Qatar_TDT 2010

In the 90’s Qatar’s vision to
develop its natural gas in-
dustry was dismissed by many
as a dream. Today it is the
world’slargestproducerofliq-
uefied natural gas (LNG), and
revenuesfromitshydrocarbon
resources have made it one of
the world’s wealthiest coun-
tries.This wealth has spurred
tremendous and rapid devel-
opment,giving many Qataris a
taste – albeit a potentially pre-
cariousone,giventhatitissole-
ly based on the exploitation of
a non-renewable resource –
of luxury.
To counter this precarious-
ness,in2008HisHighnessThe
EmirSheikhHamadbinKhalifa
Al-Thani and his cabinet for-
mulatedastrategicgrowthplan
to ensure that revenues from
LNG are put to wise use for
the benefit of future genera-
tions. Dubbed the Qatar
National Vision 2030 (QNV),
the plan is based on the pillars
ofhuman,social,economicand
environmental development.
“It’s imperative that the speed
of growth will not harm the
economy,willnotharmtheba-
sic tenets of sustainable devel-
opment,will not create social
problems between different
groups and will not affect the
environment,” explains Dr
Ibrahim Ibrahim, Secretary
GeneralforDevelopmentand
Planning.
One of the QNV’s main fo-
cusesforhumandevelopment,
and the creation of a knowl-
edge-based economy, is edu-
cation.Allocating USD4.8 bil-
lion for education for the
2010/2011 fiscal year,the gov-
ernmentisbuildingnewschools
and universities,many housed
in Qatar Foundation’s
Education City, and attracting
foreigners that can help es-
tablishworld-classschoolsand
at the same time pass on their
valuable skills to local profes-
sionals in the sector.
Qatar must adapt its curricu-
lumtoprepareQatarisforem-
ployment in the private sec-
tor. Currently, 88 per cent of
employedQatarinationalsare
inthepublicsector.Meanwhile,
the private sector comprises
mainly expats and unqualified
immigrants.Consequently,the
QNVlaysthegroundworkfor
incentivising local workers to
enter professional and man-
agement roles in the business,
health and education sectors.
Along the same lines,another
major tenet of QNV is to re-
duce the country’s reliance on
hydrocarbons.While Qatar is
living its LNG heyday,the gov-
ernment is preparing for a fu-
ture in which the resources
are depleted.“We must trans-
form revenues and the tech-
nology and the capacity build-
ing from the oil and gas indus-
tries to every sector of the
economy,” says Dr Ibrahim
Ibrahim.
QATAR
WEDNESDAY, OCTOBER 27, 2010
The nation’s dedication to
excellence takes the world stage
ISLAMIC FINANCE
Instilling confidence in investors
Amidst the global recession, Islamic Finance is becoming
ever more attractive to weakened economies PPAAGGEE 22
EDUCATION
15 years empowering future generations
Qatar Foundation strives to develop the nation’s potential
through education, science and social initiatives PPAAGGEE 33
REAL ESTATE
The life you imagined
The Pearl-Qatar, a freehold property, is becoming the
Middle East’s most glamorous address PPAAGGEE 44--55
From Qatar
to the world
FACTS &
FIGURES
Languages
Arabic (official), English
commonly used as a
second language
Capital
Doha
Location
Middle East, peninsula
bordering the Persian
Gulf and Saudi Arabia
Climate
Arid; mild, pleasant
winters; very hot, humid
summers
Population
833,285 (July 2010 est.)
Natural
resources
Petroleum,
natural gas, fish
GDP per capita
$121,400 [£77,060]
(2009 est.)
Source: CIA World Factbook
Qatar is converting its
wealth from natural re-
sources into other, more last-
ing kinds of riches: education,
humanitarian aid and health.In
other words, Qatar is estab-
lishing the hallmarks of sus-
tainable development.
The country is becoming a
casebook study of how an
emergingmarketcanspeedup
itseconomicgrowthandsocial
developmentwhilstpreserving
itshistory,traditionsandculture.
And much of this is due to the
vision of H HThe Emir Sheikh
HamadbinKhalifaAl-Thaniand
his wife, Sheikha Mozah bint
Nasser Al Missned.This royal
couple is using revenues from
Qatar’s thriving natural gas in-
dustrytomeetUNMillennium
Development Goals, raise hu-
man capital and reach out to
other countries in need.
One of the main drivers of
these initiatives is Qatar
Foundation.Establishedin1995
by the Emir and chaired by
Sheikha Mozah, Qatar
Foundation works to develop
human potential under the
threefoldmissionofeducation,
scientific research and com-
munity development.
In 2002, Qatar Foundation
officiallyinauguratedEducation
City.The expansive project is a
1,000-hectare campus on the
outskirtsofDoha,anchoredby
sevenUSuniversitiesaswellas
the Qatar Faculty of Islamic
Studies.This regional centre of
educational excellence affords
Qataris and international stu-
dents access to a world-class
education, thereby preparing
them for employment in the
private sector – a sector pri-
marily dominated today by ex-
patriatesduetotheheretofore
lack of local expertise.
UnderSheikhaMozah,Qatar
Foundation has also success-
fully launched the World
Innovation Summit for
Education (WISE) Initiative, a
platform for international,
proactive collaboration in the
field of education.In the words
ofHerHighness,“WISEisbased
onthepracticalawarenessthat
thechallengesineducationare
no longer bound by countries’
politicalboundariesand,there-
fore,itsmandateisinternational.
WISE recognises that the chal-
lenges facing the world com-
munityhaveneverbeengreater
– that we need innovative so-
lutions not achieved by tradi-
tional approaches alone.WISE
asserts that the desire to in-
novate is,in fact,an innate hu-
manneedtoshapeandimprove
our environment."
A stalwart proponent of
development, Sheikha Mozah
regularly represents her coun-
tryatinternationalconferences
and speaks at public events.
Mostrecently,sheattendedthe
21 September Millennium
DevelopmentGoalssummitin
NewYork,wheresheexplained
her motivation:“My passion is
education for all,regardless of
gender, location or circum-
stance.Iampubliclyinvolvedin
educational issues so I have re-
alised that without major re-
form in Qatar we will never be
abletoachievepoliticalandso-
cial changes and ensure eco-
nomic sustainability for our
country.”
Progress has indeed been
made since 2000, when the
Millennium Goals were set.
Accordingtoareportprepared
bytheQatarStatisticsAuthority,
manygoalshavebeenachieved
five years before their 2015
deadline. Literacy rates have
touched 99 per cent among
bothmalesandfemalesandthe
gender gap in education has
been bridged.
Asanextensionofitsefforts
to reach the Millennium Goals
and contribute to global de-
velopment, Qatar has inaugu-
rated its“Hope For” initiative.
“HopeFor”isaproposaltoin-
crease the effectiveness of mil-
itary and civilian resources in
disaster relief under the um-
brella of the UN.
Qataristrulymovingitsideas
from blueprints to reality, util-
ising its windfall hydrocarbon
revenues for universally bene-
ficial and lasting causes.
Qatar’s master plan
for sustainability
Vision 2030
■ BByy 22003300,, QQaattaarr aaiimmss ttoo bbee aann aaddvvaanncceedd ssoocciieettyy ccaappaabbllee ooff ssuussttaaiinniinngg iittss
ddeevveellooppmmeenntt aanndd pprroovviiddiinngg aa hhiigghh ssttaannddaarrdd ooff lliivviinngg ffoorr aallll ooff iittss ppeeooppllee
Founded in January 2008
by Her Highness Sheikha
Mozah bint Nasser Al-
Missned with broad support
fromotherinternationallead-
ersandorganisations,Silatech
is an innovative social
enterprisethataddress-
es the critical need to
create job and econom-
ic opportunities for the
youth of Qatar and the
region.
Silatech is playing an
enormous role in bal-
ancing theArab world’s
unprecedented eco-
nomic growth with sur-
prisingly high levels of
unemployment, under-
employment and short-
age of opportunities
among young people.By en-
gaging the public and private
sectors to help this segment
of society take their places in
the region’s growing knowl-
edge-based economies,
Silatech contributes to over-
coming the challenges that
new wealth and a demo-
graphic shift have brought
about.WideGDPexpansion,
coupledwithagrowingyoung
population, present a whole
new window of opportunity
for MENA countries, and if
properlyharnessed,canpave
the way for long-term, sus-
tainable economic growth.
Silatechworksacrossthree
critical domains – thought
leadership, investment
and technology – bring-
ing together leading re-
searchers and institu-
tions,large-scale invest-
ment and innovative
technologiesforthesake
ofyouthempowerment.
Just five months after
it was created, Silatech
participatedattheDoha
Summit, where it mus-
tered help from more
than 200 participants
who joined in discus-
sions to galvanise en-
trepreneurshipandpromote
large-scale job creation as
well as access to capital and
markets.
Preparing young
people to succeed and
pursue their dreams
■ SSiillaatteecchh,, wwhhiicchh mmeeaannss ““yyoouurr ccoonnnneeccttiioonn”” iinn AArraabbiicc,, ccoonnnneeccttss yyoouunngg ppeeooppllee
iinn tthhee AArraabb WWoorrlldd ttoo eemmppllooyymmeenntt aanndd eenntteerrpprriissee ooppppoorrttuunniittiieess
Distributed with The Daily Telegraph. Produced by PM Communications who take full responsibility for and are solely liable for the content
This report can be read online at wwwwww..ppmmccoommmm..ccoomm
QQAATTAARR PPRROOJJEECCTT :: Patricia Temiño and William Skidmore
PPrroodduucceedd bbyy PPMMCC LLttdd,, wwhhoo ttaakkee ffuullll rreessppoonnssiibbiilliittyy ffoorr aanndd aarree ssoolleellyy
lliiaabbllee ffoorr tthhee ccoonntteenntt
PPMMCC LLttdd.. EEmmppiirree HHoouussee,, 117755 PPiiccccaaddiillllyy,, LLoonnddoonn WW11JJ 99TTBB,,
TTeell:: ((4444)) 2200 77440099 00773399
EE--mmaaiill:: ppmmccoommmm@@ppmmccoommmm..ccoomm
Qatar’s wealth from the oil and gas sector is being
reinvested into society for sustainable development
and for the generations to come
SShheeiikkhhaa MMoozzaahh bbiinntt NNaasssseerr AAll MMiissssnneedd aanndd HHiiss HHiigghhnneessss TThhee EEmmiirr SShheeiikkhh HHaammaadd bbiinn KKhhaalliiffaa AAll--TThhaannii
PHOTOCREDIT:MR.MAHERATTAR-HHOPL
QATAR DTSAB 8 pages.qxd 25/10/10 15:36 Página 1

QATAR22 WEDNESDAY, OCTOBER 27, 2010
Qatar’senergyindustryhas
some of the highest op-
erationalstandardsintheworld
andVelosi plays a vital role in
safeguarding the industry’s as-
sets and resources. From de-
sign analysis to project man-
agementandISOcertification,
Velosi is heavily involved in the
industry, taking its proactive
quality assurance services to
heavyweights such as Qatar
Petroleum(QP),Qatargasand
RasGas.InAugust,QPextended
Velosi’s worldwide inspection,
engineering,expeditingandcer-
tification contract by a further
three years, following a new
tender process; this isVelosi’s
fourthcontractextensionfrom
QPandreflectstheconfidence
themajorshaveinthecompany.
“Velosi caters for the needs
of all the major oil companies
around the world. When it
comes to specific projects in
local countries, their needs
might be different.We know
the needs,knowledge and ex-
pertiseofeachcountry,andwe
help with the local expertise.
We are good at that, and can
serve a particular client in a
more advantageous way than
othercompanies,”saysPandra
Sudhir, regional manager
(Middle East) ofVelosi.
The company started out in
1982asasmallinspectionfirm
and has since diversified into a
whole host of areas and is on
course to be the global num-
ber one for quality control.
“Weoffersolutionsforqual-
ity assurance and quality man-
agementtoalargerextent.We
canshowanyorganisationhow
toplanforqualityinthewhole
manufacturingprocessandde-
fine the Key Performance
Indicators (KPIs) as well as a
system for them so that there
are almost zero defects,” says
Mr Sudhir.“They will then be
able to maintain their quality
and achieve what they have
beenaimingfor.Thatishowwe
help companies to establish a
Quality Management system,
and design and implement it.
At the same time, in specific
projects we also offer quality
controlandassurance.Ourex-
pertsgothereandgetinvolved
in each step of the process.”
Demand for the group’s
services remains robust as it
registered 38% and 24%
growth in itsAustralasian and
European revenues respec-
tively,althoughtheMiddleEast
remains its largest market.
Whereveritoperates,Velosi
believes in developing local
knowledge and expertise.
“Whatever country we
work for, we help them to
train locals.We pass on our
expertise to the locals and
train them and help them to
excel in their work,” says Mr.
Sudhir.
Global quality assurance from Velosi
PPaannddrraa SSuuddhhiirr,,
MMiiddddllee EEaasstt RReeggiioonnaall
MMaannaaggeerr ooff VVeelloossii
wwwwww..vveelloossii..ccoomm
■ OOiill aanndd ggaass iinndduussttrryy ggiiaannttss ttuurrnn ttoo VVeelloossii ffoorr qquuaalliittyy pprroojjeecctt mmaannaaggeemmeenntt sseerrvviicceess
S e l e c t
Transporta-
tionServices
hit the road
in late 2006
when two of the region’s ma-
jor groups came together to
provide quality car leasing and
rental services in Qatar.
The joint venture between
Qatar’sNBKGroupandtheAl
MullaGroupofKuwaitisbacked
by decades of experience and
access to a meticulously main-
tained fleet comprising 75%
Mitsubishivehicles,10%Honda,
10% Nissan,and a 5% mix that
includes Chevrolet automo-
biles.Select’sedgeoveritscom-
petitors in the fledgling Qatari
car leasing and rental industry
isfurthersharpenedbyitspart-
ner’s(NBKGroup)presencein
the iconic Mercedes brand,as
also in automotive ancillaries
suchasBosch,Ziebart,Michelin,
KawasakiandHarley-Davidson.
It also offers cars for sale and
fleet management services.
Global economic belt tight-
ening has put the squeeze on
most services and industries
worldwide. Corporate ac-
counts managers scour the
books for financial fat to trim,
changing their focus from long
to short-term outlays in order
totargettheirstrangulatedcash
flow into keeping the enter-
prise alive.Therefore,it makes
extra sense to shift away from
expensivecarpurchasestoleas-
ing and rentals.
“Banks probably used to call
somebody from the street to
offer loans and credit cards,”
says Dipankar Kanjilal,general
manager of SelectTransporta-
tionSolutions,albeitinalighter
vein.“It was that much easier
from a bank’s perspective be-
cause they were all very keen
to expand their loan portfo-
lios.Today it is the opposite.It
is a very knee-jerk reaction to
the whole so-called financial
meltdown. I am sure that this
part of the world has not been
affected to the extent that the
EuropeanandUSmarketshave
been, but everyone has tight-
ened their purse strings.As a
resultithasbecomeevenmore
difficult for an expat – who are
the primary clients for used
cars – to get a loan from the
bank to buy a used car.In that
case,the leasing of a vehicle ei-
ther from us or any other op-
erator offering quality service
can be a very good idea.”
Instead of buying a new car
with a bank loan,Select offers
the chance to rent or lease a
car for up to three years and
give it back with no charge,en-
ablingcustomerstodriveahigh-
er quality of vehicle than oth-
er options may afford them,
and also the ability to change
cars every one to three years.
A Select Lease Contract re-
quires no down payment, but
banks and finance companies
generallyrequireacashdeposit
to generate equity in the car.
Major repairs are covered
by the manufacturer’s warran-
ty and routine services are in-
cluded as part of the agree-
ment.Furthermore,at the end
of the contract customers re-
turnthecarandcaneithertake
anewvehicleunderanewcon-
tract or simply walk away.
Unforeseen events like acci-
dents are taken care of by pro-
viding a loaner car and thus it
ensures that the user is never
withoutavehicleforasingleday.
All that is required in such cas-
esisapolicereportandtherest
is taken care of by Select.
The company has plans for
expansion into other niches.“I
wouldliketogrowmoreinthe
commercial segment especial-
lyintermsofbuses,likethe15-
seatermicrobusorminibus,or
the 30-seater and large 66-
seater buses,although that re-
quireshugecapitalinvestment.
For instance, a 66-seater air-
conditionedbuswouldrequire
around300,000rials(£51,840),
which is about the same price
as six Lancers.Obviously given
the fact that we are two big
groups,we have a lot more fi-
nancial and borrowing power,”
says Mr Kanjilal.“We are real-
ly very keen on buses because
I am convinced that there is
more revenue earning poten-
tial.Our fleet is mainly geared
towards the oil and gas con-
struction industry and the
movementofemployees.Once
we can build up a sizeable fleet
of buses we can go into trans-
portation of school children.
We can definitely explore that
area though.”
Select puts great stock on
itsqualitycustomerserviceand
attention to detail.“I think that
overtimeserviceandvaluewill
be given more consideration
and price will also be a factor,
but not the key factor. Good
players will then be present in
the market and the mom and
pop operations will be phased
out,” says Mr Kanjilal.
■ EExxppeerrttiissee aanndd qquuaalliittyy sseerrvviiccee aarree tthhee hhaallllmmaarrkkss ooff QQaattaarr’’ss pprreemmiiuumm ccaarr lleeaassiinngg aanndd rreennttaall ccoommppaannyy
Select the best in Qatari auto leasing
DDiippaannkkaarr KKaannjjiillaall,,
GGeenneerraall MMaannaaggeerr ooff SSeelleecctt
TTrraannssppoorrttaattiioonn SSeerrvviicceess
wwwwww..sseelleeccttqqaattaarr..ccoomm
QInvest instils confidence in investors
Islamic Finance experienced
exponential growth in the
1980s and is nowadays enjoy-
ing another ‘rebirth’ as banks
inWesterncountriesbeginof-
feringmoreandmoreShariah-
compliant financial services.
Shariah-compliant invest-
ment banks are in their hey-
day as well, managing several
hundred billion pounds worth
of assets around the world.
Indeed,over the past decade,
IslamicFinancehasbeengrow-
ing at twice the rate of con-
ventional financing in the
Middle East.
Qatar’s leading investment
bankisQInvest,ledbychairman
H E Sheikh Jassim bin Hamad
bin Jaber AlThani. Licensed in
April2007withacapitalofone
billionUSdollarsandnowpaid-
up capital of around USD750
million,QInvest’s shareholders
include Qatar Islamic Bank
(QIB) and other major institu-
tional and prominent high net
worth investors from Qatar
and the region.
According to the bank’s
CEO,ShahzadShahbaz,Islamic
Finance has proved more ro-
bust and has weathered the
recession better than tradi-
tional banks because of sev-
eral fundamentals.“When you
finance someone,” he says,
“thereneedstobeaclearpur-
pose and an underlying asset
that you are financing.You do
not finance for speculative
purposes and there are limi-
tations in Islamic Finance par-
ticularly around how much
leverage you can provide,and
what kind of leverage is ac-
ceptable for a company to
raise in terms of ratios.”
He says that much of the
economic crisis is a conse-
quence of speculation,exces-
sive leverage,and“sometimes
there was no clear purpose
as to what finance was being
provided for.”
Ultimately,however,Islamic
Finance can still be impacted
by normal credit risk.“When
you read articles in the press
saying Sukuks are now run-
ning into problems and what
is going to happen because of
this or that default – it is nor-
malcommercialriskattheend
oftheday,”claimsMrShahbaz.
Thoughonlythreeyearsold,
QInvest has consolidated its
position as a strong leader
across the region, offering is-
suerclientsandinvestorclients
a very comprehensive and
complete range of services
along four core business lines:
investment management, in-
vestmentbanking,wealthman-
agementandbrokerage,which
is currently being developed.
Recently, the bank has un-
dertaken a growth plan
through strategic acquisitions
that are helping QInvest to
grow in terms of geographi-
cal expansion and in areas of
expertise.
In May of 2009, QInvest
acquired a strategic 47 per
cent stake in Panmure
Gordon, a 130-year old
London-basedbrokeragefirm.
This investment will help
expand the bank’s footprint
both in the UK and in the US
through Panmure Gordon’s
subsidiary,Think-Equity.
Earlier this year,QInvest ac-
quired 25 per cent in Ambit
Group in India, a market the
bank’s clients have been itch-
ing to enter.“Inevitably, India
SShhaahhzzaadd SShhaahhbbaazz,,
CCEEOO ooff QQIInnvveesstt
YYoouusseeff HHuussssaaiinn KKaammaall,, MMiinniisstteerr ooff FFiinnaannccee
‘You do not finance
for speculative
purposes and there
are limitations on
how much leverage
you can provide’
and China are on everyone’s
radar.Tobeabletopartnerand
invest in an entity like Ambit
gives us very credible expert-
ise on the ground in India to
basically help our clients,
whether they are interested
in direct or portfolio invest-
ment,” says Mr Shahbaz.
QInvest’s presence in dif-
ferent countries and sectors,
coupled with its expertise in
identifying investment oppor-
tunities, is ultimately helping
Qatar to diversify its own
economy.It is also raising con-
fidence among Qatari in-
vestors to invest abroad,
especially the UK.
The strength and quality of
the platform is borne out by
the range of deals and trans-
actions that QInvest has exe-
cuted.These include acting as
sole financial advisor on behalf
ofQatariDiartopurchasethe
US Embassy in London;finan-
cial advisor on behalf of Qatar
Islamic Bank in the develop-
ment of a multipurpose mega
mall that will be developed in
partnership with UAE-based
Al Futaim Group; and lead
manager and bookrunner on
behalf of QIB for a highly suc-
cessful debut international
Sukuk,representingthefirstin-
ternational Sukuk transaction
from a Qatari financial
institution.
Other ventures include the
2009 joint venture withABN
AMRO,previously Fortis Bank
Nederland.The first Shariah-
compliant shipping fund
focusedonmezzaninefinance,
the QInvest-Fortis Bank
Nederland Shipping Fund has
afforded the Qatari bank a
partner with expertise in a
new sector as well as a solid
platform to give its clients.
On the investment man-
agement side,QInvest has ac-
quired a 40.8 per cent stake
in Intercat and Butlers,one of
the UAE’s leading outsourced
hospitality, dry cleaning and
laundry services companies.
The investment will enable
Intercat to continue to grow
its business in the UAE and
expand into other GCC mar-
kets.
Additionally, the firm has
developed sophisticated
wealth management offerings
led by a talented team of
experts and supported by a
cutting edge technology.
QInvest has an enduring
commitment to supporting
the communities in which it
operates.The firm has devel-
oped a programme of corpo-
rate social responsibility
activities including funding a
range of charitable, educa-
tional,social,culturalandsport-
ing organisations and events.
Inaddition,thecompanyspon-
sors conferences, seminars
and other initiatives which
supportthegrowthofShariah-
compliant financial services
locally and across the region,
and further enhance the
status of the State of Qatar.
■ WWiitthh tthhee gglloobbaall rreecceessssiioonn llaayyiinngg mmaannyy ccoouunnttrriieess’’
ffiinnaanncciiaallssyysstteemmssbbaarree,,IIssllaammiiccFFiinnaanncceeiissbbeeccoommiinnggeevveerr
mmoorree aattttrraaccttiivvee ttoo wweeaakkeenneedd eeccoonnoommiieess
After Qatar launched its
LNG programme in 1997
– in the midst of the oil price
crash, ironically – it was all
downhillfromthere.Theecon-
omy skyrocketed, investment
poured in and Qatar became
a regional economic power-
house practically overnight.
Additionally,thegovernment
had the long-term vision to
prevent over-dependence on
the oil and gas industry, en-
couraging other industries to
growusinglocalfeedstock,and
importingknow-howfromthe
education and health sectors
to ensure a sustainable future
forQataris.InMaythisyear,the
Economist Intelligence Unit
predicted real GDP growth to
surgetomorethan23percent,
beforeslowingto12.7percent
in 2011.However,in October
these figures were revised,
showing a more sustained lev-
elofgrowthoverthenextyear:
whilst growth is expected to
reach just 19.4 per cent this
year, next year will see a very
strong 15.9 per cent.
The Minister of Finance,
Yousef Hussain Kamal, notes
that these figures depend
largely on the price of oil.
“Expectations for 2010, ac-
cording to the IMF,” he says,
“are actually higher.Now they
are talking about almost more
than 30 per cent. If you take
the price of oil today it will be
very close to that.”
Either way,Qatar has avoid-
ed the worst of the global re-
cession (in contrast to Dubai
anditsrealestatebubble,Qatar
offersacommodityinconstant,
high demand),with the added
bonusofenjoyingacurrentac-
count surplus of 15.7 per cent
ofGDPin2010.Fiveyearsago,
the government founded the
Qatar Investment Authority
(QIA) as a sovereign wealth
fundtoemployitsextraoiland
natural gas surpluses in long-
term strategic investments.
Meanwhile,the Ministry of
Finance recently opened three
sectors – ICT, distribution
services and consultative and
technical work services – to
allow full foreign ownership in
a move to attract more in-
vestment and encourage the
development of capital-inten-
sive support services for the
hydrocarbon industry.
“The oil and gas industry
needs a lot of services such
as insurance, banking, trans-
port, housing and telecoms,”
explains Mr Hussain Kamal,
adding that Qatar offers a
good investment environment
and an easy tax regime, with
access to a market of more
than 200 million people.
Currently in the pipeline is
the establishment of a new
organisation within the
Ministry of Business andTrade
that will encourage the par-
ticipation of the public and
private sectors in small and
medium industries. “I think
there are many opportunities
for farmers within these small
and medium sized industries,”
says the Minister of Finance,
“but I have to say that this
should be capital-intensive,
not labour-intensive. If it is
labour-intensive,this is not for
our economy.”
Investors wary of entering the Middle East can rest easy in the Qatari market
Qatar: open for business

QATAR 33WEDNESDAY, OCTOBER 27, 2010
When it comes to prop-
erty development in
Qatar, sustainability is the
keyword and sustainable de-
sign practices are driving an
innovative development in
the heart of the capital.
Dohaland, a subsidiary of
the Qatar Foundation and
founded in 2009,is behind the
development of Musheireb,
the world’s first sustainable
downtown regeneration
project, which will regener-
ate 35 hectares of the
Mohammed bin Jassim
District of Doha, symbioti-
cally combining the cultural
architectural heritage of
Qatar’s ancestors with the
technology of tomorrow.
Under the philosophy of
the Qatar Foundation –
chaired by HH Sheikha
Mozah bint Nasser Al
Missned – Dohaland’s de-
velopment ethos is based
on five core principles: in-
novation,heritage,environ-
ment, sustainability and en-
richment.
At an overall cost of QR20
billion (£3.35 billion) and
completion set for 2016,
Musheireb is designed to re-
spect the local climate and
norms of the region, draw-
ing on the nation’s architec-
tural heritage,maximising its
natural resources and pro-
moting community living.
After three years of col-
laboration with internation-
al institutions on how to
maximise the integration of
Musheireb into its environ-
ment,Dohaland CEO Issa M
Al Mohannadi is confident
that this green city will be a
blueprint for the future of
urban planning. “People
should take this development
and others which are ap-
pearing now in Qatar as ex-
amples and standards for the
future. The old neighbour-
hoods of Qatar reflect the
fundamental importance of
community in architectural
design. These Fireejs, or
neighbourhoods, encom-
passed the culture,traditions
and values of a unified soci-
ety and expressed in their
very design, ideas like ex-
tended families, kinship ties,
societal activism,local econ-
omy, collective identity and
a high degree of environ-
mentalawareness.Skyscrapers
and superhighways are not
conducive to this.”
Musheireb has sustainabil-
ity at its core.Its design aims
to eliminate some of the is-
sues inherent in an expand-
ing metropolis,such as heavy
reliance on cars to reach ba-
sic amenities as well as so-
cial, educational and health
care facilities.
As with all projects of this
scale,a vast amount of man-
power is required.OnAugust
10, 2010, Dohaland an-
nounced 1,000,000 man
hours worked without any
lost time incidents.
Mohammad Al Marri, proj-
ect director of Dohaland,
comments,“This milestone is
a reflection of the strict lo-
cal and international stan-
dards that we have applied
throughout the project and
underscores our commit-
ment to the highest stan-
dards of safety management
and the welfare of all our
workers,contractors and as-
sociates on the project.”
Recent contracts with hos-
pitality firms, such as the
Mandarin Oriental Hotel
Group’s plans for 160 luxu-
rious guestrooms in the
Musheireb project and a deal
with Premier Inn for a 200-
room budget hotel in
Education City, provide fur-
ther testament to the com-
pany’s ambition and inte-
grated approach to devel-
opment.
The Musheireb develop-
ment will contain over 100
buildings with a combination
of commercial and residen-
tial properties,retail,cultur-
al and entertainment as well
as an underground car park.
The first phase, referred to
as the‘DiwanAmiri Quarter’,
currently under construc-
tion, features a combination
of three major government
buildings,along with heritage
sites, museum, cultural fo-
rum and an Eid Prayer
Ground. The first phase is
due for completion in 2012.
“I see this project as the
beginning of a journey. It is
the start of something great.
The idea is not to hold this
project for ourselves,but to
have it as an example and
one day,see technologies we
have developed exported
worldwide. We must share
our knowledge with every-
body as this will undoubt-
edly help our children flour-
ish in the future,” says MrAl
Mohannadi.
A dramatic new vision for community-based living in the capital city
lays out a blueprint for city design with more than a touch of green
Dohaland
An outstanding achievement in urban planning blends traditional
Qatari architecture with environmental and community innovation
IIssssaa MM AAll MMoohhaannnnaaddii,,
CCEEOO ooff DDoohhaallaanndd
IncommonwithotherGCC
countries, Qatar has long
recognisedtheneedtosecure
its future in a post-carbon
world, knowing that it can’t
rely on natural resources,
whether pearls, oil or gas.
Unlike other GCC coun-
tries,Qatar has chosen to do
so by becoming a knowledge
economy:a cradle of innova-
tion,based in the Middle East,
but global in scope and im-
pact.
Chaired by Her Highness
SheikhaMozahbintNasserAl
Missned, Qatar Foundation
for Education, Science and
Community Development,
recognises the shortage in
the skills and human capital
needed for this economy,and
hasmadeititsmandatetofos-
ter the creativity,intellect and
critical thinking that are key
to a knowledge economy;to
‘unlock human potential’ in
Qatar and the world.
It began in 1995 as a high-
qualityK-12schoolforQatari
nationals and expatriate resi-
dents,andhasgrownintoa15
million square metre campus
that educates 3,000 elemen-
tary, secondary, undergradu-
ateandgraduatestudentsfrom
more than 70 countries – and
is home to the R&D labs of
some of the world’s leading
multinational firms.
Programmes at Education
City are broad-ranging from
business administration to
fashiondesign,fromcomputer
science to international pol-
itics, and from journalism to
medicine.
Education City also wel-
comespostgraduatestudents
through Hautes Etudes
Commerciales (HEC) Paris’
EMBA program. Its Qatar
Faculty of Islamic Studies,
launched in 2007, strives to
provide modern and toler-
ant interpretations of Islam,
and which celebrated its first
graduation last May.
One of the major advan-
tages of Education City is
cross-registration.A student
can major in computer sci-
ence at Carnegie Mellon
University–theworld’snum-
beronerankedcomputersci-
ence faculty – and change
buildingstolistentoalecturer
at Georgetown and take a
classinfashiondesignatVCU.
“There is a strong sense that
youcangetaneducationhere
that you can’t get anywhere
else in the world,” says Dean
G Richard Tucker from
Carnegie Mellon University
Qatar.
Dr Fathy Saoud, the
Egyptian-born president of
Qatar Foundation, says that
coeducation of men and
women was perhaps the
biggest change of all. “The
message was clear from the
beginning: education is the
mosteffectivewaytoinstitute
change and Education City is
the most exciting project I
have seen in my lifetime.”
But Education City offers
students much more than ac-
ademic degrees. It provides
them with a world-class ed-
ucation, a global experience
and opportunities for real life
work experience and train-
ing.Students can apply for in-
ternshipsatQatarFoundation
memberorganisationssuchas
ReachouttoAsia,theUSD7.9
billionendowedSidraMedical
and Research Centre, Al
Jazeera Children’s Channel,
or work in Qatar’s first free
tradezone:theQatarScience
andTechnology Park.
Qatar Foundation is also
home to some of the most
unique initiatives in theArab
world:unleashing the power
ofwordsandopinion.Running
into its seventh season,The
Doha Debates, which is tel-
evised on the BBC World
Service,hasbeensosuccessful
it has resulted in Qatar-
Debate, a debating school
where young Qataris can
learn to be independent and
critical thinkers.
Sheikha Mozah’s vision for
the future of Qatar parallels
that of the Emir,her husband.
Education,scientific advance
and healthcare are her prime
concerns, and in particular
the future of young people.
As she puts it: “It is heart-
ening to see the benefits of a
coordinated approach to de-
veloping this country’s great-
est resource – the potential
of its people.”
Qatar Foundation strives to develop the nation’s potential
through education, science and social initiatives
Education City
Fifteen years of empowering
future generations
For thousands of years, pi-
oneering technology has
long been a key element of
power and control. Much as
the Roman Empire was able
to flourish thanks to its vast
network of roads, the world
has become increasingly
smaller with many nations
and corporations pooling
their resources in order to ad-
vance technology for the ben-
efit of mankind.
The Qatar Science &
Technology Park (QSTP) is
the most recent development
designed to attract the in-
ternational community and
entrepreneurs to develop and
commercialise their technol-
ogy.Supported by the Qatar
Foundation, QSTP is one of
the first initiatives to com-
bine an industry-university
collaboration.Based in Doha’s
Education City, it has been
designed to attract some of
the brightest minds to its in-
stitutions and has already se-
cured a number of blue-chip
companies including Exxon-
Mobil, Microsoft and Shell.
At an initial cost of USD655
million (£416 million), QSTP
offers state-of-the-art offices
and laboratories for its clients
as well as the option to tai-
lor facilities to exacting spec-
ification. Since opening its
doors in March 2009, the fa-
cility has become home to
over 35 member organisa-
tions crossing the energy,en-
vironment, health sciences
and ICT sectors.
While many companies
would have expected exu-
berant premiums, the Qatar
Foundation is aware that suf-
ficient financial incentives need
to be implemented in order
to attract some of the world’s
largest corporations.This be-
ing the case, QSTP has been
given the right to conduct
business as a free-trade zone.
Some of the key benefits in-
clude the incorporation of a
local company (or operate as
a branch of a foreign compa-
ny),100 per cent foreign own-
ership (as opposed to the
standard 49 per cent), duty-
free import of goods and serv-
ices, and zero rate tax.
QSTP has a range of tools
that deliver support for tech-
nology development that are
designed to create technol-
ogy-based innovation and
knowledge-related ventures.
Available to small companies,
corporations and research in-
stitutions,these tools are fo-
cused on activities such as
funding new ventures, devel-
oping intellectual property,
technology management skills
and product development
support.QSTP and its clients
have together committed
over USD245 million (£155
million) per annum to these
activities.This will ensure that
QSTP remains not only a
home for technology devel-
opment, but also a sustain-
able innovation eco-system
and be fundamental to deliv-
ering its vision of achieving
recognition as an international
hub for applied research, in-
novation and entrepreneur-
ship in Qatar.
Funding and technology
aside,the real core benefit of
this scientific hub is the ac-
cessibility to localised re-
search institutes and with sev-
en internationally renowned
universities on its doorstep,
QSTP provides unrivalled ac-
cess across all fields, such as
medicine (Weill Cornell),
computer science (Carnegie
Mellon) and mechanical,
chemical and petroleum en-
gineering (Texas A&M).
While the benefits of such
an initiative will be felt glob-
ally, there is no doubt that it
will be a flagship enterprise
for Qatar’s post-carbon econ-
omy, not only for its pio-
neering developments but
also for its accumulating in-
tellectual property,which will
continue to support its own
civil development for many
years to come.
QSTP offers cutting-edge research facilities, attracting top international
companies to create a scientific HQ and innovation incubator
Qatar Science & Technology Park
Tech-based companies find a
home in the Middle East
QQSSTTPP pprroovviiddeess wwoorrlldd--ccllaassss ooffffiicceess aanndd llaabboorraattoorriieess ddeessiiggnneedd ssppeecciiffiiccaallllyy ffoorr ccoommppaanniieess ffooccuusseedd oonn tteecchhnnoollooggyy
EEdduuccaattiioonn CCIIttyy ooffffeerrss aa bbrrooaadd rraannggee ooff pprrooggrraammmmeess,, rraannggiinngg ffrroomm iinntteerrnnaattiioonnaall
ppoolliittiiccss aanndd mmeeddiicciinnee ttoo ffaasshhiioonn ddeessiiggnn aanndd ccoommppuutteerr sscciieennccee
EADS, ExxonMobil,
GE, Microsoft, Shell
and Total are among
the first blue-chips
to set up in QSTP
A nerve centre of
scientific activity,
QSTP has seven
eminent universities
on its doorstep

Imagine an island emerg-
ing from the warm, clear
blue waters of the Arabian
Gulf.Now picture luxurious
apartments,villas and hotels
rising up,complemented by
the world’s top boutiques
and restaurants, all in
serene colours that seam-
lessly blend sky, sand, sea
and the occasional oasis.
Now, visualise yourself
approaching by yacht,dock-
ing at a splendid state-of-
the-art marina, and getting
off to stretch your sea-legs
on a leisurely stroll down
an endless waterfront path
under the cool shade of
palm trees.You might reach
a white sand beach or you
possibly turn inland to find
a street café,beckoning you
with an espresso at the ter-
race of Les Deux Magots
café from Paris, a dessert
from NewYork’s Chocolate
Bar or any of your favourite
drinks. The perfect tran-
quillity is only interrupted
by occasional passer-bys or
by a fish jumping out of wa-
ter for a brief moment.You
capture this moment in
your memory and think to
yourself:ahh,this is the life.
Maybe you stay the week
in your own Island home,
or perhaps you’re just vis-
iting overnight and will
sleep on your boat or in a
boutique hotel on the
Island.The important thing
is that you are here, now.
This moment is yours.The
Pearl-Qatar is yours.
AAnn iinnvveessttoorr’’ss
ddeessttiinnaattiioonn
The Pearl-Qatar is a
unique destination in itself
and is proving to be a smart
investment, as well.
A world-class develop-
ment, built upon a solid
rock foundation and using
land reclaimed from the sea,
The Pearl-Qatar boasts
over 24 miles of new coast-
line, a mile-and-a-half long
marina walkway, and a ma-
rina capable of berthing
boats from ten metres up
to 85 metres in size. The
Pearl-Qatar is also home
to the world’s longest wa-
terfront luxury retail walk-
way, located in Porto
Arabia,a section opened to
much acclaim in 2009.
The site selected for the
man-made Island, which is
rapidly turning into the
Middle East’s most glam-
orous address, is also ide-
al: it lies in West Bay just
minutes from Doha and
with easy access to the
New Doha International
Airport, thus providing a
quick getaway for people
living throughout the Gulf
region.
The mastermind behind
this unique and ambitious
project is the United
Development Company
(UDC). Founded in 1999,
today UDC is one of
Qatar’s leading private sec-
tor shareholding companies
whose mission is to “iden-
tify and invest in long-term
projects contributing to
Qatar’s growth and pro-
viding good shareholder
value.”
From this endeavour,sev-
eral offshoot companies
have been formed (which
UDC either fully or par-
tially owns along with pres-
tigious partners) to deal
with various aspects, such
as dredging, cement, fi-
nancing, hospitality, retail,
district cooling, urban de-
velopment, property con-
sultancy and management,
marina management,media
and IT services.
Specifically, The Pearl
for Management and
Operations is the 100 per
cent UDC owned company
created to address an aspect
that sets The Pearl-Qatar
apart: it is the very first de-
velopment in Qatar to of-
fer foreigners freehold ti-
tle ownership.Investors can
therefore choose among
the Island’s several resi-
dential zones – each with its
unique characteristics and
features – and purchase
their own piece of paradise
in the shape of a luxury
apartment, a townhome, a
penthouse or a villa.
IItt’’ss aallll aabboouutt
tthhee lliiffeessttyyllee
No longer do residents in
the Middle East have to jet
to Europe or beyond to find
the lifestyle elements they
can now find on The Pearl-
Qatar.This Island is all about
lifestyle:top brand names in
hotels,hospitality and retail
hold a prominent place
here.Moreover,the marinas
are world-class and leave
nothing to be desired.
One of the bold moves
and trendsetting hotel proj-
ects that UDC’s subsidiary
Hospitality Development
Company (HDC) brought
in was Nikki Beach.Known
as “the trendiest place on
earth,” Nikki Beach is both
a beach club and a hotel
comprising 47 villas.
The two other boutique
hotels presently in the
pipeline will offer com-
pletely different settings:
one will be aVenetian-style
urban resort,while the oth-
er will be reminiscent of
the Maldives. The Four
Seasons Resort will be one
of the three large five-star
hotels to open on The
Pearl-Qatar. These hotels
will also provide the Island’s
residents with yet another
pleasant place to pass the
time, whether in the spa,
the gym, the restaurant or
the bar.
As for hospitality, The
Pearl-Qatar surpasses ex-
pectations,having nearly ef-
fortlessly attracted some
of the biggest names in cui-
sine, as well as some up-
and-coming ones.
Last May, Placido
Domingo and chef Richard
Sandoval,inaugurated their
award-winning modern
Mexican restaurant
Pampano. From the other
side of the globe comesTse
Yang, one of the world’s
most celebrated and ele-
gant Chinese restaurants.
Gordon Ramsay’s Maze is
also a wonderful dining
choice on the Island.
Shoppers are delighted
with the wide variety of top
designers in the fashion in-
dustry.
One ofThe Pearl-Qatar’s
other ‘anchor’ activities is
boating. UDC’s Ronautica
has introduced the nauti-
cal lifestyle for the first time
in Qatar, creating world-
class, safe marinas and of-
fering tailor-made services
– everything from advising
on the best type of boat to
showing customers the
ropes and even providing
captains and skippers.After
a relaxing day yachting or
shopping, boaters docked
at The Pearl-Qatar’s mari-
nas can order food from
any of the restaurants and
have it brought and served
on board.
The Pearl-Qatar is becoming the Middle East’s most glamorous address as one of the few freehold properties in the country offering
all citylife services, lifestyle and opens possible residency to owners
The Pearl-Qatar
The life you imagined
TThhee PPeeaarrll--QQaattaarr aaffffoorrddss RRiivviieerraa ssttyyllee lliivviinngg wwiitthh ttoowwnnhhoommeess,, ppeenntthhoouusseess aanndd vviillllaass,, aass wweellll aass tthhrreeee mmaarriinnaass aanndd ffiivvee--ssttaarr hhootteellss
Since its inception, The
Pearl-Qatar has had cut-
ting-edge technology at the
heart of its conceptualisation
as the world’s first smart
Island.Simple,elegant touch-
screen panels belie a wealth
of complex, future-proof
technologies that offer resi-
dents a secure, exclusive
Island retreat connected to
a full range of high-tech serv-
ices and solutions.
One of the most techno-
logically advanced urban de-
velopment projects in the
world,ThePearl-Qatarboasts
innovative security measures,
advanced building manage-
ment systems, environmen-
tally friendly energy controls,
smart-card recognition tech-
nology and of course the lat-
est in user-friendly home en-
tertainment systems,includ-
ing an outstanding IPTV serv-
ice that was launched in
December 2009.
Residences can be
equipped with as much tai-
lor-made technology as is de-
sired,from security cameras
to ambience settings, de-
pending on how‘smart’ a res-
ident wishes it to be, and all
with the possibility of being
accessed remotely.A tenant
can control the lights and dis-
trict cooling of their home
even from NewYork.
The Pearl-Qatar is set to
be one of the largest WiFi
networksintheworld.“There
is not going to be one spot
without coverage,” says Fabio
Beccali,senior telecommuni-
cations manager at UDC,The
Pearl-Qatar. “If you have an
IP or soft phone,you will be
able to walk around while
staying connected.”
UDC has worked hard to
strike a sensitive balance be-
tween the highest of securi-
ty standards and respect for
individual’s privacy. Smart
cards control access points
around the Island.“Some of
our partners, like Cisco, use
our project as a milestone to
propose other customers to
come. Our solutions are
state-of-the-art,cutting edge
and working,” says Mr Beccali.
Built on reclaimed land,in-
novation is literally built into
the fabric ofThe Pearl-Qatar.
Rae’d Mahfouz of UDC’s par-
tially owned subsidiary MED-
CO, the dredging company
responsibleforreclaiming400
hectares of land for the proj-
ect, says,“We are expanding
land where no more land is
available. It’s becoming very
strategic to create land for
huge developments,whether
for industrial or expansion
projects,especially if the ex-
isting space offers no more
room to expand among cities
and towns. Especially for
heavy industrial complexes,
it’s smart to create land away
from any neighbourhood
communities, and the best
way to do this is through
reclamation.”
■ UUDDCC iiss ccrreeaattiinngg aa
nneeww ddeessttiinnaattiioonn wwhheerree
rreessiiddeennttss aanndd vviissiittoorrss
ccaann eennjjooyy aa
MMeeddiitteerrrraanneeaann lliiffeessttyyllee
oonn tthhee wwoorrlldd’’ss ssmmaarrtteesstt
ssuussttaaiinnaabbllee mmaann--mmaaddee
iissllaanndd
Welcome to the future
UUDDCC aanndd VVooddaaffoonnee QQaattaarr llaauunncchheedd bbrrooaaddbbaanndd iinntteerrnneett iinn JJuunnee ccoovveerriinngg tthhee wwhhoollee IIssllaanndd
Ifonewordcouldsumupthe
environmentalstateofaffairs
at The Pearl-Qatar, it would
undoubtedly be ‘pristine’.
Pristine streets, pavements,
beaches and even seabeds.
Thanks to the intensely in-
depth environmental impact
study conducted before con-
struction of the Island,the lo-
cation chosen, the dredging
techniques employed and the
ongoing monitoring pro-
grammes,The Pearl-Qatar is
not only an eco-friendly de-
velopment,it has in fact ben-
efited the environment.The
result: a man-made Island
whereneitherluxurynoreco-
systems are compromised.
According to Rae’d A
Mahfouz,deputygeneralman-
ager of Middle East Dredging
Company(MEDCO),thesub-
sidiaryofUDCentrustedwith
the land reclamation forThe
Pearl-Qatar,the dredging ac-
tually left behind a large,deep
area in the sea where fish are
thriving.
“It’s like a shelter and deep
haven with nice cool water.
Before it was very shallow
and you know fish will die in
the heat in shallow waters,”
he says. Furthermore, the
company heeded the results
of an environmental study re-
port and the International
EnvironmentalLawstodredge
in areas to where absolutely
no harm would come.
The waters and beaches
are kept clean thanks to the
ban on non-degradable plas-
tic bags and fishing,as well as
the Envac system, a clever
network of underground
pipes where waste is sucked
down from special bins at
street level and propelled at
70 km/h to a central waste
collection point.
UDC’s Environmental
Affairs Department conducts
a thorough twice-yearly eco-
logical survey to ensure the
qualityoftheseawaterandthe
flora and fauna populations.
Everytwoweeks,theytestthe
water for hydrocarbons and
bacteria. On land, the de-
partment tests noise levels,
dust and exhaust emissions.
Positive results for the sur-
veys and the maintenance of
a pristine environment,how-
ever, are ultimately in the
hands of The Pearl-Qatar
residents, contractors and
workers. Therefore, the
Environmental Affairs
Department puts great em-
phasis on its awareness pro-
grammes.Targeting everyone
from small school-age chil-
dren and all the way up to top
management, these pro-
grammes aim to teach peo-
ple about the importance of
recycling, proper waste dis-
posal and any other daily en-
vironmentallypositiveactions
they can take or negative
habits they can change.
■ UUDDCC’’ss
EEnnvviirroonnmmeennttaall AAffffaaiirrss
DDeeppaarrttmmeenntt mmaaiinnttaaiinnss
hhiigghh ssttaannddaarrddss oonn tthhee
IIssllaanndd,, tthhrroouugghh ssttrriicctt
mmoonniittoorriinngg aanndd
rreeccyycclliinngg pprrooggrraammmmeess,,
aanndd bbyy ccrreeaattiinngg
aawwaarreenneessss tthhrroouugghh
ttrraaiinniinngg aanndd eevveennttss
Creating eco awareness
DDeessppiittee tthhee ddeesseerrtt llooccaattiioonn,, bbuuiillddiinnggss aarree kkeepptt ccooooll tthhrroouugghh aa DDiissttrriicctt CCoooolliinngg ssyysstteemm
The Pearl-Qatar
offers unique
freehold investment
opportunities in a
safe, relaxed,
friendly and
exclusive
environment
Visitors and
residents alike can
enjoy the two
million square
metres of
international retail,
restaurants and
entertainment

Strolling along a cafe and
shop-lined street at The
Pearl-Qatar,a person may be
unaware of the gigantic efforts
thatwentonbehindthescenes
to create such a pleasant and
carefree atmosphere. The
Pearl-Qatar, one of modern
mankind’s most ambitious en-
gineering projects to date, is
truly outstanding from a tech-
nical and construction stand-
point.
“ThePearl-Qatarembodies
very well the reforms and vi-
sion set by His HighnessThe
Emir,SheikhHamadbinKhalifa
Al-Thani,tomakeQatarades-
tinationofchoiceforbusiness,
tourism,sports,education and
healthcare” explains Khalil P
Sholy, managing director and
president of UDC.
Looking out over Doha’s
West Bay a decade ago, any-
one would have only seen wa-
ter. Not so in Qatar. United
Development Company visu-
alised an entire new piece of
land upon which the world’s
most exclusive names would
vietoestablishtheirboutiques
and restaurants,or build their
villas, apartments and hotels.
Although the 400 hectares
of man-made Island came at a
princely cost of USD14 bil-
lion, partners and sharehold-
ers in UDC’s flagship project
have enjoyed good returns.
Even over the past two years,
UDCanditsseveralsubsidiary
companies – many of which
were created specifically to
address the various needs the
Island created – have not on-
ly stayed afloat, but have also
turned a profit.
“Despitetheglobaleconomic
crisis of the past two years,we
have been able to successfully
continue the upward trend of
pastyears.In2009,therevenue
increased by more than 40 per
cent to over QR1.492 billion,
and profits increased by more
than 73 per cent to QR515
million,” says Mr Sholy.
Moreover, in the first half of
2010,UDC already reported a
net profit of QR353 million.
While last year witnessed a 62
percentincreaseinearningsper
share compared to the previ-
ous year,in the first 6 months
of 2010, earnings per share
reached QR2.54.
Qatar Cool, one of UDC’s
subsidiaries,iscreatingvaluefor
bothshareholdersandtheen-
vironment,while dealing with
a major and inevitable factor:
the heat.
District cooling entails the
production and circulation of
chilled potable water to multi-
plebuildingsthroughanetwork
ofinsulatedundergroundpipes.
Qatar Cool’s district cooling
plantsinDohaincludetwoop-
erational plants with a capaci-
ty of 67,000 tons of refrigera-
tion.Thecompanyisbuildingthe
world’s largest district cooling
plant at the Island, capable of
supplying up to 130,000 tons
of refrigeration to around
41,000 residents. Qatar Cool
saves 40-60 per cent on elec-
tricityusagecomparedtocon-
ventionalairconditioning.Using
refrigeratedwater,districtcool-
ing is the most eco-friendly
form of air-conditioning.
■ FFrroomm ddaayy oonnee UUnniitteedd DDeevveellooppmmeenntt CCoommppaannyy’’ss ((UUDDCC)) mmiissssiioonn hhaass bbeeeenn ttoo bbeeccoommee aa ccoorrnneerrssttoonnee
iinn tthhee ddeevveellooppmmeennttss ooff QQaattaarr aanndd tthhee rreeggiioonn,, ccrreeaattiinngg llaassttiinngg vvaalluueess,, aanndd mmaaxxiimmiissiinngg rreettuurrnnss ffoorr
ppaarrttnneerrss aanndd sshhaarreehhoollddeerrss
Turning vision into value
Doha today,
the world
tomorrow
BBuussiinneessss ooppppoorrttuunniittiieess iinncclluuddee rreettaaiill,, hhoossppiittaalliittyy,, sscchhoooollss aanndd mmaarriinnaass
In building The Pearl-Qatar
(TPQ), UDC has created a
strongholdingofdiversifiedac-
tivities. Ratherthanoutsource
tasks, in several cases UDC,
whichhasenjoyedsuccessever
since its foundation in 1999,
chosetoestablishitsowncom-
panies that could cover these
needs and then go on to work
on other national and region-
al projects.
OnceTPQ’sblueprintswere
ready, UDC needed its new
Island to materialise. This is
when Middle East Dredging
Company (MEDCO) was cre-
ated as a strategic partnership
between UDC, Belgian com-
pany Dredging,Environmental
and Marine Engineering
(DEME) and the Qatari gov-
ernment.DEMEbroughttothe
table its international expert-
iseinhydraulic,offshoreanden-
vironmentalengineering.MED-
CO began dredging and land
reclamation in 2004 and fin-
ished by 2007.A project of this
magnitude was anything but
unnoticed, and soon after, the
companywasawardedvarious
new projects,such as the New
DohaInternationalAirport,the
Qatar-Bahrain Causeway and
theRuwaisRefineryexpansion
project in the UAE.
The Island in place, con-
struction could now begin.
Looking once again to Belgian
expertise,UDCformedUnited
Ready Mix in 2006,along with
BESIX (Belgium’s largest con-
structiongroup),SixConstruct
Ltd(asubsidiaryofBESIX)and
privateQatariinvestors.United
ReadyMixisoneofthelargest
suppliers of cement to The
Pearl-Qatar,and like MEDCO,
has gone on to do projects
outside the Island. Today, ap-
proximately40percentofthe
cementcompany’soverallout-
put supplies other develop-
ment projects in and around
Doha.
Now,the canvas is ready to
bepainted.VariousotherTPQ-
related subsidiaries were cre-
ated to deal with some of the
finerdetails,suchasrealestate,
IT,hospitality,marina,media,fi-
nancing and district cooling.
Two of the Island’s principle
areasarefullyownedbyUDC:
MedinaCentrale,whichwillbe
themainhubforamenitiesand
facilities–akindofcity-centre,
andAbrajQuartier,amixed-use
development comprising sev-
en Mediterranean-style resi-
dential towers for more than
30,000 people.
Asteco,aUDCjointventure
with Commercial Bank of
Qatar, Qatar Insurance
Company and Dubai-based
AstecoPropertyManagement,
offers property management,
sales,leasing,researchandcon-
sultancy services.To diversify
itsactivities,inadditiontoserv-
ing as sales and leasing agents
forTPQ’s two residential tow-
erslocatedinthePortoArabia
andVivaBahriyadistricts,Asteco
Qatar also works in mainland
Doha,providing sales and leas-
ing services to exclusive resi-
dential development projects.
As a‘smart’ Island,advanced
technologies play a huge role
in craftingTPQ’s futuristic and
environmentally friendly at-
mosphere. UDC established
Pragmatech in 2009 to deliver
innovativeITservices,software
engineeringandinternet-based
AI solutions. Pragmatech is a
uniquecompany,asitisthefirst
in its industry in the MENA re-
gion to form an R&D team fo-
cused on developing advanced
business solutions in the field
ofcomputerscience.Onasim-
ilarnote,GEKKO,anotherstart-
up company,was instituted by
UDCandCommercialBankof
Qatartodesignandimplement
‘smart’technologicallyadvanced
paymentproductsandfacilities.
One of UDC’s most signifi-
cant contributions to Qatar –
in terms of sustainable devel-
opment – is the district cool-
ing systems it has introduced
inbothTPQ’sandDoha’sgrow-
ing commercial and residential
developments.Built and oper-
ated by Qatar Cool, a part-
nership of UDC, National
CentralCoolingCompanyand
private Qatari investors, the
world’s largest district cooling
plantprovidesreliable,cost-ef-
fective and more environmen-
tally friendly cooling for all the
areas built on the Island.
In yet another move in
UDC’s diversification strategy
we find SCOOP.This wholly-
owned subsidiary manages
mediaandadvertisingspaceon
The Pearl-Qatar, an industry
with vast potential.
■ IInn tthhee mmaakkiinngg ooff TThhee PPeeaarrll--QQaattaarr,, aa wwoorrlldd iinn
iittsseellff iinn mmaannyy wwaayyss,, UUDDCC hhaass ccrreeaatteedd sseevveerraall nneeww
ccoommppaanniieess wwiitthh ppootteennttiiaall ttoo ttrraannssffeerr tthheeiirr
ooppeerraattiioonnss bbeeyyoonndd tthhee IIssllaanndd
High investment
value stems from
UDC’s various
subsidiaries that help
make The Pearl-
Qatar the unique and
fascinating place
it is today
KKhhaalliill PP SShhoollyy,,
PPrreessiiddeenntt aanndd MMaannaaggiinngg
DDiirreeccttoorr ooff UUDDCC

Khalifa Al-Sowaidi, the
managing director of
QAFCO, shares his views
on the company’s role in
Qatari economic diversifi-
cation; the main and po-
tential markets for urea,
ammonia and fertiliser;
plans for future projects
and growth, and QAFCO’s
efforts at Qatarisation.
QQAAFFCCOO hhaass sseeeenn ssttaagg--
ggeerriinngg ggrroowwtthh ssiinnccee iitt
wwaass eessttaabblliisshheedd 4400 yyeeaarrss
aaggoo.. WWhhaatt hhaavvee bbeeeenn
tthhee kkeeyy ccoommppoonneennttss ttoo
iittss ccoonnttiinnuueedd ggrroowwtthh
aanndd ssuucccceessss??
Every time we have an
opening for a new train or
plant we meet His Highness
the Emir and he asks when
the next one will start. He
is a great support to us and
we also get a lot of support
from the Deputy Prime
Minister in terms of allo-
cating resources to contin-
ue to expand the fertiliser
business.
PPlleeaassee tteellll uuss aabboouutt
QQAAFFCCOO’’ss rroollee aass tthhee
ffiirrsstt iinniittiiaattiivvee ttoo ddiivveerr--
ssiiffyy wwiitthhiinn tthhee eenneerrggyy
sseeccttoorr..
QAFCO is the pioneer
of all joint ventures in
Qatar. It was established in
1969 and production start-
ed in 1973. At that time it
was using the associated
gas with oil (which was be-
ing burnt at that time) to
make fertiliser. QAFCO as
a joint venture was also
used as a model for the sub-
sequent joint venture in
petrochemical and LNG and
so on. It is also used as an
example to attract other
investors.
In terms of diversifica-
tion,we are part of gas sell-
ing activities. You can sell
gas which is used for pow-
er; you can sell it as LNG
and also as energy for elec-
tricity.Another way of sell-
ing energy is through food,
and fertiliser is basically
food. People without food
do not have energy,and to-
day about 95 per cent of
food production depends
on mineral fertilisers. We
take nitrogen from the air
and hydrogen from the nat-
ural gas to make ammonia
and nitrogen nutrients and
then introduce this to the
ground where it is absorbed
by plants and so on, and it
goes into food for people.
It is much easier to trans-
port gas as urea and it is
cheaper to transport dry
cargo than LNG.We are ex-
panding as much as we can.
An LNG train for example
consumes 20 times as much
gas as we do.
OOnnccee tthhee QQAAFFCCOO 66
ppllaanntt iiss ccoommpplleetteedd iinn
22001122,, ddooeess QQaattaarr hhaavvee
tthhee rreessoouurrcceess ttoo ccoonn--
ttiinnuuee wwiitthh QQAAFFCCOO 77??
If we get allocated new
gas and we get the go-ahead
to expand, we will expand
with QAFCO 7 and 8 and
we will never stop. Right
now we have so many things
to take in with QAFCO 5
and 6 for example,so I think
we will wait another year
or so before we start talk-
ing about our future plans.
IIss QQaattaarr ccoonncceerrnneedd
aabboouutt iittss ssaalleess ddeeppeenndd--
eennccyy oonn IInnddiiaa?? FFoorr eexx--
aammppllee llaasstt yyeeaarr tthhee mmaa--
jjoorriittyy ooff aammmmoonniiaa eexx--
ppoorrttss wweenntt ttoo IInnddiiaa aanndd
tthhee rreellaattiioonnsshhiippss yyoouu
hhaavvee aarree wwiitthh IInnddiiaann
ccoommppaanniieess..
Naturally we go to India,
and we would be worried
if we did not have the ma-
jority of our clients there
because India is the closest
market to us geographical-
ly, so shipping costs are
cheaper.As a result we max-
imise our profit by going to
India.We can go to any mar-
ket,but we are going to the
markets that are closest to
us to maximise our net-
back.Also this is the cheap-
est product that our cus-
tomers can buy, so it is a
win-win situation.
AAccccoorrddiinngg ttoo kkeeyy ffoorree--
ccaasstteerrss,, tthhee uurreeaa ffiinnaann--
cciiaall sspprreeaadd iinn tthhee UUKK
ffrroomm JJuunnee ttiillll DDeecceemmbbeerr
iinn tthhee UUKK rraannggeess ffrroomm
UUSSDD224400--331100 ppeerr mmeett--
rriicc ttoonnnnee aanndd iinn 22000099
yyoouu ssoolldd uurreeaa ffoorr aann aavv--
eerraaggee ooff UUSSDD226677.. MMaannyy
ooff oouurr rreeaaddeerrss,, ppaarrttiiccuu--
llaarrllyy tthhoossee iinn tthhee aaggrrii--
ccuullttuurraall ccoommmmuunniittyy
wwoouulldd bbee iinntteerreesstteedd ttoo
kknnooww wwhheetthheerr yyoouu wwiillll
bbee aabbllee ttoo ooffffeerr mmoorree
ccoommppeettiittiivvee pprriicceess aass
yyoouurr eeccoonnoommiieess ooff ssccaallee
iinnccrreeaassee..
We are following the
world markets. Since the
beginning of 2009 prices
have been in the range of
USD200 and USD270 and
right now in the fourth
quarter prices are hitting
around USD350.The price
of urea is increasing, and it
is a cyclical thing.
We go to the UK some-
times, but we face certain
problems.The UK is part of
the EU and the EU has de-
cided to put a 6.5 per cent
import duty on gulf fer-
tiliser products and petro-
chemicals and this is unjus-
tified and unfair. The
European producers im-
posed this, and this is
against any European law
related to fertilisers be-
cause it is hurting the
European consumer.We are
trying to fight this through
the Chamber of Commerce
and the GCC (Gulf
Cooperation Council).They
are breaking their own
rules, because anything re-
lated to food should not
have any import duties.
This means that North
African and Russian urea go
to Europe without any du-
ties.We have to pay a Suez
Canal fee as well as the 6.5
per cent duty so it is not a
good market for us, hence
we have concentrated on
different markets. This re-
duces competition, but of
course this means that
some European producers
can survive by charging
Europeans higher prices.
QQaattaarr hhaass iinnvveesstteedd
iinnllaanndd iinn ddiiffffeerreenntt ccoouunn--
ttrriieess aanndd tthhiiss llaanndd iiss ggoo--
iinngg ttoo bbee ccuullttiivvaatteedd..
HHooww ddoo yyoouu sseeee yyoouurrsseellff
eenntteerriinngg tthhee ffoooodd sseeccuu--
rriittyy pprrooggrraamm aanndd wwhhaatt
ddooeess tthhiiss mmeeaann ffoorr
QQaattaarr??
Qatar has a small popu-
lation right now but what
we produce from urea in
QAFCO and sell outside
the country contributes to
food for around five to six
million people.As the pop-
ulation increases, the de-
mand for urea increases by
around 3.5 per cent each
year, so if nobody builds
plants there could be short-
ages and high prices of agri-
cultural products. Because
of the lack of energy,all the
nitrogen fertiliser produced
is concentrated in areas
close to the gas available.
WWhhaatt eeffffoorrttss hhaass QQAAFF--
CCOO mmaaddee iinn tteerrmmss
ooff ggeettttiinngg iinnvvoollvveedd iinn
aalltteerrnnaattiivvee eenneerrggyy ssuucchh
aass ssoollaarr aanndd wwiinndd,, aanndd
iinn rreedduucciinngg hhaarrmmffuull
eemmiissssiioonnss ffrroomm iinndduuss--
ttrryy??
In the future we will play
a very important role in
terms of the environment in
the country.The solution to
reducing nitrogen oxide
emissions is to use ammo-
nia or urea.We started this
in QAFCO because we have
to set an example, and we
will be supplying two of the
new power stations with
aqueous ammonia to reduce
nitrogen oxide. Hopefully
by 2030 we will supply our
ammonia and urea solution
to all the industry in Qatar.
That is our aim.When you
use ammonia in exhaust,the
gas is burned and you have
nitrogen oxide,and then you
convert the harmful nitro-
gen oxide into nitrogen and
water vapour. This will in-
crease our sale of ammonia
locally as well.
WWhhaatt mmeessssaaggee wwoouulldd
yyoouu lliikkee ttoo sseenndd ttoo tthhee
rreeaaddeerrss ooff tthhee Daily
Telegraph aabboouutt QQaattaarr
aass aa nnaattiioonn??
By 2012 we will be pro-
ducing 5.6 million tonnes of
urea, which is 15 per cent
of the world urea trade.We
hope to be in the UK mar-
ket and show the British
that we have very compet-
itive and quality urea. It is
also secure. We are very
well known for our com-
mitment, and anybody can
ask our clients.
Interview with Khalifa Al-Sowaidi, managing director of Qatar Fertiliser Company (QAFCO)
QQAAFFCCOO,, aa ssuubbssiiddiiaarryy ccoommppaannyy ooff IInndduussttrriieess QQaattaarr aanndd YYaarraa IInntteerrnnaattiioonnaall,, iiss tthhee wwoorrlldd’’ss llaarrggeesstt ssiinnggllee--ssiittee pprroodduucceerr ooff bbootthh aammmmoonniiaa aanndd uurreeaa
Through scientific
strategic plans
and integration
of the best
technologies,
QAFCO has
steadily developed
over the years,
in terms of
nameplate
capacity,
production
quantities,
quality and
competitiveness
of products
Fertilising growth in Qatar and beyond Facts &
figures
Qatar Fertiliser Company
(QAFCO), was founded
in 1969.The company is
now owned by Industries
Qatar (IQ) as 75 per cent
shareholder andYara
International as 25 per
cent shareholder. At
present QAFCO com-
plex comprises four
completely integrated
trains: QAFCO-1 (1973),
QAFCO-2 (1979), QAF-
CO-3 (1997) and QAF-
CO-4 (2004). Each of
these production lines
consists of an ammonia
plant and a urea plant.
The overall annual pro-
duction capacity of the
four plants is two million
tonnes of ammonia and
three million tonnes of
urea.
The QAFCO-5 expan-
sion project, which will be
completed in early 2011,
will raise QAFCO’s annu-
al production capacity to
3.8 million MT of ammo-
nia and 4.3 million MT of
urea making QAFCO the
world’s largest single-site
producer of both ammo-
nia and urea.Thus far,
QAFCO has become the
world’s largest single site
urea producer after the
inauguration of its fourth
expansion (QAFCO-4) in
April 2004.
The QAFCO-6 project
will increase the compa-
ny’s annual production
capacity of urea to 5.6
million MT. Consequently
the project will strength-
en the company’s position
as a key player in the
global fertiliser market.
KKhhaalliiffaa AAll--SSoowwaaiiddii,, MMaannaaggiinngg DDiirreeccttoorr ooff QQAAFFCCOO
From diversification to world expansion
QAFCO spearheaded Qatar’s energy sector diversification and is growing every year to supply the world with much needed fertiliser
Once upon a time,Qatar
was a small emirate
whose economy was based
on fishing and pearl hunting.
When the Japanese mastered
the art of culturing pearls in
the 1930s, this segment of
the economy waned only to
be replaced about a decade
later by a much more lucra-
tive product: oil. Qatar’s
economy was completely
transformed and the national
income skyrocketed.
Not much later,in the late
1960s, a visit from a handful
of Norsk Hydro represen-
tatives would result in yet
another transformation;this
time involving the first step
of the diversification of
Qatar’s hydrocarbon sector.
At this moment, however,
what would later be called a
groundbreaking step was
merely considered a busi-
ness decision based on prof-
it and exports.
During this 1969 meeting
between the Norwegians and
the Qatari Ministry of
Finance and Petroleum,what
was discussed was the utili-
sation of the associated gas:
instead of flaring it, the
Norwegians proposed using
it to produce ammonia and
urea. A partnership was
formed between the State
of Qatar, Norsk Hydro
(which would later de-merge
as Yara International, spe-
cialists in fertilisers), Davy
Powergas and Hambros
Bank, and the new company
was named Qatar Fertiliser
Company, or QAFCO. To-
day, QAFCO is owned by
Industries Qatar (IQ) as 75
per cent shareholder, with
the remaining quarter held
byYara International.
By 1973,the first plant,cap-
turing gas from the Dukhan
field in the west, was inau-
gurated with a daily capacity
of 900 tonnes of ammonia
and 1,000 tonnes of urea.
While QAFCO’s main mar-
ket initially was India, the
company soon penetrated
markets further east.When
it entered China, prospects
were so huge that QAFCO’s
management deemed pro-
duction to be too small and
a new plant was built. QAF-
CO 2 was finished in 1979,
followed by QAFCO 3 in
1997 and QAFCO 4 in 2004.
QAFCO 5 is currently un-
der construction and is ex-
pected to be up and running
in the first quarter of 2011.
Once ready,QAFCO will be
the largest urea fertiliser pro-
ducer in the world, with an
annual capacity of 4.3 million
tonnes of urea and 3.8mil-
lion tonnes of ammonia.
Come 2012, however, QAF-
CO 6 will raise the compa-
ny’s volume even higher,to 5.6
million tonnes of urea.
QAFCO now exports
around the world, including
to such places as Korea, the
Philippines, Thailand, the
United States, Australia,
Jordan,India and several Latin
American and European
countries. With a constant
demand for melamine (which
uses urea) products, the in-
ternational market has be-
come QAFCO’s main con-
centration.
Presently, QAFCO is fur-
ther diversifying its produc-
tion. For example, in 2006 it
established Qatar Melamine
Company (QMC) along with
Qatar Intermediate Indus-
tries Holding Company, a
wholly owned subsidiary of
Qatar Petroleum, in a 60:40
joint venture.
The £220 million state-of-
the-art plant, the largest of
its kind in the Middle East,
has been completed this year
in the Mesaieed Industrial
City and will annually pro-
duce 60,000 tonnes of
melamine – an amount large
enough to meet about five
per cent of the global de-
mand for this chemical com-
pound.Used in construction,
wood processing, automo-
tive and dinnerware indus-
tries, among others,
melamine’s uses vary from
Formica counter tops, high
resistant concrete and glues
to flame retardants, fertilis-
ers and textile treatments.
In May of this year, QAF-
CO signed an agreement with
German company Helm AG
to export 18,000 metric
tonnes of melamine from
QMC,thereby marking a new
milestone for future business
relationships with Europe, a
region QAFCO’s marketing
strategy has targeted for fur-
ther penetration.
The chairman of the fer-
tiliser company, also senior
advisor to the Minister of
Energy, is a key player in yet
another of Qatar’s industries:
aluminium. As chairman of
Qatalum (a second joint ven-
ture with Norsk Hydro),Mr
Salatt heads one of the largest
smelters in the world, and
one of Qatar’s most suc-
cessful flagship ventures in
sustainable,economic diver-
sification.
Today, 41 years after the
first joint venture was
formed between Qatar and
Norsk Hydro, the Middle
Eastern nation’s energy sec-
tor is more diversified and
powerful than ever, thanks
in part to its state-of-the-art
aluminium and fertiliser
plants.
With so many thriving in-
dustries deriving from or
benefiting from the hydro-
carbons sector,Qatar will be
an ideal host country for one
of the most important glob-
al gatherings of leading au-
thorities in oil and gas.The
20th World Petroleum
Congress will be held from
the 4th through the 8th of
December in Doha,marking
the first time this event is
held in the Middle East.The
WPC welcomes both OPEC
and non-OPEC countries as
well as both national and in-
dependent oil companies.
Hosted by Qatar Petro-
leum, WPC 2011 will set a
new standard for this con-
gress. It will be the largest
WPC exhibition in history,
covering 35,000 square me-
tres in the soon to be opened
Qatar National Convention
Centre.This venue – the first
ever to be built to the gold
certification of the US Green
Building Council’s Leadership
in Energy and Environment
Design – will boast an icon-
ic design and cutting-edge
facilities.
AAmmmmoonniiaa uusseess nnaattuurraall ggaass aass tthhee mmaaiinn ffeeeeddssttoocckk aanndd iiss tthheenn iinn ttuurrnn uusseedd aass ffeeeeddssttoocckk ffoorr QQAAFFCCOO’’ss uurreeaa ppllaannttss

Qatar Petroleum Inter-
national, a subsidiary of
the state owned corporation,
Qatar Petroleum, has been
carefully diversifying its port-
folio of operations and in turn
has become a major contrib-
utor to the country’s seem-
ingly exponential GDP.
Established to make strate-
gic commercial investments
across the global energy mar-
kets, QPI’s core business is
based around international
upstream/downstream, op-
erations, petrochemicals re-
fining as well as gas and pow-
er. Dealing solely with the
biggest companies in the en-
ergy market,it has become a
serious player in both acqui-
sitions and development.
Recent major investments
include a 20 per cent stake
withTotal E&P for exploration
in Mauritania as well as ma-
jority holdings in some of the
world’s newest and largest
LNG terminals in the United
States, United Kingdom and
Italy.
With a 67.5 per cent share-
holding in the largest LNG
terminal in Europe, South
Hook LNG is testament to
the importance of a strategic
partnership between the UK
and Qatar.The Milford Haven
based terminal has created
over 2,000 jobs as well as as-
sist the UK’s security and di-
versity by taking the strain
away from the increasingly de-
pleted supplies in the North
Sea.Whilethesharescurrently
belong to Qatar Petroleum,
the transition is in progress to
fall into the QPI portfolio
shortly. Further LNG termi-
nal investments include a 70
per cent stake inTexas-based
GoldenPassLNG,whohasre-
ceived its initial cargo from
Ras Laffan Industrial City in
Qatar earlier this month.The
terminal will be a welcomed
asset to the region,given the
US natural gas demand is ex-
pected to increase by over 20
per cent in the next 20 years.
Once fully operational,it will
be able to supply over ten
millionAmerican homes with
natural gas.
“The Golden Pass LNG
terminal is an important in-
vestment for Qatar Petro-
leum International in the USA.
This terminal will further ex-
pand Qatar’s global reach and
provide a diverse and secure
energy supply for the US
market,” commented His
ExcellencyAbdulla bin Hamad
Al-Attyiah,Minister of Energy
and Industry and chairman
and managing director of
Qatar Petroleum.
According to the Inter-
national EnergyAgency,China
has superseded the United
States as the world’s largest
energy consumer so no small
wonder that QPI has signed
a Memorandum of Under-
standing with Sinopec for con-
struction of an ethylene plant
capable of producing between
700,000 to 800,000 tonnes
of ethylene per year. Once
polymerised, ethylene – the
largest produced organic
compound in the world – goes
toward making packaging,car-
rier bags and bin liners and is
in severe demand within the
Asian markets. And, with
China producing less than half
of its national demand, the
plant will undoubtedly be the
beginning of further ventures
between Qatar and the Far
East. Talks have already be-
gun with Itochu Corporation,
Vietnam Oil and Gas Group
(Petrovietnam) and a con-
sortium ofThai companies to
construct a four billion US
dollar plant, aimed for com-
pletion in 2015.
Further trading and invest-
ment has continued with
Singapore,whobecameanim-
porter of Qatari LNG in the
face of rising prices from its
main sources: Indonesia and
Malaysia.
“Singapore is a key petro-
chemicals hub and securing a
position here has been a key
strategic objective,” observes
QPI’s CEO, Nasser Al-Jaidah.
“Extending our reach further
intopetrochemicalsinthecru-
cialAsia-Pacificregionwillhelp
usachieveourambitiousglob-
al goals,” he adds.
In 2009 QPI was able to
buy a stake in two petro-
chemical ventures held by
Royal Dutch Shell Plc in
Singapore and furthermore
reached an agreement to sell
to China National Offshore
Oil Corp,facilitating a further
order of 3.8 million tonnes
per annum in feedstock from
Qatar.
“I think there are still a lot
of opportunities in the value
chain that need to be identi-
fied through alliances with
other parties and where oth-
er parties want to join us due
to security of supply.We must
not miss this opportunity,”
claims Mr Nasser Al-Jaidah.
“From 2010 onwards,the fo-
cus will be on upstream.The
question is how to do it –
throughanacquisition,amerg-
er or organic growth,for ex-
ample.These are debatable.”
What is certain is thatAsia
and Africa are the areas that
hold the key to expanding
QPI’s upstream activities,and
QPI means business.There is
no doubt that in order for di-
versifieddownstreamventures
to maintain profitability,QPI’s
priority to invest in upstream
business will be key in order
to maintain equilibrium.
“Thanks to the far-sighted
vision of and the firm com-
mitment from His Highness
the Emir, and the continuous
support of H H SheikhTamim
bin HamadAl-Thani,the Heir
Apparent,the country is now
at the forefront of the world’s
LNG industry. This unparal-
leled achievement would not
have been possible,also with-
out the strenuous efforts of
countless numbers of people
involved in every stage of our
ambitious LNG projects.”
These are the words of
praise that Qatar’s Minister
of Energy and Industry,
Abdullah bin Hamad Al-
Attiyah,offered at the launch-
ing of the ’77 Task Force’ on
August 30 2010.
When Qatargas’s sixth and
seventh production trains go
onlineonDecember13,Qatar
will celebrate the moment its
liquefied natural gas (LNG)
production capacity reaches
77 million tonnes per annum.
In the 1990s, the minister
championed the vision to turn
Qatar into an LNG export-
ing nation, an idea dismissed
by many as an ‘economic
pipedream’.However,his per-
severance paid off:in the span
of less than 20 years, Qatar
has jumped from zero pro-
duction to this world record-
breaking amount of LNG, or
one-third of the world’s total
production.
This alone is quite an ac-
complishment for a country
of its size,yet the success sto-
ry does not end here. Qatar
has also harnessed its secure
supply of energy and, com-
bining it with a strong dose of
innovation and partnerships
with leading international play-
ers, has managed to diversify
the energy sector – which
benefits from the local inex-
pensive natural gas feedstock
– and boost industries with a
view to establish a more sus-
tainable economic base.
“Qatar is the biggest LNG
and gas-to-liquids producer,”
notesAbdullah bin HamadAl-
Attiyah, Minister of Energy
and Industry and chairman
and managing director of
Qatar Petroleum (QP).“We
will be one of the biggest liq-
uefied biogas (LBG) and con-
densate producers. In petro-
chemicals and downstream,
Qatar is approaching its tar-
get to reach over 20 million
tonnes in a few years from
now. Qatar will become one
of the most important petro-
chemical producers in the
world.
“We are one of the biggest
producers of fertiliser,
methanol, methyl tert-butyl
ether (MTBE) and other var-
ious products.We are com-
missioning the biggest alu-
minium smelter in the world,
Qatalum.We’re also big steel
producers.If you see our ex-
port map for all these prod-
ucts,we already export to 85
countries.”
These basic industries of
steel, aluminium and energy
are an excellent foundation
for the growth and develop-
ment of other industries, es-
pecially in the private sector.
“Today we are producing the
basic while trying to help the
private sector.We want to in-
vest in small and medium-
sized industries to take ad-
vantage of the basic industry,”
says the minister.
While Qatar’s cost-effec-
tive production and transport
of LNG is allowing the United
States and Europe to meet
the Kyoto Protocol and cut
their emissions, it’s also
emerged as the answer to
Russian domination in
Europe’s gas supply.
“We are changing the en-
tire map in the classical LNG
production,” explains Mr Al-
Attiyah.“We are not only be-
coming a producer, but we
are also becoming an innova-
tor.We were the first coun-
try to adopt the biggest LNG
trains in the world at 7.8mt-
pa,which had never been built
before.We’ve also introduced
the biggest ships in the world:
the Q-Max and the Q-Flex,up
to 266,000 cubic metres.The
biggest conventional one used
to be 165,000 cubic metres.
“This is how we use the
best of the State of Qatar and
innovation in reducing costs,
unit costs by mass produc-
tion,bigger trades and bigger
ships.We are very proud that
our LNG reaches the entire
world, from Asia to Europe,
NorthAfrica and even South
Africa.Some of our cargo has
even now already reached
Argentina,Chile,Canada and
Mexico,” he adds.
Asforcompetition,themin-
ister does not see Russia or
Algeriaoranycountryforthat
matter as a rival of Qatar.
Instead,he believes that inde-
pendence and security of sup-
ply is for the benefit of the
entireworld.“Theworldneeds
moresupplierstofeelsafeand
Ithinkthemarketisverywide.
It can accommodate all pro-
ducers and I also think con-
sumers need different suppli-
ers,” asserts Mr Al-Attiyah.
Qatarhasalsofullyvertically
integrated its chain of natural
gas production to include up-
stream, downstream, trans-
port and even regasification.
The country is involved in
threemajorregasificationproj-
ects–intheUK,ItalyandTexas
– in partnership with other
global heavyweights such as
ExxonMobil and Conoco-
The world’s largest producer of LNG is paving the way for the
creation of more industries and greater private sector growth as
it reaches 77 mtpa capacity this December
As many countries cautiously analyse what to do with their natural
resources, albeit to meet environmental targets, or simply to sustain
what resources they have remaining, Qatar’s government has been
strategically reinvesting the profits from their resources in order to
secure a sustainable future for the next generation
Industry & Energy
Milestone production and
innovation in natural gas
AAbbdduullllaahh bbiinn HHaammaadd AAll--AAttttiiyyaahh,, DDeeppuuttyy PPMM,, MMiinniisstteerr ooff EEnneerrggyy && IInndduussttrryy aanndd CChhaaiirrmmaann ooff QQPP
Philips.The plant in the UK is
considered the largest regasi-
fication terminal in all of
Europe, with a capacity for
16.3 million tonnes, whereas
theplantinItalyistheveryfirst
floating regasification plant in
the world.
“This full chain will give
Qatar the most flexible sup-
ply to the whole world,” ex-
plains the minister.
Aside from ConocoPhilips
and ExxonMobil, Qatar also
workscloselywithRoyalDutch
Shell,whoisbuildingPearlGTL,
the world’s largest gas to liq-
uids (GTL) plant in a joint ven-
ture with Qatar Petroleum
(QP).In addition,Shell holds a
30 per cent stake in Qatargas
Train 7 – one of the afore-
mentionedtrainsthatwillreaf-
firm Qatar’s position as the
largestexporterofLNG.Other
international companies who
have a stake in various Qatari
venturesincludeFrance’sTotal
andJapan’sIdemitsu,Mitsuiand
Marubeni.Forthegovernment,
it is imperative that the rela-
tionshipsbetweennationalen-
ergy sector companies and
theirinternationalpartnersare
based on long-term goals to
sustainably exploit Qatar’s re-
sources rather than on short-
term‘get-rich-quick’schemes.
Long-term, sustainable re-
lationships based on the coun-
try’s natural resources today
should blossom into friend-
ships founded on mutual trust
and exchange of ideas in the
future.
NNaasssseerr AAll--JJaaiiddaahh,, CCEEOO ooff QQaattaarr PPeettrroolleeuumm IInntteerrnnaattiioonnaall
QPI has the added benefit
of following the winning for-
mula of its parent company
and therefore continue fol-
lowing the business model
thathasprovensuccessfultime
and time again.
“We should identify an op-
portunity and know who we
are working with, because
when it comes to choosing a
partner, we try to do things
exactly the same way, and I
would say that we are privi-
leged to be part of those poli-
cies,” says the CEO.
“When we select a partner,
theyhavetobestronginterms
of technology and its financial
capabilities and its ability to
open a market… QPI’s strat-
egy in the forthcoming years
is to add more and larger up-
stream activities to its port-
folio,eventually having 50 per
cent upstream and the other
50 per cent downstream.
Launching more upstream
projects means entering the
‘bigleague’anddealingwiththe
major multinationals. As the
world’s top exporter of LNG
and the tenth biggest produc-
er, Qatar is more than ready
to step up to bat.”
There is no doubt that
Qatar Petroleum International
will continue to diversify its in-
vestments in order to firmly
cement itself as one of the in-
dustry leaders, not only for
its strategic diversification but
also for ensuring that the last
decades of prevalent fossil fu-
el consumption are used as
wisely as possible.
Investing today
for tomorrow

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