QATAR | Page 2 BUSINESS | Page 17 ECB hikes rates, ready INDEX to move DOW JONES QE NYMEX QATAR ARAB WORLD INTERNATIONAL 2,3, 16 3 4-12 COMMENT BUSINESS CLASSIFIED 14-15 17-20, 22 21, 22 Gondolania formally again if 12,409.50 -17.26 8,668.64 +76.87 100.16 +1.33 ISLAM 13 SPORT 23-28 opens door to public needed -0.14% Latest Figures +0.89% +1.22% pu bl TA 978 Q since GULF TIMES is A 1 he R d in FRIDAY Vol. XXXII No. 8224 April 8, 2011 Jumada-I 4, 1432 AH www. gulf-times.com 2 Riyals In brief Barwa lays off 90 BANKING | Crime employees US to pursue Indian tax evaders as part of US tax authorities are probing Indian expatriates who may have hidden money offshore in HSBC revamp Bank to evade US taxes, the Justice Agencies Department said yesterday. In an Doha expansion of its mounting offensive against overseas tax evasion, the Internal Revenue Service is seeking data on clients of two HSBC India offices in the United States. The offices allegedly encouraged Indian Q atari property developer Barwa Real Estate Company has laid off nearly 90 employees amid a restructuring move being pushed nationals to open accounts back through by its new chief executive, two in their native land, telling them HE the Prime Minister and Foreign Minister Sheikh Hamad bin Jassim bin Jabor al-Thani pulls a lever to officially inaugurate the Golden Pass LNG Terminal, a joint venture sources said yesterday. that they could hide the accounts between Qatar Petroleum, ExxonMobil and ConocoPhillips. The terminal is located 3km northwest of Sabine Pass in Texas. This is the most important investment project in “The ﬁnance teams and legal teams and not pay US taxes on earnings the energy sector for Qatar in the United States. have been decimated. An awful lot of from them, the department said in these are expats,” a high-level source in a statement. The government has Doha who is close to the company said, now asked a federal court in San adding that the cuts were a direct re- Diversiﬁcation key Francisco for authorisation to ask sult of the appointment of a new group HSBC Bank USA for information Chief Executive Officer Mohammed about those clients. Asad al-Emadi last month. “There is a restructuring underway, and this is part of it,” another source BUSINESS | Revenue who is familiar with the company said, Oil windfall for declining to be named. to growth: Ibrahim The property developer did not issue GCC states a dividend when it reported earnings in Every $1 increase in oil prices February, despite posting an 84% in- yields additional budget revenues crease in proﬁt for 2010. of $4.52bn for the GCC as a whole “There was no dividend issued when and Qatar could earn as much the 2010 results came out. That tells as $224mn to provide extra you something about the company. spending power, according to the Qatar is entering a new era of Investment in Qatar Forum held at New search into new solar energy technol- Maini said. There is also a joint project They’re looking very carefully at their International Bank of Qatar (IBQ). diversification, says the economic York’s historic Waldorf Astoria Hotel. ogy - a signiﬁcant diversiﬁcation from with Conoco Philips and General Electric books,” the ﬁrst source said. More than half of $4.52bn is due to adviser in the Emiri Diwan This included improved ﬁscal co- oil and gas. on water puriﬁcation systems and with The source said al-Emadi was keen Saudi Arabia, which exports more ordination in Qatar’s monetary policy “We are focusing on solar power as a the US Department of Energy on devel- to stamp his authority over the com- than 7mn barrels per day (mbpd) of QNA to make sufficient funds available to ” main thrust, Maini said. “There’s lots oping carbon capturing technologies an pany in his new position and wanted to crude oil and products, IBQ said in New York maintain economic stability, Ibrahim of sunshine in Qatar. The science park important advance in clean energy. streamline operations across Barwa’s a report. The expected GCC budget said. is building a 500 kilowatt demonstra- In the health sector, the Qatar Sci- various subsidiaries, many of which revenues are estimated to be 0.4% “The strategy also will attempt to tor to test 18 different alternative en- ence and Technology Park, is develop- are separate companies that oversee its A of the region’s gross domestic slowdown in oil and gas pro- nurture entrepreneurship and enter- ergy technologies. Among these are ing robots for image surgery and protein portfolio of projects such as Barwa City product this year and 1.2% of the duction in Qatar has forced the ” prise, he said. photovoltaic and thermal heating.” markers to detect cancer and diabetes. and Barwa Village. budgeted spending. Page 17 government and business to “We are trying to encourage Qataris The park is working on what would Conceding that Qatar cannot com- The cuts come at a time when many continue diversifying the economy to and non-Qataris to establish business- be breakthrough research to solve the pete with India and China in software would expect the ﬁrm to be adding maintain the country’s stable growth, es through facilitating capital, incuba- problems of high temperatures, dust development, he said the science park staff as Qatar launches a massive infra- CRISIS | Aid Dr Ibrahim al-Ibrahim, economic ad- tion and guaranteed loans. ” and condensation associated with is concentrating on advances in wire- structure build in preparation to host Rescue package viser in the Emiri Diwan and secretary these new technologies, Maini said. less technology, including new sensors the 2022 World Cup. general for the development planning There is also work on building a fac- to measure vital functions in humans. Barwa, like other Gulf developers, for Portugal in Qatar said. tory in Qatar that would create as much Maini appealed for partnerships was hit hard by the region-wide real es- Portugal will formalise its request for “We are entering into a new era of as 400,000 tonnes of poly-silicon used with his American audience for their tate slump. Qatar helped key property a European Union rescue package diversiﬁcation and non-hydrocarbon in making solar panels. “experience in commercialising tech- ﬁrms weather the global crisis by push- that could reach €85bn ($122bn) and a sector,” Ibrahim said at a business and The science park is partnering with nology” and using their distribution ing through defensive mergers and us- deal could be reached before a June 5 investment conference in New York on Qatar Holding and VW Porsche to de- networks. ing its sovereign fund to invest in them. election, officials said. After a renewed Wednesday. velop cheaper composite material for “We are not just funding for the sake One analyst said Barwa was keen battering from financial markets “This is another page of our devel- using in the future automobile bodies, ” of funding, Maini said, but participat- to slim down some of its overseas op- sparked by a political crisis, Lisbon’s opment, he said. ” Maini said. Currently composites are ing in these breakthrough technologies. erations in Egypt and the United Arab caretaker government decided on The slowdown in oil and gas pro- used in building aircraft but is still too The conference was earlier ad- Emirates due to the lackluster real Wednesday to seek foreign aid, duction will last until a technical “We are trying to encourage expensive for car manufacturers, and dressed by HE the Prime Minister and estate markets there. Barwa’s inter- becoming the third euro zone country study about the future production is Qataris and non-Qataris to must be dropped to $5 a kilo before it Foreign Minister Sheikh Hamad bin national operations include an 80% to do so after Greece and Ireland. completed, Ibrahim said. “It will slow establish businesses through can be adapted for cars, he said. Jassim bin Jabor al-Thani. holding in the Barwa Egypt Real Estate down but to maintain growth we have facilitating capital, incubation Other projects are the development of The prime minister later inaugurated Development Company. to maintain an expansion of non-hy- and guaranteed loans” synthetic aviation fuel in a project with the multi-billion dollar Golden Pass “There is a slowdown in the real ECONOMY | Finance ” drocarbon projects, he said. Qatar Airlways, Shell Oil and Rolls Royce, LNG Terminal. estate markets in Egypt and the UAE Dubai plans to To encourage foreign investment in The strategy also includes reducing and they want to reduce the risk,” said 14 non-energy sectors, the government the cost of foreign investment. This Thamer Jadallah, head of investments raise $800mn has launched a ﬁve-year development had been done in the oil and gas sector Investments cross $30bn at the Almana Group in Doha. “If they Dubai said yesterday it has launched strategy. The ﬁrst aspect is to cut red and needed to be extended to other ar- are going to restructure they have to a plan to raise $800mn through the tape and make regulations friendlier to eas of the economy, Ibrahim said. Dr Hussein Ali Abdullah, an executive and 7% of Barclay’s Bank, Abdullah save some money.” securitisation of receipts from road foreign companies to enter the coun- One example of a growing sector in board member of the Qatar Investment said. The QIA is aggressively looking for Barwa City, a 2.7mn sq m residen- tolls, as the government struggles try, Ibrahim said. Foreign companies the Qatari economic landscape is the Authority, said Qatar’s investments new opportunities within a six-month tial development in Doha, has a project to recover from a debt crisis. The can already own 100% of their ﬁrms in research being conducted at the Qatari in foreign holdings had increased to time frame, given the difficulties in the value of $1.36bn billion, according to emirate’s department of finance Qatar. Regulations on land use for elec- Science and Technology Park. over $30bn last year in both industry world economy, he said at the Business Zawya.com. Qatari Diar, the property said the plan was “based on the tric and water companies in particular The park’s executive chairman Dr and in private equity, fixed income and Investment in Qatar Forum held arm of Qatar Investment Authority, the monetisation of receipts from the need to be relaxed to make land acqui- Tidu Maini told the conference that and hedge funds. These include 20% at New York’s Waldorf Astoria Hotel on country’s sovereign wealth fund, owns Salik road toll collection system” sition cheaper, he said. within three years of its inception, 43 ownership of VW, 7% of Credit Suisse Wednesday. a 45% stake in Barwa. and is aimed to support transport The government also had to cre- international companies, involving Barwa declined to comment on the infrastructure projects. It hired ate a forward-looking national budget 800 engineers and scientists, have in- job cuts. This week Hitmi bin Ali a- Citibank and three local lenders as “based on the strategy and not on ad- vested in the facility’s research and de- Five-year Qatar strategy ............................ Page 16 Hitmi was appointed the new chair- the mandated lead arrangers and hoc needs,” he told a largely American velopment. man of the group, replacing Ghanim book-runners for the transaction. business audience at the Business and Among the park’s projects is re- Shell has invested $21bn ............................. Page 16 bin Saad al-Saad. Gulf states work on plan for Yemen leader to go Agencies tests against his 32-year rule has tried posal would give Saleh and his family, family would not face prosecution. prepare a new constitution... and movement, Houthis (Shia rebels), the Sanaa the patience of the United States and whose control over key posts has long Saleh has been trying for several parliament elections,” the opposition exiled opposition, and the Southern Saudi Arabia, both of which have been angered many Yemenis, immunity weeks to involve Saudi Arabia, his most source said. Movement (separatists) be part of any the target of attempted attacks by Al from prosecution. Youth activists important foreign backer, sending his “The Gulf vision is also based on negotiations,” the source said. A Gulf Arab plan for Yemen’s pres- Qaeda’s Yemen-based branch. said in a statement that was unac- foreign minister to Riyadh two weeks Saleh’s proposal that both he and Gen- A source in the ruling party said it ident to step down would guar- The Gulf proposal for talks in Riyadh ceptable. ago. eral Ali Mohsen... leave Yemen, and the might demand that other former allies antee the veteran leader and his was presented to Saleh and a coalition “We affirm that this is a people’s The Gulf states’ proposal envisages Gulf countries have committed to guar- of Saleh leave the country too, not just family immunity from prosecution, an of opposition parties this week. Saleh revolution demanding the fall and the Saleh handing over power to a vice- antees that Saleh and his family will not Mohsen - a move that would compli- opposition source said yesterday, but welcomed it, while the opposition has trial of a regime ... to build a new ci- president, the opposition source said. face prosecution after they leave,” the cate the mediation efforts. youth activists said that should be re- withheld its response, but set condi- vilian state according to the will of the Current incumbent Abd-Rabbu Man- source added. Mohsen was among the gener- jected. tions that may derail any talks, accord- people, not international parties or po- sour Hadi has said he does not want A senior opposition source said the als, diplomats and tribal leaders who The US and Gulf countries appear ing to a source. litical parties that do not represent us, ” such a role, which suggests Saleh would coalition had told Gulf ambassadors turned against Saleh after snipers killed ready to push aside a long-time ally Gulf sources said the plan envisaged said a statement in the name of protest appoint a new ﬁgure. that Saleh’s immediate resignation was 52 protesters on March 18. against Al Qaeda’s Yemen-based wing handing power to an interim council of groups in Sanaa. “They informed the opposition a non-negotiable condition, and he Though Mohsen’s army wing is pro- to avoid a chaotic collapse of the poor- tribal and political leaders who would Talks in recent weeks, which includ- that their vision is based on Saleh should not get immunity from lawsuits tecting protesters camped out in Sanaa, est Arab state. help appoint a national unity govern- ed the US ambassador in Sanaa, became leaving power after handing author- by families of those killed and wounded he is widely mistrusted as a kinsman of Ali Abdullah Saleh’s sometimes vio- ment ahead of elections. bogged down over Saleh’s demand for ity to his deputy and then forming a in the protests. Saleh who was for years a loyal pillar of lent response to two months of pro- An opposition source said the pro- assurances that he and members of his national unity government that will “A third condition is that the youth his rule. Gulf Times 16 Friday, April 8, 2011 QATAR Some Qatari dignitaries who have attended the two-day ‘Business & Investment in Qatar Forum’ at the Waldorf Astoria Hotel in New York, which concluded yesterday. Seen here are Qatar Chamber of Commerce & Industry chairman Sheikh Khalifa bin Jassim bin Mohamed al-Thani (second right), Qatari Businessmen Association first deputy chairman Hussain Alfardan (third right), Qatari Businessmen Qatar Prime Minister and Foreign Minister HE Sheikh Hamad bin Jassim bin Jabor al-Thani with some of the participants of the ‘Business & Association second deputy chairman Sheikh Dr Khalid bin Thani al-Thani (right), Sheikh Mohamed bin Investment in Qatar Forum’ at the Waldorf Astoria Hotel in New York, on Wednesday. Abdulaziz al-Thani, Sheikh Ahmed bin Ali al-Thani and Sheikh Turki bin Khalid al-Thani. Shell has invested 5-year Qatar strategy $21bn in past six years, says official boosts Vision 2030 S hell has invested close to $21bn in Qatar in the last six years, executive vice- president Andy Brown has said. T he Qatar National Devel- “Aggregate GDP growth in ” in tourism and other areas, the surplus of QR22bn and focuses when compared to the emerging In Qatar, Shell is set to start opment Strategy 2011- 2012-2016 is expected to aver- banker said. on education, health care and economies. Abu Dhabi and Qatar up the Pearl GTL project, its 2016 will help the country age 6.9%, of which hydrocarbon “The World Cup will create infrastructure projects.” banks provide good investment joint venture with QP, which meet the challenges of Qatar Na- GDP growth will be 4.4% and opportunities to form strategic Seetharaman also spoke about opportunities. will chemically convert Qatar’s tional Vision 2030, Doha Bank non-hydrocarbon GDP 9.1%, he ” alliances externally and to con- the recent banking trends in Gulf “Petrochemicals are also a abundant gas resources into high Group chief executive R Seethar- added. nect to global value chains.” Co-operative Council (GCC). good segment to consider for quality liquid fuels and products. aman has said. Highlighting the industrial He said during 2011-2016, the In Qatar, lending and funding investment apart from banking Brown was speaking at the Addressing a panel session trends in Qatar, Seetharaman total gross domestic investment in foreign currency has increased due to higher capacity utilisation “Business & Investment in Qatar on “Finance & Banking” at the said: “The services sector is go- might be about QR820bn, of in recent times. in the industry. The insurance Forum” on Wednesday. Business & Investment in Qatar ing to be the major driver. By which private non-hydrocarbon Private sector has shown a re- industry also should be watched Shell is investing between Forum in New York on Wednes- 2016, the sector could account sector is expected to account for vival in recent times. In the near in Qatar, Kuwait and Saudi Ara- $18bn and $19bn in the Pearl day, he said that Qatar’s econo- for 40% of the total output, up QR389bn. future, improvement in net in- bia”. GTL project at Ras Laffan, he my is expected to have “robust from 36% in 2009. “During the period, Qatar’s terest income and decline in pro- The panel session was also said. growth” in 2011, with the out- “The transport and commu- population is expected to be visioning is expected in the GCC attended by QNB Group chief A fortnight ago, Shell opened look broadly favourable in the nications and ﬁnancial services steady and grow at an average of banking industry. executive Ali Shareef al-Emadi, its ﬁrst wells offshore and is now next ﬁve years. sectors could grow vigorously. 2.1%. On investment opportunities Qatar International Islamic Bank making “excellent progress” in “Beyond 2011 the real GDP “Potential is also seen in con- “The rapid population growth in the GCC region, Seethara- chief executive Abdulbasit A progressively starting up the (gross domestic product) growth struction and manufacturing. of the recent past is not expected man said: “The price earnings al-Shaibei and Qatar Stock Ex- process units. Brown: the investment journey can drop as current investments The conduct of FIFA World Cup ” to continue, Seetharaman said. and price book multiples of Qa- change chief executive Andre “We already produce conden- continues in hydrocarbon get completed. 2022 may provide opportunities “Qatar’s budget 2011-12 has a tar exchange are still attractive Went. sate and LPG and later this year we will produce GTL products at The company also signed a the Pearl GTL plant. At peak, we memorandum of understanding will manufacture 140,000 bar- with QP to develop a world scale rels per day (bpd) of high quality chemicals plant at Ras Laffan GTL fuels, chemical feedstock featuring the largest mono-eth- and lubricant base oils as well ylene glycol (MEG) plant ever to as 120,000 barrels per day (oil have been built. equivalent) of conventional con- Under the MoU, the two com- densate, LPG and ethane. This panies would build a mono-eth- project will deliver value to Shell ylene glycol plant of up to 1.5mn and the state of Qatar for many tonnes per year (tpy) capacity ” decades to come, Brown said. using Shell’s proprietary OME- He said Shell was “delighted” GA (Only MEG Advantaged) to be invited for investments technology. in Qatar’s liqueﬁed natural gas The plant will also be able to portfolio. produce other oleﬁn deriva- “A fortnight ago we celebrat- tives, which will boost capacity ed reaching 100% output from to more than 2mn tonnes of ﬁn- Qatargas 4, where we are a 30% ished products. shareholder in the 7.8mn tonnes “So the investment journey per year (tpy) LNG train. continues ... but we also now “Currently, we have Shell staff look overseas, where together helping with the operation of with PetroChina and QP inter- Qatargas. About 1,200 Shell of- national we are planning a world ﬁcers and crew provide opera- scale petrochemical and reﬁnery tions and maintenance services project in Zhejiang province, in running the Nakilat ﬂeet of China. 25 LNG tankers, one of the most “Today we enjoy a rich array of impressive marine ﬂeets any- joint investments with QP in Qa- where in the world,” Brown said. tar and overseas. QP is a model of He said that Shell wants to in- an effective NOC, establishing vest more in Qatar. the investment climate, stimu- In line with this, Shell signed lating innovation, encouraging an exploration licence agree- investors to break new ground, ment to explore the deep pre- to push the boundaries and set Seetharaman, al-Shaibei and al-Emadi with other panellists at the session on ‘Finance & Banking’ at the forum on Wednesday. Khuff horizons. new records,” Brown added. Qatar is now one of the easiest places in the Middle East for business: QFC QNA “In doing that, it created a crease in the number of foreign Qatar has also opened up for New York parallel legal system alongside companies setting up in Qatar. foreign banks to come, he said. the existing state laws, which “We have seen 130 or more Today there are six commer- were out of date, restrictive and new companies established cial, four Islamic and seven in- S ince “far-reaching chang- inhibitive in terms of entry,” he in Qatar in the last ﬁve years,” ternational banks in the country, es” made by the govern- said. Thorpe said. al-Emadi said. ment ﬁve years ago, Qatar “The QFC legal system is The big changes in Qatar’s Qatar Stock Exchange chief has become one of the easiest based on English common law economy work both ways. Not executive Andre Went con- places in the Middle East for a with a separate court and sepa- only are more foreign companies curred: “Likewise the Qatar foreign company or entrepre- rate regulator,” he explained, coming to do business in Qatar, Stock Exchange has seen phe- neur to set up and grow his busi- meaning that Qatar now has but many more Qatar-based nomenal growth in the just past ness, the Qatar Business and business standards “you would businesses are operating abroad. few years.” Investment Forum was told on expect to ﬁnd anywhere in de- For his part, QNB chief execu- “Such success at home is not Wednesday. veloped markets” . tive Ali Sharif al-Emadi said that enough for the exchange, how- Qatar Financial Centre (QFC) The new system has dramati- eight years ago the bank was only ever,” he added. “The exchange – Regulatory Authority chair- cally thrown open the doors for operating in two foreign coun- wants to develop from a domes- man and chief executive Philip foreign companies to set up in tries. tic player to a more diversiﬁed Thorpe told the forum partici- Qatar. QNB has since expanded to and more international regional pants at the Waldorf Astoria Ho- “There are no more restric- 30 countries in four continents player. We want to make it eas- tel in New York that “access to tions, which you used to see in around the globe. ier for international investors to markets” in the Middle East “can the region and in Doha,” Thorpe “Qatar banks are not expand- take part.” Qatar Science & Technology Park (QSTP) executive chairman Dr Tidu Maini (right) and US Deputy be very problematic” for foreign said. “There are no restrictions ing just for the sake of expand- Established by a handful of Secretary of Energy Daniel Poneman sign a Memorandum of Understanding in New York on Wednesday companies. on ownership, repatriation of ing,” al-Emadi said. “We go companies in 1995, today the to promote collaboration on the development and deployment of cost-effective and sustainable energy But that changed in Qatar in capital, or on who you can em- where the Qatar economy is go- Qatar Stock Exchange has 40 technologies. With them are Qatar Energy Minister HE Dr Mohamed Saleh al-Sada (standing, right) and US 2006 when the government es- ploy.” ing, with our domestic clients companies listed with more than Ambassador to Qatar Joseph LeBaron. tablished the QFC, Thorpe said. The result has been a huge in- and foreign partnerships.” $110bn in market capitalisation.
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