qatar nytmag part 2.qxd 18/3/11 16:38 página 1 qatar · ... ceo of qatar petroleum international....

A SPECIAL ADVERTISING SUPPLEMENT TO THE NEW YORK TIMES MAGAZINE

qatarA DYNAMIC MARKET

This supplement has been produced and sponsored by Summit Communications. It did not involve the reporting or editing staff of The New York Times.

SUMMIT COMMUNICATIONS2 Lansdowne Row, Berkeley Square

London W1J 6HLTel: 44 20 7629 7198

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An online version is available atwww.summitreports.com

Qatar is proving to be a highly stableGCC country, thanks to its prudentmacroeconomic and natural resourcemanagement.

Now, Qatar is making even greaterstrides towards reinforcing its econo-my and attracting foreign investors.In the region FDI has been curtailedby restrictions on business ownershipoutside the free zones. To the approvalof the local business community, threesectors have been fully opened: con-sultative and technical work services,

technology, and distribution services.Under the amended law, foreignerscan also own a higher share of com-panies in agriculture, industry, health,education, tourism, and naturalresources development.

While the new law will surely encour-age investment in a variety of sectors,thus falling in line with the diversifi-cation efforts of Qatar’s National Vision2030, it is the hydrocarbon industryitself that has boosted the non-oil indus-try. The wealth generated by oil and

gas has allowed for a higher purchas-ing power and consequently a greaterdemand for products and services.Non-oil manufacturing in the GCCregion has grown over the past decade,increasing its contribution to GDPfrom approximately 1% to 10%.

While the main economic driverwill remain hydrocarbons for manyyears to come, the government believesit is possible to build the banking,insurance, telecom, IT and other sec-tors around oil and gas.

NEW REFORMS, NEW OPPORTUNITIES

Yousef HussainKamalMinister of Finance

Don’t miss the Business andInvestment in Qatar Forum on

April 6-7 at the Waldorf-Astoriain Manhattan. More info at

www.qatarnewyorkforum.com

Last December, Qatar celebrated one of the great-est economic milestones in its history. Some 1,200

VIP guests from around the world were in attendanceas Qatar commemorated achieving 77 million tons perannum (Mta) of liquefied natural gas (LNG) produc-tion capacity.

This milestone is also a challenge as for almost adecade now, the share in Qatar’s GDP of the hydro-carbon sectors has been, on average, 57%. The keychallenge is to both diversify away from an economymostly reliant on hydrocarbon industries and also diver-sify its energy sector for more added value.

“Now the question is whether you remain a worldenergy supplier or you transform yourself and providemore in order to become an energy player,” says NasserAl-Jaidah, CEO of Qatar Petroleum International. “QPIwas born for that reason, in order to leverage QP’s strength."

QPI’s strategy for upcoming years is to add more and larger upstream activities to itsportfolio, eventually having 50% upstream and the other 50% downstream. “We are cre-ating a unique business model internationally, creating new frontiers of collaboration withinternational companies with transparency and stability,” adds Mr. Al-Jaidah.

And as if consolidating its position over competing LNG exporting nations weren’t enoughcause for celebration, the 77 Mta Celebration Event happened to coincide with anotherexciting first for the country: winning the bid to host the 2022 World Cup.

In economic terms, Qatar is not just strong; it is also stable. While many countries are

just beginning to rebound from the economic recession,other economies are waiting patiently for those playersto get back in the game. Qatar has mainly observed thefinancial crisis from a near, yet comfortable distance.

The government’s prompt intervention in support-ing local banks in December 2009, the solid levels ofliquidity, and the state’s sound pre-recession economyhave been major factors in safeguarding Qatar. The coun-try achieved a remarkable growth in GDP of 11% in2009, and an even more impressive 19% last year.Predictions for 2011 are equally optimistic at 18%.

Recent developments include changes at QatarFinancial Center (QFC) aimed at further boosting thefinance sector’s contribution to economic diversifica-tion. QFC announced it will refocus on fostering theasset management, captive insurance and reinsurance

industries. Yet another boom to the sector is the newly formed partnership between theQatar Exchange (QE) and the NYSE’s Euronext, whose 20% stake ($200 million) rep-resents its largest investment in a foreign exchange and first step into the Middle East.

At the same time, the government unified the regulation of its financial services sectorunder a single body, creating a clearer framework for foreign operators.

“A single regulatory body will feed confidence to Qatar’s economy,” comments Ministerof Finance Yousef Hussain Kamal. “It will also be easier to have better governance over-all with a single regulator. This will ultimately be beneficial for both the receiver and thesupplier of finance, with better transparency.” ■

Unique and innovative skyscrapers make up Doha’s modern skyline,giving viewers a glimpse of the ongoing development of the nation

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SPECIAL ADVERTISING SECTION

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United Development Company (UDC) is Qatar’s prime example ofsuccessful diversification, with influence in a variety of industries

United Development Company (UDC)is a public shareholding company

listed in the Qatar Stock Exchange, astrategic partner to NYSE Euronext.The company’s mission is to identifyand invest in long term projects, con-tributing to Qatar’s growth and pro-viding good shareholder value.

UDC’s target areas of interest include:infrastructure, energy-intensive indus-tries, hydrocarbon, downstream manu-facturing, real estate, maritime andenvironment relatedbusinesses, urban devel-opment and utilities, hos-pitality, retail andfashion, IT, media andcommunications, insur-ance, and other services.

From day one the com-pany’s mission has beento become a cornerstonein the developments ofQatar and the region,creating lasting valuesand maximizing returnsfor its partners andshareholders.

Since 1999 UDC hasmoved from researchingfor projects into development, produc-tions and operations. Project researchhas led to the creation of companiesconsidered to be among the most suc-cessful in the related fields.

UDC’s flagship project, The Pearl-Qatar, is a 247-acre man-made islandand urban development project that israpidly becoming one of the best address-es in the Middle East.

“The Pearl-Qatar embodies very wellthe reforms and vision set by HisHighness The Emir, Sheikh Hamad BinKhalifa Al-Thani, to make Qatar a des-

tination of choice for business, tourism,sports, education, and healthcare”explains Khalil P. Sholy, managingdirector and president of UDC.

From this venture, a number ofsubsidiaries have been formed andnow operate in Qatar and abroad:MEDCO (Middle East DredgingCompany), United Ready Mix (forcement), Pragmatech (for IT servicesand software engineering), Qatar Cool(district cooling), Ronautica Middle

East, HospitalityDevelopment Company(HDC), and UnitedFashion Company.

UDC has been ableto successfully contin-ue the upward trend ofpast years. Earningsper share and net prof-its both grew 18%,with profits up toQR597 million versusQR505.4 million in2009. UDC continuesto grow liquidity, enjoylow leverage, anincrease its high-qual-ity asset base, and

above all, its commitment to trans-parency and good governance, there-by allowing the company to maximizeshareholder value.

In the words of Khalil Sholy, “Ifyou are looking to partner with busi-ness leaders in a solid, robust and fastgrowing economy there is no otherplace that beats Qatar. At UDC, weremain committed to providing share-holders with steady, measurable andconsistent growth, mindful of nation-al growth forecasted at 20% for2011.” �

A CORNERSTONE OF QATAR’S DIVERSIFICATION

The Pearl-Qatar is achieving globalrecognition as one of the Middle East’smost prestigious locations, offering aMediterranean lifestyle while main-taining local flavor.

“Our goal was to achieve a resortisland city that is home to a sophisti-cated, multicultural blend of national-ities,” says Kirk Martin, executive vicepresident of United Fashion Company(UFC), a subsidiary of UDC.

At The Pearl-Qatar, the shoppingand dining experience is one of a kind.UFC has attracted major interna-tional brands. World-class boutiquesare lining one of the world’s longestwaterfronts, comprising the 2.2-milePorto Arabia Boardwalk and VivaBahriya’s 1.2-mile beach.

Seventy international food, fashion,and retail outlets are already open atPorto Arabia. Three award-winningmarinas further add unique value to theIsland’s lifestyle. Ronautica Middle East(RME), another subsidiary of UDC,manages the Island’s marinas and offersa variety of maritime services.

The yacht facilities at The Pearl-Qatar are the largest and most mod-ern in the region, positioning theIsland as the leisure boating hub.“Also non-residents can moor theirboat, spend the day shopping and din-ing, or spend a weekend in one of thehotels,” says Jaumé Marco, RME’sgeneral manager.

The Island’s IT infrastructure offerscomplete connectivity, as well as a hostof home automation capabilities enhanc-ing convenience and security. Residents

will be able to control all functions oftheir home from abroad. A ‘smart card’will allow them to perform various trans-actions on the Island without the needfor cash or credit cards.

“From inception, our focus has beento make The Pearl-Qatar truly a ‘smart’Island,” says Mr. Sholy. “We have cre-ated state-of-the-art infrastructure andsolutions delivering the quality of ser-vice and standard of living residentsand businesses on The Pearl-Qatardeserve – for this and future genera-tions.”

Groundbreaking central cooling andwaste disposal systems provide a pris-tine environment and reduce ecologicalimpact. The Pearl-Qatar is a city in itsown right, which upon completion willoffer every practical necessity, fromschools to health clinics. Entertainmentis guaranteed with a variety of watersports, a multiplex cinema, art houses,music, and social clubs to name a few.

THE PEARL-QATAR: LUXURY LIVINGTAKEN TO NEW HEIGHTS

First residents arrived in 2009 at themulti-billion dollar man-made island,extended over 985 acres of reclaimedland and 2 million square feet of retail,restaurants and entertainment

UDC’s flagship development offers a Mediterranean lifestyle

Two of the Middle East’s largestconglomerates, the Qatar-basedNasser Bin Khaled Group andthe Kuwaiti Al-Mulla Group,

joined forces in 2006 to create Select TransportationSolutions, a new success story in the car rental andleasing industry of Qatar. Backed by these two giantsin the automotive sector, Select is taking small butassured steps in achieving market leadership and con-tributing to the growth of the industry.

Together, NBK and Al-Mulla Group have givenSelect enviable advantages over competitors: decadesof experience, access to a large fleet of the latestvehicles and a presence in automotive ancillaries likeBosch, Ziebart, Michelin, Kawasaki and Harley-Davidson. Select now has a fleet size of 1,000, withMitsubishi comprising 75% and the remaining 25%spread over Nissan, Honda and Chevrolet.

These strengths are especially vital in Qatar’s rel-atively new car rental and leasing industry. Selectrecognizes its inherent advantages, as it strives todevelop the market and its position within it to gainan edge over competitors. Even for corporate accounts

such as Shell, Sidra Medical and Research Centeror Weill Cornell, Select works hard to please eachindividual user.

“The way to distinguish yourself is through ser-vice; how prompt your response is or what value addi-tion you are offering to your customers. We need toconstantly innovate in order to stay ahead of com-petition,” says general manager Dipankar Kanjilal.“Our vision is to be a premium car rental companyin Qatar, offering value-added services to clients andmaximizing the profit aspiration of owners.”

Khalil P. Sholy Managing Director andPresident of UDC

‘REDEFINING SERVICE IN CAR LEASING’Two big regional names launchpowerhouse car-leasing venture

Dipankar KanjilalGeneral Managerof Selectwww.selectqatar.com

Originally a basic port facility export-ing crude oil, Mesaieed Industrial City

(MIC) has evolved into Qatar’s main indus-trial city and home to a wide range ofindustrial activities in the hydrocarbon,petrochemical, fertilizer and metallurgicalsectors. As a main driver of diversificationin the country, MIC is current-ly expanding into downstreamlight industries and manufac-turing. Its importance to Qatar’seconomy is clearly reflectedthrough multi-billion dollar pro-jects such as the QatarPetrochemicals Complex(QPCC) and the QatarAluminum Plant (Qatalum), twoof the largest projects in theworld in their respective sectors.

The 250,000-barrels-a-day Al-Shaheencrude oil refinery also represents anotherimportant project currently planned fordevelopment.

In addition to new projects being devel-oped, several existing companies are alsoundergoing massive expansions, such as

Qatar Fertilizer Company (QAFCO), QatarPetrochemical Company (QAPCO) andthe Qatar Chemical Company (QChem).

“Our vision at MIC is to provide theideal platform for companies located hereto be able carry out their ambitious pro-jects successfully. In order to help them

achieve this, we work veryclosely with them at everystage,” says MohammedJassim Al-Baker, director ofMIC. The industrial city’s val-ue as an investment destina-tion is considerable, ascompanies establishing them-selves there are able to benefitfrom synergies, not only withexisting industries, but alsowith other developments that

are being built adjacent to MIC such asthe New Doha Port Project and the newEconomic Zone 3.

“There are a number of incentives lur-ing foreign investors into MIC, such asthe abundance of energy resources, noexport duties, no custom duties on machin-

ery and equipment imports, shared facil-ities and easy access to world marketsthrough its 24-hour commercial and indus-trial port,” says Dominic Carlone, MIC’shead of business systems in the Businessand Investors Department.

As part of its Master Plan 2005-2030,MIC is in the process of implementing aseries of initiatives that will improve hous-ing, recreational and retail facilities aswell as provide municipal services at its

location. This has been raising MIC’sprofile not only as a place to do business,but also as a true community in which tolive and enjoy its friendly atmosphere.

“Qatar continues to invest heavily inits industrial cities in response to thechanging needs of business and commu-nity,” says Mr. Al-Baker. “MIC is trans-forming itself into a modern, flourishing,multicultural and environmentally friendlyplace to work and live.” �

MIC: A CITY OF OPPORTUNITYMesaieed Industrial City (MIC) is home to various industries and downstream activities, and embodies Qatar’s drive for diversification

Mesaieed Industrial City features a fully serviced, 24-hour commercial port spanning46.6 square miles – all strategically located just 25 miles from Doha

MohammedJassim Al-BakerDirector of MIC

Qatar’s energy sector boasts some of theworld’s highest standards, and Velosi hasemerged as the preferred supplier of man-agement services. Velosi’s project man-agement program oversees quality at eachstage, from purchasing through commis-sioning. The company excels at deliveringISO management system certificationsand safety inspections, and works closelywith giants such as Exxon Mobil.

“We started in Qatar with source inspec-tions and worldwide inspections for QatarPetroleum,” explains regional managerPandra Sudhir. “Slowly, we spread our wings to local third party inspections andproject certifications. We now are involved in most of the projects done by QatarPetroleum, QatarGas and RasGas, supporting them with certification and verifi-cation as well as supporting the technical inspection team from the client’s side.”

“Sometimes it is easy to land a first contract given your strong global brandbut to sustain and renew contracts requires local expertise. That is where Velosihas a chance to shine and show what it is worth,” he adds.

Velosi’s service portfolio is expanding, offering asset integrity consultations,HSE solutions and specialized NDT. The company itself is also growing throughmergers and acquisitions, incorporating other companies into the Velosi groupsmoothly. “Our strategy is to amalgamate them into our group by offering theirservices. Our ultimate aim is to provide an integrated and one-stop solution forour clients,” says Mr. Sudhir.

Pandra Sudhir, Middle EastRegional Manager of Velosi

RAISING THE STANDARDS

www.velosi.com