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English version - February 2012
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ISSUE 1 FEBRU
ARY 2012
ww
w.privatesectorqatar.com
/en
PUBL
ICAT
ION
LIC
ENSE
D B
Y TH
E IN
TERN
ATIO
NAL
MED
IA P
ROD
UC
TIO
N Z
ON
E, D
UBA
I TEC
HN
OLO
GY
AND
MED
IA F
REE
ZON
E AU
THO
RITY
make an impression pitch to clients communication skills
secure mobile devices safeguard food supply know your trade market
The ABC of entrepreneurship
- The makings of an entrepreneur- How to develop a business idea
36
News10 UPDATESWe bring you a snapshot of the latest events and happenings in Qatar that will have an impact on SMEs and large enterprises.
Entrepreneurs24 I THINK, THEREFORE I AMAre entrepreneurs born or bred? Ian White, Director, Qatar Skills Academy discusses what really makes an entrepreneur.
22 ProductsWe take a look at new products and software launched to make your work life easier. It’s not like you need an excuse!
Shelf Life
Report14 ECONOMIC INSIGHTWe take a look at some of the monetary indicators in Qatar based on reports provided by QNB.
26 WHAT’S ON YOUR MINDEvery successful business or product starts with an idea. Bedaya Center talks about the importance of developing a sound idea and how to go about it.
Business Setup
28 RULES OF THE GAMEEmma Higham, Senior Associate, Clyde & Co, gives us an overview of the rules and regulations that foreign investors should be familiar with as they prepare to do business in Qatar.
Legal
Expert Opinon16 SPRING OF HOPEHedi Larbi, Director, International Development Institution gives us his viewpoint on what will be the economic impact of the Arab Spring on the region in 2012.
Business Guru36 RECRUIT YOUR WAY TO SUCCESSWe talk to Rabea Ataya, CEO, Bayt.com, to know about the Internet-based recruitment company’s best practices.
Spring of Hope
16
contentsIssue 1 February 2012
34 KNOW YOUR DESTINATION Before you get ready to export to a particular market, Tasdeer advises on how to ensure if there is a right fit between your product and the market it is meant for.
Trade32 ENSURING FOOD SECURITY
Dr. Ashraf Mahate, international trade and business expert, talks to us about how to deal with food supply shortage, which is becoming a serious concern in the Gulf region.
44
52
14
Technology52 PROTECTING YOUR MOBILE DEVICESAndy Cordial, Managing Director, Origin Storage, explains why mobile computing users need to raise their security game if they are to avoid a series of SmartPhone and tablet computer-driven data breaches hitting the headlines.
48 PLAYING TWO STEPS AHEAD With the advent of digital media, the rules for advertising have completely changed. Therefore, businesses must adapt so that they can continue to provide value and remain relevant, says Abbas Alidina, Founder and Director of Logicks.com.
Marketing
Sales40 THE GOOD, THE BAD AND THE UGLYIn this competitive world, organisations are busy trying to secure deals. But in doing so, some are committing cardinal sales sins, says Jennifer Baxavanis, Managing Partner, BAX Consulting.
Corporate Lifestyle54 SEAL THE DEALYou have just a few seconds to make that first impression and you get only one shot at it. This month, Guillaume Mariole from Ignite Fitness & Wellness shows that, with a little thought and preparation, you can make some smart choices.
Management44 THE IMPORTANCE OF BEING FLEXIBLEStephan Melchior, Managing Partner, Wilson Learning Middle East, shares some pointers on the ability to see different perspectives and adapt.
As a New Year ushers in, it brings with it hope, optimism and an eagerness for new things to come. From the lone young man in Tunisia to the occupy Wall Street movement, 2011 was a year of turmoil and change. But now with a new year, we look forward to a new beginning and positive tidings of good things to come.
The Middle East has been through a tumultuous time, and therefore it becomes all the more important to focus on the positives. As the region continues to simmer with some signs of change, it is
countries like Qatar, with their robust economic growth and long-term strategy of making the country a safe place to work, live and flourish that become our beacon of hope. From winning the Summer Olympics 2020 to 2022 FIFA World Cup, combined with its aggressive investment to make the country the largest producer of gas in the world, the Al Thani family has made sure a strong foundation has been set to achieve their vision. Qatar today stands as the main player in the region, able to influence the GCC and beyond.
With foreign investment on the rise, the presence of multinationals in all sectors of the economy and a growing student population, we could not find a better time to bring in Private Sector Qatar in English, to ensure that all these developments and success stories do not go unnoticed. With this first issue, we find ourselves in unchartered territory. A platform to educate, inform and make aware not only the existing private sector enterprise but also the flood of investors looking for their next big break. With so much going on, Qatar is definitely the place for entrepreneurs and businesses that are up for exploring opportunities.
And we want to be there, when you make that journey. We want the magazine to be an inclusive forum and for you to talk to us, share your ideas, guide us. We are in the midst of lining up professionals who will contribute regularly on various issues – right from setting up a company to upcoming trends, entrepreneurs who will share their experiences and international experts, who will give their take with a global perspective. And we want the world to know what is happening in Qatar.
The first issue of the magazine provides insight into an interesting mix of topics, ranging from the impact of the Arab Spring on the region, to how to build a concrete business idea, defining an entrepreneur and an overview of doing business in Qatar. You can find all this and a lot more on our Website and Facebook page. And to interact with us, follow us on our various social media channels.
As we begin this journey in 2012 to make Private Sector Qatar a must-read platform for every business and to provide support to SMEs, we are motivated to make a difference. We hope you will be a part of this journey and guide and encourage us along the way.
editorial
Drum roll please!
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
Group Editor, CPI BusinessKetaki Banga
[email protected] +971 4 440 9115
Editor - EnglishAparna Shivpuri Arya
[email protected] +971 440 9133
Editor - ArabicAli Koaik
[email protected] +971 440 9140
Contributing EditorsMike Byrne
[email protected] +971 440 9105
Meghna [email protected] +971 440 9130
ADVERTISING
Commercial DirectorChris Stevenson
[email protected] +971 4 440 9138
Sales DirectorFrancis Morgan
[email protected] +971 4 440 9163
CIRCULATION
Database and Circulation ManagerRajeesh M
[email protected] +971 4 440 9147
PRODUCTION AND DESIGN
Production ManagerJames P Tharian
[email protected] +971 4 440 9146
Art DirectorKamil Roxas
[email protected] +971 4 440 9112
Head of DesignFahed Sabbagh
[email protected] +971 4 440 9148
PhotographerCris Mejorada
[email protected] +971 4 440 9108
DIGITAL SERVICESwww.smeadvisor.com
Digital Services ManagerTristan Troy Maagma
Web DevelopersJerus King Bation
Erik BrionesJefferson de Joya
Louie Alma
[email protected] +971 4 440 9100
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 byAtlas Printing Press LLC
© 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. Prior to this, she was a member of the Strategic ICT Committee, responsible for shaping Qatar's national ICT strategy. She holds a Bachelor of Science (Engineering) from Kuwait University and Master's Degree and PhD in Computer Science from George Washington
University, Washington, DC.
Mr. Abdulaziz N. Al-Khalifa
Mr. Al-Khalifa is the Executive Director, Strategic Planning and Control at Qatar Development Bank (QDB). He has over ten years of experience in the banking, oil and gas and the private services sectors working for the QDB, Shell and Qatar General Electricity and Water Corporation respectively. Mr. Abdulaziz holds an MBA degree from
Qatar University and a bachelor degree in Engineering from California University, USA.
Raed Al-Emadi
Mr. Al-Emadi is Deputy CEO, Silatech. Prior to joining Silatech, he has worked for the Barwa Real Estate Group and Qatar Foundation. He holds a BSc in Mechanical Engineering from McNeese State University.
Bassam Salman
Mr. Salman is Executive Assistant, Qatar Chamber of Commerce & Industry. He has graduated from Faculty of Arts – English literature in 1998. He also studied Business Administration at the American University in Cairo, 1999.
Ms. Amal Al-Mannai
Ms. Al-Mannai is the Executive Director of the Social Development Center (SDC). She is also the Vice Chairperson of AFIF Fund for Small and Medium enterprises and a member of the National Human Rights Committee. Ms. Al-Mannai holds an MBA degree from the College of Business Administration at the American University of Beirut (AUB). She also holds a BSc in Economics from The University of Qatar and an MSc in Public Policy and Management from London University.
Dr. Eulian Roberts
Dr. Roberts is the Managing Director of Qatar Science & Technology Park. His sector experience includes biotechnology, environmental technology, energy, healthcare, software and telecommunications. Eulian graduated from Imperial College with a BSc and PhD in 1986, and obtained an MBA three years later.
adviSORy BOaRd
8 february 2012
adviSORy BOaRd
news
Space camp programme by Boeing
A senior aviation security inspector from Qatar attended Boeing Educators to Space Camp programme held in Huntsville, Alabama in the United States. Captain Mohammed Al Khater was part of a group of more than 90 delegates and students from 11 countries taking part in a weeklong training adventure.
“The programme was very beneficial, and proved to be creative and innovative in teaching us techniques that we were able to implement with our teams upon returning home. This is an excellent initiative from Boeing, and I am very excited to have been part of it,” said Captain Mohammed.
This year’s group of participants represented 11 countries, 16 American States, and the District of Columbia. Since 1992, more than 800 teachers have participated in Boeing’s annual programme, designed to help them motivate their students in the subjects of science, technology, engineering, and math (STEM), which is estimated to have reached more than 400,000 students around the world.
The Boeing Educators to Space Camp programme uses information on current space
exploration initiatives to enhance teaching skills in presenting STEM lessons in a way that will inspire students and help ensure a skilled workforce for a globally competitive technology market. The group participated in activities such as simulated space missions, astronaut training, and lectures by rocketry and space exploration experts.
“Boeing is an active advocate of educational advancement and has a long-term commitment to community development in the Middle East.” said Jeffrey Johnson, President of Boeing Middle East. “By offering students and educators a chance to take part in the Space Camp programme, we are focusing on elevating the quality of education in the region, so that students can excel in a competitive global market.”
After graduating from Space Camp, each delegate returns home with a lesson-plan workbook and materials to use in the classroom or work environment. The graduates also have access to online training as well as resources to help them continue to network and communicate with their fellow camp attendees.
Space camp team
Promoting educationQatar National Bank (QNB)
announced the launch of its Education Plan campaign as part of its corporate social responsibility policy.
A good education and a degree from a respected university are the key to unlocking many doors of opportunity for children. This investment plan is designed to help people save the cost of higher education by guaranteeing the growth of their contributions over the years.
This product offers customers who have children with a savings and protection plan that helps for the future education of their children. It will give customers a sense of security and achievement knowing that their children’s education will go as planned even if everything else doesn’t.
With a flexible savings structure, it will ensure the family’s financial independence in the event of unexpected permanent total disability or death of the policy owner.
The minimum accumulation phase is five years and the maximum is 21 years. Customers can also continue to pay into the account from any country they move to.
In order to enrol in the programme customers should contact the QNB customer care centre to schedule an appointment, following which a customer care officer will visit them to create a package that suits their needs.
QNB has always been keen on providing its community with best products and solutions to their financial needs and this programme is one of the most attractive products of its kind in the country.
10 february 2012
news
Deal signed between Qatargas and Laffan RefineryQatargas signed Engineering, Procurement and Construction (EPC) contract with Samsung Engineering Ltd., for a Diesel Hydrotreater (DHT) Unit that will treat 54,000 barrels per stream day (BPSD) of diesel, from high-sulphur into ultra low-sulphur diesel fuel, at the Laffan Refinery. The Laffan Refinery, which started production in September 2009 and is operated by Qatargas, is one of the largest condensate refineries in the world and the first of its kind in Qatar.
The contract was formally signed by His Excellency Dr. Mohammed Bin Saleh Al-Sada, Minister of Energy and Industry and Chairman of the Qatargas and Laffan Refinery Boards
of Directors, and Mr. Park Ki-Seok, President and Chief Executive Officer of Samsung Engineering Ltd. Also present on the occasion were Khalid Bin Khalifa Al Thani, Chief Executive Officer of Qatargas and Vice Chairman & Chief Executive Officer of Laffan Refinery Company, Qatar Petroleum Board members, senior officials of Qatargas, top management from Samsung Engineering Ltd., and representatives of the Laffan Refinery shareholders.
Commenting on this major project, His Excellency Dr. Mohammed Bin Saleh Al-Sada said, “This project forms part of Qatar’s National Vision, as laid down by His Highness the Emir Sheikh Hamad Bin Khalifa
Al-Thani, for securing efficient energy supplies for the country meeting the most stringent environmental specifications, and contributing towards clean global energy security. The surplus production will be exported, making it the latest addition to the State of Qatar’s existing export portfolio in the energy sector. The planned startup of this project is the first quarter of 2014 at a cost of around QR 350 million.”
Khalid Bin Khalifa Al Thani said, “This is a very significant milestone for our Laffan Refinery, which is already undergoing an ambitious expansion drive to double its capacity of 146,000 BPSD. I’m particularly pleased about this collaboration
with Samsung Engineering for the development of this Diesel Hydrotreater Unit as it represents one of the many ways through which we continue to demonstrate our highest standard of environmental management.”
The Laffan Refinery, with its processing capacity of 146,000 BPSD, represents a significant achievement by the State of Qatar in the field of optimising condensate production. Engineering work is currently being undertaken for a second condensate Laffan Refinery (LR2), which will have the same capacity and will be constructed on an adjacent plot. The DHT Unit is designed to process the LGO straight run from both refineries.
Fly awayThe unique Fifth Fly-in Open Day at Al Khor was completely reshaped for January 2012 into an annual, crowd-pulling attraction featuring an airshow and aircraft from all over the region.
Al Khor Fly-in Day is part of Qatar’s history and is being relaunched as an event set to draw big crowds with displays of aircraft and aerobatic shows thrilling the whole family.
Jointly organised by aircraft
owners, Qatar Civil Aviation and Al Khor Airport, the 2012 Fifth Fly-in Open Day took place at Al Khor airport over two days, January 13th and 14th. The first day of the event witnessed the main attraction for the public.
Aircraft owners from Qatar and overseas flew into Al Khor to show off their machines and raise awareness about aviation among Qataris, in what was an exciting and educational event. It was a great opportunity for those with a love of aviation to immerse themselves in a
fantastic and original experience by taking a closer look at a diverse range of aircraft from jets, to propeller aircraft, to microcopters and many others.
Qatar Aeronautical College was representeded at the event for those willing to learn more about scholarships and a career in aviation.
11february 2012
news
Business solutions for managing dataQtel Business Solutions
(QBS) launched an innovative new network solution that that will allow customers with high bandwidth requirements to aggregate applications on one dedicated, highly secure optical network.
The new WaveLink service is aimed at Qatar’s fast-growing large corporate and Government entities looking to manage higher volumes of data and information. The solution offers failure-resistant architecture and the ability to carry traffic,
regardless of protocol or bandwidth requirements.
With companies in Qatar continuing to set new records for growth and development, business customers are increasingly looking for innovative solutions to help them stay on top of their daily data needs.
WaveLink’s supporting applications range from basic voice and data services to virtualisation and storage area network applications, allowing customers to manage traffic over one network.
The new service also provides a powerful established backbone with the flexibility of client-specific tailored protocols and set protection levels to suit individual companies. This is all done in a cost-effective way by using leased capacity that demands no capital investment.
WaveLink is based on Wavelength Division Multiplexing technology and are used primarily for high bandwidth requirements such as data warehousing, Storage Area
Networking (SAN) and applications.
It uniquely supports multiple deliveries of different interfaces as the service is transparent to what technology each wavelength provides. It can be used to supply Synchronous Digital Hierarchy (SDH), Ethernet, or other protocols such as Fibre Connection (FICON) or Enterprise Systems Connection (ESCON). WaveLink based access can meet resilience requirements between sites such as data centres and head offices.
Save the date! FEBRuaRy 2012date Event Location
4-5 february everything mobile forum sharq village and spa
5-8 february Qatar projects (construction) grand hyatt hotel
6-8 february power-gen middle east 2012 (energy and power) Qatar national convention center
7-8 february 3rd annual middle east ppp millenium hotel
8-11 february doha food festival doha exhibition center
21-27 february doha 9th Jewellery and watch exhibition doha exhibition center
22-23 february 3rd annual concepts middle east (business) renaissance doha
27-28 february fire safety and rescue-Qatar tba
27-1 march Qatar international conference on stem cell science and policy Qatar national convention centre
12 february 2012
SEIB 008 hand 19.5x26 eng.pdf 8/15/11 9:37:39 AM
1153 Jan12_pp1-49-v1.indd 39 23/12/11 11:00 PM
reports
LET’S TaLk MONEy!In the first of a multi-part series, we take a look at some of the
monetary issues in Qatar, based on economic reports provided by
the Qatar National Bank (QNB).
Currency The Qatari riyal (QR) has been pegged to the
US dollar at a rate of QR3.64:USD1 since
1981. This limits the monetary policy tools
at the disposal of the Qatar Central Bank
(QCB). The other GCC currencies, aside from
the Kuwaiti dinar, also have long-standing
pegs to the dollar.
It is unlikely that the currency will be
de-pegged or re-valued in the near
future. The peg minimises the volatility
of hydrocarbons export revenue, as oil
and gas are priced in dollars. For foreign
investors, the long-term stability of the peg
removes some of the capital value risks that
are usually associated with investment in
countries with floating exchange rates.
The dollar itself has been volatile in recent
years, but even this has not prompted any
moves towards changing the peg in Qatar or
other GCC countries.
The peg could be adjusted in preparation
for the launch of a GCC Monetary Union.
There are plans for a single currency
including Saudi Arabia, Bahrain, Kuwait
and Qatar (the UAE and Oman have
withdrawn). A joint GCC Monetary Council
was established in Riyadh in 2010 as the first
step towards monetary union.
It is likely that a GCC currency would
initially be pegged to the US dollar, with
the Qatari riyal being converted to the new
currency at this fixed rate. The peg might
later be changed to a basket of currencies
that better reflect the trade relationships of
the GCC, along the lines of Kuwait’s existing
currency regime.
A less likely scenario would be an
adjustment to level of the riyal’s peg to
help stave off imported inflation. In 2008,
Consumer Price Index (CPI) inflation spiked
to 15%. Some analysts argued that an
upward revaluation would help to slow
inflation by lowering import costs. However,
it would probably require a prolonged
depreciation of the US dollar and significant
imported inflation, for Qatar to seriously
consider adjusting its exchange rate and
undermining the stability the long-term
peg has created. Such a scenario is highly
14 february 2012
reports
unlikely in the short to medium term as the
US dollar remains essential to the global
financial system.
Given that the Federal Reserve rates
are effectively on hold until 2013, QNB
Capital does not expect any increase in
Qatari interest rates until then. Further rate
cuts may be made if credit growth remains
sluggish. Qatar is unlikely to raise rates until
2013, taking its lead from the US Federal
Reserve. The US dollar peg requires Qatar’s
interest rates to broadly track US rates to
deter major speculative capital flows seeking
to arbitrage any interest-rate differential.
Interbank lending rates are closely related to
official base rates.
Monetary policy toolsThe QCB mainly uses bank reserve
requirements and lending limits as monetary
policy tools.
• Commercial banks are required to hold
4.75% of total deposits, including foreign
deposits, as cash reserves
• The loan-to-deposit ratio of commercial
banks is 90%
Foreign currency deposits have declined
significantly. There has also been a long-
term trend for an increase in the proportion
of deposits held in Qatari riyal. Foreign
currencies, which were 34% of the total
in January 2007, declined to 22% as at
June 2011. This has most probably been a
consequence of the financial crisis and global
recession, which has encouraged Qataris to
withdraw their savings from foreign currencies
that may have been perceived as at risk.
The proportion of demand deposits has
also fallen from 28% in January 2007 to
23% in June 2011, indicating that there is
an increased propensity for Qataris to save.
Prices and wagesHistorically, inflation in Qatar has been
extremely low. The Consumer Price Index
grew at 3.0% during 1995-2004. It picked
up considerably to 12% in the 2005-08 oil
boom, although there was a contraction in
prices during the global slowdown in 2009-10
of 3.7% a year
An expansive economy, public spending
and housing have driven inflation. Inflation
has been driven higher by the economic
boom, high oil prices and strong government
spending, all of which have increased domestic
demand. Qatar is also heavily dependent
on imports of food and other goods and is
therefore affected by imported inflation as
international commodity prices rise.
Rent prices have driven the increase and
subsequent contraction in the CPI. Rent, fuel
and energy have the strongest weighting in
Qatar’s CPI basket, accounting for 32% of
the index. This component also grew faster
than all of the other categories in 2005-08,
at a rate of 25%. During Qatar’s economic
boom, rental prices rose rapidly.
According to a survey by DTZ, a
UK-based real estate research
company, prime office rental
rates in the diplomatic
quarter of Doha increased
by 67% from USD 49
per square metre per
month in the first
half of 2006 to a
peak of USD 82 in
the first half of
2008. Residential
compound
villa rents also
increased, rising
by 35% from USD
4,900 per month
for a four bed villa in the first half of 2006
to USD 6,600 in the first half of 2008.
These factors were largely responsible for
the CPI inflation of 14%
in 2005-08.
Rent was also the key driver for the
contraction in the CPI in 2009-10, falling
at a rate of 12% a year. According to the
DTZ research, prime office rental rates
fell by 13% from the first half of 2008 to
USD 71 in the second half of 2010 and
compound villas fell 38% to USD 4,100
over the same period.
Source: QSA, *QNB Capital forecasts in 2011-12
-4.92012*
2.8
2006 2010
10
2002 2008
20
2.4
15.1
20040
-10Source: QSA, *QNB Capital forecasts in 2011-2012
Consumer price index (CPI) 2000-2012
Figure 1
15february 2012
reports
The second most highly weighted
category in the CPI is transport and
communications, representing 21% of the
overall index. Prices changes in this category
have been more moderate, only rising at a
rate of 4.3% in 2005-08 and contracting at
a rate of 1% in 2009-10.
The food, beverages and tobacco
component of CPI was also an important
factor driving inflation. QNB Capital expects
rising prices in the food, beverages and
tobacco and transport and communications
categories to more than counteract the
falling prices in the rent, fuel and energy
category. During the first six months of
2011, prices in the food, beverages and
tobacco category rose again, at an annual
average rate of 4.8% in line with fresh
increases in international food prices
because of poor harvests.
Producer Price Index (PPI)The PPI is closely related to oil prices. The highest
weight in the PPI basket is given to mining,
which accounts for 77% of the index
(Figure 2). Within this, crude oil prices
account for 50%, natural gas for 32% and
condensates 18%. Inflation in this category
has been 29% from the first quarter of
2010 to the first quarter of 2011. As
natural gas and condensate prices are often
linked to oil prices, this category will be
closely correlated with QNB Capital’s oil
price forecast, rising by around 35% in
2011 and falling by around 4.8% in 2012.
ManufacturingManufacturing is the next most heavily
weighted category, representing 21% of
the index. Inflation has risen by 14% in
this category from the first quarter of 2010
to the first quarter of 2011, which has
mainly been driven by an 18% increase in
the price of refined petroleum products
and a 11% increase in the price of basic
chemicals, used in the petrochemical
industry. As the inputs for petroleum
products and petrochemicals are oil and
gas based, this category is also closely
correlated with oil prices.
Mining
24.9%28.6%
Overall index
15
25
20
Electricity and water
10
Manufacturing
0.1%
30
0
13.9%5
(100%)
(2%)
(77%)
(21%)
Source: QSA and QNB Capital analysis
Figure 2
Sector Average Annual
Salary (USD) Mining and Quarrying 55,279 Public Administration 50,093 Electricity, gas and water supply
49,098
Financial intermediation
49,055
Source: QSA
and QNB Capital analysis
The remaining 2% of the index is made
up of electricity and water. Prices in this
category are fixed by the government, and
are therefore likely to remain relatively stable.
They fell marginally by 0.1% from the first
quarter of 2010 to the first quarter of 2011.
WagesBased on labour surveys conducted
by the Qatar Statistics Authority
QSA, average wages have increased
from USD 17,200 per year in 2006 to USD
25,700 in 2009. This equates to an annual
increase of around 14% and is broadly in line
with CPI. In September 2011 the government
announced a 60% increase in salaries of
military officers and a 50% rise in the salaries
of military personnel of other ranks.
Producer Price Index (Q1 2010-Q1 2011)Percent change, index weighting in brackets
Top paid sectors in Qatar
16 february 2012
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What does the New Year hold for the Arab World? More political
changes and economic challenges, but also optimism and faith,
says Hedi Larbi, Director, Middle East Department, International
Development Institution.
SpRiNG OF hOpE
expert opinion
In 2011 the Arab world witnessed a tsunami change. Let us look back at the last 12 months and
try to preview what 2012 holds for our region.
Political situation It is too early to draw some lessons as the
political transformation is still unfolding
both within and across countries. Political
transition has just started in few countries
(Tunisia, Egypt and to a less extent Libya). At
the same time, revolution is still ongoing in
other countries (Yemen, Syria).
Arab people, where ever they are, have
rapidly developed a deep sense of citizenship
and strong determination to defend their
rights and freedom. Because of its potential
to shape up the new political system in the
region, it is worth exploring the prospect
of religion in the region and try to assess
the challenges it may face going forward.
Along with economic issues, and counter
revolution attempts, the turmoil raises
serious questions and legitimate concerns by
the people of the region and many partners
of the Arab world.
Objective analysis of the prevalent
economic and social situation in these
countries, and extensive discussions with
constituencies and popular base of the
political parties can help shed some light. For
the majority of the people, the future of any
political ideology will depend on how much
those who are elected will deliver on both the
political and economic demands of the people.
Economic situation2011 was a tough economic year for
revolutionary and evolutionary countries.
Growth was flat or negative in Tunisia, Egypt,
Yemen, Libya and Syria. It was sluggish in
Morocco and Jordan. Unemployment, the
central reason of the Arab Spring, soared
especially in Tunisia and Egypt. Tourism
income took a plunge with little sign of
recovery (-35% in Egypt, -45% in Tunisia
and even worse in Syria). Foreign Direct
investment (FDI) has more than halved.
18 february 2012
expert opinion
Domestic investors were willing to
engage but were restrained by political
uncertainty, social unrest and volatile
security. Trade, though resilient in the
first half of the year, declined thereafter.
External accounts deteriorated. Foreign
reserves declined, though for policy purpose,
they still seem to be at reasonable levels
but not for a long time. And most of all,
available fiscal space at the beginning of the
revolution was depleted, and fiscal deficits
start soaring again (around 5% in Tunisia
and Morocco, 8 to 10% in Egypt, Jordan,
Yemen).
The prospects in 2012 remain very
challenging if not worse than 2011. In
addition to the huge pile of inherited
political and economic problems, and those
developed in 2011, the region will not
be able to avoid the severe impact of the
persistent global crisis, especially in Europe.
Indeed, even under the best of assumptions,
Europe is likely to see a shallow recession
which will take many years to resolve and
growth to recover. This will definitely affect
the economies of the region for few years
to come, especially North African countries,
through the usual channels of trade,
investments, tourism and remittances.
In the absence of external financial
support (which doesn’t seem to be
forthcoming in spite of the repeated
promises of the G8), the combination of
the euro crisis and the persistent social
unrest and risk factors perceived by the
private sector, will further compound an
already challenging economic situation of
countries in the middle of difficult political
transition. Therefore economic recovery in
most countries, especially Tunisia, Egypt,
Morocco and Jordan will be delayed. Once
again, exports, tourism income, remittances,
and investment could be hard hit. The fiscal
space will further shrink in a context of
rising borrowing costs. This will seriously
limit the capacity of the countries to deploy
appropriate fiscal measures to stimulate
growth and preempt economic recession at
this very sensitive juncture.
“I am afraid, the unbearable high levels
of unemployment is posed to further
aggravate. On another front, it seems to
be clear that there is an issue of credible
leadership with enough policy experience
to assure private sector and who is able to
stand up to popular demands and mobilise
public and private sector capabilities to
immediately start the implementation of a
well designed development programme,”
says Hedi.
Objective analysis of the prevalent economic and social situation in these countries, and extensive discussions with constituencies and popular base of the political parties can help shed some light. For the majority of the people, the future of any political ideology will depend on how much those who are elected will deliver on both the political and economic demands of the people.
We can debate the impact of the 2011 Arab Spring forever and under or overestimate the depth of its political transformation, but what happened in 2011 will have profound consequences for the future of the region, and beyond.
19february 2012
Hedi Larbi
What lies aheadTwo brief conclusions can be inferred
from the above. Democracy will likely
be an important moderating factor over
time. But Arab people will also discover
that they need to find a viable alternative
that can address their economic and
political woes. Therefore, these first free
elections in the region are not the end of
the transformation process, but only the
beginning. If so, we should expect future
elections to bring stability back to its real
weight.
After all, there should be a learning period
during which, each country will develop its
own culture, model and practice of democracy.
It is too early to judge the ongoing
political transformation process or to predict
its final outcome. However, the observations
made above and what has been achieved
so far lead to think that the journey will be
very difficult but it seems to have well begun.
Indeed, some positive signs are worth noting.
Post-revolution countries are well
engaged in their democratic transition. New
and solid political awareness is developing
and has been reflected in free and fair
elections in Tunisia, Egypt and Morocco.
expert opinion
There is the foundation of numerous political
parties. Tunisia, where all this started,
is offering a home-made blue print for
managing a democratic transition process,
which could inspire other Arab countries.
People in Egypt, in spite of tremendous
difficulties posed by the military and other
counter revolutionary forces, continue to
defend their attachment to freedom and
democratic values.
Hedi Larbi works for an international inter-governmental organisation. He is an expert on international economic and political issues.Hedi received his Baccalaureat in Mathematics from Bizerte College in Tunisia; a Master’s Degree in Civil Engineering and Management from Ecole des Mines de Paris, France; and an Executive MBA from Harvard Business School, USA.
About
democracies, they will exert a tremendous
influence on the internal politics of the
region, by demonstrating successful
alternative models to the autocracies and
theocracies that have previously been the
only choices on offer.
Also, there are lessons to be learned
from a country like Qatar that has
maintained peace amongst all this turmoil
by offering transparent leadership and
promoting socio-economic issues, such as
employment, education and health.
We can debate the impact of the
2011 Arab Spring forever and under or
overestimate the depth of its political
transformation, but what happened in 2011
will have profound consequences for the
future of the region, and beyond.
The Middle East and North Africa will
never be the same. The forces that have
been unleashed are likely to continue
driving regional politics for decades to
come. The ongoing changes will also
fundamentally alter the geopolitical map of
the Middle East.
Tunisia, where all this started, is offering a home-made blue print for managing a democratic transition process, which could inspire other Arab countries.
Ultimately, Egypt will complete this first
stage of transition and could offer another
model. Libya, due to the lack of political
and state institutions, will go through
ups and downs, but will find its way
with or without the help of its neighbor.
Morocco offers a reasonable example of
evolutionary reform which could inspire
other monarchies of the region. If these
countries eventually emerge as stable
20 february 2012
ICONIC LANDMARK HOTEL OPEN NOW
AL WAAB STREET, DOHA, QATAR TEL: (+974) 44465600 WWW.THETORCHDOHA.COM
shelf life
Cisco announced the launch of Cisco Connect Express, a mobile app that brings Cisco Connect software features to mobile devices. Cisco Connect Express is compatible with Linksys E-Series routers and X-Series modem routers and helps consumers control the basic functionalities of their wireless network.
With the app, consumers can use their phone or tablet now to add devices to the wireless network, manage guest access, and change their Wi-Fi settings. The Cisco Connect
Express mobile app has been designed for iOS or Android devices and can be downloaded at no cost from the iTunes App Store and Android Market.
Cisco will continue to include the Cisco Connect desktop software for Windows and Mac computers with Linksys products. The desktop version of Cisco Connect helps consumers set up their home wireless network in a few easy steps and can also be
used to customise wireless settings to match their preferences. Additionally, consumers can now use Cisco Connect Express for quick access to these settings and controlling their wireless settings anywhere in the home from mobile devices.
The BlackBerry 7.1 OS incorporates a new feature called BlackBerry Tag that can change the way BlackBerry users share information and content. By simply tapping their NFC-enabled BlackBerry SmartPhone against another NFC-enabled BlackBerry SmartPhone, users can make sharing easier than ever. With BlackBerry 7.1, users can be productive from virtually anywhere.
They can now turn their BlackBerry SmartPhone into a mobile hotspot that can be shared by up to 5 Wi-Fi-enabled devices, including laptops and tablets. The 7.1 update also supports carrier implemented Wi-Fi calling services (UMA/GAN where available), allowing users to make Wi-Fi calls from their BlackBerry SmartPhone that don’t eat into their airtime minutes.
On the go!
Getting smartEconomies of scaleWhen workspace is at a premium and budgets are tight, small and mid-sized businesses can turn to Xerox Corporation’s new ultra compact printers and multifunction device for high quality, affordable, documents.
Standing at just over 208 mm tall, nearly the size of a standard sheet of
paper, the Xerox Phaser 3010/3040 offers print speeds of 20 to 24 pages per minute (ppm). The WorkCentre 3045 multifunction printer (MFP) copies, scans, faxes, e-mails, and prints documents all in one and produces output at 24 ppm. The products are among the smallest devices in the market and are powered by Hi-Q LED print engines.
The Hi-Q LED print engine makes the products quieter and more energy efficient than comparable products using laser technology. Adding extra productivity to the office, the WorkCentre 6015 color MFP is Xerox’s first Wi-Fi enabled device. The desktop MFP combines print, copy, scan, fax and digital workflow capabilities. With its compact size and wireless feature, it can be placed anywhere in the office, maximising space and convenience.
22 february 2012
shelf life
New generation graphics cardStay
connected
Keeping it simple
The ASUS HD 7970 uses a 28nm GPU for faster performance and lower energy consumption, together with 3GB GDDR5. ASUS improves it further via the exclusive GPU Tweak, featuring 2D/3D mode locking, voltage sync, auto driver/BIOS updates, widget monitoring, and GPU-Z integration. GPU Tweak’s multi-mode design offers users an intuitive over-clocking environment, where everyone from new users to seasoned enthusiasts can effortlessly tap better performance. The card uses PCI Express 3.0 with double the bandwidth of PCI Express 2.0, perfect for smooth multi-screen Eyefinity displays and advanced DirectX 11 implementation.
The Acer Allegro is inspired by how people communicate and live in the most modern settings. With its unique user interface powered by Windows Phone, complete with Live Tiles, the Allegro makes it easier to connect and share with friends, family and colleagues. With the most recent version of Windows Phone, code-named Mango, Live Tiles are more interactive, enabling users to get real-time information without having to open them, by pinning them to the start screen.
Handling documents, while being on the move is easy with the Allegro because integrated Office Mobile enables smart viewing, editing, sharing and syncing. The Allegro also excels at organisation with a calendar that syncs information from the phone, e-mail and Facebook, and notes important business and social events across all business and personal calendars.
Instant access to Marketplace is handy for trying, buying and searching for apps and games on the move. Marketplace features the hottest Xbox Live titles and add-ons for games, providing an avenue for socialising with your gaming friends, anytime, anywhere, all from your Allegro device. An Xbox Live avatar and profile are integrated into Windows Phone’s Games Hub to help keep track of scores and achievements as well as personalise the device to mirror your personality.
NETGEAR announced the Middle East launch of two new products that have been designed to give Ethernet- enabled gaming and home entertainment devices quick and easy online connectivity to users home network. The Powerline 500 Nano and the N900 Video and Gaming WiFi Adapter offers ultra fast network performance for home theatre units and gaming consoles, allowing users a whole new experience in online gaming and entertainment.
The new Powerline Nano 500 (XAVB5101) has been specifically developed for users who want a simple plug-and-play networking for a single device like TV’s or
gaming console units. The unit instantly converts a standard electrical wall outlet into a high-speed network connection that easily accommodates the most demanding multimedia tasks.
The N900 Video and Gaming 4-port WiFi Adapter enables consumers to connect up to four Ethernet-enabled devices at the fastest WiFi speeds available today. The adapter makes use of multiple wireless streams and dual-band technology to support multiple, simultaneous HD video streams in 1080p resolution and fast, low-latency multiplayer gaming. Utilising the unit will allow users to wirelessly stream
high resolution entertainment from multi-media streaming sites like Netflix, Vudu, YouTube and Hulu to virtually any Ethernet-enabled entertainment device in the home.
23february 2012
entrepreneurs
Over time, I have noticed that enterprising people come in all shapes and sizes and
from no particular place. They can burst suddenly onto the scene from relative obscurity, dominating the media and the stock traders’ tittle-tattle or they amass vast empires by working away diligently- carefully avoiding the limelight, more concerned with substance than style, value rather than their vanity. This raises the question of whether someone becomes an entrepreneur through choice and deliberate action, or are they simply fulfilling a destiny for which they have been fully equipped?
Whatever the answer to that question
might be the fact remains that our current
global society likes entrepreneurs, wants more
of them and is prepared to reward them. From
post-communist Russia to reforming China; from
Silicon Valley in California USA to Silicon Fen in
Cambridge UK; and now in Qatar, entrepreneurs
are encouraged and celebrated. The issue
is, therefore, what should be done to create
favourable conditions and by whom, to achieve
the right outcome.
There is some logic in the argument that
the people who are destined to become
successful entrepreneurs need no assistance.
The fact that these people have conquered,
where others have failed proves their
capability. However, this quasi-Darwinian
attitude of survival of the fittest might be too
harsh for economies which are struggling for
growth. Ignoring the talents of all but a few
may be a waste of potential.
One aspect of entrepreneurship which
has become accepted over the last decade is
that entrepreneurs are not restricted to the
commercial private sector. In what can be seen
as a reaction against global business trends,
“localisation” is creating thousands of social
enterprises developed and run by individuals
with social capital rather than a shareholder
profit, as the driving motive. Entrepreneurs are
exceptionally valuable in NGOs and employed
“intrepreneurs” are recognised as key players
working for a knowledge-based organisation.
Is it therefore more pertinent to consider who
an entrepreneur is, rather than what they do?
In fact, until their occupation (or, more typically,
multiple occupations) has been determined,
referring to these individuals as enterprising
people, gives one the freedom to focus on generic
competences which define the person.
It also helps us to avoid stereotypical portrayals or
believe that all entrepreneurs are clones or aspirants
of famous biographers. It is this examination of
the “who” rather than the “what” which is the
subject of Qatar Skills Academy’s “Understanding
Enterprise”, a development programme running
from the Bedaya Centre with the support of Qatar
Development Bank and Silatech.
Identifying peronality traitsAn enterprising person demonstrates many
different qualities, some even conflicting, which go
on to determine a career path. One of the most
important and guiding capabilities, is to possess
a sufficient level of self-awareness to be able to
control the use of one’s abilities and develop them
according to the situation. This self-awareness is
the line between confidence and determination or
arrogance and delusion.
i ThiNk, ThEREFORE i aM“Entrepreneurs are born and not bred” goes the saying. While there is some truth in this statement, after many
years of working alongside business creators and sharing their individual journeys, Ian White, Director, Qatar
Skills Academy, discusses that this is not the whole story and shares with us what really makes an entrepreneur.
24 february 2012
entrepreneurs
I refer to risk here. Attitude to risk is often
identified as one of the defining characteristics
of an enterprising person. Entrepreneurs are
frequently depicted as high-risk individuals. In
reality, as Richard Branson said, they often never risk
more than they can afford. Therefore, risk-aware is
a more accurate definition.
Developing a strong sense of personal identity
is critical to an enterprising person’s make-up.
Identity can be formed through any combination of
factors, such as family influence, national culture,
religion, childhood upbringing, and experience
of education. If any of these inputs are overtly
negative to the concept of enterprising behaviour,
they are likely to leave a lasting impression. On the
other hand, charismatic role models and a value-
driven lifestyle is likely to prove central to the inner
compass of an individual and define their outlook
to life situations.
The ability to use and control one’s talents (and
disguise or hide one’s limitations) is a skill acquired
through observation and practice. Exposure to real
situations, where control of one’s self is at issue,
either as an observer or an active participant is
essential in the learning process of an enterprising
person. Enjoyment and satisfaction in the conscious
ability to control one’s self-knowledge is the power
that fuels the engine driving the enterprising
person. It is partly this love of fluid situations and
constantly developing scenarios which characterises
the enterprising person as a lifelong learner.
An enterprising person’s perspective on a
situation, either existing or potential, is hard-wired
to his or her self image. Decision making is framed
by this central locus of control, which is why
progress is swift, non-followers are dropped and
clarity of the end result is maintained. Articulation
and description of the end result is a particular
quality of most enterprising people. The dream
which they possess becomes less of a figment of
imagination, less of a conceptual idea and more
of a reality each time it is verbalised, modelled,
prototyped and presented.
This ability to form a highly detailed vision of
the intended outcome is another of the central
qualities of the enterprising person. They will have
delved deep into their subconscious to root the
vision in a matrix of principles and values, as well
Ian White is a British entrepreneur and specialist in vocational education. His first business after university in the UK was in television production, a venture which earned him the ACE UK Entrepreneur of the Year award. During the mid ‘90s, Ian developed businesses in the vocational education and SME development sector whilst also working for the UK Government and the European Commission. He was made a Fellow of the Royal Society of Arts in 2002 for his work on enterprise education. Ian arrived in Doha in 2010 and created Qatar Skills Academy to meet the need for organisations to improve quality and productivity through investment in people.
About
as opportunities and rewards. The strength of the
vision is what will ultimately determine the quality
of the outcome.
In addition to the cerebral activity, enterprising
people adore action. Achieving the first stage of
action is often through the use of a closely knit
group of trusted followers or supporters. The ability
to discuss and present ideas is another essential skill
of the enterprising person. Communication in all
forms, in all situations and in all contexts is usually
something which an enterprising person relishes
and handles personally. In cases where this task
is delegated (because the self-awareness check
recognises that this is a deficiency) the attention to
detail and micro management of the messenger is
often so over-powering that the flavour is lost. So
even when convention may dictate that a person
should not be a public face, the credibility they
possess as the custodian of the idea should overrule
everything.
We must therefore approach the successful
breeding of entrepreneurs as a combination of
nature and nurture. After all, if everything was a
certainty, life would be very boring.
25february 2012
Ian White
One aspect of entrepreneurship which has become accepted over the last decade is that entrepreneurs are not restricted to the commercial private sector. In what can be seen as a reaction against global business trends, “localisation” is creating thousands of social enterprises developed and run by individuals with social capital rather than a shareholder profit, as the driving motive.
Developing a strong sense of personal identity is critical to an enterprising person’s make-up. Identity can be formed through any combination of factors, such as family influence, national culture, religion, childhood upbringing and experience of education.
business setup
WhaT’S ON yOuR MiNd?Setting up and managing a business successfully is not as easy as it
might seem. A few key steps need to be considered before we take off.
In the first of a multi-part series, Bedaya Centre tells us how to develop
an idea, which forms the foundation for a successful business.
Basic elements of a business ideaA good business idea is market driven and it
comes from the needs and demands of the
end users who could be individual consumers
(B2C) or businesses (B2B). Secondly, the
market should be of sufficient size to satisfy
the vision of the new startup. The question
to as is - While there may be a niche in the
market but is there a business in the niche?
Entrepreneurs also need to know if they can
develop the business idea alone or need to
bring a team together.
Importance of personality traitsThe perennial question is whether entrepreneurs
are born or nurtured. Increasingly there
is a viewpoint that many people want to
be entrepreneurs and that talent can be
nurtured. Some recent examples include, the
Entrepreneurship Postgraduate Certificate at
Carnegie Mellon University in Education City
in Qatar and the Technology Innovation and
Entrepreneurship Programme run by Qatar
Science & Technology Park. These are very practical
programmes that take the participant through the
complete business planning stage from securing
the equity funding to launching the business.
Lots of buzzwords are mentioned on the
personality traits of successful entrepreneurs.
A sample include, hard working, risk-taker,
able to multi task, customer focused,
attention to detail, team builder, able to
plan, takes the long term view and so forth.
26 february 2012
business setup
Most entrepreneurs only have some of the
characteristics often mentioned but fill in the
gaps with the team they put together.
Passion vs. profitabilityPassion is a great motivator, provided it is
founded on logic. If the idea is feasible,
entrepreneurs should follow their passion;
it will carry them through the tough times.
However, if the market is telling you that the
idea is bad and no profit can be made, it may
be time to listen and change tack.
• The marketing campaign is developed
in-house by the manufacturer and lacks
objectivity.
• The product is untested by consumers and
only the company can assert its benefits.
• The Website is the primary place to order,
Passion is a great motivator, provided it is founded on logic. If the idea is feasible, entrepreneurs should follow their passion; it will carry them through the tough times. However, if the market is telling you that the idea is bad and no profit can be made, it may be time to listen and change tack.
The perennial question is whether entrepreneurs are born or nurtured. Increasingly there is a viewpoint that many people want to be entrepreneurs and that talent can be nurtured.
Risk assessmentThe market is an unforgiving arbitrator. The
business idea must satisfy the needs of a
customer. Many products fail to satisfy the
market. Some reasons for failures include:
• No market research on the product or the
market has been done.
• Most of the budget was used to create
the product; little is left for launching,
marketing, and selling it.
• The product is interesting but lacks a
precise market.
• The product’s key differentiators and
advantages are not easily articulated.
The product defines a new category,
so consumers or customers will need
considerable education before it can be sold.
• The sales force doesn’t believe in the
product and isn’t committed to selling it.
• Because the target audience is unclear, the
marketing campaign is unfocused.
• Distribution takes longer than expected
and lags behind the launch.
• Sales channels are not educated about
the product and thus are slow to put it on
shelves.
• The product lacks formal independent
testing to support claims.
but the product description is unclear and
the site isn’t fully functional.
However, entrepreneurs should not be
afraid of failure. If you study the biographies of
many of the today’s most successful business
heroes, you will find a personal story of failure
and recovery. It is not important that you failed
but what matters is how you pick yourself up
and learn from the experience.
Dos and don’tsDos• Put the customer first all the time.
• Listen to your customers.
• Conduct quality market research.
• Test the market before you fully launch.
• Involve potential customers at the early
design phase.
• Provide the maximum value consistent with
the sales price.
Don’ts• Believe your own marketing PR.
• Underestimate your customers.
• Assume “ because I can make a better
mouse trap, the market will agree”.
• Build your dream team with friends;
you need people with specific talents to
complement the team.
How to capitalise on 2022No matter what your business is, there
are opportunities for both SMEs and large
enterprises because of the World Cup.
Business owners should actively engage
in research and brainstorm on the potential
opportunities. Construction projects, related
to the World Cup facilities, will present the
major opportunities in terms of new stadia,
infrastructure, and new hotels among
others. However, there will be many service
requirements in design, IT, hospitality and
tourism, sport and other education services, to
name just a few.
Startups may wish to diversify their service
or product offerings after researching about
the market opportunities leading up to 2022.
Additionally smaller companies, with limited
resources, might wish to partner with overseas
vendors who might have specific expertise and
greater financial muscle.
The population in Qatar is expected to
rise from 1.7 million in 2012 to 2.1 million
in 2022, which in itself presents additional
opportunities. So what are we waiting for?
let’s begin!
27february 2012
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 to set up their own businesses and look to the many opportunities presented by the World Cup 2022.
About
legal
28 february 2012
Recognising that the participation of foreign investors is an integral part
of the successful realisation of this policy, Qatar continues to implement new legislation aimed at liberalising the business environment for such investors, and introducing incentives and exemptions that supplement the country’s already considerable investment appeal.
1. LegislationThe principal piece of legislation
governing foreign investment into
Qatar is the Foreign Investment Law.
Other material legislation includes
the Commercial Companies Law,
the Ministerial Decision regarding
the Organisation of Commercial
Representative Offices, the Commercial
Agencies Law, the Proxy Law and the
Tax Law.
In keeping with the goals enunciated in its National Vision 2030, Qatar has worked to shift its economic and
developmental focus away from a reliance on oil and gas by promoting a policy of economic diversification.
Emma Higham, Senior Associate, Corporate and Commercial, Clyde & Co, gives us an overview of the rules and
regulations that a foreign investor should be familiar with when doing business in Qatar, which differ from the
rules for GCC investors.
RuLES OF ThE GaME
2. Which business medium?A foreign investor can chose between
various business mediums, including
Company, Branch, Commercial Agency,
and Commercial Representative Office.
CompanyA foreign investor will usually apply to register
a company with the Ministry of Business
& Trade (MBT). The forms of corporate
vehicle that are most likely to be of interest
saleslegal
29february 2012
to foreign investors are Limited Liability
Companies (LLCs), Article 68 Companies,
Single Shareholder or Person Companies.
An LLC To set up an LLC, a foreign investor has to fulfil the following conditions:
A. must have minimum capital of QAR
200,000;
B. must have at least 51% Qatari
ownership unless an exemption is
obtained;
C. must have profit shares that do not
necessarily have to reflect individual
shareholdings;
D. 10% of each financial year’s net
profits must be kept within an LLC
until the cumulative reserve stands
at 50% of the share capital;
E. may not raise capital by public
subscription or issue freely
transferable shares or bonds;
F. shares may only be transferred
after they have first been offered
to the other shareholders by way of
pre-emption unless such rights are
waived; and
G. may not carry out banking or
insurance business or provide
investment services to third parties.
Article 68 Company
The characteristics include:
A. formed between an investor,
which may be foreign, and the
Government or a company in which
the Government holds shares in the
share capital of a company;
B. the non-Qatari investor’s share of
the company can be greater than
51% subject to Council of Ministers’
approval;
C. corporate structure is of a “Qatari
Shareholding Company with
Government Participation”; and
D. falls outside the Foreign Investment
Law and, to a certain extent, the
Commercial Companies Law.
Single Shareholder or Person Company
(SPC)
The Foreign Investment Law provides that
a foreigner may own 100% of an Single
Shareholder or Person Company (SPC) in
one of a number of market sectors, being
agriculture, industry, health, education,
tourism, the development of natural
resources, energy or mining, consultancy
and technical services, information
technology, culture, sport and recreation/
entertainment services and distribution
services, subject to approval by the
Minister of Business & Trade (Minister);
such permission is not granted frequently.
Characteristics include:
A. a minimum capital of QR 200,000;
the Ministry has indicated that it
will prioritise SPC applications if the
share capital of the company is in
excess of the minimum and where
the company’s activities will add
value to the Qatar market; and
B. subject to the laws relating to LLCs.
BranchA Branch or a contracting division of a
foreign company may be registered in
Qatar at the discretion of the Minister.
Branches are contract specific and
registration will only be given for the
duration of the contract. A special
regime applies to the branches of foreign
engineering consultancy firms.
Commercial AgencyInstead of establishing a presence in
Qatar, a foreigner can appoint a 100%
Qatari entity or individual agent to
market and sell goods within Qatar; any
provision of services by that Qatari agent
should be ancillary to such marketing
and selling.
Exclusive agencies must be registered
and are governed by Qatari agency law.
Under a registered agency, commission
(up to 5%) is payable on all sales of the
products within the territory even if the
sales are not a result of the activities
of the agent. It is difficult to terminate
a registered agency. Compensation is
payable upon the termination of the
agency, including upon the expiry of a
fixed term agency. Similar rules apply
to arrangements which do not call
themselves agencies, but which have the
same effect.
Emma Higham
The Foreign Investment Law provides that a foreigner may own 100% of an Single Shareholder or Person Company (SPC) in one of a number of market sectors, being agriculture, industry, health, education, tourism, the development of natural resources, energy or mining, consultancy and technical services, information technology, culture, sport and recreation/entertainment services and distribution services, subject to approval by the Minister of Business & Trade (Minister); such permission is not granted frequently.
legal
legal
30 february 2012
Commercial Representative Office (CRO)CROs are “shop windows” which can ONLY
be used to promote and introduce foreign
businesses in and to Qatar. When a CRO
is successful in attracting business, that
business must be carried out either outside
Qatar, or by a Company or Branch registered
with the MBT to do business in Qatar.
3. Registration and other formalitiesGovernment Liaison Officer: All Qatari
registered entities, as a matter of good
practice, should appoint a government
liaison officer or a facilitator to carry out the
necessary registration formalities associated
with establishment (a facilitator can also
assist investors in obtaining business permits
and licences after registration is complete).
The steps set out below are a brief overview
of what is required.
Company Formation – The requirements to
register a company and obtain a Commercial
Registration (CR) are as follows:
A. Articles of Association in Arabic
which must be approved by Ministry
and subsequently executed in front
of a notary public at the Ministry;
B. notarised, legalised and
authenticated copies of the foreign
investor’s constitutional documents;
C. notarised, legalised and
authenticated power of attorney
from the foreign investor to its
incorporation representative in Qatar
(individual investors must be present
in Qatar at execution and have a
valid passport);
D. letter from a bank indicating the
deposit of share capital (in full) at
that bank; and
E. Qatar Chamber of Commerce
Registration.
Once the company has been
incorporated and the CR has been issued,
the share capital can be released to the
company’s general manager (or Directors)
for the purposes of running the company.
The following licences must then also be
obtained:
F. Trade Licence and Signage Licence
issued by the appropriate Qatar
Municipality (a lease contract for
the office of the company will be
required amongst other things); and
G. Employer’s Immigration Department
Identity Card issued by the
Immigration Department.
Branch Registration: The requirements to
register a Branch and obtain a CR are
similar to that of a Company, however
a copy of the contract on which the
Branch registration will be based and
authorisation from the Minister to register
a Branch will also be required.
4. Corporate income taxThe Tax Law provides that any income
attributable to foreign investors (unless
a specific exemption has been granted
or an entity has been registered in the
Qatar Science & Technology Park) are
taxed at a flat rate of 10%; this will
include corporate dividends paid to foreign
investors and all the contract income
received by a Branch.
Where services are provided in
Qatar by a foreign individual or entity
which cannot demonstrate that it has
a permanent place of establishment in
Qatar, a Qatari registered entity or Qatari
national must withhold 5% or 7% (the
percentage will depend on the services
provided) of any payments made for those
services.
5. Free zonesDespite the enactment of a law in 2005
providing for the establishment of general
Free Zones in Qatar there are currently
no such zones. The Qatar Science &
Technology Park (QSTP) does have a special
free zone status. The QSTP is a centre
of research and commercial excellence
for scientific development and regionally
produced intellectual property for both
Qatari and foreign partners.
6. Qatar Financial Centre (QFC)The QFC Law established the QFC as an
international business centre for financial
services. The entities registered within the
QFC may operate and trade without a local
sponsor or service agent and are governed
by the QFC rules and regulations.
7. Intellectual propertyTraditionally, intellectual property rights
were not as well protected in Qatar as in
more developed jurisdictions. However,
Trademark and Copyright laws were
enacted in 2002, followed by the Design
Law in 2005 and a Patent Law in 2006.
Note: All Qatari Laws (save for those issued
by, for example, the Qatar Financial Centre
(QFC) to regulate its own 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.
Emma Higham is a corporate and commercial lawyer with over nine years experience. Having been based in Qatar for nearly seven years, Emma incorporates her extensive knowledge of the local law when advising both local and international clients. She advises on a wide range of corporate and commercial matters, including local establishment by way of joint venture, banking and finance and providing regulatory advice in relation to the establishment of businesses in the Qatar Financial Centre. Emma joined Clyde & Co in October 2007, having previously worked for another international law firm for six years, both in London and Qatar. Prior to that Emma worked for Price Waterhouse for eight years in both audit and corporate recovery.
About
Exclusive agencies must be registered and are governed by Qatari agency law. Under a registered agency, commission (up to 5%) is payable on all sales of the products within the territory even if the sales are not a result of the activities of the agent. It is difficult to terminate a registered agency.
http://www.PrivateSectorQatar.com/en
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trade
ENSuRiNG FOOd SECuRiTyWith rising population and changing consumer habits, food security is
one of the most important issues facing the Gulf countries. Dr. Ashraf
Mahate, international trade and business expert, talks to us about how
the region can deal with this situation.
Gulf countries currently import approximately 65% of their food requirement, amounting
to USD 25.8 billion (2010 data) or 3% of the total regional GDP. It is predicted that this trend will continue and food imports will rise to USD 36.3 billion in 2015 and USD 53.1 billion by 2020.
The fear that Gulf countries may not be
able to feed their population has resulted
in them pursuing a number of different
strategies, most notably the purchase of
land banks in various friendly countries in
Africa, Central Asia, Southeast Asia and
Eastern Europe, building strategic stock piles
and enhancing domestic production, where
possible through subsidies or investment in
new farming techniques.
More formally food security implies
“access to sufficient, safe, nutritious food to
maintain a healthy and active life” (Definition
adopted by the 1996 World Food Summit).
Such a broad definition embodies three
key factors, namely the availability, access,
and utilisation of food. In the case of food
availability, the definition assumes that
sufficient quantities need to be available
on a consistent basis either through reserve
stockpiles, trade or even aid.
Second, access to food assumes that
people should be able to acquire it in sufficient
quantities either through purchase, domestic
production, barter or even aid. Third, the
utilisation of food assumes that it needs to
have a beneficial nutritional value and as such
it needs to have appropriate cooking, hygiene,
storage and sanitation facilities.
So far the governments in each of the
Gulf countries have pursued the various food
security strategies without any real involvement
from the private sector. This is despite the fact
that the private sector is many times larger
than the public sector and has the ability to
contribute to the achievement of national
goals. Of course, unlike the public sector,
which seeks to enhance social welfare private
businesses are motivated by potential profits of
a project or venture. In this regard, the private
sector can play a pivotal role in enhancing
government efforts in the area of food security.
Private businesses have the potential to
carry out sustained long term investments
in agriculture, as well as food production
and storage. The private sector also owns
and manages a vast amount of knowledge
and intellectual property, some of which
can be used in the area of food security.
More importantly, global food security
poses challenges which are complex and
interconnected, therefore, the private sector
with its established resources and experience is
more able to innovate than the public sector.
In order to effectively deal with the
challenges posed by the food security problem
there needs to be strong partnerships between
public institutions and the private sector.
There is a growing global realisation that
governmental institutions need to work with
the private sector.
This realisation also comes about due to
the need for governments to become more
efficient and effective through the removal
of duplicative activities. At the same time the
public-private partnerships seek to scale up the
activities of the private sector. In doing so these
partnerships seek to work on one or at best a
few large projects or initiatives, whereby all the
partners can utilise their strengths, instead of
the government using its cheque book to solve
a problem that may not be sustainable.
These partnerships need to allow for the
sharing of resources, risks, and of course
benefits. In this manner the partnerships
become more than an avenue for raising low
cost finance. More structured partnerships
tend to include those involved in knowledge
centres such as, universities and research
institutions, farmers or even owners of land
along with businesses in food production and
storage as well as firms in the logistics and
retailing sector.
In this manner the public-private partnerships
seeks to incorporate all the participants in the
value chain or at least as many as is possible,
for the initiative to achieve its desired outcome.
The coming together of these different groups is
underpinned by the common benefits that arise
from the synergies of the partnership.
Typical examples of the common benefits
are a reduction in costs and risks entailed in
research as well as the provision of direction
towards market driven relevancy of research;
the bringing together of complementary
abilities, skills, and resources and hence
improved competencies and the ability to
32 february 2012
trade
allow small scale firms (SMEs) to access
knowledge and technologies which they
would not otherwise have the ability to exploit.
is generally considered to be the rate that satisfies all the parties. A totally equitable ratio would be where each party receives the same rate of increase on their investment (cost).
Various examples have shown that public private partnerships have the ability
to harness the experience and strength of small and medium size enterprises. However,
for this partnership to take place and for the development of the SME sector to happen, governments need to create an enabling
environment. The key aspect of the enabling
environment is the incentives that are made
available to SMEs to harness their experience
and ability to advance the cause of food security.
Dr. Ashraf Mahate is an expert in international trade and business and an experienced consultant with over 20 years experiences both within the GCC and Europe. During this period Dr Mahate has assisted various small and medium sized companies to effectively penetrate foreign markets. Dr. Mahate has been a past director of a number of companies including a venture capital company and a private equity fund. Dr Mahate has also worked with governmental organisations in the region in developing a national export strategy, free trade agreements, export support and facilitation programmes and practical export training. Dr Mahate carries out his consultancy activities through Bayswater Consulting a company specializing in assisting the SME sector. Dr Mahate received his doctorate from Cass Business School in the UK, which was ranked 10th best in the world. Dr Mahate is a member of the Chartered Institute of Managers (UK) and a Member of the Institute of Commercial Management (UK). Dr Mahate is also a member of the Association of Certified Anti-Money Laundering Specialists (ACAMS). Dr. Mahate can be contacted via e-mail at: [email protected]
About
In order to effectively deal with the challenges posed by the food security problem there need to be strong partnerships between public institutions and the private sector.
Private businesses have the potential to carry out sustained long-term investments in agriculture, as well as food production and storage.
The coming together of public and private
participants also allows for divergent interests
of both sectors to converge. For instance, a new
invention or technological breakthrough may
improve yields for small scale producers (which
are typically the case in the UAE) with minimal
usage of water. This in turn will generate higher
profits for the food storage and processing
industry. At the same time it allows for the
knowledge centre to immediately commercialise
research and bring it to the marketplace.
Therefore, public-private partnerships
are formed and maintained as long as all
the participants believe that benefits will be
accrued. This may be the case even though the participants may have different goals or objectives. The ideal situation for such a partnership is where the benefits are positive and proportional to the cost incurred by each party. Although, there is no golden rule as to what may be considered proportional, it
In the first instance, governments
need to reform laws and policies that
guide business activity as well as
to incorporate SMEs into the public
private partnership framework. Second,
governments need to build investor
confidence through investment in
infrastructure and the support of
research and development centres.
The establishment of research and
development centres will allow for
the private sector, especially SMEs to
innovate and market the inventions and
ideas that are developed. Third, the
private sector and in particular SMEs
need to be encouraged to enter the
agriculture, food storage and production
industries so as to ensure the future
security of the country’s food supplies
and to capitalise on the huge reservoir
of unused potential especially within the
SME sector.
33february 2012
Dr. Ashraf Mahate
export
kNOW yOuR dESTiNaTiONQDB launched Qatar Export Development Agency – TASDEER, to boost foreign trade and to globally promote Qatari-made goods and products. We provide access to finance, credit insurance and advisory services for exporters, and to support businesses to develop their export capabilities through development and promotion. By protecting national exporters against the non-payment risk from the foreign buyers that might occur due to either political or commercial events, TASDEER supports the growth of Qatar’s exports.
34 february 2012
Tasdeer conducted a workshop on Export Market Analysis Tools, which focused on enabling
participants on export related aspects, such as: assessment of country market or product portfolios , diversification opportunities, assessment of competition, and assessment of trade potential of target countries.
The workshop was attended by 46
representatives from 43 export oriented
companies across diverse product categories.
The agency also offers pre-shipment
and post-shipment r isk cover to
protect the exporter against the loss
of production costs.
However, before shipping, exporters
need to do due diligence to determine if
the chosen product will fare well in the
target market before they decide to ship
the products across. Selection of the right
export commodity is crucial for success in
the export business and depends on number
of factors. These factors are:
• Export/Import trends: The exporter
should utilise publications and contact
organisations to analyse the trends in
international trade of a particular product.
Research the demand; research the
distributors; research a good purchase
price and selling price - research to
prevent any mistakes in your business.
• Supply base: A steady supply base is
essential. You need to ensure that the
product can be supplied on time and in a
certain quantity.
• Manufacturing capacity: Inability of the
exporter to deliver the product, due to
limited production capacity, can spoil the
exporting firm’s reputation and image.
Therefore it is important to know the
production capacity in the short and
long term.
• Product adaptability: To ensure the
success of a product in domestic and
foreign markets, it is necessary to adapt
the product to meet export market needs.
The exporting firm should determine if
the product requires a change in colour,
size, taste, packaging and so forth.
• Target markets: The product should not
only have a stable but rising demand
in the target market. It is necessary
to determine this demand through
continuous demographic and market
research to understand what the future
demand will be like and how will the
exporter cater to it.
• Servicing facility: If the exported product
requires after-sales service, the exporter
will have to either open a servicing centre
abroad or find an agent who can provide
this service.
• Trade restrictions: Products selected for
export should be exportable by the Qatari
To determine if a market is safe and compatible with the product you intend to export, a market factor assessment must be conducted. The goal of a market analysis is to determine the attractiveness of a market both now and in the future.
35february 2012
export
export regulations. Qatar is member of
the World Trade Organization and the
World Intellectual Property Organisation
(WIPO) but it is not a party to the Paris
Convention for Protection of Intellectual
Property, protection of trademarks,
copyright and patents are largely
dependent on Qatar’s own national laws
and regulations
Market Factor Assessment
To determine if a market is safe and
compatible with the product you intend to
export, a market factor assessment must be
conducted. The goal of a market analysis is
to determine the attractiveness of a market,
both now and in the future. Organisations
evaluate the future attractiveness of a
market by gaining an understanding of
evolving opportunities and threats as they
relate to that organisation’s own strengths
and weaknesses.
Organisations use the findings to
guide the investment decisions they make
to advance their success. The findings
of a market analysis may motivate an
organisation to change various aspects of its
investment strategy.
The Market Factor Assessment provides
a complete breakdown of the factors.
The exporter should rate each prospective
country based on the market condition
scale of 1 (poor) – 5 (excellent). The
exporter should then tally the results of the
researched data collected in order to identify
the target markets.
First, the exporter should look at the
demographic and physical environment and
consider the following factors:
• Population size, growth, density
• Age distribution
• Urban and rural distribution
• Climate and weather variations
• Shipping distance
• Physical distribution and communication
network
• Regional and local transportation
facilities
Second, the exporter needs to look at the
political environment to ensure that there
is a stable government in place and if they
are signatories or members of international
trade organisations. While analysing the
political environment, the following factors
should be looked at:
• System of government
• Government involvement in business
• Attitudes toward foreign business trade
• Political stability and continuity
• Fair/free trade mind-set
• National trade development priorities
Third and one of the most important
aspects is the economic environment,
which includes:
• Overall level of development
• Economic growth
• Import and export percentage of total
economy
• Balance of payments
• Currency: inflation rate, availability,
controls, stability
• Per capita income and distribution
• Disposable income and expenditure
patterns
Once you have decided to focus on
exporting, take time to consider social and
cultural factors in the foreign country. These
factors can be :
• Literacy rate, educational level
• Existence of middle class
• Similarities and differences in relation to
home market
• Language barriers
It is important to find out how trade-
friendly are the rules and laws of the
importing country. This means looking at:
• Adequate distribution network
• Documentation and import regulations
• Local standards, practices, and other non-
tariff barriers
• Patent, trademark, copyright protection
• Adequate dispute resolution mechanisms
• Tax laws, rates
Changes in the market are important
because they often are the source of new
opportunities and threats. Moreover, they
have the potential to dramatically affect the
market size.It helps to know the potential of
the product based on :
• Customer needs and desires
• Local production, imports, consumption
• Exposure to and acceptance of product
• Attitudes toward products of foreign
origin
• Competition
With the advent of globalisation,
borders are fast disappearing and as
goods and services move across countries,
it is important to take a moment to think
about all the factors mentioned above.
As mentioned earlier, due diligence on
these factors is imperative to ensure that
you are exporting the right product to the
right market.
business guru
RECRuiT yOuR Way TO SuCCESSBayt.com was established to provide a link between job seekers and employers in the Middle East by
leveraging the Internet to provide free access to employment opportunities. The motivation that powers Rabea
and Bayt.com is an obsession to empower others to lead better lives, by creating technologies that will help
people lead the lives that they want for themselves. Private Sector Qatar talks to Rabea Ataya, CEO,
Bayt.com to know more about the Internet-based recruitment company’s best practices.
What is your management philosophy
and vision?
Bayt.com›s management philosophy and
vision revolve around leadership and
empowerment. At Bayt.com, we believe that
most effective leaders in the world history are
those who:
• Are admired and respected by their peers
and juniors.
• Lead from the front and are not hidden
away in ivory towers far away from the
action.
• Form strong personal relations with
their team that transcend just a working
relationship.
• Are supportive and respectful.
Every Bayt.com employee is actively
required to be a leader as well as to empower
others. We do this by ensuring that our
corporate culture preaches respect, and
allows the freedom to act independently
within a framework. People, planning,
perseverance and passion are the four basic
Ps of a successful business. This is what we
believe in. We are here not to make quick
money, but to build a successful business that
we are passionate about.
Bayt.com has 227 employees in 12
different countries. 73% of the workforce is
Arab, and 27% is non-Arab and we have 15
different nationalities.
What is innovative about your approach
and what are your most notable
achievements?
At Bayt.com, we are constantly striving
for innovations that anticipate and
meet the needs of both job seekers and
employers. Our teams work very hard
to ensure relevancy, above all else, and
that requires a lot of innovation. Our
goal is to ensure that job seekers have
relevant job recommendations, have
access to relevant career development
resources, and have the ability to create
CVs and cover letters that are relevant
to the jobs they seek.
36 february 2012
business guru
During the past 11 years, we have
innovated a lot to achieve relevancy. Some
of our innovations are technological; our
proprietary industry-leading CV search tool,
for example, has very intricate algorithms that
were custom designed by highly specialised
teams at Bayt.com. Other technical
innovations include Bayt.com Salaries, Bayt.
com Career Watch, Bayt.com People and
Bayt.com Classifieds. Some innovations are
related to services; Bayt.com’s Career Services
team for instance, helps job seekers on a
case-by-case basis in order to ensure they are
maximising their professional branding and
career planning.
What challenges have you faced along the
way and how did you deal with them?
The story of Bayt.com’s success has been a
story of hard work, commitment, persistence
and an unwavering commitment to
excellence, innovation and integrity. When
Bayt.com was founded in 2000, the main
two challenges were the very limited internet
penetration in the Middle East at the time
and also the task of very speedily educating
our various stakeholders about unique
features and huge unparalleled benefits of
online recruitment we were introducing in
the region.
How has the company fared during the
period of economic slowdown? Did you
have to change your approach in the past
two-three years?
One of Bayt.com’s key strengths as a
sustainable business has been its flexibility
and ability and willingness to recognise,
anticipate and adapt to change readily
and in an optimal fashion. We recognised
early on that the economic slowdown
would actually only further consolidate our
leadership position across the region as
a heightened emphasis on sourcing only
What is your opinion about the job
market in Qatar? Which sectors do
you think are going to offer more job
opportunities in the near future?
Qatar is one of the main job markets that
Bayt.com caters to. With over 2,600 vacancies
in Qatar advertised on Bayt.com in 2011 and
more than 3,500 registered Qatari professionals,
we are successfully bringing together Qatari job
seekers and employers in an efficient and user-
friendly environment. In fact, a job posting in
Qatar that is advertised on Bayt.com receives an
average number of 622 applications.
In terms of the employment conditions
in Qatar, Bayt.com’s latest Job Index survey
[October, 2011] revealed that 63% of Qatar
companies are planning to hire in 2012.
The same survey also provided insights
into what employers look for in candidates
in Qatar. In terms of education, the most
demanded qualifications are engineering
(26%), computer science (22%) or business
management (20%). Similarly, when it comes
to experience, Qatar employers seek candidates
with managerial skills (43%) and computer skills
(26%). Meanwhile, the ability to communicate
effectively in English and Arabic (60%) as well
as team player abilities (49%), are traits that are
highly desirable by employers in Qatar.
The survey also revealed that Qatar is
rated as the most attractive country in the
region with 49% of professionals saying it is
much more attractive than other countries
in the region; UAE came second, while KSA
came in third. As for the industries that are
attracting or retaining top talent in Qatar,
construction ranked first (52%), followed by
oil, gas and petrochemicals (43%).
One of Bayt.com’s key strengths as a sustainable business has been its flexibility and ability and willingness to recognise, anticipate and adapt to change readily and in an optimal fashion.
Speaking of industries, Bayt.com’s Top Industries Survey [December, 2011] showed that the oil, gas and petrochemicals industry is considered to be the most appealing industry in Qatar, for it offers the best pay (63%), best benefits (49%), best work-life balance (44%) and best opportunities for career growth (55%).
Speaking of industries, Bayt.com’s
Top Industries Survey [December, 2011]
showed that the oil, gas and petrochemicals
industry is considered to be the most
appealing industry in Qatar, for it offers
the best pay (63%), best benefits (49%),
best work-life balance (44%) and best
opportunities for career growth (55%).
This industry also seems to be retaining
the best talent in Qatar, is currently hiring
the most, and is most popular for both
local talent and expats. As for the industry
that is most popular amongst women in
Qatar, education and academia ranked first
(17%), while government and civil service
positions seemed more popular amongst
fresh graduates (15%). The industry that is
perceived to have downsized the most in
Qatar is construction.
As far as the public sector is concerned,
46% of professionals in Qatar favor the
government as an employer.
the very best human capital, coupled with
drastically shrunken HR budgets and an
increased attention to maximising HR ROI in
sophisticated corporations across the industry
spectrum. We have used the period of slower
economic growth to build stronger, more
endearing and more creative relationships
with our clients, to increase their loyalty,
and to increase and diversify our product
offering further to take advantage of new
opportunities to deliver value.
37february 2012
business guru
What are the salient features of your HR
policies and training for staff?
A very important aspect of success is constant
training, and Bayt.com is well aware of that.
We have a STARS Training methodology that
is applied company wide. In STARS, employees
undergo periodic training related to:
1. Systems: The understanding of our internal
and external software processes.
2. Techniques: The systematic procedure by
which a task is accomplished.
3. Activities: Measurable amount of work
performed in converting inputs to outputs.
4. Role-Plays: Acting out actions in a
simulated situation.
5. Stories: A true account of a client
interaction where a lesson learned was
applied towards a successful outcome.
Aside from the STARS system, all employees
are encouraged to participate in external
trainings and seminars, for which we cover the
costs. We also have the Speaker Programme,
where leading individuals come to our offices
on a monthly basis to talk about topics that
are interesting, like innovation through
moviemaking and the psychology of change.
Are your processes eco-friendly?
Green processes are at the heart of all our
activities at Bayt.com. Here are just a few of
the ways green thinking is the very core of our
business operations:
• Online recruitment has meant paper CVs,
paper files and physical letters and filing
cabinets and storage space associated
with the recruitment process are both
unnecessary and inefficient. Video CVs
have also meant less of a carbon footprint
associated with the screening process and
less inefficiencies and waste.
• Branded career channels have allowed
leading organisations across the MENA
to tap into Bayt.com’s green platforms to
eliminate inefficiencies associated with the
traditional recruitment process.
• Virtual job and education fairs have also
greatly elevated the green ethos in the
region by eliminating the need to create
expensive venues.
• We have eliminated our sales collateral
in favour of online presentations and live
tutorials which are more targeted, more
engaging and more eco-friendly.
Are there any CSR initiatives undertaken
by your firm?
We have had many CSR initiatives over the
past 11 years, as they are a part of our identity
as a company. These include – sponsoring
orphans from all over the world on behalf of
each and every employee with a long serving
history with us, donating a fixed percentage of
revenue to charities, offering free job postings,
university outreach programmes and road
shows.
What are your plans for the next five years?
We have huge plans for the next five years.
Bayt.com will continue to deliver on its
longstanding commitment to the region to
deliver the indisputable best recruitment
technologies, tools, services, insights and
local customer support available in the
region today and also the greatest amount
of recruitment choice for both talent and
employers. We expect our leadership margins
to be widened significantly further as several
key initiatives we have only soft launched
this year including Bayt.com Salaries, Bayt.
com Communities,Bayt.com Career Watch
and Bayt.com People become more formally
entrenched in the regional recruitment
landscape. At the same time we will continue
to launch new products and iterations and
grow our professional communities.
Branded career channels have allowed leading organisations across the MENA to tap into Bayt.com’s green platforms to eliminate inefficiencies associated with the traditional recruitment process.
Rabea Ataya
Rabea founded and continues to serve as the CEO of Bayt.com. The company was launched in June 2000 to address the massive unemployment issue in the Middle East by leveraging the Internet to give job seekers free access to employment opportunities in a region that has historically had limitations on the flow of both information and people. Today Bayt.com, serves over 6.5 million registered professionals and over 30,000 employers in the region and helps both parties match opportunity and talent quickly, easily, and cost-effectively. In his role as the CEO, Rabea has recruited the executive team, has raised several rounds of venture capital and private funding and has led strategy, direction and implementation. Rabea is also the recipient of the Middle Eastern E-Entrepreneur Award given by His Highness Sheikh Mohammad Bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, for his outstanding contributions to the region’s knowledge economy. In 2010, Rabea co-founded GoNabit.com, the first group buying site in the Middle East. He successfully built the organisation and sold it to LivingSocial, a leading global player in the field, within one year of founding.
About
38 february 2012
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sales
goodbad
uglyAt a time when a handful of accounts can mean the difference between
make or break, many sales companies are pushing the boundaries to
seal the deal. But in doing so some are committing cardinal sales sins,
says Jennifer Baxavanis, Managing Partner, BAX Consulting.
I am going to share a story about Karim, Vice President of sales at a well known occupational health and
safety company, and of the good, the bad and the ugly, which transpired from his sales tactics.
The story Karim was anxious to meet up with me to
share some of his latest sales successes.
He told me, “Jennifer, you are not going
to believe this, but we have taken 54% of
the market from our competitors in two
months. You have to share these lessons
with others.”
Karim has many qualities of an effective
sales person; confident, switched on,
empathetic, carries himself well, and adaptable
to any environment and any person. “Shoot,”
I said.
“I had to do something! My sales team has
spent the last few months just sitting around,
so I decided to create a multiple day field trip
to show them how it is done. I piled the three
of them in the car with me, and told them
our objective- ‘we are taking the market away
from x and y.’ I informed them that they are to
breathe sales. For these days, they are either
in a sales meeting, or in the car, on the phone
40 february 2012
sales
fixing up the next meeting. Once, we even
stormed into the customer’s office, introduced
me as the VP of sales, talked to them, stuck the
contract in their faces and made them sign.”
I interrupted, “Interesting. What was the
dialogue between you and the prospective buyer?
Did you ask questions or talk about the company?”
Karim carried on, “No, I tell my sales
persons not to ask too many questions. I have
taught them to tell the customers what they
need to know and to ask if the buyers have
any questions. If the buyers reply that they
have no questions, then we pass them the
contract and say ‘Great, sign here.’ Of course,
we had to find out who their contract was
with, how much they were paying and when
the contract expired. Then, I told them that
they were overpaying and they could sign now
for the ‘real’ price and take what they were
paying down by about 20%.”
“Did they sign?” I asked.
“Jennifer, we stayed in their office until they
signed, and a lot of them did. They could not
get rid of us,” Karim added.
“Is your company offering something
different or better? How did you convert
them,” I asked.
“Well, they liked the fact that I came,
because it shows energy and persistence. Jen,
they were not used to their supplier coming
to their office, and they liked the lower price.
We have nothing more to offer them, as our
service is the same as our competitors. There is
not that much room for customisation,” Karim
continued. “Some of them felt loyalty towards
their supplier and some of them were angry at
their supplier, so we made sure we pushed the
angry ones to convert, using a lower price.”
“Wow, so it worked for all of them?” I
asked excitedly.
“With some of them it did, and with
others it didn’t. Our competitors figured
out what we were doing and sent out
renewal forms with even lower prices to the
customers we had already seen and also to
the customers we had not seen yet. They
thought they were going to outsmart us. So,
do you know what we did? When we came
back the second time to their customer, we
took off another 20% just to make sure the
customer saw that their current supplier was
still deceiving them.”
“Wow Karim, that is quite aggressive. How
did the customer react?” I was so intrigued by
these methodologies.
The goodTake control: Karim abandoned the
reliance of “relationship based” selling
and took the bull by the horns. He did well in
going to see the prospective buyer, provoking
a pattern change.
Form an objective per sales call: Karim
and his sales force formed an objective
as per sales call. The objective did not
include their service presentation or get
to know the customer. “I told them our
objective – we are taking the market away
from others.”
Train your team: Karim took it upon
himself to go into the field with his team
to show them how his sales process works.
On-the-job training is the most effective way
to increase learning retention.
Use authority: The prospects felt flattered
that the company’s VP of sales took the
time to see them. Karim used his authority to
influence the buyer’s perspective of his sales effort.
1
2
3
4
Karim could have applied a “positive tension” by promising an added service if the contract was closed on the same day. Also, cornering a prospective buyer to sign a contract will not bring repeat business.
Cutting prices devalues your product. It is more effective to show how your price equals the value you are promising. Karim should have asked the buyer what he was looking for in health and safety services and then matched that with his service offering and price.
“Some of them liked it and some of
them felt suspicious, but we stayed until we
obtained an answer. We even followed one
guy to his car to sign, and he asked us to leave
him alone,” Karim added.
I couldn’t believe it, so I asked, “Do you think
that customers will stay with you for a long time?
Do you think these are the best methodologies?”
The good, the bad and the uglyKarim did apply many effective selling
approaches, but he and his team made some
lethal mistakes. He committed the good, the
bad and the ugly of sales.
Determine the budget and timeline:
Karim made it a point to find out the time
and budget parameters to qualify the prospect.
Be persistent: Karim attempted to close
a contract at the first contact meeting.
His urgency pushed the customer into a
buying decision.
5
6
41february 2012
sales
Don’t forget that the customer is the
expert: Karim neglected to find out
what the customer really wanted or needed.
“I tell my sales persons to not ask too many
questions.” He was not successful in some
of his sales because the buying decision
became based on a price war. He assumed
that he knew what the client wanted and
chose to attract and convert them based
on price. Easy come, easy go. Some of
the prospects went back to their current
suppliers and played the same game back.
The bad and the uglyDon’t be pushy: In the same way that
we applaud Karim for being persistent,
there are instances where Karim pushed too
hard and the customer resisted by becoming
uneasy. Karim could have applied a “positive
tension” by promising an added service if
the contract were to be closed on the same
day. Also, cornering a prospective buyer
to sign a contract will not bring repeat
business.
Don’t cut your price: Karim cut prices
because he could not show the value his
service offers compared to his competitors.
Cutting prices devalues your product. It is
more effective to show how your price equals
the value you are promising. Karim should
have asked the buyer what he was looking
for and then matched that with his service
offering and price. The prospects, in this way,
feels like they are buying what they want
or need and the sales team can achieve its
objective.
Don’t cut prices more than once:
If cutting prices the first time is “the
bad”, then cutting the price a second time is
definitely “the ugly”. In reducing your fees,
you are no longer only devaluating your service
but you are also devaluating your industry
across the market. Karim should have matched
the quality of his services or brand with the
prices and stuck by them.
Jennifer Baxavanis is the Managing Partner of BAX Consulting LLC, which is a sales and training consultancy that helps clients increase their top line. The services are mainly based around sales approach and sales process. BAX Consulting is registered in the USA and in the UAE, with international clients. It is currently specialising in security, occupational health and safety, media, healthcare, and oil/gas sectors. For more information about BAX Consulting visit www.baxllc.com .
About
Always remember that the customer is the expert: The more you find out about your customers’ drivers, needs, and objectives, the more you can match those with your service offering and use the information as product development research.
1
2
3
4
Jennifer Baxavanis
What does this mean for your business?In looking at Karim’s experiences in sales,
we can learn some lessons for SMEs that are
managing a sales team of 1-20 sales persons.
Here are some tips:
• Don’t hire or fire your sales team – Empower
and capacitate them with sales process
training, in the classroom or on-the-job.
• Offer incentive schemes – Keep them
selling and seeing customers face-to-face.
• Learn how to resolve the price vs. value
objection-
a. Before the meeting, make sure your
pricing is competitive. Ask yourself:
Is my service or pricing similar to my
competitors? If the answer is “no”,
ask yourself if you are offering a
bespoke service that makes it more
expensive or a simpler service that
makes it less expensive.
b. In your sales meetings, ask the
prospect what they are looking for
in your service and compare it to the
fees you are charging.
• Always remember that the customer
is the expert – The more you find out
about your customers’ drivers, needs,
and objectives, the more you can match
those with your service offering and use
the information as product development
research. Deals are closed when your
service offering matches your prospects’
needs, budgets and timing.
42 february 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] or [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.
44 february 2012
When leaders learn the dynamics of communication and
acquire the skill of versatility to get their messages across to different personalities, the effectiveness and productivity of everybody in the team rises.
Recent research shows that versatility
is one of the most important skills for
creating a high-performance organisation.
It influences all the interactions that occur
within organisations, and between an
organisation and its customers
Leaders with high versatility have
employees who exhibit greater work
satisfaction and higher performance.
Versatility improves global relationships.
A study of over 150,000 people
from 20 different countries showed
that organisations with higher levels
of versatility had more effective
relationships with global partners. In sales
organisations, high levels of versatility
create higher revenues, greater market
share, and better client relationships.
What is versatility?In any business relationship there are two
primary sources of tension-task tension
and relationship tension. Task tension is
useful; it motivates work. It is the need
to solve a problem or reach a decision.
Relationship tension is not useful as it
is the result of lack of information or
miscommunication and causes discomfort
in a relationship, leading to business
inefficiencies.
When time and energy are directed
toward relationship tension, less energy
is available to address the task tension.
That is, the more effort people have
to put into the relationship because
of different communication styles,
preferences, or expectations, the less
effort goes toward accomplishing the
business objective.
Every business, no matter how global or local, relies on
communication to get things done. Yet only a small percentage
of companies actually invest in teaching their employees how to
communicate. Leaders are particularly vulnerable to being criticised
for misunderstanding communication subtleties and for inadequate
presentation of their ideas. Stephan Melchior, Managing Partner,
Wilson Learning Middle East, shares some pointers on the ability to
see and understand different perspectives.
ThE iMpORTaNCE OF BEiNG FLExiBLE
management
45february 2012
management
How to be more versatile?A person’s style tends to be very stable
over time. In contrast, versatility is a skill
that you can learn and improve. Versatility
is the ability to temporarily adapt one’s
behaviour in order to reduce relationship
tension and to make interactions with
others more productive. In a recent study,
Wilson Learning interviewed leaders and
their employees about effective leadership.
The results show that leaders need to
pay attention to a number of factors to
increase their versatility.
So what defines a good leader? You may
think you know what makes a good leader,
but you are looking from the perspective
• Drivers value a leader with a direct
approach; be prepared with desired
outcomes and timelines.
• Expressives want a leader who is open
and trusting, and shows empathy for
the employee loses the ability to use his
or her personal discretion.
• Expressives do not like leaders who are
closed-minded, who see only one way
to approach an issue and are closed to
discussing other options.
• For Amiables, not expressing personal
concern and interest in employees is
one of the most common weaknesses
in a leader.
• Analyticals dislike leaders who provide
too much or too little information.
Analyticals don’t what to be told
irrelevant things, but also dislike
information gaps.
In any business relationship there are two primary sources of tension – task tension and relationship tension. Task tension is useful; it motivates work. It is the need to solve a problem or reach a decision. Relationship tension is not useful as it is the result of lack of information or miscommunication and causes discomfort in a relationship, leading to business inefficiencies.
To be an effective leader, you need to be aware of the styles of your employees and how they perceive effective leadership. For example, an analytical leader, who does not express empathy and openly share feelings, may not be seen as a good leader by everyone.
Stephan Melchior
of your own style. Different styles focus
on different characteristics to define a
good leader. While all styles agree that
good leaders give clear objectives and the
autonomy to carry them out, there are
important differences.
others’ feelings; be prepared with a
big-picture vision of what you want
accomplished.
• Amiables want a leader who shows
confidence in them; be prepared with
how you will trust them.
• Analyticals value a leader who is
knowledgeable about the business and
shares information freely; be prepared
with specific goals and resources for
getting the job done.
To be an effective leader, you need to be
aware of the styles of your employees and
how they perceive effective leadership. For
example, an Analytical leader, who does
not express empathy and openly shares
feelings, may not be seen as a good leader
by everyone.
What are leaders’ greatest weaknesses?
While all employees expressed that
micro-managing is a common weakness, each
style described specific characteristics that they
also consider weaknesses in a leader.
• Drivers dislike leaders who give too
much or too little direction. Too little
makes the task vague; too much and
An effective leader needs to match the
amount of information, direction, and
expression of concern to the style of individual
employees.
How do leaders support employees? All
employees need support from their leaders
and all agreed that receiving advice and
removing organisational barriers is critical,
but the specific support employees need
and expect varies by their style.
• Give advice to Drivers, but do not do the
task for them directly. Drivers need the
freedom to solve problems themselves
and they resent direct intervention.
• Expressives need a sounding board;
someone who is open to discussion and
is non-judgmental. They want a leader
who supports and backs up their idea.
• Amiables want a leader who acts as
a guide; who points them down the
right path, expresses confidence in their
choice, and suggests small corrections
along the way.
• Analyticals value clear and full
acceptance of their decisions and direct
feedback, when they go off track.
Stephan Melchior has been working in the learning and development field for more than 15 years; designing and delivering training programmes in more than 20 countries. He is well known for the graphic facilitation approach he uses in his courses. Today, Stephan is Managing Partner at the Middle East office of Wilson Learning Worldwide, based in Dubai Knowledge Village. As a global organisation, Wilson Learning is the founder of the Performance and Fulfillment concept, and was rated among the Top 20 Leadership and Sales Training companies in 2010 and 2011 (www.trainingindustry.com). Wilson Learning Middle East was also recently ranked among the TOP100 SMEs in Dubai.Wilson Learning Middle East can be contacted at [email protected].
About
management
46 february 2012
Effective leaders provide support based
on their employees’ preferences. and are
aware of their own tendencies and vary
the kind of support they provide.
When are employees ready for more
responsibility? One of the greatest
mistakes leaders make is not recognising
when employees are ready to step up to
new challenges and greater responsibility.
Leaders often make assumptions about
when employees are ready, based on their
own style.
• Driver and Analytical leaders tend
to think employees are ready for
more responsibility when employees
repeatedly exceed expectations on
current tasks. They often give high
performers more responsibility without
checking to see if the employee agrees
that he or she is ready.
• Expressive and Amiable leaders rely on
employees to tell them that they are
ready for additional responsibilities.
Thus, employees who perform well
and ask for more responsibility are
more likely to get promotions and
advancement than those who just
perform well.
is the lack of sensitivity to global diversity.
While versatility is a skill that can be learned,
it is also a reflection of a leader’s values and
principles. Less versatile leaders take the
perspective that others must adapt to them,
that it is “my way or no way.” They surround
themselves with people who think the same, act
Leaders need to involve employees
in this decision. Analytical employees
may repeatedly exceed expectations
and expect a promotion, but will not
receive it because their Expressive leader
is waiting for them to ask for more
responsibility. As a result, that leader
may lose a high performer.
Dare to be differentEffective communication is critical, both
for the success of the organisation and
the success and satisfaction of employees.
The most common reason people give
for leaving a job is poor communication
with their manager. The most common
reason customers leave suppliers is, poor
communication with the sales force. And the
most common reason global negotiations fail
A person’s style tends to be very stable over time. In contrast, versatility is a skill that you can learn and improve. Versatility is the ability to temporarily adapt one’s behaviours in order to reduce relationship tension to make interactions with others more productive.
the same, and communicate in the same way.
In contrast, highly-versatile leaders embrace
diversity in all its forms – they surround
themselves with people who are different; who
bring different perspectives, different ideas,
and different ways of expressing themselves.
Versatile leaders use this diversity to grow their
organisations and themselves. Versatility is critical
to effective leadership performance and it will
help leaders to practice it in their organisations.
marketing
pLayiNG TWO MOvES ahEad
How much time do you spend on Facebook, Google or YouTube every day? How often do you
drift into e-mail trance while using your SmartPhone? It’s quite remarkable when we think about how much things have changed over the past decade because of these technologies, which are now an integral part of our daily lives.
With customer attention shifting from traditional billboards and yellow pages to new digital media, such
as search engines, social networks and mobile applications, businesses must adapt so that they can
continue to provide value and remain relevant, says Abbas Alidina, Founder and Director of Logicks.com.
Getting started with digital marketingMany businesses make the mistake of diving
head first into developing a Website, opening
social media accounts, or, creating mobile
applications for their business without any
coherent digital strategies. This juncture
actually represents an opportunity to take
a step back and look at the bigger picture.
What are your intentions? How do you aim to
improve the customer experience? What will
differentiate you from competitors?
Plan for successFailing to plan is planning to fail. Identify
which business goals you aim to achieve with
your online presence. For instance;
• Increase the number of inquiries received.
• Boost sales.
• Build a community of enthusiasts around
your brand.
• Decrease the volume of inbound customer
support calls.
These objectives should be captured as early
as possible. Gaining clarity on your business
goals from the onset will help you to remain
focused on driving customers towards your
desired outcomes as they interact with your
brand.
Research your industry Before launching a digital marketing
campaign, it is critical to determine whether or
not a market actually exists for your products
or services online. Ask yourself;
• Where do your customers “hang out”
online?
• What languages do they speak?
• What other interests do they have?
Investing significant time and money on digital
marketing, only to realise that your targeted
audience is elsewhere can be demoralising to
your business.
48 february 2012
marketing
0% 20% 40% 60% 80% 100%Yemen
United Arab EmiratesSyria
Saudi ArabiaQatar
PalastineOman
LebanonKuwaitJordan
IraqIran
Bahrain
At a macro level, the level of
Internet penetration across the
Middle East varies drastically
by country. The overall Internet
penetration across the Middle
East region is an average of
28.5%, so each country is at a
different level of online maturity.
This should be taken into
consideration when developing
your digital marketing strategy.
Internet penetration by country in the Middle East
Understand consumer behaviourIf you can understand your audience, you are
better positioned to reach them effectively. The
Internet is a rich data repository. Digging deeper
into this information minefield in a structured
way will help you to learn about your customers.
Here are two free tools to help you get started:
Google trends: This valuable tool illustrates
how often people have searched Google
for specific search-terms over time. You can also
filter the results by region, city and language. By
entering search terms related to your products
and services, you can gauge the level of online
activity that is relevant to your business.
Twitter search: Whereas performing a
Google search will return the ten most
authoritative Websites on specific keywords,
performing a Twitter search will return the ten
most recent Tweets containing your keywords.
You can start monitoring conversations and
find out what your customers and prospects are
talking about.
There are a number of additional free and paid
tools available online that will help you to study
your market from varying perspectives. Every
business should at least begin to experiment
with these tools and see how they can learn
from the data.
1
2
The beauty of the Internet is that it represents
the ability to study and organise behaviour,
sentiment, perception, activity, impressions and
experiences, and that’s remarkable when we
actually stop to think about it.
The customer engagement cycleThe customer engagement cycle illustrates
the stages that customers and prospects pass
CustomerEngagement
Cycle
through as they experience your brand. For
a moment, take off your marketing hat and
start thinking like a customer. Develop your
digital marketing strategy based on the entire
customer experience.
Ask yourself what customers require at each
stage of the customer engagement cycle with
respect to your specific industry.
49february 2012
By gaining clarity on your business goals from the onset, it will help you to remain focused on driving customers towards your desired outcomes as they interact with your brand.
Take off your marketing hat and start thinking like a customer. Develop your digital marketing strategy based on the entire customer experience.
Stage descriptionawareness Customers have not previously heard of your brand, products or services. You need to make a good first,
second and third impression so that they consider you when they are further along the engagement cycle.
consideration customers are looking for information so that they can research and compare between competitors and offerings. Communicate your value proposition to them and build up confidence in your brand so that they will purchase from you.
purchase customers are busy people and want to make the purchase in a way that is convenient for them. be as flexible as possible and make it simple and straightforward for them to make the purchase.
support customers want to purchase from brands that will provide good service and support. make sure to support them with any issues, questions or complaints they may have.
loyalty customers like to be appreciated and rewarded for the business they are providing you. offer recognition and incentives for loyal customers.
advocacy customers who are happy with the experience they encounter with your brand are likely to recommend you to their peers. empower them with the ability to easily spread the word on behalf of your business.
Each of these stages represents the opportunity to
form a deeper relationship with your customers.
The customer engagement cycle is a chain and
you are only as strong as your weakest link. Any
breakage along the chain means that you are
losing customers as they pass through it.
Industry insightsWe are witnessing a rapid rate of growth in digital
marketing spending across the globe. According
to research conducted by Econsultancy
(http://econsultancy.com/reports/the-state-of-
digital-in-mena), it was found that 58% of
Budget and allocate resources wiselySpending the majority of your digital marketing
budget to develop a flashy Website with all
the bells and whistles is not the most effective
way to connect with customers online. Even if
you have the most beautiful Website around, if
customers are not visiting it then you might as
well be offline.
Whether you are performing the digital
marketing activities in-house or outsourcing to
an agency, it is critical to ensure that you have
an experienced team who has demonstrated the
ability to get the job done.
While it is quite inexpensive or even free to
establish a presence on the majority of online
platforms, such as Google or Facebook, time and
resources do carry fixed costs. The results that you
can achieve through digital marketing are directly
related to the level of commitment that you are
willing to invest in it.
are increasing their digital marketing budgets are
doing so by an average of 28%.
Businesses have realised that customer attention
is not only scarce, but also scattered. There is an
oversupply of platforms, especially in the digital
world. Customers are focused on search engines,
social networks, e-mail and mobile phones
amongst others. Businesses must adapt to these
changes in consumer behaviour and participate in
the places where customer attention is focused.
Abbas Alidina is the Founder & Director of Logicks.com, a digital marketing agency that helps businesses across the Middle East to improve their online performance. With more than ten years of digital marketing experience, he has developed strategies and executed projects for numerous global and regional brands.For more information please visit http://www.logicks.com or follow Abbas on Twitter @AbbasAlidina.
About
companies in the Middle East & North Africa
are increasing their digital marketing budgets
this year compared to a 43% increase in overall
marketing budgets. Furthermore, companies who
marketing
50 february 2012
Abbas Alidina
technology
pROTECTiNG yOuR MOBiLE dEviCESAndy Cordial, Managing Director, Origin Storage, explains why mobile
computing users need to raise their security game if they are to avoid a
series of SmartPhone and tablet computer-driven data breaches.
While the range and variety of IT security defences for portable devices is
excellent, and able to cater for all budgets and types of user, it should be apparent to any security observer that the same cannot be said for SmartPhones and tablet computers.
With 45 million iPads already having
been sold, and with the prospect of
Android tablets and BlackBerry tablets
also selling in their millions, it’s clear that
IT security professionals working within
companies of all sizes have a security
problem on their hands.
With most business using one or more
mobile devices with a variety of e-mail,
documents and contact details in their
memory, it is clear that SmartPhones and
tablet computers should be afforded the
same levels of security and protection as the
laptops and netbooks in circulation.
And the line between portable computers
and mobile devices, such as SmartPhones
and tablets is becoming blurred.
The question facing the hard-pressed IT
security manager is, how in the face of a
paucity of tablet and SmartPhone-specific
security offerings, and a general apathy
amongst corporate users, to get the mobile
security focus back on track?
According to a report from the
CNCCS-Spain’s National Cybersecurity
Advisory Council, a general lack of security
awareness amongst mobile users and their
carelessness are the two main risk factors for
SmartPhones in business.
The research recommends that users should
take all necessary precautions when opening e-mail
messages, SMS attachments or clicking links.
Users should also be wary of any files,
links or numbers received from unsolicited
e-mail or SMS messages, and avoid using
untrusted WiFi networks.
The CNCCS report confirms many of the
findings of Origin Storage’s survey of IT security
professionals, the survey pointed out that
41% of IT professionals are carrying sensitive
information on their SmartPhones.
Against a backdrop of 19% of respondents
revealing their employers had suffered a breach,
as a result of a portable device going missing,
and more than half of those respondents
revealing that the portable device was not
encrypted, it is clear that something has to be
done.
What was interesting about the results of
the survey was, that 70% of organisations
had made data encryption mandatory in their
businesses, suggesting that many users of
portable devices are breaking their own firm’s
security policy rules in their day-to-day business.
This apathy also perhaps explains the
fact that 37% of respondents admitted that
between four-fifths and all of their sensitive
data stored on their portable devices was
unprotected.
It’s interesting to note that this proves the
case that we are not just dealing with a few
files copied to a portable device in a hurry here,
52 february 2012
perhaps by an employee who is
late for an off-site meeting. This
is a failing in corporate security
policies and their implementation.
So what is the solution to the general
apathy surrounding the use of portable devices,
and especially Internet-connected devices such
as tablet computers and SmartPhones?
User education, while desirable, plainly isn’t
working, as most corporate users of technology
are probably aware of the security risks posed
by their laptop computer.
technology
The question facing the hard-pressed IT security manager is how, in the face of a paucity of tablet and SmartPhone-specific security offerings, and a general apathy amongst corporate users to get the mobile security focus back on track?
According to a report from the CNCCS, Spain’s National Cybersecurity Advisory Council, a general lack of security awareness amongst mobile users and their general carelessness are the two main risk factors for SmartPhones in business.
and for the affected company’s reputation and
share price to take a consequential battering,
before something’s done.
There is nothing like a share price dip of
8 to 10 % to focus the attentions of a CEO
and CFO, and to pressure the IT manager
into deploying sound security solutions
and practices to stop an incident from ever
happening again.
The irony of this situation will not go
unnoticed amongst those IT professionals, who
are reading these words and whose experience
dates back to the 1990s, when desktop and
laptop security was in a similar evolutionary
stage as mobile security is today.
Here at Origin Storage we have been doing
our bit as well, with a one terabyte version of
our data locker secure encrypted hard drive
selling well since it was launched at the tail
end of 2009.
And in the spring of last year, when we
released a range of encrypted hard drive
kits allowing computer users to install a drive
in their desktop and laptop machines. This
drive will encrypt data on-the-fly, and migrate
their data from the old drive at the same time.
The process will, however, take time.
Changing portable device user security
behaviour is a task similar to steering an giant
oil tanker. All changes of course need to be
planned some way in advance, but once
executed can be relied up on to take effect
over a period of time.
And while today we have regulatory
influences, such as the Data Protection
Act and the PCI DSS rules applying to any
business that stores personally identifiable
information card transactions, the fact that the
Information Commissioner’s Office has only
rarely prosecuted an organisation for a breach
of the DPA, means that the stick approach will
not work.
So what about the carrot approach? That
too, sadly, is probably doomed to failure, so we
are left with the need for governance and the
tapping of hardware plus software resources
to help enforce best practice in the mobile
security arena.
Andy Cordial is the Managing Director of Origin Storage. He started his computer industry career in 1987 working for tape manufacturer Everex Systems. He then moved into computer distribution in 1989 and set-up his first computer company XL Distribution. XL merged with Datrontech in 1992 where he worked in their management team. Andy saw Datrontech through flotation on LSE then left to start Upgrade Options plc in 1996. He went on and sold Upgrade Options (MBO) in 2003 and invested in Origin Storage Ltd. Andy helped build Origin Storage to a GBP 5.2 million business and saw it enter the Times Fast track 100. He now owns 100% shareholding of Origin after successful purchase of his partner in 2009.
About
And, as any mobile user will attest, security
is rarely on the agenda of the dealers and
cellular networks, that are busy promoting
and selling their handsets plus mobile phone
contracts. It’s a non-starter.
It’s against this backdrop that we are left
with the stark reality that it will probably take
a series of major corporate blunders involving
sensitive data lost, as the result of a lapse of
security in a tablet computer or SmartPhone,
53february 2012
Andy Cordial
corporate life
Meeting and greetingRemember that your goal when you first meet
someone is to put them at ease and make them
want to do business with you.
• Stand up to greet them, so you can show you
respect them.
• Smile; facial expressions convey more than
words.
• Always establish eye contact to show you are
focussed, but remember, the idea is not to
stare them down.
• Offer a firm handshake. If in doubt about the
appropriateness of this form of greeting, like
when meeting someone from the Middle East,
wait for them to offer to shake hands first.
• Pay attention to names; if you repeat the
name as soon as you have heard it, you
will be more likely to remember it. There’s
nothing more embarrassing than not being
able to recollect the name of someone you’ve
just struck a deal with! Quick tip; Place their
business card strategically on the table in
front of you during the meeting.
Entertaining business associates • Table manners say a lot about a person, so it’s
crucial to get them right.
• The golden rule when faced with a mass of
cutlery is to work from the outside in.
• Don’t order messy food that is difficult to eat.
• Hail your waiter/waitress by making eye
contact and discreetly waving your hand.
• Before sitting at the table, wait for your host
to sit first or for instructions to sit.
• At a networking event, hold your drink in
your left hand to keep your right hand dry
and available for handshakes.
• No matter how much you want to speak,
never talk with your mouth full.
Dressed for success – female executivesThey say a picture is worth a thousand words, so
the “picture” you first present says much about
you. Ask yourself whether your appearance is
saying the right thing to help create a favourable
first impression.
• Respect the local culture and general good
sense, and don’t wear anything revealing.
• Avoid wearing strong perfumes or smelling of
smoke.
• Maintain neat and clean hands and nails with
regular manicures. Try and keep it professional
and save the psychedelic nail paint for a
non-work party.
• Keep your make up and hairstyle simple and
appropriate.
• Keep your accessories conservative, classic
and business-like. This is not the time to
unleash your inner disco queen!
Dressed for success – male executivesAppropriate grooming not only helps you make
a good first impression, but also helps you
feel “the part”, which will help you be more
confident.
• Err on the side of caution; it’s better to be
slightly formal than too casual.
• Ensure you wear a well-fitted suit. We are
spoilt for choice these days, but it’s always
better to invest in a few high-quality suits than
many cheap knock offs.
• Ties should command respect, not give
the onlookers a migraine. Take the time to
master the art of tying the perfect knot and
never wear novelty ties – unless you’re in the
media, advertising or showbiz.
• Keep your hairstyles short and neat, and any
facial hair trimmed – unless you’re in the
professions I just mentioned. It’s not fair how
some people can get away with protocol
murder!
• When choosing a bag, nothing beats leather,
be it a formal briefcase, a trendy messenger
bag or a handheld portfolio. Invest in a good
cut and finish.
• Avoid jewellery and opt for a bit of subtle
bling with some stylish cufflinks.
How to impress • Be on time; try to arrive for engagements a
few minutes early and plan for traffic delays.
• Be yourself; a calm and confident demeanour
will help others feel at ease.
• Small talk goes a long way; learn about a
person before meeting them so you can easily
start a conversation and keep it flowing.
• Be positive; your attitude shows through in
everything you do.
• Be courteous, attentive and polite at all times.
Many of these tips are simple and obvious,
yet are all too often overlooked. You have one
chance to make an impression, so make it
count!
SEaL ThE dEaLYou have just a few seconds to make that first impression and you get
only one shot at it. This month, Guillaume Mariole from Ignite Fitness
& Wellness shows that, with a little thought and preparation, you can
make some smart choices.
Guillaume Mariole is the Managing Director of Ignite Fitness & Wellness. For more information, visit www.ignite-wellness.com, or e-mail [email protected].
About
54 february 2012
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