

22 may 2012

A recent study by the World Bank shows that SMEs are the biggest contributors to employment across 99 developing countries surveyed. This study also shows that SMEs account for over 80% of net job creation and 67% of employment in developing countries.

smes

IFC advisory services provides training and

tools to help SMEs improve strategy, products,

marketing, sales culture and delivery channels,

credit-risk management, information technology

and governance.

IFC advisory works with governments to

improve the business climate and remove the

obstacles that prevent small firms from joining

the formal sector where research shows grow

more and hire more people.

The SME Toolkit, an innovation of IFC, helps

over five million users a year across 32 countries,

in 18 languages, to learn and implement

sustainable business management practices and

increase their capacity, access to finance and

new markets. Through a network of global

partners and local distribution partners, localised

SME Toolkit platforms provides SMEs with

online and mobile phone access to key business

management information (news, how to articles),

interactive tools, business forms in accounting

and finance, marketing and sales, legal and

human resources, business directory and so forth

. A strategic partner since 2006, IBM strengthens

and expands the Toolkit’s technical capabilities.

IFC’s Business Edge classroom business training

workshops have been delivered to more than

150,000 people across Asia, Africa, the Middle

East and Latin America.

Tell us a bit more about IFC’s programme in

the Middle East and North Africa

IFC has been playing a key role in the region. IFC’s

immediate focus has been to restore confidence

in the private sector, which is the critical engine

of economic growth and job creation. We

have committed over USD 2.4billion (including

mobilisation) since January 2011, boosting

investors’ confidence and demonstrating that the

region has a long term potential.

Assuming the political situation stabilises and

new governments are supportive of private sector

development, we expect to invest up to USD 6

billion, including USD 2 billion in mobilisation, in

the Middle East and North Africa over the next

three to four years.

IFC has signed several significant transactions

recently including a loan to support the

construction sector in Iraq (Lafarge), a transaction

to improve access to high-quality generic

medicine (Hikma), and one to help increase access

to finance for small and medium enterprises

(BankMuscat)

Our advisory work is fully integrated into many

of its investments and initiatives. Advisory services

are helping companies improve their corporate

governance, advice on public-private partnerships

in infrastructure, help smaller businesses access

credit, and improve the regulatory framework for

private education.

FC works to make business more inclusive to

women and youth — especially through access

to finance, education, MSME and Business Edge

training programmes.

An integral part of IFC’s strategy over the last

five years has also been to develop Regional

Champion investors in the GCC and mobilise

them to enter developing markets in the region

and outside.

IFC, working with partners, has launched four

initiatives to help the region :

• Small and Medium Enterprise Facility - joint

with IBRD, EIB, & KfW – Approximately

USD 550 million facility was created to help

financial institutions increase access to finance

small and medium enterprises (SMEs) through

a combination of investments and advisory

services

• Education for Employment (e4e)

– a joint initiative with the IsDB - In April

2011, IFC and the Islamic Development

Bank launched the e4e initiative for Arab

Youth.It aims to bring public and private

partners together to improve the quality

and relevance of the skills students bring

into the workforce in order to increase their

chances of employment. It is also helping

demonstrate the viability of private sector

investment in the employment-driven

education sector. Jordan and Tunisia are the

initial target countries; Country road maps

completed

• Arab Financing Facility for Infrastructure

(AFFI) - joint initiative by IFC, IsDB & IBRD -

Its aim is to provide financing and advisory

assistance for infrastructure PPPs, cross-

border infrastructure projects, and other

innovative infrastructure plans with the

potential for regional impact. The facility

includes several components, including

an investment vehicle and a technical

assistance fund. The facility includes several

components, including a private investment

vehicle, a joint IBRD, IFC, IsDB technical

assistance facility (TAF), a public sector

window for financing by IBRD, and a Policy

Forum which supports policy work in the

region. and.

• MENA Fund- It will initially channel USD

300-USD 500 million towards minority

equity investments in diverse sectors in the

Middle East and North Africa.The fund aims

to restore investor confidence in the region,

spur the return of foreign direct investment,

and increase access to finance for smaller

businesses, education and infrastructure

sectors. The fund will be managed by the

Asset Management Company. IFC will provide

up to 20% of its total commitments.

23may 2012

smes

We would like to know more about the

SME Toolkit

The SME Toolkit offers business forms, how-to

articles, community features and much more

to help entrepreneurs, small and medium

enterprises in emerging markets grow and

succeed.

The SME Toolkit (www.smetoolkit.org),

an innovation of IFC, helps entrepreneurs

and small and medium enterprises (SMEs)

in emerging markets learn and implement

sustainable business management practices

and increase their productivity, their capacity,

as well as improve their access to finance and

new markets. Through a network of global

partners and local distribution partners, the

Toolkit provides entrepreneurs and SMEs with

online and mobile phone access to key business

management information, interactive tools, and

educational resources.

Localised SME Toolkit sites include hundreds

of free business forms, tools, and how-to-

articles, in addition to a global business

directory, multilingual community forums, and

a host of other interactive features, as per the

choice of the local distribution partner. Core

content areas include: accounting & finance,

human resources, international business, legal

& insurance, marketing & sales, operations, and

technology.

In 2006, IFC partnered with IBM to

strengthen and expand the Toolkit’s capabilities.

To date, IBM has invested extensive resources

to build the technology platform, continue

to develop a suite of collaborative features

and innovative solutions to leverage the latest

technologies to provide relevant support to

entrepreneurs and SMEs worldwide.

How has the SME Toolkit done in

the region?

In the MENA region, local distribution

partners are financial institutions that have

a vested interest in becoming THE partner

of growth of emerging entrepreneurs and

SMEs, often as they develop SME Banking

departments or deal through SME Banking

Banks, like QDB does in Qatar for example.

They provide the localised SME Toolkit in their

market, as part of their overall non-financial

services, to differentiate themselves, reduce

risk and enable emerging entrepreneurs and

SMEs to become more “bankable”, grow

and expand. They do this in partnership with

key local stakeholders relevant and providing

support to SMEs (from Ministries, to chambers

of commerce, including local business experts,

business services providers, etc), aiming at

building progressively an ecosystem or one stop

shop information platform where local SMEs

and entrepreneurs can find relevant resources

for better managing their business.

Current partners in MENA include Riyad

Bank in KSA, AlexBank in Egypt, and now Qatar

Development Bank, whose ambitious plan for

private sector development in Qatar through

development of local entrepreneurs and SMEs

led to the development of an SME Toolkit Qatar

Mr. Mouayed Makhlouf is the Director of the Middle East and North Africa region. He is responsible for IFC’s investments and advisory programs in more than 20 countries, which aim to support economic development across the region through private sector development.Prior to this appointment, he was Manager, Financial Markets for the Middle East and North Africa. During that time, he helped implement regional industry strategies for IFC’s investment and advisory services arms managing a portfolio of about $1.7 billion.He joined IFC in 1998 in the Central Asia, Middle East and Northern Africa department based in Washington DC. There, he worked on multiple large transaction including major restructuring of the cement sector in Pakistan as well as supervising projects across the region. Mouayed holds a Master of Science in Finance degree from George Washington University in Washington, DC. For more information about the work being done by IFC, please visit www.ifc.org

About

platform, among other non-financial services

that QDB offer in Qatar.

In Asia, it is used by Dialog Telecom, the

leading Telecom Operator in Sri Lanka trained

over 10,000 retailers and distributors with SME

Toolkit, enabling those to create over 3,250

new jobs, contributing to a revenue increase of

40% and 90% of those companies expanded

their business significantly.

In India, ICICI Bank, one of the largest

SME Bank in the world reaches over one

million visitors a year through its SME Toolkit

India, providing over 4,000 tenders regularly

refreshed, enlisting over 500,000 businesses,

and holding regular live chats with key industry

experts, contributing to increased access to

finance and markets to its users.

So the SME Toolkit has been working its way

through in helping SMEs grow in all parts of the

world.

24 may 2012

Mouyaed Makhlouf

connect cape town, south africa ✈ distance: 7,427 km ✈ Flight time: 11 hours, 25 minutes ✈ Frequency: 4 flights a week

Think elegance. Think Berkeley.

Designed for lifeOur visionfor your future

www.berkeleygroup.co.uk/oryx

Proud to be members of the Berkeley Group of companies

Close attention to interior detail is a Berkeley hallmark. We reach the

highest standards by merging traditional craftsmanship, fine materials

and the most advanced technologies.

Over 60 exclusive developments across London and the South East

Computer Generated Image depicts Roehampton House, SW15.

management

“It is what you do and the way that you do it - that’s what gets results.”

A slight variation on the lyrics of the 1939 tune – but that is forgivable. The song was not composed with business management in mind - but is nonetheless a reminder of a truth: how we manage our businesses is perhaps the single biggest determinant of how successful our businesses are.

No where is this truer than in the entrepreneurial SME. Fellow entrepreneurs will tell you that their key challenge is to find the tools for translating the skills, energy and dedication of the core leadership team into a high performing organisation.

The correlation between the extent to which this is achieved and the level of success of the business is direct. In other words, it is crucial.

Three lessons from experience: 1. Make the transition from directly controlling

and managing everything - to empowering the wider team. It is the first step in building a ‘virtuous spiral’.

2. Understand and actively invest in associated skill-building, so that your organisation can

WHAT’S yoUR STyLE?We all know that SMEs are the engine for growth and an important part of the economy. However, while

setting up shop is one thing, it is another to manage it. Elias Mazzawi, Managing Director, EMS MENA, talks to

us about managing an SME.

accept the empowerment you are offering. 3. Build simple, workable management

processes and reporting – and use them. Allow everyone to understand the cause and effect.

Command and control doesn’t helpIn many entrepreneurial SMEs, the core team is very actively involved in the minutiae of the business.

Entrepreneurs are passionate about what they are building and managing. They drive it. This hands-on ‘micro’ approach is in part the very reason for initial success.

But it needs to be used to just the right extent, at just the right time, in just the right way on just the right things. Otherwise, at some point this heavy ‘micro’ involvement can begin to limit potential for success. The challenge is to recognise when the time is right to make the transition – and to have in place the tools and techniques to make it.

Take the example below. Extreme perhaps, but something I saw recently – and it certainly illustrates the point.

• Management set a rule that cars should be washed at a specific time on a specific day.

• This was followed -- to the letter. • In the middle of a sandstorm, a car was

being washed.

Consider the implications:• It’s a waste of effort. The car will be just as

dirty again in just a few minutes.• It’s de-motivating. Consider the employee’s

perspective – washing a car in a sandstorm is unlikely to deliver job satisfaction.

• It could destroy value. There is a high chance that the paintwork on the car would be scratched as sand gets into the cleaning cloth.

• It discourages initiative from the workforce.

Noone considered the changed circumstances. At the simplest level, the car washer could have been doing something more productive - perhaps something that there isn’t time for in the normal day-to-day routine. But there was clearly no mechanism to encourage or allow this.

Extrapolate from this to less extreme but more complicated day-to-day and strategic business situations - how much initiative and talent is being ignored, and what value could it deliver for the business? This common management approach very soon sets a low ceiling for quality, initiative, growth and improvement - at the

26 may 2012

management

level at which the already time-challenged and stretched core team can be involved actively in the day to day minutiae. The first challenge is to be willing to empower employees.

Train, develop, motivateIt’s all very well to say “I will empower the team” – but the team needs to be in a position to accept that empowerment. That requires two things:• Relevant and appropriate skills and

capabilities.• A heightened sense of responsibility and

duty to the company and to its customers.

Training is critical in technical skills, in decision making, in understanding the range of possible actions, and consequences.The region is investing in this -- with substantially increased budgets for training and development. It will be key to enhanced future success. That training must be supported by a corporate culture that fosters learning, allows questioning, rewards success and learns from failure. Management processes, practices and systems must foster this.

Cause and effect management approachSo now, it’s all very well to say “I will take the right steps to empower the business and I will take the right steps to enhance skills, capabilities and attitude - but there needs to be a ‘glue’ to hold this together, to make activity ‘pull in the same direction’. A balanced scorecard approach, pragmatically designed and implemented, fits the bill.

The approach is not new – it has been around since the 1990s. Most recognise it as a scorecard covering a range of perspectives - financial, customer, internal processes, learning and innovation (these vary from company to company). That is important -- keeping a balance measure.

effect map can make a very big difference. Using this approach to plan and manage on a daily, weekly, monthly and annual basis works. Providing it is implemented pragmatically and not over-analytically.

Add in an element of celebrating (rewarding) successes and it becomes a very powerful way to manage the business.

So what should you do differently tomorrow?1. As a small business leader, don’t keep all

the pressure responsibility accountability to yourself. Share it with the team. The business will benefit – provided you set up the environment for success.

2. Instead of making the decisions yourself, consult. Instead of controlling everything very tightly, support.

3. Take advantage of the training and development opportunities available.

4. Put in place a simple, pragmatic, actionable cause and effect management and reporting approach – and use it.

Put these three things in place and the benefits are significant. It becomes substantially easier to manage the business, which at the same time becomes a more successful business.

There is no magic to make all this happen overnight -- but there are many tried and tested techniques. It is worth the effort.

However, far more important in this environment is the underlying principle of cause and effect underpinning the scorecard. • Defining the outcomes wanted across the

four dimensions is a hugely valuable exercise.• Drawing the cause and effect map to

achieve those outcomes is a massive benefit – explicitly stating the steps and actions (causes) that influence results (effect) – creating a shared understanding of these priorities and actions across the organisation – which is then ‘armed’ to pull collectively in the same, right direction.

• Defining the metrics that show progress towards the goals focuses attention.

• Ensuring that the metrics are things that the team’s actions can influence ensures understanding of the actions that make a difference.

• Linking those metrics to departmental objectives – and cascading those to personal objectives focuses the team’s attention on taking those actions.

It doesn’t need to be ‘heavy-duty’ – a simple spreadsheet based on a shared cause and

Elias Mazzawi is Managing Director of EMS-MENA.EMS (itself an SME) works exclusively with mid-size enterprises in the Middle East, driving higher performance in operations, sales and strategy. The EMS approach is distinctively tailored to the needs of mid-size enterprises.There is a focus on quick wins delivered through short, intense and highly focused project bursts of just a couple of weeks. This is Supported by light touch involvement of a day or two a month over a longer period -- to ensure that the change ‘sticks’. For more information, please visit www.ems-mena.com

About

27may 2012

Entrepreneurs are passionate about what they are building and managing. They drive it. This hands-on ‘micro’ approach is in part the very reason for initial success.

Elias Mazzawi

success stories

Please tell us about yourself and how did it all begin. The first organisation of the group was founded in 1964. The National Contracting and Trading, an ‘A’ grade contractor in Qatar is the first and foremost member in the Group, followed by various divisions specialising in engineering and construction. In 2008 we, planned to enter manufacturing sector and we initiated the ‘Qatar National Aluminium Panel Co’ (Q-NAP) and within a short period of establishment we are catering to the needs of the Aluminium Cladding industry in Qatar, covering lion’s share of the local market .

Now, we are concentrating on finding an overseas market. The National Oil & Gas Services is the Oil & Gas Services division of the Group established in 2008 and provides services to Oil &Gas sector in the local market. In association with a group of reputed overseas organisations we are providing Plant Safety Warning System Services, materials, equipments and maintenance.

With a vision of reducing our dependency on imports, as a responsible

father’s business after my studies paved the way to establish my own business. My habit of closely watching the pulse of local industry, learning the trends of the same provided me with information about market requirements, and sparked the idea behind my own establishments.

As a local entrepreneur, growth potential of Qatar and nearby markets is the real inspiration behind those ventures.

How did you set up your business?I visualised the business setup by coordinating expert human resource available within the Group. Execution of the plan was done by a project team under a senior manager; the development was often reviewed by me.

Funding for major establishment is secured in partnership with Qatar Development Bank (QDB).

MAkING ExCELLENCE A HABITNational Group is a cluster of business houses, located in Qatar, with

regional offices in many cities of the region. Sheikh Naif Bin-Ali Al-

Thani, Chairman, National Group, talks to Aparna Shivpuri Arya about

his journey and what has been his mantra for success

With a vision of reducing our dependency on imports, as a responsible citizen of the Nation our decision is to concentrate more on manufacturing sector.

citizen of the Nation our decision is to concentrate more on manufacturing sector. In this regard, National Group is promoting two more building material manufacturing factories in the state of Qatar. Ground preparations are underway and both the facilities will be operational in the fourth quarter of 2012.

Our family is in the field of business in local market for last four decades. Apart from what I learned during my education, working with my father as his assistant was the beginning. Practical knowledge from that experience, is the cornerstone of growth and development of National Group.

How did you come up with the idea to set up your business? What inspired you? Heritage of ‘Arabic Culture’ itself is about business and trade. My involvement with my

28 may 2012

bringing business ideas, shaping it and passing them over to a team of experts to get it established.

I supervise the establishment of the team whenever required. I am always involved in the business by reviewing the progress and setting strategies for the entities and their Management Team, assisting them with their requirements to achieve the goals which we set.

As an industrialist I do believe in excellence. An anecdote which leads my ambition to excellence is a saying of the philosopher Aristotle:

‘We are what we repeatedly do. Excellence, therefore, is not an act but a habit.’ We at National Group are on the way of excellence to inspire others to follow.

success stories

What challenges did you face and how did you solve them? As long as the establishment is new , marketing is the initial challenge which any institution may find. Breaking the market with a new brand of product is not easy as long as there are recognised brands are already present in. In addition, getting expert human resource in reasonable pay scale is another task which any organisation may face.

Intense pre-launch marketing, exhibitions, promotions and introducing technologically-advanced products, best service options are the major tactics we use to break into a market with a new brand.

Recruiting of a few highly skilled experts in the industry is the initial task we may undertake and a team of qualified but less experienced personnel will be created. As an employer we are providing the team with best available industrial training to ensure it meets or exceeds industry standards.

What help or facilities would you have liked? As a local entrepreneur, we do require best services at gateways of the country (ports) to avoid any unnecessary delays in imports and exports. Development of more primary industries (to avail primary raw materials), better infrastructure, establishment of Free-Trade Zones and so forth.

In addition, for manufacturing industries, we would appreciate subsidies from government for exports and incentives against the local business against the volume of business done and the quantity of products manufactured. It will always encourage the existing entrepreneur and pave way for new industrialists.

What are your ambitions and growth plans? How do you plan to achieve them? We are aiming at developing the National Group as a conglomerate with presence all over the GCC. We aim to achieve a billion

Riyals turnover for the Group in the short-run. Our goal is to become an icon of private sector manufacturing in the State of Qatar, in a short while.

National Group is promoting two more manufacturing companies in the state of Qatar and these facilities are scheduled to commence operation by the fourth quarter of 2012.

In order to exploit the expected boom in the construction sector of Qatar we are in discussions with a few of renowned engineering & constructions firms in the world to facilitate large scale investment in the sector, as a joint venture.

What is your entrepreneurship and management style? As a keen entrepreneur and manager I am

In addition, for manufacturing industries, we would appreciate subsidies from government for exports and incentives against the local business against the volume of business done and the quantity of products manufactured

29may 2012

Sheikh Naif Bin-Ali Al-Thani

investment

LENdING A HANd

Qatar Exchange recognises the importance of the SME sector for the foundation of

successful economies, contributing to employment opportunities, wealth creation and increased output. The Qatar Exchange (QE) therefore developed QE Venture Market with the objective of supporting the growth of SMEs and positioning itself at the centre of the government’s ongoing support for this important sector which is a key element in ‘Vision 2030’.

Unlike the existing Main Market, which was

designed for larger companies with established

track records, QE Venture Market was designed

with smaller companies in mind with a more

flexible disclosure and corporate governance

regime. The characteristics of the market reflect the

objectives of allowing SMEs to list and raise capital

more easily and cheaply and with less stringent

requirements than would be the case on the main

market whilst also retaining the trust of the investor

base through a structured regulatory framework.

Why is QE developing an SME Market?

SMEs around the world are key to growth and

prosperity of an economy. Having a dedicated

route to market for SMEs is seen as an important

financing alternative for this sector and we

envisage this solution will be a useful part of the

In January this year, Qatar Exchange announced the formation of Qatar’s

new SME Market, the QE Venture Market. Aparna Shivpuri Arya caught up

with Colin Milton, Deputy Director, Listing Department, Qatar Exchange, to

know more about the initiative and how it will help the SMEs.

SME financing “menu”. It will not be the right

solution for all SMEs but as a way of raising risk

capital as opposed to, for example, further debt or

founder loans we believe that QE Venture Market

will provide a valuable financing alternative.

Qatar has already taken a pro-active approach

to the development of the sector through many

initiatives, such as Enterprise Qatar domestically

and Silatech across the GCC/MENA region, Al

Dhameen, and of course organisations such as

QCCI. The initiative complements National Vision

2030 and is a direct result of the Supreme Council

decision last year to setup and SME Market.

We hope that through market participants

we will be able to create a prosperous and

vibrant market that supports the growth of

SMEs in Qatar. With the addition of the QE

Venture Market to our product suite we are

providing young and entrepreneurial companies

a customised route to market to ensure they have

access to the necessary funds to contribute to

Qatar’s economy.

Why did QE not just lower the criteria for

the main market?

Our analysis suggests that having a dedicated

market reflects international best practice. The

‘network effect’ is strong and for SMEs, having

a high profile platform alongside its peer group

where they are not competing for attention with

the largest listed companies is a significant benefit.

A dedicated market allows us to tailor the market-

place for the investor base to develop around

SMEs which requires a different risk appetite to

that for the main market.

Why should SMEs consider a listing

on QEVM?

The rationale for listing is varied but a listing for an

SME can be thought to provide the following key

benefits (i) diversifying an SME’s sources of funding

away from founding shareholders and or bank

financing (ii) offering liquidity to financial, family

or minority shareholders (perhaps in the context

of succession planning) (iii) offering visibility, status

and valuation through raised awareness of the

brand; comparisons with listed peer group and

Our analysis suggests that having a dedicated market reflects international best practice. The ‘network effect’ is strong and for SMEs, having a high profile platform alongside its peer group where they are not competing for attention with the largest listed companies is a significant benefit

30 may 2012

investment

valuation pick-up (public companies by virtue of

transparency are more highly valued than private

companies) and (iv) perhaps fulfilling part of a

corporate strategic objective.

We expect that entrepreneurial SMEs who are

looking to grow will benefit from a strong ‘network

effect’ in joining the community of companies

listed on the main market and the QE Venture

Market which after all represent some of the most

progressive companies and best management

teams in Qatar.

Over and above the normal benefits of

listing are there additional advantages to

the QEVM?

Indeed, in particular we believe the QEVM provides

(i) a dedicated entry route to public markets that

would in other circumstances not be available

(ii) a universe of peer group companies which

can be beneficial to investor following, research

coverage and ultimately maximisation of valuation

(iii) flexibility to develop a regulatory structure best

suited to small and mid-cap companies and (iv)

flexibility to develop a lower cost pricing structure

for small and mid-cap companies.

In addition, unlike the more established

markets of AIM, Alternext, GEM and Catalist

we plan to take a more pro-active approach to

the development of our SMEs. SMEs often need

help in, for example, terms of business systems

and process, business facilitation, board and

governance structure. We plan to enlist the help of

partners in Qatar who will be available to the SMEs

in developing these areas of their business.

There still seems to be a lot to do so isn’t it

too early to launch?

We acknowledge that the larger ecosystem

needs further development but at the same

time the technical and regulatory infrastructure

is in place so we can accept companies. The

development of the eco-system is always a

long-term undertaking but we have taken the

view that on balance providing the platform and

in parallel working with market participants to

develop the eco-system is preferable to waiting

and restricting choice for SMEs.

You refer to the ecosystem; what do you

mean by this?

The technical and regulatory structures are in some

respects the easiest to put in place. When we

talk about the eco-system we mean developing

the network of banks and brokers; lawyers and

accountants and other market professionals who

will be necessary to support the market. The

rationale for each will be different but in the end all

market participants will need to be incentivized to

develop the market.

What are the key features of the Rules

published by QFMA?

As a market for SMEs the Rules incorporate

relaxed entry criteria notably a one year track

record (rather than three from the Main

Market); a free float requirement of 10%

(rather than 20% normally) and a minimum

subscribed capital base of QR 5 million (rather

than QR 40 million normally). The judgment

is that these criteria will accommodate SMEs

but still provide the necessary trust element

to encourage investors whilst acknowledging

the risk element involved in investing in small

companies.

What about ongoing disclosure?

Companies in the QE Venture Market will be

required to follow a periodic and ongoing

disclosure regime which is similar to that

for the main market including quarterly

reporting and the announcement of material

price sensitive information. This transparency

should help to ensure that investors are not

misinformed regarding material changes to

the companies’ business and therefore their

prospects. Colin Milton

All applicants are required to have a Listing

Advisor on an ongoing basis; won’t that be

expensive?

The Listing Advisor is an important part of the

“trust” relationship between issuer and investor.

We recognise that SMEs will need ongoing

guidance as to the Rules and it is the Listing

Advisor’s job to ensure proper practice and

disclosure is being adhered to. Without this

investors will be less inclined to participate in the

marketplace. The cost will be a topic for bilateral

discussions between an issuer and the Listing

Advisor. However, the monetary cost should be

balanced with the benefits of increased trust in the

market, increased investor following and a reduced

cost of capital.

The Rules have now been published so when

do you expect your first listing?

We have already begun the process of talking

to some of the key participants in the SME space

and envisage hvolding further workshops on

an ongoing basis. We cannot predict when the

market will have its first listing as it is conditional

on a large number of external factors including

company preparation time, regulatory approvals

and market conditions to name but a few but the

whole financial community will be working toward

a successful market as soon as possible.

Will this be just for Qatari companies?

No. Whilst Qatari companies will likely be the

mainstay of our market, the rules allow for foreign

companies to list (without a dual listing in their

home market as is the case for the Main Market)

so we aim to encourage companies from the GCC

and MENA to look at the QE Venture Market to

satisfy their funding needs.

Finally, where can the Listing Rules for

the Market be found and where should

companies go to seek further information?

The relevant Rules can be found on the QFMA

website under the “The QFMA Offering and

Listing Rulebook of Securities of the Second

Market”. In addition there is a dedicated

website for the QE Venture Market

www.qe.com.qa/qeventuremarket. Details of the

listing criteria and process can be found on the

information portal as well as contact points for

further questions.

31may 2012

BEyoNd THE dRoP

QNV 2030 aims to create employment opportunities for the national work force

that go beyond the still dominating hydrocarbon-based economy of today. Creating employment has been recognised as critical for the long term stability of the economy as well as the overall harmony in the community.

Pushing the envelope remains to be a key

strength in Qatar, taking the concept of what

defines an SME to another level. Qatar’s Finance

Minister Yousef Kamal recently announced Qatar’s

investment of USD 1 billion in overseas small

enterprises. The Supreme Council for Economic

Affairs and Investment is mulling a plan to establish

a dedicated legal entity with the scope of investing

in small enterprises abroad. This would probably

add to the existing line-up of international

acquisitions, such as Harrods, Sainsbury’s and

Barclay’s. Hardly small enterprises one would think.

If we limit the definition of SMEs to start-ups

or companies having a turnover of up to QAR 50

million per annum, the absence of bankruptcy

laws, the length of visas afforded for potential

migrant employees and majority-stake of the

sponsorship will continue to be challenging.

On a positive front, an area where an increasing

number of banks and Mashreq-Qatar in particular

have been making significant contributions to is the

Finance

Mashreq is one of the region’s leading financial institutions and the region. Founded in 1967 as Bank of Oman, the bank has played a pioneering role in the industry, particularly in retail banking.As a leading financial Institution in Qatar, Mashreq aims to be world class in every facet of its business; including its social responsibility to the community it serves.

About

rather crucial aspect of funding projects in this realm.

“We need to arm these businesses with flexibility and

provide credit facilities with managed exposure for

them to grow to be fruitful assets to the economy.

A joint programme on the lines of the Al Dhameen

programme that we share with Qatar Development

Bank extends the scope of this financing. This we

hope will alleviate some of the upfront overheads

such as licensing costs,” says Howard.

By providing fertile ground for the development

of the necessary policies and regulatory framework,

also the Qatar National Development Strategy

(NDS) 2011-2016, published by Qatar’s General

Secretariat of Development Planning, aspires

to further facilitate the integration of small

and medium enterprises (Small and Medium

Enterprises).

The development of SMEs in Qatar

today is rising at a fast pace. Qatar

Exchange recently announced

that it will host an SME market

providing the required technical and

regulatory infrastructure. These

will only drive the momentum

of Qatar’s vital SME sector

and draw foreign and

domestic investors. Various

organisations such as

Qatar Development Bank,

Silatech, Enterprise Qatar

or the Social Development

Center have also made inroads in laying the

foundation stones to enable the growth of SMEs.

The launch of the SME Evolution Programme, a

free web-based training programme by Enterprise

Qatar is particularly interesting, providing young

entrepreneurs the backing of a network of like-

minded individuals across the region.

Qatar’s efforts pertaining to SMEs are the way

to the future for banks, an example that should be

replicated across the Middle East. A recent survey

conducted by The World Bank shows that the

share of SME lending is abysmal. At only 8 % in the

Middle East and North Africa (MENA), and a paltry

2 % in the GCC the share of SME lending in total

bank lending has been giving reason for concern.

Traditionally SMEs are associated with high credit

risk; given Qatar’s crowded banking market, it is

inevitable that commercial banks move from their so

far niche specialisation to also serve SMEs and work

in partnership in addressing any legal and regulatory

barriers. The approach to SMEs is clearly very different

to retail banking and wealth management services

that currently dominate Qatar’s banking landscape.

There is no singular formula to serve SMEs, but

banks must constantly be innovative in finding

ways to manage both costs and credit risk and

at the same time screen clients prior to acquiring

them. Tools such as credit scoring will allow the

banks to better serve their clients and adapt their

portfolios accordingly. An analysis of the market

as well as an inward look at one’s own business

model including that of the client are paramount

in giving a more focussed execution capability in

credit risk management. This will prepare banks

with risks associated with SME clients processing

their relatively smaller transactions at lower cost

and offer the clients better service quality.

Outlined by His Highness The Emir, Sheikh Hamad Bin Khalifa Al Thani,

the strategic objectives of Qatar National Vision (QNV) 2030 for economic

diversification in the country are aimed at enhancing the scope and role

of the private sector in the country’s economic development. Howard

Kitson, Country Head, Mashreq-Qatar, tells us about the country’s efforts to

promote SMEs as part of the national vision.

32 may 2012

http://www.PrivateSectorQatar.com/en

valuable business advice that will help develop your business.

Be part of a community spanning magazine, events, Website and social media.

Before you set up a business, it is most important to know what the market wants and whether you can

tailor your product or service to that particular market. Bedaya Centre explains the concept of market

research to us and how is it beneficial for a startup or SME.

kNoW yoUR NEIGHBoURHood

business setup

How does one define market research? There are many ideas out there, but how do

you distinguish the good ones from the not so good? A good idea is one that you will be able to turn into a viable business and usually has to tick the three boxes:

• Is there a need for it in the market?

• Is it technically feasible?

• Is it commercially feasible?

If you said yes to all three, then you are on to

something good. The process you use to answer

the questions above is your market research.

Therefore, market research is used to discover what

people need. This process involves gathering and

analysing data about a specific product or service

as well as the current environment where it will be

deployed.

The first steps

Every entrepreneur believes their idea will

be money- generating, and successful. You

would not be an entrepreneur if you didn’t

have this passion and conviction. However,

this leads many entrepreneurs to go straight

into execution phase only to realise that after

spending all their time, energy and capital that

the business just didn’t work. By conducting

market research you gain understanding about

your potential customers, the environment and

economy you are working in as well as your

competitors thus allowing you to position your

business more effectively and increasing your

chance of success.

When conducting market research you are

effectively taking the first steps in discovering

whether your business idea is economically viable.

This process of discovery is done through a series

of quantitative (how, when, what) and qualitative

(why and how) questions on the four most

important focus areas.

Know your product: The product is effectively

the “Idea” that made you want to start your

business, because you believed you had something

the rest of us wanted. It’s the service you provide,

the item that you sell or a combination of both. At

this stage, your product is still in the design phase

and before you spend your capital on development

you should be able to answer the following:

• How does it work

• What value does it add?

• What customer needs does it address?

• How much will it cost?

• How long does it take to build and deploy?

Know your customer: This essentially answers

the questions “Is there a market for your

product?” and “who would your target market

be?” It’s easier to sell when you know who to

sell to. Therefore, before launching your product

you should go through an exercise of identifying

the following:

• What is your customer base, based on

demographics, income and so forth?

• Where are they located?

• When do they buy?

• Why do they buy?

• How can you reach them?

• What are their buying habits?

This will enable you to position your product

better by specifically targeting a segment of the

market that needs or wants your product. You will

also have enough knowledge about the type of

customers you have and will then be able to create

marketing campaigns that specifically target them.

Know your competitor: One of the most

important steps in market research is to know

34 may 2012

business setup

your competitors and what are they offering.

Very few businesses start as unique or market

leaders. However, for the rest there are at least a

few competitors already in the market with similar

offerings. The main questions to answer are:

• Who are your competitors?

• How many competitors do you have?

• What are their Unique Selling Points (USPs)?

• What is their pricing model?

• What additional services do they provide?

• Why would their customers come to you?

Know your environment: Surveying the

market before deployment and launch helps

entrepreneurs by providing them with valuable

data on the current landscape which can then

be used by decision makers when designing

their product and services in order to meet

the demands and needs of their customers.

By addressing the following you will be better

positioned to have a successful business:

• How stable is the economy in your area?

• What is the current rate that SMEs are growing by?

The how

Market research can be done in a number of

different ways. The most popular way to start is

through extensive Internet research. The internet

offers you valuable information on your competitors,

their value proposition and current market

conditions. Other methods include customer surveys,

mystery shopping, working with focus groups, and

actual testing of prototypes in the market

Although there are a number of companies who

specialise in market research they can be very costly

and can take a huge cut out of your budget. Its best

to do as much research using your own resources,

this not only saves you money but also helps you in

gaining hands-on knowledge regarding the market,

your customers and your competitors.

When conducting your own research you

should focus on both indirect and direct research.

Direct research covers all the information that

In addition to the toolkit, there are a number

of good sites that offer comprehensive business

information that can be used for market research

and will provide you with in-depth information on

current market conditions and your competitors.

There are also a number of free and paid

sites that help prepare your surveys and

analyse your results. The most popular being

http://www.surveymonkey.com that offers

readymade survey templates as well as the option

of sending your surveys to a specific targeted

audience. Your survey results will offer you

information on your customers and your product.

Finally, never underestimate the power of

social media when conducting market research.

This is an excellent medium for reaching out to

large group of people at the same time. You can

use this as a testing ground for your product,

assess your customers’ needs and build on their

feedback. It’s also been proven that through social

media, customers feel they have an influence on

the business and become part of the initial design

of the product. This overall feeling of involvement

is an excellent start to having a relationship with

potential customers.

The when

Market research in an ongoing process, you use

it to assess the viability of your business before

starting and you use it constantly once your

business is up and running. Since buying habits

and trends are not static, the constant change of

people’s needs and the increasing use of innovation

and technology means your product and services

have to change to meet future demands.

Make market research your mantra to

ensure continuous business success at all stages

of your business.

is already available in the market and ranges

from company or product specific to country

specific. You can obtain this information

through government reports, business surveys,

your competitor’s business financial reports,

industry magazines and information provided by

municipalities and government agencies.

Indirect market research requires more in-depth

analysis and research work. This is where you

discover your customers’ buying habits and their

appetite for your product by observing them,

conducting surveys, talking to focus groups and

testing your prototype. You will usually need a

team of people who can help you with this part of

the research. As you will be collecting a lot of data

and you need to analyse the numbers properly in

order to help you predict your business success.

As mentioned conducting your own market

research can save you money but at some

point you might need to rely on experts and

consultants to work on a certain section of your

research or to provide feedback on what you

have already completed.

Most entrepreneurs will start their market

research using online services. Unfortunately

many of the current services offer information on

European/American industries and demographics.

However, Qatar Development Bank has

recently deployed their SME Toolkit which

provides sector-specific information for the

Qatari market covering different industries

such as tourism, health and education. The

toolkit also provides a list of resources per

sector including market studies and impact

reports as well as information on legal

requirements and registration for companies

in Qatar. The tool is a very valuable resource

for entrepreneurs who want to setup

companies in Qatar as it offers specific country

information. The tool can be accessed online

through QDB’s company website.

The Bedaya Center is a partnership between Silatech and Qatar Development Bank. With the tag line “for entrepreneurship and career development” it has a prime focus to encourage young Arabs set up their own businesses and look to the many opportunities presented by the World Cup 2022.

About

35may 2012

The product is effectively the “Idea” that made you want to start your business, because you believed you had something the rest of us wanted. It’s the service you provide, the item that you sell or a combination of both.

entrepreneurs

REWARdING SUCCESS

EO Majlis, the first regional learning event hosted by Entrepreneur’s Organisation, and sponsored by

Enterprise Qatar, brought to a close two days of inspiring talks that brought together some of the region’s most successful entrepreneurs to boost enterprise creation in Qatar.

Hosted by the EO chapter of Qatar, the event

brought together over 60 entrepreneurs from

around the Gulf region to gain unique insights

from some of the world’s leading figures in

entrepreneurship and innovation and learn about

Qatar’s efforts to support the next generations of

business owners.

Participants heard from leading experts

in entrepreneurship and business practices

including Verne Harnish, Ben Casnocha and

Charles Leadbeater. Hassan Al-Thawadi, CEO

of the 2022 Qatar World Cup bid, talked to the

group about the challenges his team faced and

how they were turned into opportunities for the

history-changing campaign.

The second day was open to the public and

focused on the attributes of the successful

entrepreneur, with the speakers drawing from

their own personal experiences.

The lectures were concluded with a panel session

discussing the role of education in supporting

entrepreneurship. Moderated by analyst and

consultant Taufiq Rahim the panel drew on an

exciting mix of speakers including Tracy Pryce,

principle of learning and development at Enterprise

Qatar (EQ) being diamond sponsor for EO Majlis,

Dr. Sheikha Al Misnad, President of Qatar University,

global thinker on innovation Charles Leadbeater, US

entrepreneur and writer Ben Casnocha and Bedaya

Centre Manager Saleh Al Khuleifi,.

The programme ended with a lunch meeting

with Carnegie Mellon University business students,

where EO members talked about their personal

journeys and shared advice.

Khalifa Al-Misnad, Qatari entrepreneur and

President of EO Qatar expressed his delight that

the event had made a positive impact.

He summarised, “EO Majlis achieved the

goal we set when starting out; chiefly to

provide a boost to the community of individuals

and organisations working hard to support

SME’s in Qatar and the region and encourage

entrepreneurial culture. We brought to Qatar

some of the world’s leading entrepreneurs and

global thinkers, and we had many enriching

exchanges. We ensured the second day was

open to the public so that the speakers’ wealth of

knowledge and experience could be shared with

aspiring entrepreneurs from local universities. This

is the first in what we hope will be a long line of

successful and inspiring EO Majlis events”.

EO Learning Chair and Event Organiser

Mohamed Jaidah thanked Enterprise Qatar for

partnering as diamond sponsor, and Standard

Chartered Bank as platinum sponsor. Ms. Noora

Al Mannai, CEO, Enterprise Qatar said, “Our focus

at Enterprise Qatar is to develop and encourage a

culture of business innovation, entrepreneurship,

risk-taking and creativity. As we do this, we

recognise the potential of a flourishing SME

sector to provide the economic diversity that this

Enterprise Qatar was part of two events last month to encourage and recognise entrepreneurs in Qatar. Private

Sector brings you a snapshot of these events.

36 may 2012

entrepreneurs

country seeks in order to strengthen its economy

and so what we seek to do is create the perfect

‘ecosystem’ to enable the SME sector to achieve its

potential.”

Charles Carlson, CEO of Standard Chartered

Bank, Qatar, said, “We are very pleased to be

involved in this event which has been very fruitful

so far. We look forward to working closely with EO

Majlis in the future and participate in the growth

of the SME market in Qatar together with partners

such as Enterprise Qatar (EQ)”.

The other event, Ernst & Young Entrepreneur

of the Year Award 2011 (EOY 2011) was recently

announced in Doha at a Gala dinner hosted by

Enterprise Qatar and Ernst & Young at The Ritz-

Carlton hotel. The EOY Awards 2011 were held

for the very first time in Qatar under the patronage

of HE Sheikh Jassim Bin Abdul Aziz Al Thani,

Minister of Business and Trade.

The award, which is key in the discovery

and promotion of talented entrepreneurs, was

presented to Ashraf Abu Issa, Chairman of Abu

Issa Holding, by Sheikh Mohammed Bin Abdul

Rahman Al Thani, Head of Enterprise Qatar

Executive Committee and Board Member of

Qatar’s SME Authority, Noora Al Mannai, CEO

of Enterprise Qatar (EQ), Abdulaziz Al-Sowailim,

Chairman and CEO of Ernst & Young MENA and

Firas Qoussous, Managing Partner of Ernst &

Young Qatar. Abu Issa won the highly esteemed

award for establishing one of Qatar’s key retail

empires and setting unique an exemplar for

business in his industry.

Ernst & Young’s Entrepreneur of the Year

recognises outstanding entrepreneurs for their

vision, innovation, courage, and leadership in

building and growing successful businesses that

influence the way we live, the products and

services we depend on, and the economic vibrancy

of our local communities and global markets.

Seven visionary entrepreneurs representing

six companies were shortlisted as finalists for the

Ernst & Young Entrepreneur Of The Year Qatar

2011 Award, including the winner Ashraf Abu

Issa in addition to Omran Al-Kuwari of GreenGulf

Inc, Zeyad Al Jaidah & Abdulla Alansari of Techno

Q, Abdulaziz M. Aldelaimi of National Petroleum

Services, Mohammed Al Emadi of Al Emadi

Enterprises and Jassim Al-Mansoori of iHorizons.

The judges’ committee comprised a league of

highly recognised figures in Qatar; H.E. Sheikh

Dr. Abdullah Al-Thani, President of Hamad Bin

Khalifa University; H.E. Dr. Hessa Al-Jaber, Secretary

General of ictQatar; Mr. Saad Sherida Al Kaabi,

Director, Oil and Gas Ventures of Qatar Petroleum,

and Mr. David Norwood, Vice President of

ExxonMobil – Qatar.

Ernst & Young has been running the

competition for over 25 years globally but this is

the first year that Qatar has hosted this business

award programme, which is considered to be

the most prestigious for entrepreneurs. Sheikh

Mohammed Bin Abdul Rahman Al Thani, Head of

Enterprise Qatar Executive Committee and Board

Member of Qatar’s SME Authority said, “First of

all, we would like to congratulate Ashraf Abu Issa

on a brilliant job done with Abu Issa Holding and

thank Ernst &Young for bringing this opportunity

to Qatar and recognising the great achievement

of the entrepreneurs and their contribution to the

growth of the economy.”

Economic growth is one of the main pillars for

the development of any society, and Enterprise

Qatar (EQ) has been established to help, support

and create an enterprise culture across Qatar and

enable SMEs to growth, develop and thrive; added

Sheikh Mohammed Bin Abdul Rahman Al Thani.

Noora Al Mannai, Enterprise Qatar (EQ) CEO,

said, “Enterprise Qatar (EQ) is mandated with

supporting entrepreneurs, potential entrepreneurs,

start-ups and SMEs owing to the crucial role

they play in today`s economies, fuelling growth,

creating jobs and building communities. This is

the first time that this prestigious competition

has taken place in Qatar, which is testament to

the country’s rapid development and flourishing

economy, and we, at Enterprise Qatar, are

honoured to be involved in such a globally

recognized and remarkable initiative”.

Al Mannai concluded by encouraging any

Qatar-based entrepreneurs to approach Enterprise

Qatar for support and advice in taking their

creative ideas and innovations forwards.

Abdulaziz Al-Sowailim, Chairman and CEO of

Ernst & Young MENA, said, “It gave me immense

pride that we were able to bring our Entrepreneur

of the Year Programme to Qatar and all of our

finalists were deserving of the accolade. They

have worked tirelessly to build their businesses

and I was delighted to be part of the ceremony to

celebrate their achievements. My congratulations

of course go to Ashraf Abu Issa who will now go

on to represent the State of Qatar at our World

Entrepreneur of the Year Award in Monte Carlo

in June and I wish him every success there. I now

look forward to next year when we hope the

stories of this year’s finalists inspire even more

entrants to our program.”

Ashraf Abu Issa will officially represent the State

of Qatar in the Global World Entrepreneur Hall of

Fame to compete for the title of Ernst & Young

Entrepreneur of the Year in Monte Carlo between

7th and 10th of June 2012.

Ernst & Young Entrepreneur of the Year Award 2011

37may 2012

agency, follow up to ensure that they have received

it. Do call and speak to a consultant. You will

then have the opportunity to properly discuss your

background and aspirations. You might want to

make a career change which is not mentioned in

your CV. Discuss what kinds of opportunities are

out there in the market. You might be happily

surprised and ready for that change. Qatar offers

you many different opportunities you would not

have had in your home country or in the country

where you lived before moving to Qatar.

Make sure you stay in contact with the

employment agency where you submitted your CV.

If you directly submitted your CV with a company,

like through their Website try to find out who

the responsible person is who could help you

further in the process. Although experience has

taught us that it is hard to find out who the right

person to speak to is. Further on, in Qatar it is very

important to know the right people, the people

in your network and personal and professional

relationships that you have built. This is because

many roles in Qatar are not advertised but created

when a specific candidate profile is presented to

the business.

Global Women Qatar was established in January 2012 as Qatar’s first employment agency to focus exclusively on the recruitment of women who already reside in Qatar. We are a very dynamic, rapidly growing employment agency with both local and expatriate women in our database. Our candidates come from different educational backgrounds with a variety of qualifications and skills such as HR, Learning & Development, Sales & Marketing, PR & Communications, Finance, Accountancy, Project Management, Healthcare, IT and PA/Secretarial. We chose to focus on women as women in Qatar are one of the important pillars of Qatar’s National Development Programme (2011 – 2016) and Qatar’s National Vision 2030 and they are very eager to work and to further grow their careers.

About

human resource

GET REAdy FoR THE MARkET

At Global Women Qatar we receive CVs on a daily basis, from candidates from

different cultures and educational backgrounds. Not every CV looks the same. We noticed that different nationalities mould their CVs into different formats. But what does the Qatari market want to see in your CV?

Before you start writing your CV think about what

kind of role you are exactly looking for, which you feel

you would like to do and what you are good at and

then make sure your CV reflects this. You do want to

create a positive impression about yourself.

• CVs give basic information – your education,

work experience, skills and achievements.

• Cover letters explain why you want the job and

what makes you the right person for it. State

your motivation and suitability in a positive way.

CV tips

• The presentation of your CV is vital. Keep it simple.

You want your achievements to stand out.

• Be consistent in the usage of letter font that is

clear and easy to read, such as Arial.

• Stick to preferably two pages and mention

the most relevant and important information.

Potential employers are not interested in you

having won a line-dance competition when you

were sixteen!

• At the top of your CV start with your name

and contact details. Make sure you include your

date of birth. In Qatar it is also very important to

include a professional picture of yourself.

• Make sure you include information in the

following order – relevant jobs and work

experience, achievements, education,

qualifications, and interests that help prove you’ve

got the right skills and experience for the job.

• The following information should not be

included – information on your children, state

of health, or reasons why you left other jobs.

• If you apply for different kind of jobs make sure

you change your CV for each job you apply

for. Carefully look at the job description and

emphasise the skills or experience mentioned.

• If you’re asked for referees, include a past

employer, a university teacher or a sports coach.

Before you add the referees to your CV make

sure to ask that person if they will give you a

reference. If you haven’t asked write “References

available on request” at the end of your CV.

• Read over your CV a few times and make sure

there are no spelling mistakes.

CV language

• Keep sentences factual, to the point, sharp

and positive. For example “Conducted training

for senior management” or “Gained valuable

experience in HR consultancy and business

development”.

• Make sure your CV is always up to date.

• Use bullet points to list your skills, work

experience and achievements in recent jobs.

• Keep your CV positive and make sure to

highlight your achievements.

• Make sure the information in your CV is correct and

right else you’ll get caught during your interview.

After submitting your CV to an employment

How do you know that your CV caters to the expectations and

requirements of the job market in Qatar? Is there a specific format?

Elsbeth Blekkenhorst and Danielle Maynard-Duttenhofer, Founders, Global

Women Qatar, tell us how to get our CV in order for the Qatar market.

Elsbeth Blekkenhorst and

Danielle Maynard-Duttenhofer

38 may 2012

legal

Since 2002, new laws with respect to

trademarks, registered designs and

patents have been passed. During

this time, Qatar has also acceded to various

international treaties, including the Berne

Convention, the Paris Convention, the Patent

Co-operation Treaty, the WIPO Copyright

Treaty and the WIPO Performances and

Phonograms Treaty.

While these steps are a marked improvement,

they hopefully only mark the first of a long line

of reforms in the field of intellectual property

for Qatar. As Qatar seeks to further diversify its

economy as part of its National Vision 2030, it will

move away from its traditional reliance on oil and

gas towards a knowledge-based economy.

As part of this reform, further changes will

hopefully be made to Qatar’s existing intellectual

property laws and practice to provide additional

comfort to potential investors and international

rights holders that their valuable assets may be

effectively protected in Qatar.

A brief note on some of the key provisions of

each of the current laws and practice follows:

Law No. 9 of 2002

Law no. 9 of 2002 pertaining to Trademarks,

Commercial Indications, Trade Names,

Geographical Indications, and Industrial Designs

and Models was issued on 8 June 2002. To

date, the Implementing Regulations to this law

have yet to be drafted.

Trademarks

The existing trade marks law and registration

procedures in Qatar are adequate for providing

national and international brand owners a base

level of protection for their trade marks in Qatar.

The current law forms an essential part of the legal

framework that encourages brand owners protect

their trade marks as a first step to commercializing

their brands through the sale or licensing of

branded products and services in Qatar.

Qatar Airways and Al Jazeera are shining

examples of how the current framework in Qatar

has enabled two local businesses to protect and

foster their intellectual rights in Qatar, before

building up an international reputation by using

and protecting their brands abroad.

Further reforms are necessary, however, in order

to provide brand owners with an even greater

level of comfort for protecting their brands in

Qatar. Currently, trade marks are classified in

Qatar with respect to an earlier version of the Nice

Classification (which is an international system for

classifying goods and services).

In an effort to bring its practices further in

line with current international standards, Qatar

would be wise to adopt a more recent edition of

the Nice Classification. Qatar currently classifies

trade marks according to the 42 classes of the 7th

Edition of the Nice Classification, which entered

into force on 1 January 1997.

In the 15 years since then, three subsequent

editions have been implemented, with the

10th Edition entering into force on 1 January

2012. International brand owners are used to

classifying their trade marks under the 9th or

10th Editions of the Nice Classification – which

both have 45 classes.

On this basis, there is some disconnect between

Qatar and the majority of the international

community with respect to the way in which it

classifies trade marks, and will hopefully address

this issue in the next round of reforms.

Before the turn of the millennium, Qatar had very few regulations in

force that allowed intellectual property rights to be protected. In the

last decade, Qatar has made real progress towards enacting legislation

and implementing practices to enable rights holders to protect their

intellectual property in Qatar. David Harper, Associate, Clyde & Co,

explains to us the importance of Trademarks.

PRoTECTING WHAT’S yoURS

40 may 2012

Qatar Airways and Al Jazeera are shining examples of how the current framework in Qatar has enabled two local businesses to protect and foster their intellectual rights in Qatar, before building up an international reputation by using and protecting their brands abroad.

legal

In addition, if the Implementing Regulations were

issued to supplement the existing law, then this

would help to clarify boarder measures, opposition

procedures and documentary requirements

(especially with respect to foreign applicants).

Industrial designs

To date, the Implementing Regulations to this law

have yet to be drafted and a receiving office for

design applications has yet to be set up. Therefore,

it is not currently possible to obtain registered

protection for industrial designs in Qatar.

Traditionally, designs have been protected

by way of cautionary notices published in local

newspapers. While such cautionary notices serve to

put third parties on notice of an applicant’s rights

in the design, a cautionary notice is not as effective

as a registration, as it does not afford rights holders

with the same level of protection.

Arguably, the publication of a cautionary notice

would help to deter third party infringers and

could be of assistance in an infringement case.

However, as a cautionary notice does not afford the

right holder with any formal degree of registered

protection for its design, the publication of the

design could provide a third party with the means

to develop a similar design that narrowly avoids the

scope of the design contained in the cautionary

notice. In this way, the publication of a design in a

cautionary notice could actually be detrimental to

the rights holder.

Patents

Qatar enacted a Patent Law in 2006 (pursuant

to Decree No. 30 of 2006). This law envisaged a

patent office being set up within the Ministry of

Economy, with filing and examination procedures

being dealt with pursuant to Implementing

Regulations.

However, no Implementing Regulations have

been issued and the patent office is not yet

functional. Accordingly, it is not currently possible to

file a patent application in Qatar.

GCC patent protection in Qatar

Many patent applicants seek to obtain protection

for their technology in Qatar by filing for patents

with the GCC Patent Office in Riyadh.

The GCC Patent Law operates on the premise

that patents granted by the GCC Patent Office apply

in all GCC states, with enforcement of GCC patents

being the responsibility of each individual GCC state.

Qatar ratified the GCC Patent Law and

Regulations in 1996. The ratifying legislation

specifically gave force of law in Qatar to the system

operated by the GCC Patent Office. However, this

legislation does not deal with the enforcement of

GCC patents. As a result, at present, there is no

clear regime for enforcing patents granted by the

GCC Patent Office in Qatar.

Patent Convention Treaty (PCT)

Qatar recently acceded to the Patent Convention

Treaty (PCT), with effect from 3 August 2011.

Rights owners with an interest in Qatar may look

forward to making use of the international system

offered by the PCT in order to obtain protection

in Qatar more efficiently and effectively than is

available under the current system.

However, the introduction of the PCT in Qatar

will not give rise to any immediate change in

practice. Until the Patent Office starts to accept

patent applications and the Implementing

Regulations are issued, it will not be possible to

file a patent application in Qatar.It is hoped that

Qatar’s accession to the PCT will result in a clear

regime for securing and enforcing patent rights in

Qatar. In the meantime, the only option for those

seeking to secure patent protection in Qatar

remains to file for protection through the GCC

Patent Office, taking into account the potential

enforcement difficulties of this option.

Copyright

In 2002, the law of Protection of Copyright

and Neighboring Rights was passed. However,

Implementing Regulations have yet to be issued.

Law No. 7 of 2002 protects original literary and

artistic works including computer programmes

and databases which are creative in the selection

and arrangement of their subject matter. Qatar is a

member of the Berne Convention, and protection

under the copyright law extends to works covered

by international agreements.

Interestingly, under this law, works of national

folklore is deemed to be public property of the

State, which is charged with its protection by ‘all

legal means’ and shall act as the author of works

of national folklore.

The way forward

In the last decade, Qatar has made rapid

progress in enhancing its intellectual property

laws. While there is room for further reform,

the steps already taken cannot be overstated.

Intellectual property laws are just one factor

contributing to gaining and enhancing the

business confidence of major international

companies in the retail sector. Business

confidence in the retail sector is crucial to Qatar’s

long term economic success.

David is an intellectual property solicitor in Clyde & Co. David holds a Bachelor of Laws degree and a Bachelor of Arts degree from the University of Otago, New Zealand. David is admitted as a barrister and solicitor to the High Court of New Zealand. He joined Clyde & Co in 2008 and specialises in intellectual property law, dealing with contentious and non contentious matters. Prior to joining Clyde & Co, David worked in a dedicated intellectual property team within a large commercial firm in New Zealand. If you would like further information please contact David Harper at [email protected].

About

Note: Qatari Laws (save for those issued the Qatar Financial Centre to regulate internal business) are issued in Arabic and there are no official translations, therefore for the purposes of drafting this article we have used our own translations and interpreted the same in the context of Qatari regulation and current market practice.

41may 2012

David Harper

marketing

A marketing professional that we know, once told us that a brand name has a personality.

Even now, after all these years, we still think that he was right. That is why trademarks are one of the most important elements of a business.

It is the brand that defines the image of the product or service that you are selling and it is the brand that identifies the package of things which your brand represents. And when you look at the number of brands in this region, branding is becoming ever more important in the marketing game.

Brands are wonderful but it is very hard for us when we watch people throwing their money away by starting to use a brand that someone else can claim right on. We think there must be very few things more

upsetting than having to change a brand after investing in a large marketing spend! Or by spending money promoting a brand but not protecting it – imagine how you would feel if someone else was benefiting from the reputation you were building through a brand and there was nothing you could do to stop them! The only way of ensuring that you can continue to use your brand in the future and that you can stop other people from you using it too, is by developing it yourself and then registering it as soon as you can.

Developing the brandIf you are a clever multitasker, you will probably take on the task of designing your brand and logo yourself, but not all of us are that creative. So we usually have to go and find someone to create that brand and logo for us. If you do this, you need to be careful when putting together the terms that will cover the creation of the brand and logo. Firstly, be sure that the rights to the materials that are created are assigned to your company under a contract that is signed by both parties.

In the previous article, we discussed the legalities of trademarks. Now, Mark Hill and Fiona Robertson, media

lawyers, the rightslawyers, take a look at how brands are created, and can be protected through trademarks.

oN yoUR MARkS!

The way trademarks work around the world, including the Middle East, is that they are registered in one or more of the established 45 classes of goods and services – these classes list every type of product or service you can think of.

42 may 2012

marketing

Too many people omit this vital step yet without it, the person or company that creates the materials will retain ownership of the materials. Simply paying for them under a purchase order will not assign those rights. Secondly, you might want to consider contractually restricting your designer from creating any logo that is similar in design to yours for a set period (or forever if they will agree to that). Whilst this will not stop anyone from copying it, it will contractually allow you to stop the designer from (even inadvertently) taking too much inspiration from your design when creating new ones.

Make sure that your contract contains adequate scope for you to approve designs as you go. Some designers will want to charge extra for a re-design and this can end up becoming a costly exercise.

Which brands should you protect?If you look around at the various trademarks that you come across in a day (remember everyone who sells any kind of product or service uses some kind of trademark), you will see that sometimes they are words only (like for example our brand “therightslawyers”). A registration for these words will mean that no one else could use the mark which includes or is similar to the words “therightslawyers”. You’ll see stylised versions of brands – a registration for this protects the actual way the words are depicted and gives different protection than for the words alone. The final alternative would be a logo, for example the McDonalds “M”, the Starbucks logo with the green circle and so on.

Where?Ok, so next we figure out where you want your brand to be protected and a good starting point is where you sell or plan to sell your products and services. What we usually advise clients is to think about their major brands and your target countries for say the first 9-12 months – that is what you should seek to protect by trade mark registration now. The reason for this is simply that the trade marks process can take a while, particularly if you are doing a number of applications at once.

On timing, even in the fastest jurisdictions around the world and even assuming there are no problems as part of the application process, you will still be looking at six months as a minimum from the date of application.

Ultimately, it will come down to a cost-benefits analysis – where do you want to spend your money?

Which goods and services? So once you know which brands and where, then we need to figure out what for. The way trademarks work around the world, including the Middle East, is that they are registered in one or more of the established 45 classes of goods and services – these classes list every type of product or service you can think of. Basically, whatever business you are in will fall into one or other of the classes. Remember though that you will not get protection for everything simply by submitting an application, you need to be very specific about what you want protection for. That’s why you get different companies using what looks like the same mark but for very different goods or services – POLO is owned separately as a car, a fashion brand and a sweet!

Looking after your brandsIt also never ceases to amaze us how careless some people can be with their

brands! Remember that these things are assets and they need to be looked after just as you would look after a car, a piece of furniture, a bit of machinery and so on.

So what about some tips on how to use them properly?

1. Always use a trademark exactly as it is registered;

2. Always use a trademark as an adjective and never as a noun i.e. talk about a Rolls Royce car rather than a Rolls Royce;

3. Ensure that the trademark stands out from other written material in order to give emphasis to the trademark; and

4. Use the TM and ® symbols properly – TM can be used in relation to an unregistered trademark whereas ® must only be used in relation to registered trade marks.

Fiona RobertsonMark Hill

Always use a trademark as an adjective and never as a noun i.e. talk about a Rolls Royce car rather than a Rolls Royce

therightslawyers is the first and only boutique TMT (Technology Media and Telecommunications) firm set up in the Middle East to cater exclusively for the creative industries, businesses that are driven by or reliant on intellectual property rights (including brand and other IP rights owners, companies facing counterfeiting and IP infringement issues, franchise operations, pharmaceutical and biotech companies, and technology, IT and telecommunications Industries.For more information, please visit www.therightslawyers.com

About

43may 2012

tax

There are two main tax compliance requirements that you may have when you

commence a business in Qatar: • Register with the tax authorities, the Public

Revenues and Taxes Department (PRTD)

• Apply for a tax card

The tax law says that if you are a taxpayer and

you are carrying on a business activity in Qatar then

you should register with the PRTD and submit an

application for a tax card within 30 days of obtaining

commercial registration or the first day of realisation

of income from the activity, whichever happens

earlier. In practice it is prudent to act within 30 days

of obtaining commercial registration even if there

may be a delay before you receive your first income

from the activity. There are penalties for failure to

register and apply for a tax card.

A taxpayer is defined as “a natural or legal

person subject to tax under the provisions of the

law.” This means all individuals and corporate

bodies carrying out a business activity or with a

source of income in Qatar are taxpayers, unless

they are covered by exemptions.

A tax card is usually issued to a taxpayer

that is either resident or has a permanent

establishment (basically a fixed place of business)

in Qatar. The process of obtaining the tax card

tends to be quicker for entities that also have a

commercial registration.

Your first accounting period will start at the

beginning of the tax year (i.e. 1 January) or at the

commencement of activities in Qatar. The duration

of the first period must be a minimum of 6 months

and a maximum of 18 months. Thereafter, each

period will be 12 months in duration. The default

tax year end date is 31 December; however an

application may be made to the PRTD to seek

approval for a different year-end date. This can be

done at the same time as the registration with the

PRTD and the application for a tax card.

Registration with the PRTD and the application

for a tax card should be done by submitting a

request on Form No. 1 – Registration which can be

downloaded from the website of the Ministry of

Economy and Finance

(www.mof.gov.qa/english/tax/index17.html).

Moving forward to Corporate Income Tax

(CIT) compliance obligations, businesses wholly

or partially foreign (non-GCC) owned are subject

to corporate income tax (normally at 10% of net

profits) if they derive income from sources in Qatar.

The compliance obligations for such entities and for

many tax exempt entities are as follows:

File a CIT return

If you are subject to tax in Qatar then you

are required to submit a CIT declaration to the

PRTD within four months of the end of your

accounting period (e.g. by 30 April 2012 for an

accounting period that ends on 31 December

2011). It is permitted to submit an application

to the PRTD to extend the filing deadline based

on reasonable grounds. An application for an

extension should be made 30 days prior to the

expiry of the filing deadline.

The new tax law (Law No. 21 of 2009) was introduced with effect from 1 January 2010 and the executive

regulations for the law were effective from 1 July 2011. Considerable guidance is now available on what

impact the law has for large businesses, but if you run an SME in Qatar then what does it mean for you?

Paul Smith, Partner, Price WaterHouse Cooper, answers some of the key questions that SME’s operating in

Qatar may have about their tax compliance obligations.

GET THE NUMBERS RIGHT

44 may 2012

saleslegal

Pay any CIT liability (if applicable)

The tax required to be paid is based on your

submitted tax return. You should send a payment

order with the CIT declaration.

Comply with audit and accounting requirements:

A. You will be required to submit audited financial

statements signed by a locally registered auditor

together with the tax declaration to the PRTD if:

• the capital of your taxable entity in

Qatar exceed QAR100,000 (approximately

USD 27,300); or

• the annual taxable income of your

entity exceeds QAR 100,000; or

• in the case of a branch, if the head

office is situated outside of Qatar.

The tax law requires accounts to be prepared

in accordance with International Financial

Reporting Standards (IFRS); however you

may make an application to the PRTD to use

another accounting method.

B. There is also a requirement that your tax

return is co-signed by a registered auditor.

This means that in practice the audit is

normally carried out by the same firm that

prepares the tax return.

C. You will also be required to keep and maintain

records and documentation pertaining to your

Qatar activities in the State for a period of ten

years following the end of the taxable year to

which the records and documentation relate.

There are penalties for failure to meet these

compliance requirements.

So what about Withholding Tax (WHT)

compliance obligations? It does exist, if you make

certain payments to non-residents (unless you are

an entity registered in the Qatar Financial Centre).

The new tax law introduced a requirement for all

entities registered in Qatar or with a permanent

establishment in Qatar to withhold a percentage

of certain payments made to non-residents that

do not have a permanent establishment in Qatar.

This means that although the withholding tax

liability falls on the non-resident with activities in

Qatar without a permanent establishment, the

withholding tax compliance requirement is borne

by the Qatar entity.

Circular No. 3/2011 confirmed that the

requirement to withhold applies to all entities

registered in the State of Qatar including

government bodies, public authorities and

corporations. Entities registered in the Qatar

Financial Centre do not have to withhold.

The applicable WHT rates are shown in Table 1

There are also other compliance regulations

such as:

Notification obligation

You will be required to notify the PRTD of any

contracts you enter into if certain conditions are

satisfied.

• For contracts concluded with non-

residents who do not have a PE in

Qatar, the PRTD must be notified

whatever the value of the contract.

A copy of the contract must also be

submitted if its value exceeds QAR

100,000.

• For contracts concluded with residents

or non-residents who have a PE in

Qatar, the PRTD must be notified if

the contract exceeds the following

thresholds:

- Contract of services if it equals or

exceeds QAR 200,000.

- Contracts of construction, supply of

goods and provision of services if they

equal or exceed QAR 500,000.

Moving forward to Corporate Income Tax (CIT) compliance obligations, businesses wholly or partially foreign (non-GCC) owned are subject to corporate income tax (normally at 10% of net profits) if they derive income from sources in Qatar.

WHT applies on such payments to both external

parties or to related parties. There is no WHT on

payments for goods.

If you are making relevant payments to non-

residents without a permanent establishment in

Qatar then your full compliance responsibilities are

as follows:

• Withhold tax, account for it and remit

it to the PRTD before the 16th of the

month following the month during which

the payment was made.

• Complete a WHT statement setting out

the payment and recipient’s details and

submit it to the PRTD in a prescribed

format along with evidence of the WHT

payments.

• Issue and deliver a WHT certificate to the

recipient.

Withholding tax on gross payment

Payment

Royalties and technical fees (i.e. payment is for managerial, consulting or technical services)

Interest, commissions, brokerage fees, director’s fees, attendance fees and payments for any other services carried out wholly or partly in Qatar

5%

7%

Paul Smith

Table 1: Applicable WHT Rates

45may 2012

tax

Paul joined PwC Qatar in September 2010. Prior to moving to PwC Qatar, he worked for over 5 years for KPMG Aberdeen in the UK. During his time at KPMG he worked on corporate tax compliance for many companies operating in the North Sea Oil & Gas sector. In Qatar, Paul has provided tax compliance and consultancy services for clients operating in a range of industries including financial services, oil and gas, manufacturing, construction and telecommunications. Paul can be contacted at [email protected]

About

payments to non-residents that do not have a

permanent establishment in Qatar. See above for

further details on WHT. If you fail to comply with

any of the requirements then you could be subject

to penalties as mentioned in “Table 3.”

In limited circumstances the penalties can be

remitted or reduced. However, the provisions of

the law do not apply to the following:

• Private associations and foundations and

private foundations of public interest.

• Not-for-profit bodies.

• Salaries, wages, and allowances.

• Gross income from legacies and inheritances.

• Qatar Financial Centre entities.

The only exception to this is the withholding

obligation which applies to all bodies other than

those registered in the Qatar Financial Centre.

Category Status of recipient Requirement

1

a) payments to companies resident in qatar Final contract payment should be made upon the

presentation of a valid tax card issued by the prtd. A tax assessment or no objection certificate issued by the prtd is not required.

b) payments to qatari/gcc nationals resident in qatar carrying out activities in their own name (i.e. sole proprietorships)

2

a) branches of foreign entities registered in qatar, the activities of which are not restricted to a fixed period, contract, or project

Final payment should be made upon the presentation of a valid tax card issued by the prtd. A tax assessment or no objection certificate issued by the prtd is not required.

b) branches of foreign entities registered in qatar with activities limited to a contract, project, or a fixed period of at least one year

The higher of the final contract payment or 3% of the contract value (excluding value of supplies and work performed outside qatar) should be retained until the branch produces a no objection certificate issued by the prtd. interim contract payments can be made in full if a tax card is presented.

c) non-residents with no commercial registration in qatar or non-resident entities registered for a contract, project or activity of less than one year

payments would be subject to withholding tax. taxpayers who have a permanent establishment in qatar should submit an application to the prtd to claim a refund of the tax withheld if appropriate.

3 taxpayers registered under qatar Financial centre (“qFc”)

contractual payments should be made upon submission of a valid certificate issued by the relevant QFC authority confirming that the entity is registered in the qFc.

Compliance obligation Penalty for failing to comply (QAR)

register with the prtd and apply for a tax card 5,000

File a cit return within 4 months of the end of the accounting period 100 per day (capped to a maximum of 36,000)

pay any cit liability within 4 months of the end of the accounting period

1.5% of the amount of tax due per month (or part-month) of delay (capped to the amount of tax due)

Prepare audited financial statements (required if the capital or annual taxable income exceeds QAR 100,000 or if the head office is situated outside qatar)

15,000

maintain local accounting records (records must be kept in qatar for 10 years) 15,000

deduct withholding tax from certain payments made to non-residents and remit tax to the prtd by the 16th of the month following the month in which the payment to the non-resident is made

100% of tax not withheld in addition to withholding tax due

retain a proportion of payments made to residents and permanent establishments of non-residents no formal penalty

Notify the PRTD of contracts entered into if certain conditions are satisfied (see below).

Retention requirement

If you are a Qatar resident entity then you may have

a requirement to retain a proportion of payments

made to residents or non-residents who have a PE

in Qatar. Depending on the circumstances of the

recipient, you may not have to retain or if you have

already retained amounts then they can be released

once either a valid tax card or tax clearance certificate

issued by the PRTD has been presented.

The “retention rules” are outlined in Circular No.

2/2011 which was issued by the Ministry of Economy

and Finance on 12 June 2011. The precise operation

of the retention rules depends on the status of the

recipient of the payment as shown in “Table 2.”

Even if your business is wholly owned by Qatari

or GCC nationals you may have CIT and WHT

compliance obligations depending on the nature

of your activities.

CIT compliance

The tax law states that taxpayers carrying out

a tax exempt activity shall submit a tax return

accompanied by audited financial statements.

This is the same information that a taxable

entity is required to submit. Circular No. 4/2011

dated 7 August 2011 confirms that companies

and permanent establishments wholly owned

by Qatari/GCC nationals are required to file

CIT returns (accompanied by audited financial

statements) if they meet one of these conditions:

• Share capital equal to or more than

QAR two million, OR

• Gross revenue equal to or more than

QAR ten million

WHT compliance

Regardless of your ownership, if you are registered

in the State of Qatar then you will have a WHT

compliance obligation if you make certain

tax

Table 2: Retention Requirement

Table 3: Penalties for withholding tax

46 may 2012

country update

The highest population growth in the world was experienced by the four Gulf countries of

Qatar, UAE, Kuwait and Bahrain between 2005 and 2010. Their small indigenous populations, combined with energy wealth, have drawn an influx of foreign labour and developed an attractive consumer market. However, this has led to an economic dependency on expatriates, as demonstrated by the global economic downturn of 2008-2009, which hit local businesses and drove away potential consumers.

Qatar led the population growth worldwide

over 2005-2010, with its population

expanding by 91.7%, followed by the UAE

(82.0%), Kuwait (52.4%) and Bahrain

(36.6%). These states have become attractive

markets, with businesses gaining access to a

spread of consumers, from blue-collar workers

to top-tier executives.

Per capita disposable income is forecast to

increase at an average annual rate of 3.6% from

2012-2020 in real terms.

ECoNoMIC LANdSCAPE

Consumer confidence has declined in

Qatar from levels before the 2008-2009

global economic slow down. Despite having

one of the highest GDPs per capita in the

world at QR332,423 (USD 91,325) in 2011,

consumer expenditure per capita was relatively

low at QR49,898 (USD13,708) due to the

large amounts of wealth being funneled into

government expenditure and the country’s

sovereign wealth fund. However, per capita

consumer expenditure will grow as the economy

diversifies into high-tech and other industries,

and it is forecast to steadily increase to

QR65,959 (USD18,121) by 2020 in real terms.

In 2011, 62.0% of consumer expenditure

was spent on discretionary items (which

is everything except spending on food,

non-alcoholic beverages and housing), up

slightly from 61.6% in 2005. Annual per

capita disposable income stood at QR62,768

(USD17,244) in 2011, ranking it third in the

MENA region. After a 4.9% real decline in per

capita annual disposable income from 2005-

2009, growth improved from 2009-2010 at a

real rate of 6.3%, and it is forecast to increase

at a real average annual rate of 3.8% from

2011-2020. The savings ratio has increased

from 14.6% of disposable income in 2006 to

16.5% in 2011.

Qatar is heavily urbanised, with 95.9% of the

population living in cities in 2011. This provides

easy distribution and service provision for

companies that want to sell cars, electronics and

communications technologies to the country’s

affluent citizens. Wealthy expatriates and visitors

from neighbouring countries may present an even

greater opportunity for retailers of luxury goods,

especially in Doha, which is a prime destination for

shopping due to its many malls.

In common with other markets in the Middle

East and North Africa, Qatar has a young

population compared to OECD countries.

Generation X (those aged 27-39 in 2011) are by

far the biggest consumer group in 2011, totaling

705,300 or 37.2% of the population. They will

continue to be the largest group by 2020, when

they will comprise 36.5% of the population. They

will continue to drive demand for imports, along

with baby boomers (those aged 40-60 in 2011),

who are set to rise from 23.2% of the population

in 2011 to 29.0% in 2020. This increase is

expected to increase demand for leisure and health

care services by 2020.

Qatar has prospered in the last several years with continued high real GDP growth in 2011. Even though

there has been a global slowdown and the region has been gripped with the Arab spring, Qatar has been

able to protect its economy and consumers.

48 may 2012

Partnership opportunitiesPrivate Sector (al kitaa al khass) is an arabic and english magazine, presented and supported by qatar development bank (qdb) and published by cpi. it is aimed at business owners and senior executives in the private sector in qatar. armed with practical advice, it highlights key issues for the business community.

The driving force for regional economies is the private sector – a catalyst for growth, development and job creation. with the world’s spotlight on qatar’s development activities and the buzz being created around 2022, this sector is going to grow by leaps and bounds. that’s great news if you’re targeting the private sector, which spans across almost all industry verticals, but the problem you face is identifying the most dynamic and competitive companies amongst a sea of competitors.

a key answer for the past half decade has been cpi’s uae-based magazine SME Advisor Middle East, which has delivered valuable business information to leading smes across the region, helping them develop their businesses, putting them in touch with valued partners and fuelling growth even in a stalled global economy.

For more information about advertising and other partnership opportunities, please visit www.privatesectorqatar.com/enFor marketing ideas and opportunities, please contact [email protected]

now, with the support of qdb as our presenting partner, we have launched the same business values, tailor-made for qatar in the form of the brand Private Sector. this will encompass magazine, events, online and several other initiatives to drive qatari entrepreneurship and the private sector.

This is your chance!this is a market you cannot afford to miss. this is a market that you can reach in an intelligent, focused way, working with the expert team that brought you SME Advisor Middle East and has now launched Private Sector magazine in qatar.

Economic prospects

Qatar was ranked as the most competitive economy

in the Middle East and North Africa (MENA)

in the World Economic Forum’s 2011 Global

Competitiveness Index (GCI). Real GDP growth

was high, at 18.7% from 2010-2011, making it

the second highest growth rate worldwide. Per

capita income in 2012 is expected to be nearly

USD110,000. The non-energy sector grew by

9.5% in 2011; the slowest pace in five years.

This was offset by a rapid increase in exports of

Liquefied Natural Gas (LNG). Growth of real GDP

will moderate in 2012 with real GDP increasing by

6.0% owing to an anticipated drop in energy prices

and the completion of several energy projects.

Qatar has so far avoided the political turmoil

seen in other Arab states in 2011 and maintains a

high level of security, bolstering the confidence of

individuals and companies looking to do business

there. It is considered to have one of the

best economic environments in the region.

Real GDP growth was high, at 18.7% from

2010-2011, making it the second highest growth

rate worldwide. Although Qatar has made some

progress in diversifying the economy, GDP growth

has largely come from the petroleum and gas

sectors, as GDP from mining and quarrying of

energy producing materials accounted for 58.1%

of total GDP in 2011. However, real GDP growth is

expected to cool to 6.0% in 2012 as the economy

remains vulnerable to fluctuations in energy

prices and global demand, and as several energy

projects complete. The economy has suffered from

inflationary instability, as high levels of inflation

above 10.0% from 2006-2008 were followed

by deflation from 2009-2010 when the real

estate market plunged. However, the economy

will experience a more predictable inflation rate

forecast to stabilise at 4.0% in 2012.

The risks of inflation are modest but have risen

after the government introduced a permanent

increase in public sector wages. Prices are forecast

to 4.1% in 2012.

Qatar’s real estate market is recovering after

a period of sluggish growth. Many projects

were delayed during the global financial crisis.

Afterwards, rents and property valuations fell by

25-30% but have begun to rebound. Expatriate

demand for housing finance is also rising. Qatar’s

successful bid to host the 2022 FIFA World Cup

will boost infrastructural spending even more over

the next decade; including several stadiums and

an underground rail system in Doha. In 2011 the

Qatari Finance Minister said that infrastructure

spending would total USD150 billion from

2011-2016, with most of it to be invested in

sectors that are unrelated to oil.

Qatar saw its total population increase by more

than 15% per year between 2003 and 2008. This

huge influx, coupled with the country’s swelling

coffers, is driving public spending on infrastructure.

Current projects involving water, power and

transport are valued at USD 203 billion.

On balance, Qatar’s winning bid for the 2022

FIFA World Cup and the country’s vast oil and

gas wealth will continue to push infrastructural

spending which will further stimulate its economy

and attract foreign direct investment (FDI) inflows.

As a result of the increase in government spending

overall consumer expenditure is expected to grow

by 3.7% in real value terms by 2013. Hence Qatar,

as per the World Economic Forum’s 2011-2012

Global Competitiveness Index (GCI), is expected to

maintain its high ranking as the most competitive

economy in the Middle East and North Africa.

0

2

4

6

8

10

Source: Euromonitor International from national statistics/UN

Popu

latio

n, M

illio

ns

Table1: Population growth

Source: Euromonitor International from National statistical offices/OECD/Eurostat

2000 2005 2010 2015 20200

5000

10000

15000

20000

Other goods & services

Housing

Food and non-alcoholic beverages

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

United Arab Emirates Kuwait Qatar Bahrain

Note: (1) Data for all years is in fixed constant US$; 2015 and 2020 data refer to forecasts. (2) Other goods and services refers to consumer expenditure on Alcoholic Beverages and Tobacco, Clothing and Footwear, Household Goods and Services, Health Goods and Medical Services, Transport, Communications, Leisure and Recreation, Education, Hotels and Catering and Miscellaneous Goods and Services

country update

Euromonitor International is the world’s leading provider of global business intelligence and strategic market analysis. We have 40 years’ experience of publishing market reports, business reference books, bespoke consulting projects and integrated online database Passport.Our research offers insight into industries, countries and consumers. We deliver quality information solutions to support strategic business planning.Euromonitor International is headquartered in London, with regional offices in Bangalore, Cape Town, Chicago, Dubai, Santiago de Chile, Shanghai, Singapore, Sydney, Tokyo and Vilnius and has a network of over 800 analysts worldwide.

About

50 may 2012

Established in 1964, UNCTAD promotes the development-friendly integration of developing countries

into the world economy. UNCTAD has progressively evolved into an authoritative knowledge-based institution whose work aims to help shape current policy debates and thinking on development, with a particular focus on ensuring that domestic policies and international action are mutually supportive in bringing about sustainable development.

The World Investment Forum (WIF) was also

held as part of the UNCTAD XIII from 21-23

April. The Forum witnessed the launch of revised

Guidelines for International Investment , by the

FoSTERING INCLUSIvE dEvELoPMENTThe thirteenth session of the United Nations Conference on Trade

and Development (UNCTAD XIII) was held from 21 to 26 April 2012

at the Qatar National Convention Centre. Private Sector brings you a

snapshot of the exciting discussions.

International Chamber of Commerce (ICC) to

adapt to new challenges of the international

investment environment and to further promote

investment as a driver of economic growth.

While the value of cross-border direct

investment has grown substantially in the past

decade, international investors have reason

to be concerned about the impact of recent

developments and policies on the free flow of

international investment.

“Investment underpins economic growth and

has shared value for companies and governments

alike,” said Peter Brabeck-Letmathe, Chairman

of the Board for Nestle. “It allows companies

to establish themselves in global markets and

creates ties between domestic and foreign

companies, allowing them to expand their

activities and create new jobs.”

The aim is for the Guidelines to facilitate cross-

border investment for investors and governments,

as well as to harness the vast potential of cross-

border investment for stimulating balanced global

growth. Trade and investment have the potential

to reinvigorate the global economy during the

present economic crisis, particularly by driving

sustainable growth in developing countries.

There has been a sharp increase, since the

original Guidelines were drafted in 1972, in

international investment inflows to, and outflows

from, developing and transition economies. In 2010,

these accounted for 52% of the total investment

inflows and 29% of total investment outflows.

Global inward investment flows now approach

USD 1.2 trillion and sales of affiliates worldwide

are just under USD 30 trillion, far in excess of

world trade flows. There are also more than

2,800 bilateral investment treaties, many of them

south-south.

about town

High level discussion on women in development

52 may 2012

Another highlight of the conference was that

HE Dr Hamad bin Abdulaziz Al Kawari, Minister

of Culture, Arts and Heritage, was elected

President of the Conference of UNCTAD XIII.

Qatar has officially taken over the presidency of

UNCTAD for the next four years, becoming the

country in the Arab region to preside over the

organisation since its inception in 1964.

Emphasising on the role of women in the

present day world, there was also a panel

discussion the development of women. Her

Excellency, Sheikha Al Mayyasa bint Hamad bin

Khalifa Al-Thani, who inaugurated the high-level

event, said that under the leadership of Her

Highness is Sheikha Moza bint Nasser on this

issue “Qatar will spare no effort in helping more

women to achieve this goal.”

His Excellency Dr. Hamad bin Abdulaziz

Al-Kawari, Qatar’s Minister of Culture, Arts

and Heritage, in his role as President of the

Conference, who opened the event said

that, “We believe that development is only

meaningful where there is a role for women.”

He added, “Without the involvement of women,

development would be a lame duck.”

Sheikha Al Mayyasa acknowledged the “special

importance” that the issue of women has for the

work of UNCTAD. She added that the leadership in

Qatar also sees it as a “cornerstone of development”.

The Director General of the World Trade

Organisation, Pascal Lamy, outlined the necessary

steps to facilitate greater inter-Arab region trade.

The event brought together leading economists

and prominent members of the region’s business

community to consider what lessons had been

learned from the Arab Spring.

The Director General acknowledged the

“timeliness” and “critical nature” of the

discussion. He said: “The Arab Spring reminds

us of one fundamental economic viable –

unemployment remains a major social, economic

and political challenge”.

Noting that Arab states have “lagged behind”

the rest of the world in employment levels for the

last two decades, he said the lack of capacity to

export locally produced goods and materials is an

imperative concern that needs to be addressed.

In his conclusion, Pascal Lamy called for

private sector driven processes to shape trade

policies, the reduction of bureaucracy as

an obstacle to free-trade, and the efficient

administration of trade through national

development policies.

While talking about development,

technology cannot be ignored. An innovation

and technology day was held to discuss the

importance of technology and innovation for

achieving faster economic growth and advancing

sustainable human development. The session also

explored how policies could be improved to make

innovation and technology a more powerful lever

for development.

In his opening remarks, His Excellency Dr.

Supachai Panitchpakdi, Secretary-General of

UNCTAD, said; “It is a pleasure to be hosting

the first ever innovation and technology

day during an UNCTAD ministerial meeting.

This has been made possible by the Qatar

Foundation and we hope this is the first step

towards an ongoing partnership.” Dr. Tidu

Maini, Executive Chairman of Qatar Science

and Technology Park, and Science and

Technology Advisor to the Qatar Foundation,

thanked UNCTAD for choosing to host its

conference in Doha.

He said, “We believe education, research and

innovation are key drivers for the diversification of

Qatar’s economy into a knowledge-base”.

In her keynote speech, Her Excellency Ms. Tarja

Karina Halonen, Former President of the Republic

of Finland, said the transformation that has taken

place in Qatar over the last 20 years is “amazing”.

As part of the conference, TASDEER in

collaboration with UNCTAD organised a

workshop on Generalized System of Preferences

(GSP). The workshop was chaired by Mr Hassan

Khalifa Al Mansoori, Executive Director, TASDEER.

The workshop was focused on enabling

participants reach reliable information on the

aspects of GSP schemes of European Union,

Canada and Turkey. It included coverage on

various topics, such as product coverage, GSP

rates, origin criteria, consignment conditions and

documentary evidence. The workshop included

presentations by Mr Taisuke, ITO and Ms Michiko

Hayashi from UNCTAD.

The UNCTAD XIII reinforced the importance

of holistic and sustainable development of the

region and the world that must be at the centre

of the globalisation process.

saleslegalabout town

TASDEER workshop on Generalised System of Preferences (GSP)

53may 2012

Using data from an online survey carried out by Bayt.com and YouGov Siraj with more than

12,000 residents of 18 Arab countries, Stanford University’s Programme on Arab Reform and Democracy finds that despite the many institutional and structural obstacles social entrepreneurs face, there is a strong foundation for social entrepreneurship in the Arab region. Key findings include:

• There is a strong interest in volunteerism

—more than one in four respondents

region wide is currently active in some form

of volunteering — indicating a greater

involvement in social causes, a pathway

towards social entrepreneurship.

• In every country surveyed a large proportion of

respondents indicated that if given the choice

they would prefer to be self-employed or

own a business. While many cited the greater

independence it would offer, other business

owners started their initiatives out of economic

necessity not opportunity.

• Roughly half of respondents across the region

are at least somewhat familiar with the term

entrepreneurship — in both its business and

social senses —indicating growing awareness

of this emergent sector.

• A significant proportion of respondents

expressed interest in entrepreneurship as a

profession pointing to a high potential for

growth in this sector.

• The majority of respondents in every country

stated that their personal economic situation

has deteriorated as a result of the Arab Spring,

suggesting that social entrepreneurship may

emerge as an alternative sector for the region’s

unemployed youth.

• Across the region, the majority of respondents

believe that young people are more interested

in improving their communities and

contributing to the long-term development

of their societies after the revolutions. These

changing attitudes and practices suggest the

emergence of a new generation of social

entrepreneurs across the Arab region.

industry watch

In light of the opportunities suggested

above, the survey revealed significant structural

and cultural barriers in place that prevent

the ecosystem of entrepreneurship from fully

thriving in the region. Overall respondents

indicated very high rates of failure of new

businesses and NGOs. Lack of finance remains

the largest challenge to starting a business,

while bureaucratic hurdles such as legal

registration and interference from authorities

were cited by those operating in the NGO

sector. The paper proposes the following

recommendations to address these challenges

and further encourage social entrepreneurship:

• Increase the number of social entrepreneur

incubators and support local organisations in

incubating entrepreneurship;

• Assist local organisations in reforming the

legal and regulatory framework;

• Use media tools to educate Arab societies

about entrepreneurship;

• Introduce entrepreneurial education in

schools and universities;

• Encourage partnerships between the public,

private and NGO communities in Arab

countries that identify, support, and celebrate

entrepreneurs across the region;

• Widen participation in initiatives run by

the international development community

to involve multiple stakeholders, with

an emphasis on women and those from

disadvantaged backgrounds;

• Enhance the social accountability of social

entrepreneurs’ projects.

WINdS oF CHANGEThe Arab Spring has negatively affected the economies of many

Arab countries, while also inspiring citizens to actively participate in

bringing about social change and community development. Social

entrepreneurship is often suggested as a way to combat unemployment

and engage citizens in improving their local communities, both of which

are urgently needed in the post-Arab Spring era.

0 10 20 30 40 50 60 70 80

TotalBahrain

LebanonJordan

SyriaKuwait

EgyptSaudi Arabia

UAEMorocco

Oman TunisiaQatar

Algeria

Respondents interested in Private Sector, by country (%)

54 may 2012

QDB helpeD me take steps to grow my Business through al Dhameen.

Do you have a promising business or new business idea? But do you also have trouble finding the funding that you need? Ask us about Al Dhameen Indirect Lending Program from QDB. We will guarantee up to 85% of your business loan*, leaving you free to focus on developing your business. Click on www.qdb.qa or visit one of our partners listed below.

* Guarantees of up to 85% are for new businesses. Exiting businesses can get guarantees of up to 75%. Terms and Conditions apply.

QDB_Al_Dhameen_Steps_270x207mm.indd 1 25.01.12 14:24

Private Sector - May 2012

Documents

qatar market

qatar exchange

qatar national vision

inclusive development

global women qatar

economic landscape qatar

targeted market

job market