2014...qatar fuel (woqod) utilities gulf warehousing company industrial 70.2% 42.4% 38.5% 30.0%...

36 > QATAR TODAY > JUNE 2015

QATAR TODAY

TOP

2014

A SPOTLIGHT ON

QATAR

Inc.QATAR TODAY TOP 10 IS BACK

QATAR TODAY > JUNE 2015 > 37

A SPOTLIGHT ON

QATAR

Inc.

was a dramatic month for Qatar Exchange. The stocks plunged during the last week of May after MSCI index adjustments and news of arrests and criminal probes at world football body FIFA. Other markets in the Middle East were also mostly negative. FIFA President Sepp Blatter secured re-election for a fifth term, partially easing concern that Doha might conceivably lose the tournament hosting rights. But just as we go to press, the news of Blatter’s resignation has Qatar’s stock exchange spluttering on the news, dropping 1.6%, with renewed concern that the country may lose the right to host the 2022 World Cup.

Through a tumultuous month, and the year 2015 heading in the same direction with no equilibrium seen in the near future, Qatar Today boldly goes back to its yearly process of reflecting on the achievements of the top performers of 2014 at the Qatar Exchange. The annual ranking process, the Qatar Today Top 10, recognizes those companies that have made a mark in their investors’ portfolio by showing resilience, immense growth and returns. This year we also honour the winners through the Qatar Today Business Excellence Awards.

ALSHALL Economic Services, General Manager, Camille Raphael, the brains behind the formulation and the process of calculation of the Qatar Today Top 10, feels that 2014 has proved to be an excellent year for the Qatar Exchange. He says, “In May 2014, the QE was effectively upgraded by the global index compiler MSCI to emerging market status from frontier market, marking a new era. Other initiatives leading up to the upgrade in the same year were the law allowing up to 49% ownership of non-Qatari investors in listed companies and other liquidity-enhancing measures taken by QE.”

The Qatar stock market gains were higher than its regional peers, ignoring the regional negative sentiment caused by declining oil prices, registering a year-on-year increase in 2014 of 18.4% and outperforming most world stock exchanges, although some of higher gains were lost in the last months of the year.

According to Raphael, the calculation methodology chosen and used in the previous years was maintained for this year too. He says, “We just looked at historical performance from an investor’s perspective and we tried to answer a simple logic: which company would have made an investor happier from a financial performance perspective had the investor bought one share of that company at the beginning of 2010 and sold it at the end of 2014, along with any additional shares received free of charge during this period.”

He adds, “To the share market price appreciation, we added the amount of cash that the company distributed to its shareholders from its net profits over the period under study, as well as the attractiveness of the company’s shares based on total revenue and net profit growth, with the rationale that the value of a company (hence its share price) could potentially increase if the company’s sales revenues and net profits keep increasing extraordinarily year over year.”

The methodology also includes other measures of profitability such as return on equity, which shows the size of the profits of a company in relation to the amount the shareholders have invested in it, and return on assets, which

The Qatar Today TOP 10TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014

The Top 10 rankings of the companies listed on the Qatar Exchange since the beginning of 2010 were calculated based on seven financial ratios in line with their respective weighted average criteria.

Widam Food CompanyConsumer Services

Medicare GroupHealth Care

Masraf Al RayanFinancial

Gulf International ServicesConsumer Services

Islamic Holding GroupFinancial

Al Meera Consumer Goods CompanyConsumer Services

Industries QatarIndustrial

Qatar Fuel (Woqod)Utilities

Barwa Real Estate Co.Consumer Services

National Leasing Holding Co.Consumer Services

01

02

03

04

05

06

07

08

09

10

Price Growth 20%, Dividend Yield 20%, Liquidity 20%, Net Profit Growth 10%, Total Revenue Growth 10%, Return on Equity 10%, and Return on Assets 10%.

Weighted Average Criteria:


QATAR TODAY

TOP

2014

measures how effectively a company’s assets are put to use. Lastly, liquidity of the stock expressed in terms of average traded volume and number of transactions was also taken into consideration, given that if someone would like to exit the investment, he or she should be able to do so easily.

“For calculations of price per share, cash distributions, net profit and total revenue growth, we looked at total shares held at the end of 2014 on the basis of the purchase of one share in that company at the beginning of 2010, and the computations were made on a per share basis. This was done to offset any ownership dilution from corporate actions such as mergers and acquisitions, or capital increases,” says Raphael, “It should be noted that from time to time, Qatar listed companies distribute cash to their shareholders during the year, depending on their previous year’s performance (what is referred to as cash dividends), as well as free share dividends.”

The Qatar Today Top 10 methodology as formulated by ALSHALL also measures all the financial and trading performance as an average of the five-year period to smooth-out extraordinary one-time performances, and assess the listed companies during a period of extended recent history.

“We have thus calculated the overall top 10 rankings of the companies listed on Qatar Exchange since the beginning of 2010 based on a selection of financial measurements, which may not be the only ones used to assess the attractiveness of a company. It is important to diversify the financial measurements to be used in conjunction with statement analysis to achieve a more objective approach in determining a company’s rank in the market as a whole,” explains Raphael. “Relevant to an investor’s point of view, the overall ranking of companies listed on the stock market was based on seven financial indicators in line with their respective weighted average criteria. The weights used are 20% each for price growth, dividend yield and liquidity, while net profit growth, total revenue growth, return on equity and return on assets are weighted 10% each.”

It is important to note that the rankings apply only to 40 companies out of the 43 currently listed on the Qatar Exchange because only companies that have been listed on the Qatar Exchange since the beginning of 2009 and have at least five years of public disclosure on record were selected.

Source:Audited Financial Statements for the past five years (2010-2014), Qatar Exchange and ALSHALL Calculations. All the following calculations are carefully reviewed based on financial analyses and statistical data. ALSHALL cannot, however, be held liable for any errors or omissions appearing in the report nor does this constitute an offer or recommendation to invest in any of the listed securities.

“For this year, Al Meera Consumer Goods Company was included for the first time in our computations as it satisfied the five-years criteria for selection,” he says.

The Winners This year’s top performers came from various industries. Seven of last year’s top 10 companies were included in this year’s rankings. Widam Food Company, maintained the top spot like last year, and took over Medicare Group, which ranked third top performer during 2013, took the second spot during 2014. Two companies came from the financial sector, namely Masraf Al Rayan and Islamic Holding Group, while another five companies, Widam Food Company, National Leasing Holding Co., Gulf International Services, Barwa Real Estate Co. and Al Meera Consumer Goods Co. came from the consumer services sector. One company, Industries Qatar, came from the industrial sector while Qatar Fuel (Woqod) came from the utilities sector. Finally, Medicare Group, which came from the healthcare sector and ranked second place this year, was included in the Top 10 for the third time since the ranking process was started.

“We have thus calculated the overall top 10 rankings of the companies listed on Qatar Exchange since the beginning of 2010 based on a selection of financial measurements, which may not be the only ones used to assess the attractiveness of a company.”

Camille RaphaelGeneral ManagerALSHALL Economic Services


Top 10 Companies in Terms of Price Growth

Top 10 Companies in Terms of Dividend Yield

TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014


Historical data of year-end share closing prices and share dividend distributions for the past five years were used to assess each company’s ranking in terms of price growth (or average yearly portfolio value increase based on 1 share purchased in each company at the beginning of 2010). Medicare Group took the number one spot in this category, moving up from second in last year’s ranking in terms of price growth, followed by Gulf International Services.

One major criterion in our methodology for determining a company’s overall ranking is the calculation of its dividend yield, which demonstrates how much a company pays out dividends each year in relation to its average market capitalization. Doha Bank achieved the highest rank in terms of dividend yield. It is also evident that five of the top 10 companies in terms of dividend yield came from the Financial Sector, one from the Healthcare Sector, while the rest came from the Consumer Services sector.



Dlala Brokerage & Investment Holding CompanyFinancial


Gulf Warehousing CompanyIndustrial

70.2%

42.4%

38.5%

30.0%

27.9%

01

03

05

07

09




Masraf Al RayanConsumer Services

Qatari Investors GroupIndustrial

43.4%

39.4%

36.7%

28.8%

26.2%

02

04

06

08

10

Doha BankFinancial


Qatar International Islamic BankFinancial

The Commercial Bank of QatarFinancial

Mannai CorporationConsumer Services

8.1%

7.8%

6.8%

6.5%

6.1%

01

03

05

07

09

Masraf Al RayanFinancial

Salam International Investment LimitedConsumer Services



Al Khalij Commercial BankIndustrial

8.0%

7.3%

6.7%

6.2%

5.7%

02

04

06

08

10

Price Growth = Average Growth of Share Closing Price each year multiplied by the Total Shares Held on the basis of 1 Share Purchased at the beginning of 2010 plus additional

shares distributed in dividends over the 2010-2014 period

Average Dividend Yield = Average of the Yearly Cash Dividends over the Average Market Capitalization (2010-2014)


QATAR TODAY

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2014

Top 10 Companies in Terms of Total Revenue Growth

Top 10 Companies in Terms of Net Profit Growth TOP 10 RANKINGS FOR THE PERIOD

STARTING YEAR 2010 AND ENDING 2014TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014 Total revenue growth is one of the basic criteria in assessing a

company’s attractiveness, with the assumption that the higher the total revenue growth, the more the potential for future profits. Total revenues consist of all positive inflows on a company's profit and loss statement and include not only revenue from operations but also other revenues such as income from investment, sale of assets, etc. Qatar General Insurance & Reinsurance Co. significantly led the rankings in this assessment criterion, with cumulative shares held multiplied by revenues per share growing at an average of 45.7%, followed by Gulf Warehousing Co. at 45.3% average RPS growth.

Net profit growth has been calculated on a cumulative shares held basis to reflect whether the shareholder’s original claim over each company’s net profit has increased or decreased over the five-years period, and by how much on average. This has been done to offset any possible dilution resulting from corporate action. Medicare Group still ranks the highest, achieving a remarkable 1,054% percent average increase in net profit per share held.

Qatar Gen. Insurance & Reinsurance CompanyFinancial

Ezdan Real Estate CompanyConsumer Services

Aamal CompanyConsumer Services



45.7%

40.1%

29.0%

24.2%

20.9%

0101

02

03

04

05

06

07

08

09

10

03

05

07

09





United Development CompanyIndustrial

Ezdan Real Estate CompanyConsumer Services

Al Khalij Commercial BankFinancial





United Development CompanyIndustrial




45.3%

30.8%

24.7%

23.1%

19.1%

02

04

06

08

10

Total Revenue Growth = Average Growth of Total Revenue per Share * multiplied by the Total Shares Held on the basis of

1 Share Purchased at the beginning of 2009 plus additional shares distributed in dividends over the 2010-2014 period

Average Net Profit Growth = Average Yearly Growth of Earnings per Share (EPS) multiplied by the Total Shares Held on the basis of 1

Share Purchased at the beginning of 2010 plus additional shares distributed in dividends over the 2010-2014 period

1053.9%

218.7%

98.1%

97.1%

76.2%

36.8%

33.2%

31.7%

31.4%

31.2%

*Earnings per Share = Net Profit dividedby total number of subscribed shares



Top 10 Companies in Terms of Average Return on Equity (ROE)TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014

Return on Equity measures the ability of the company to generate sufficient returns for the capital invested by its shareholders. Qatar Fuel (Woqod) maintained its top position as in last year’s ranking in this category, followed by Qatar Electricity & Water Co.

Qatar Fuel (WOQOD)Utilities


Mannai CorporationConsumer Services


Qatar Islamic Insurance CompanyFinancial

41.9%

26.9%

24.0%

22.6%

21.1%

01

03

05

07

09

Qatar Electricity & Water CompanyUtilities



Qatar National BankFinancial

United Development Co.Industrial

30.8%

26.7%

22.8%

21.1%

20.1%

02

04

06

08

10

Average Return on Equity = Yearly Net Profit divided by the Average Yearly Shareholder Equity

Ranking is determined by taking the arithmetic average ROE for the five-year period from 2010 to 2014

Top 10 Companies in Terms of Average Return on Assets (ROA)

ROA determines the company’s ability to put to use its assets effectively and efficiently, thus earning a good return on them. In this criterion – crucial to asset-intensive companies – Industries Qatar ranked first followed by Qatar Islamic Insurance Co., which took over Qatar Fuel's (Woqod) second place in last year’s results.

01

02

03

04

05

06

07

08

09

10


Qatar Islamic Insurance CompanyFinancial

Qatar National Cement CompanyIndustrial



Qatar Industrial Manufacturing CompanyIndustrial




Al Khaleej Takaful GroupFinancial

21.2%

18.7%

16.4%

15.4%

13.2%

12.7%

12.3%

11.8%

11.5%

10.5%

Average Return on Assets = Yearly Net Profit dividedby the Average Yearly Total Assets

Ranking is determined by taking the arithmetic averageROA for the five-year period from 2010 to 2014


QATAR TODAY

TOP

2014

Robin Butteriss and Milhan Baig of Deloitte (Qatar) talk about the Qatar Exchange Venture Market that is in the process of being launched by Qatar Exchange.

The Small and Medium Enterprise (SME) segment is an integral part of any economy; it stimulates

growth, improves diversity and encourages entrepreneurship. The Qatar Exchange Venture Market (QEVM), which is the stock exchange for SMEs, is a strategic government initiative which, once launched, should support and enhance SME development in Qatar.

The criteria for a company to list on the QEVM is less onerous than the main market; for example, a share capital of QR2 million is required for the QEVM compared to QR40 million on the main market. However, the process of listing on the QEVM is still a challenging one and requires the company to be equipped for this transformational step in its evolution.

An initial diagnostic review will determine what changes and/or enhancements are needed to meet the requirements as stipulated by the Qatar Exchange and the Qatar Financial Markets Authority (QFMA). Some of the key considerations for readiness include having the right legal structure, an adequate financial track record, a clear view of the company’s outlook with a robust business plan, compliance with QFMA’s corporate governance code, as well as having appropriate management and financial operating processes in place.

Listing on the QEVM requires appointing and working closely with a QFMA-approved listing adviser and valuer, as well as a legal adviser. Whilst, the role of the listing adviser has been clearly defined by the QFMA, the journey to a successful listing requires a strong commitment from the company and its shareholders with close coordination with its advisors.

The process for selecting companies to list on the QEVM and preparing for listing is already underway. Deloitte and other approved listing advisors are currently working closely with companies, the Qatar Exchange and Qatar Development Bank with a unified vision of success for SMEs, the QEVM and, above all, Qatar.

Robin Butteriss Head of Financial Advisory Services | Deloitte (Qatar)

Milhan BaigDirector of Financial Advisory Services | Deloitte (Qatar)

Looking forward

The opinions expressed here are the views of the authors and do not necessarily reflect the views and opinions of Deloitte & Touche (M.E.)

Top 10 Companies in Terms of LiquidityTOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014

The measure of liquidity should indicate how easily shares can be purchased or sold on the QE based on average trading volume per year and number of trades per day from 2010 to 2014. Generally speaking, companies with both high daily volumes of traded shares and high number of trades have a better liquidity as compared with thin trading volumes and number of trades. Based on this assessment methodology, Masraf Al Rayan was the top performer for this criterion, followed by Widam Company which had ranked first last year.

Masraf Al RayanFinancial01


03

Industries QatarIndustrial05

Qatar Gas Transport Company Limited (Nakilat)Industrial

07

National Leasing Holding CompanyConsumer Services

09


02

Barwa Real Estate CompanyConsumer Services

04

Qatari German Company for Medical DevicesHealth Care

06

Qatar Oman Investment CompanyConsumer Services

08


10

Liquidity = 50% Ranking of Average Daily Transaction plus 50% Ranking of Average Daily

Volume per Outstanding Shares (2010-2014)

ALSHALL ECONOMIC SERVICES:ALSHALL Economic Services QSC is a private Qatari shareholding company providing different economic, business and corporate finance advisory services to local and regional institutions. ALSHALL has built its track record and accumulated experience through continuous involvements in the business sectors in Qatar, Kuwait and MENA region during different economic cycles. This directly has strengthened the business consulting services, the core activity of ALSHALL. ALSHALL's services are complemented by

outsourcing and alliances with other specialized entities that assist ALSHALL in providing comprehensive services to its clients. The advisory services encompass business and transaction advisory such as feasibility studies, assistance in strategic planning, business and project valuation, privatization, real estate advisory, economic and equity research, establishing companies, private equity placement, share flotation, debt finance, financial restructuring, restructuring family companies, mergers and acquisitions, and divestitures.

DISCLAIMER:In preparing this article, ALSHALL may not have considered issues relevant to any particular reader. Any use that readers may choose to make of this article is entirely at their own risk and ALSHALL shall have no responsibility whatsoever in relation to any such use. Accordingly, ALSHALL does not owe a duty of care to the readers of this article. Neither ALSHALL, nor affiliated partnerships or bodies corporate, nor the directors, shareholders, managers, partners, employees or agents of any of them, make any representation or provide any warranty, expressed or implied, as to the accuracy, reasonableness or completeness of the information contained in this article or of any other information relating to this article whether written, oral or in a visual or electronic form (including, without limitation, in a magnetic or digital form) transmitted or made available to the readers. ALSHALL expressly disclaims any and all liability for, or based on or relating to any such information, including, without limitation, any information contained in, or errors in or omissions from, the article or based on or relating to any reader's use of the document. All analyses appearing in this article do not in any way constitute an offer or recommendation to invest in any of the listed securities. ALSHALL hereby disclaims any responsibility of any direct or indirect claim resulting from using this article

DELOITTEThe numerical accuracy of the calculations have been verified by Deloitte.


Performance of the Qatar Exchange for 2014

erformance indicators measuring the QE showed a positive performance for 2014. Major indicators such as market value, general index, total trading value, number of deals and total trading volume have increased during the year.

ALSHALL Index (Cap. Weighted / 43 stocks) finished the year at 1,546.26 points on 31/12/14, showing an increase of 9.54% compared to 2013 year end when it closed at 1,411.66 points.

At the end of 2014, the QE Price Index finished at 12,285.78 points, gaining 18.36% of its closing value at the end of 2013 (10,379.59 points), and gaining 47.0% of its value as compared to the end of 2012 (8,358.94 points).

Total volume during 2014 (248 trading days) increased to 4.440 billion shares; this was higher by 129.2% as compared to the total traded volume of shares during 2013 (246 trading days) which was 1.938 billion shares. The daily average of traded shares during 2014 stood at 17.903 million shares compared to a daily average during 2013 of 7.876 million shares. Total number of deals stood at 2.059 million for 2014 compared to the total number of deals during 2013 (0.962 million).

The value of traded shares for 2014 amounted to QR 199.293 billion, which was 166.1% higher than the value for 2013 (QR74.886 billion), and the daily average traded value was QR803.60 million compared to a daily average traded value during 2013 of QR304.41 million. The highest traded volume by sector was for the consumer services sector (40.7%), followed by the financial sector (22.4%), industrial sector (21.4%), telecommunications sector (12.5%), healthcare sector (1.9%) and utilities sector (1.0%).

One new company was listed (Mesaieed Petrochemical Holding Co.) during 2014, bringing the new number of listed companies to 43 in all. Thirty one stocks of the total 43 listed companies advanced and ended at higher prices than in 2013, while 11 stocks declined. Total subscribed shares during 2014 reached 12.021 billion shares; this was higher by 14.6% as compared to the total subscribed shares during 2013 which was 10.491 billion shares. Market capitalisation of the 43 listed companies increased to QR676.79 billion during 2014, an increase of 21.8% compared to 2013 market value which was QR 555.61 billion.

Jan. 14 Feb. 14 Mar. 14 Apr.14 May 14 Jun. 14 Jul. 14 Aug. 14 Sep. 14 Oct. 14 Nov. 14 Dec. 14

90,000,00085,000,00080,000,00075,000,00070,000,00065,000,00060,000,00055,000,00050,000,00045,000,00040,000,00035,000,00030,000,00025,000,00020,000,00015,000,00010,000,0005,000,0000

YEAR 2014

Volu

me

Rebased QE Price Index AL SHALL Index

5,000,000,000

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

0

Year 2014Year 2013

Traded Volume by Sector

Consumer Services Financial Health Care Industrial Telecommunications Utilities

The value of traded shares for 2014 amounted to QR199.293 billion. The value of traded shares during 2014 was 166.1% higher than the value of 2013 (QR74.886 billion), and the daily average traded value was QR803.60 million compared to a daily average traded value during 2013 of QR 304.41 million.


QATAR TODAY

TOP

2014The Comparative Performance of Selected Stock Markets

The year 2014 was characterised by fluctuating performance. The seven Gulf markets led the gains for most of the year since its beginning though they lost most of their gains in its last quarter after oil prices declined. Gains went to the states which benefited most

from falling oil prices. In brief, in 2014, nine out of fourteen markets that we are tracking achieved varying gains, while 5 markets registered varying losses, three of which were Gulf markets, with two of them settling at the bottom of the group.

The biggest gains in 2014 belonged to the Chinese market which added about 52.8% to its level at the end of 2013. Most of its gains came in the later months of the year. The second gainer was the Indian market, which added 29.9%. The two markets were the largest beneficiaries of falling oil prices. The third gainer was the Qatari market, which increased by 18.4% although losing some of its higher gains in the last months of the year. The Bahraini market came next and added 14.2%, and then Dubai market which added about 12% after it had taken the lead by about 50%. Three major markets achieved medium and weak gains led by the US market which increased by 7.5% due to strong economic performance and the continued quantitative easing program for most of the year. The Japanese market came next by 7.1% due to falling oil prices despite signs of failing economic policy of the Prime Minister. The German market achieved low gains by about 2.7% due to continued concern with the European growth, the Ukrainian crisis problems, and sovereign debts.

The biggest loser was Muscat market which dropped by -7.2%. Oman was the most affected member within the GCC by falling oil prices. Next in losses was the Kuwaiti weighted index which lost about -3.1%. In addition to the British and the French markets, the Saudi market shared the negative zone with the Omani and Kuwaiti markets with losses by -2.4% though it had surpassed them in gains for most part of 2014. The Saudi budget for 2015 was issued lately with SAR 145 billion deficit, influenced by the negative oil market conditions.

In summary, Gulf markets began 2014 with oil prices above $100 per barrel and oil production at its peak, but ended the year with oil prices at about half of that level with pressures to reduce production.

This was reflected in the relaxed performance of the economies of consuming countries, simultaneous with increased panic in GCC markets commensurate with the fall of oil prices. 2015 began as 2014 ended, i.e. continued weakness of oil markets and continued redness of Gulf markets performance.

Accordingly, the performance in the second half of the current year will depend on the final situation of the oil market. If prices hold without significant losses in production, performance should be stable until the end of the year. However, the situation could be worse if weak oil market coincided with uncomfortable geopolitical conditions. On the other hand, it is likely that the performance of consumer states markets would continue to achieve gains under all circumstances. The difference then will be in the volume of these gains and not in their achievement.

Performance of Selected Stock Markets during the month ofDecember 2014 compared to the end of 2013

SSE Composite (China)

BSE Sense (India)

Qatar Exchange

Bahrain Bourse

Dubai Financial Market

DJI (USA)

Nikkei225 (Japan)

Abu Dhabi Securities Exchange

DAX (Germany)

Saudi Stock Exchange

CAC40 (France)

FTSE100 (UK)

Kuwait Stock Exchange (Weighted Index)

Muscat Securities Market

Kuwait Stock Exchange (Price Index)

60%

52.8%

29.9%

18.4%

14.2%

12.0%

7.5%

7.1%

5.6%

2.7%

-0.5%

-2.4%

-2.7%

-3.1%

-7.2%

-13.4%%

50% 40% 30% 20% 10% 0% -10% -20%


The statements revealed a net profit of QR62.2 million in 2014 versus QR54.9 million in 2013 and the Earnings per Share amounted to QR3.46 in 2014 compared to QR3.05 in 2013. The board recommended a 25% cash dividend. At the beginning of

the year Widam announced a restructuring at the top with the appointment of Abdulrahman Al Khayarin as the General Manager. A UK-educated management graduate, Al Khayarin had previously held senior positions in Qatari Diar. Since then he has been making plenty of public appearances, most recently when he announced that Widam was ready with the preparations for providing the stock of Australian and Arabian sheep that will be sold at a subsidised rate to Qataris, as announced by the Ministry of Economy and Commerce earlier.

Widam said it has imported 60,000 head of live Australian sheep, while a contract with a major company will ensure the supply of 70,000 frozen carcasses of slaughtered Australian sheep, sent by air from Australia on a daily basis.Widam Food Company also inaugurated a sophisticated meat shop in Al Qutaifiyah area in Doha’s West Bay, as part of the newly launched Al Furjan markets. The outlet was opened by Widam chairman Sheikh Nayif bin Eid Al Thani, accompanied by Al Khayarin, company and municipality officials. This is the fifth of such outlets which is currently selling subsidised Australian sheep meat products and the company plans to expand in the future to include other types of meat. This is a natural extension in the spectrum of Widam's work from importing good qualities of cattle, keeping them in well-equipped barns with quality

veterinary services, revamping the mechanised abbattoir at Abu Hamour, and following up all the process until the slaughter and preparation process. “The sales outlets and meat shop is the final stage. We are keen to adopt the best practices in the field. Besides expansion of outlets to make them easily accessible for individual consumers, we have introduced a home delivery service, where customers could order their requests by phone and get them in the shortest possible time delivered to their doorstep in our modern fleet of freezer vehicles to guarantee fresh and hygienic products,” explained Al Khayarin.

A MEATY VICTORYFor the third time in a row, Widam has secured the top spot on our list, backed by sound

numbers and forward-thinking strategy. Financial statements disclosed for the year ended December 31, 2014 illustrated its continued and remarkable recovery from just a few

years ago when it was at the risk of being nationalised.

RANK

st12012 - 2013

AVERAGE PRICE GROWTH: 6

LIQUIDITY: 2

DIVIDEND YIELD: 3

NET REVENUE GROWTH: 7

AVERAGE RETURN ON ASSETS: 7

AVERAGE RETURN ON EQUITY: 7

WIDAM FOOD COMPANY

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEAR AVERAGE (2010-2014)

Price Growth Dividend Yield EPS Growth with Dividend

RPS Growth with Dividend

ROE ROA

37% 8% 33% 24% 23% 12%

ABDULRAHMAN AL KHAYARINGeneral Manager, Widam


QATAR TODAY

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2014 RANK

nd22013 - 3rd RANK

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA - FIVE YEARS AVERAGE (2010-2014)



ROE ROA

70% 6% 1054% 23% 10% 9%

This year it went up one more position compared to 2013. The company runs a specialised hospital and outpatient clinics, provides health and medical services and engages projects and companies operating generally in the medical services sector.

Qatar Today met Khalid Mohammed Al Emadi the CEO of Medicare Group and Al-Ahli Hospital to shed more light on the steps that he takes to enable the company to continue this growth. Al Emadi explained the reason why the group was included for the third year in a row in Qatar Today’s Top Ten: “Flexibility in decision making through listening to others, and refining and discussing the information with others before taking a decision. A good decision is always preceded by an idea, which in turn must be carefully analysed to identify its pros and cons before endorsing it in service of the objectives and common good.”

Talking about the challenges, Al Emadi says: “The challenges we face are diverse, of which the most important is the difficulty to recruit medical doctors due to the routine of finalising the formalities, which we do our best to surmount as fast as possible through dedication and continuous follow up. "

For any project to succeed the trust of clients must be secured. Al Emadi says: “We consider the increasing frequency of visits to the hospital and the trust the patients have in the services we provide for them as strong motives to maintain and improve the standard of these services with regard to the safety of patients. This trust, has prompted us to expand our premises and services, increase our bed capacity, improve the distribution of the clinics which has enabled us to retrieve nearly 18 additional beds, and open a new wing incorporating 22 beds. Other developments include the dedication of a building within the main building of Al-Ahli Hospital, with specialised and

comprehensive bone treatment and physical therapy units, as a distinguished center in this spcialication."

It is understood that the true wealth of any successful company is its employees. “We have carefully studied the conditions of our employees, increased their salaries by 18% to 20%, revised salary grades, took care of the psychological aspects related to their work conditions and amended the whole health insurance system for their benefit.”

Among the projects planned in the future are Al Wakrah Hospital, which includes an emergency unit, women’s clinics, a children’s section, an internal diseases and general surgery section, X-Ray section and the pharmacy. Al Emadi adds that among the most outstanding achievements of the hospital is the development of the heart and blood vessels surgery unit. Open heart surgeries were carried out in this unit. “We also set up and opened a fertilisation and sterilisation treatment section.”

TOWARDS A HEALTHY NATIONEstablished in late 1996, Medicare Group is a Qatari shareholding company listed in Qatar Bourse. It realized in the financial year ending on 31st December 2014 profits estimated

at QR53,318,548, and moved three positions forward among the best 10 companies listed in the bourse in 2013 compared to its rating in 2012.


LIQUIDITY: 16

DIVIDEND YIELD: 8


AVERAGE RETURN ON ASSET: 13


MEDICARE GROUP

KHALID MOHAMMED AL EMADICEO, Medicare Group


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Its corporate banking products and services comprise corporate finance and advisory services, such as capital restructuring, capital raising, corporate valuation, transformation of business products, mergers and acquisitions, specialised investment, structured finance, project finance, and IPO;

Murabaha, Ijarah, Ijarah Muntahia Bittamleek, Istisna’a, and Mudaraba financing products; cash management services; and treasury and trade finance products.

Masraf Al Rayan posted a net profit of QR2 billion for 2014, an increase of 17.6%, compared to 2013. As a result the Board recommended a dividend distribution of QR 1.75 per share, or 17.5% of the paid-up capital.

Masraf Al Rayan QSC’s UK subsidiary, Al Rayan Bank, recently opened its new Premier Banking branch in Knightsbridge, London. The exclusive branch is located opposite the famous Harrods department store and is expected to provide Gulf Cooperation Council (GCC) clients with exclusive private banking services.

The branch was opened by HE Yousef Ali Al Khater, Ambassador for the State of Qatar to the United Kingdom at an event attended by senior members of the Masraf Al Rayan and Al Rayan Bank boards, including, Masraf Al Rayan Chairman and Managing Director, HE Dr. Hussain Ali Abdulla, Group CEO, Adel Mustafawi, Al Rayan Bank Chairman Robert Sharpe, Al Rayan Bank CEO, Sultan Choudhury and Al Rayan Bank CCO, Keith Leach. Speaking at the opening of the branch, Masraf Al Rayan Group CEO, Adel Mustafawi said, “When Masraf Al Rayan was established nine years ago we set ourselves the ambitious goal of becoming a truly global bank. From the very beginning our strategy was to start from Qatar, then expand

to the GCC and ultimately look beyond. When the time was right for us to develop outside of the GCC, the United Kingdom was the natural place for us to begin.”

Al Rayan Bank CEO, Sultan Choudhury said, “The last year has been momentous for Al Rayan Bank, beginning with the acquisition in February 2014 by Masraf Al Rayan, which was followed later in the year by the successful rebrand to Al Rayan Bank, and continued with the posting of the bank’s most successful financial performance to date. The opening of this new branch follows that remarkable year and, we believe, marks our transition to a new iconic banking brand for London and the UK.”

FROM STRENGTHTO STRENGTH

Masraf Al Rayan (QSC) engages in Islamic banking, financing, investing, and brokerage activities in Qatar and internationally. It operates through corporate banking, retail

banking, and asset management segments.


LIQUIDITY: 1

DIVIDEND YIELD: 2




MASRAF AL RAYAN

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEARS AVERAGE (2010-2014)



ROE ROA

29% 8% 18% 15% 18% 3%

ADEL MUSTAFAWIGroup CEO, Masraf Al Rayan


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The company has complete ownership of four subsidiaries: Al Koot Insurance and Reinsurance Company, Gulf Drilling International Limited, Gulf Helicopters Company and Amwaj Catering Services Limited. Through these companies, GIS

has interests in a broad cross-section of industries, ranging from insurance, re-insurance, fund management, onshore and offshore drilling, accommodation barges, helicopter transportation, and catering services. GIS has steadily identified opportunities for strategic diversification of their investment portfolio to expand and develop their group of companies, offering attractive growth and high returns to valued shareholders.

The sharp decline in oil prices resulted in one of GIS's jack-up rigs under contract to be released by one of its clients in May this year but the company worked quickly with other potential clients to secure a work contract for the released rig and started leasing it out once again for shorter terms.

They have also entered into negotiations to reduce the current rigs day rates of another client at that client’s request. It is expected that despite the good results of Q1 2015, these reductions will negatively impact GDI’s 2015 financial year-end results. There was some good news, with four new contracts and four contract extensions signed with QP for the provision of drilling rig services, each having a term of

five years. By contrast GIS's Gulf Helicopters Company has had a very busy year with the signing of contracts with Saudi Arabian Oil Company (Aramco) for the use of two AW 139s in support of its petroleum operation in Tanajib in Saudi Arabia, and with ENI North Africa’s Libya branch for the use of two AW 189s in support of its petroleum operation in Libya.

The company ordered the first AW189 Full Flight Simulator (FFS) in the region last year and has now taken delivery of two more AW189 helicopters.

Gulf Helicopters has a total of fifteen AW189s on order and the delivery of the whole batch of aircraft is scheduled to be completed by 2017. It also recently launched a new tourism project called “Samana” (Our Skies), which provides helicopter tours and sightseeing in and around Qatar.

GIS celebrated its highest annual revenue and net profit on record last year with revenue of QR 3.9 billion, up 69.7% since the end of 2013 and net profit of QR 1.4 billion, an increase of 108.4% compared to 2013.

The Board proposed cash dividend of QR5.50 per share, equivalent to a 72.5% payout ratio. In a statement released with the year end financials, the company said, “GIS is considered a long-term investment. Through the future expansion plans and initiatives being laid out by the group companies, the strength of GIS will become apparent year-on-year through key performance indicators such as profitability, earnings and return to shareholders.”

SWINGS AND ROUNDABOUTSGulf International Services (GIS) was incorporated as a Qatari shareholding company

in February 2008, by Qatar Petroleum (QP) which fully owned GIS prior to this.


LIQUIDITY: 12

DIVIDEND YIELD: 14




GULF INTERNATIONAL SERVICES




ROE ROA

43% 5% 32% 25% 23% 11%


This year the company saw a capital increase by 50 % from QR40 million to QR60 million through the issuance of 2 million new shares to shareholders according to the priority rights, at a rate of one share for each two shares with a nominal value of QR10 in

addition to premium of QR40 per share. The remaining share was allocated to the shareholder who had requested more than the proportion of what they own of the shares. The subscription period was open for 15 days during June 2015. The showing was good considering the company’s good financial results for the past year where it earned a net profit of QR16.1 million compared with QR9 million in 2013, a growth of 78%. Total earnings per share increased to QR4.02 per share from QR2.26 during the one year period. The Board of Islamic Holding Group made recommendations to the General Assembly to distribute cash dividends of QR3 per share, 30% of its paid up capital. “In the climate of optimism that the national economy is witnessing in all fields, especially in the Qatar Exchange , we seek to discover new opportunities for investment, achieving an adequate return for the shareholders and a better percentage of growth,” said Dr Yousef Al Nama, Chairman and Managing Director at Islamic Holding Group.

A STEADY CLIMBIslamic Financial Securities Company was established as a Qatari Private Shareholding

Company and in 2006 the board decided to change it to a Public Shareholding Company. The company continues to invest in shares and bonds and provides all financial for

brokerage services on Qatar Exchange according to the Islamic Sharia.

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DIVIDEND YIELD: 28




ISLAMIC HOLDING

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA - FIVE YEARS AVERAGE (2010-2014)



ROE ROA

42% 4% 31% 14% 15% 2%

DR YOUSEF AL NAMAChairman and Managing Director, Islamic Holding Group


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At the time of going to print, Al Meera has 43 venues in Qatar with agreements being put in place for future stores, like the MOU signed between Al Meera Consumer Goods Company and Lusail Real Estate Development Company to

operate and manage two community retail centres (UK) in Fox Hills and North Villas District. The year 2014 witnessed the construction and completion of nine new shopping malls and 14 new malls planned to further expand Al Meera's reach to more local communities in Qatar.

In the past year, Al Meera’s store space grew by another 32,500 sq.m. to over 100,000 sq.m. The group’s sales in 2014 grew by 11.8%, from QR1.9 billion to QR2.2 billion. Overall net profit rose by 15.5% from QR196 million to QR226 million. Their recent financial report indicates that over the past four years, the investment in property and equipment has increased more than five-folds by QR588 million compared to QR109.7 million as at December 31, 2010.

“The year 2014 saw a remarkable success not only at the profits level but in regards to our ongoing expansion plan. The various new projects aim at fulfilling the different and daily needs of Qatar’s residents wherever they are,” said Mohamed bin Nasser Al Qahtani, Deputy CEO Al Meera.

Another subsidiary that Al Meera is focusing on is the Al Meera Bookstore Company which is the exclusive local franchise owner of the WHSmith brand, which is one of the largest bookstores in UK. The company opened three WHSmith stores in Hyatt Plaza at Al Aziziya, Ezdan Mall at Al Gharrafah District, and Nuaija Mall at Al Hilal. “Al Meera Bookstore Company will offer library services that meet the requirements and needs of our students, researchers, and

academics, based on modern scientific research methods using state-of-the-art technology. Through WHSmith stores, our customers will have access to selected sources of information, helping them boost their education level, sense of creativity and enhance their active contribution to building the society.” Al Qahtani said.

Al Meera is also planning a strategic expansion into the logistics side of the business, transforming the operations that have been a cost to business to a revenue-generating arm in itself. In September, Al Meera Consumer Goods Company, together with Regency Group Holding and Aramex Regional, Dubai – UAE, incorporated a logistics company, Aramex Logistics Services Co to develop and operate a logistics facility and services business in Qatar.

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HOME-GROWN RETAIL STORYAl Meera is a new entrant on the Qatar Today Top 10 on account of it just having

completed five years on the Qatar Exchange. Established in 2004, Al Meera is 26% owned by the government, and 74% by shareholders. It was listed on the Qatar Exchange on

October 28, 2009 and has since then developed its shops in cooperation with a reputable international consultancy house to meet international standards relating to interior

design, marketing, promotion, and other technical and operational aspects.


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AL MEERA




ROE ROA

39% 7% 21% 8% 27% 13%

MOHAMED BIN NASSER AL QAHTANIDeputy CEO, Al Meera


IQ uses its discounted access to gas to make petrochemicals cheaper than rivals from outside the region. Even with such high expectations, the firm's reported full-year earnings in 2014 fell short of analysts’ expectations. The coming months aren’t set to get any easier for Industries Qatar, which

is majority-owned by Qatar Petroleum. The chemical maker will face lower demand for its products as the first simultaneous recession for six decades in the US, Japan and Germany weakens demand for packaging and car bumpers.

But according to IQ, Chief Coordinator, Abdulrahman Ahmed Al Shaibi, “Industries Qatar is well-placed to weather the current downturn in oil and key commodity prices as the group maintains several competitive advantages: most notably, an excellent cost positioning, largely due to competitively priced natural gas feedstocks and, in the case of Qatar Steel, long-dated iron oxide pellet and competitively priced electricity supply agreements, product and end-market diversification, positive debt metrics and an important public policy role.”

These competitive advantages have been recognised by two international credit rating agencies, Standard & Poor’s and Moody’s, that rated IQ at AA- and Aa3, respectively, with a stable outlook. In addition, IQ is focusing on maximising the value of its current operating assets through various efficiency improvement programmes. The group has already commenced a number of these initiatives, targeting improving the operational efficiency and effectiveness throughout the entire value chain in order to achieve operational excellence, growth and value for all stakeholders.

Earnings in 2014 were supported by the launch and subsequent ramp-up of Qatar Steel’s EF-5 facility in the first quarter and Qafac’s CDR plant in the third quarter, as well

as by strong full-year average key petrochemical product prices. However, the group faced significant challenges from extended, planned shut-downs noted across all plants during the first half of the year, continued weak urea prices, and heightened operating costs.

It is important to emphasise that the planned maintenance and challenging market conditions experienced were largely expected and accounted for in the group’s 2014 budget. Reported revenue for the year ended December 31, 2014 under IFRS 11 was QR6.0 billion, a marginal increase of QR0.1 billion, or 2.5%, over the previous year; on a like-for-like basis, management reporting revenue – assuming proportionate consolidation under IAS 31 – was QR18.2 billion, a decrease of QR1.0 billion, or 5.4%, versus the same period in 2013.

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MAKING THE MOST OF CHALLENGING TIMES

Industries Qatar (IQ) is the regional heart in the production of petrochemicals, steel and fertilisers. As Qatar’s largest publicly-traded company, it aims at becoming the world’s biggest producer of ammonia and urea and a surge in global demand for fertilisers has

helped it swell revenues over the last few years.


LIQUIDITY: 5

DIVIDEND YIELD: 15




INDUSTRIES QATAR




ROE ROA

11% 5% 7% 1% 27% 21%

ABDULRAHMAN AHMED AL SHAIBIChief Coordinator, IQ


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The general public sees WOQOD as a service station company but they are much more than that, according to Al Kuwari. “WOQOD provides innovative solutions to the construction industry, diesel tanks at construction sites, a fleet of over 400 road

tankers delivering gasoline, diesel and LPG wherever they are needed, often 24 hours a day, 7 days a week. WOQOD’s bitumen business works closely with the public works authority Ashghal to ensure road surfaces are laid using the latest technologies in bitumen applications that lengthen the useful life of a road and minimise maintenance costs. WOQOD’s innovative Shafaf LPG cylinder is lighter and safer than steel LPG cylinders and will replace steel cylinders within a few years,” says Al Kuwari.

WOQOD’s affiliate companies have a strong focus on safety and excellence in customer service, according to Al Kuwari. Fahes is the vehicle testing company responsible for the annual inspection of all vehicles on the road that are more than three years old. “The recently opened inspection centres at Wadi Al Banat and in Mesaimer use the latest technologies in vehicle inspection, thus contributing to the safety of vehicles on the roads in Qatar and the reduction in fuels emissions,” he says. “Qatar Jet Fuel Company (QJet) provides all the aviation fuel for Hamad International Airport and works closely with all airlines to ensure their fuelling requirements are met safely and in time for their demanding schedules. WOQOD Marine Services Company provides shipping logistics for the importation of bitumen into Qatar and supplies fuels to all ships within Qatari waters. “ Al Kuwari speaks about the recent issue highlighted by the media and by the common man in general of the lack of sufficient petrol stations in the country, resulting in a crowding at existing petrol stations. “We recognise that there are not enough service stations in Qatar. We can all

see the increase in the number of vehicles on Qatar’s roads which is reflected in our annual growth in gasoline and diesel demand at around 9% per year. WOQOD presently operates 25 full-service stations with Sidra convenience stores, car washes, lube change, tyre shops and vehicle maintenance. Our vision is to have 100 WOQOD service stations by the end of 2018 and this is what our management team is focused on. Currently we have 10 stations either under construction or in initial planning phase. These will open through 2015 and early 2016. In addition we are working closely with the Ministry of Municipality and Urban Planning to make sure land is made available for service stations in locations where customers want them. This is essential for the new roads being built by Ashghal,” says Al Kuwari.

Explaining what the company has planned for the future, Al Kuwari says, “We are always looking to improve the service we give to our customers. By the end of 2015 we will introduce an RFID fuels management system that will improve the accuracy of fueling and reduce the opportunity for theft of fuel.”

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ENABLING GROWTHQatar Fuel, trading as WOQOD, is responsible for supplying gasoline, diesel, aviation fuels and LPG on an exclusive basis to all customers in Qatar. “Providing all our customers with

the products they need when they need them, with a strong emphasis on safety, is our prime mission,” according to Eng. Ibrahim Al Kuwari, CEO, WOQOD.

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LIQUIDITY: 26

DIVIDEND YIELD: 27




WOQOD




ROE ROA

30% 4% 6% 19% 42% 15%

ENG. IBRAHIM AL KUWARICEO, WOQOD


Over 2014-15, Barwa conducted some distinctive transactions which resulted in a full restructuring of the financial position of the group. The year saw the conclusion of the agreement to sell the group’s shares in Barwa Bank, Barwa

Commercial Avenue, Barwa Al Sadd and Barwa City, and some other assets to Qatari Diar with all those transactions utilised to settle Barwa's debts. Barwa announced amending the agreement with Qatari Diar after Barwa took back its shares in the Barwa Al Sadd project after studies confirmed the economic importance of retaining this project. As per the transaction, Qatar Diar, strategic partner of Barwa Real Estate, decided not to proceed with the transfer of the rest of the assets as the part which was already completed had significantly reduced Barwa's debts. The assets which were not transferred to Qatari Diar are some local and international assets from Barwa's investment portfolio which are worth QR1.4 billion. On the development side, Barwa Real Estate was able to complete phase one of Barwa Al Baraha (workers accommodation). The group has almost completed the Al Khor Shell project, in addition to announcing a number of new projects including the Madinat Al Mowatir, Mostawdaat and Alaateda projects. On the operating side, the group focused on improving the performance of its subsidiaries including Qatar Real Estate Investment Company, Qatar Project Management and Waseef Property Management Services. They also focused on improving the performance of real estate projects owned by the group such as Barwa Al Sadd, Barwa Village and Masaken. The group could also strengthen its asset base through the purchase of Arcapita

shares in Lusail Golf Development Company.In the financial year ended 31 December 2014, the group’s

results showed a net profit of QR2.7 billion, with QR7.14 profit per share for 2014, compared to QR1.4 billion and QR3.53 profit per share for 2013, showing a 102% increase.The Board of Directors proposed a cash dividend of QR2.20 per share (22% of the share value).

Salah bin Ghanem Al Ali, Chairman of Barwa Real Estate Group, pointed out that the powerful results of the group's financial position were accomplished by the continuous efforts of the Board of Directors to utilise the group’s assets whether by developing, operating or selling those assets, which are the core activities of Barwa as a real estate investment company.

With the increasing demand on commercial & residential units, Barwa Real Estate has started its expansion project for Barwa Village on Al Wakra road and the leading local consultancy, Arab Engineering Bureau, for the delivery of the company’s newest development “Motor City” in agreement with the Ministry of Municipality & Urban Planning in Qatar.

Under this signed agreement Barwa will rent land extending over 1,150,000 square meters, located in Rawdat Rashid near Salwa Road, to develop and run a distinctive project offering used-vehicles services.

The group announced the appointment of Salman Mohamad Ahmad Al Hasan Al Muhannadi as Group CEO of Barwa Real Estate in March 2015.

The group is reportedly finalising its new strategy, reviewing current investments to determine best approaches of utilising them, and studying potential opportunities.

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LIVE TO FIGHT ANOTHER DAY

Considering Barwa’s troubled past, the position it holds today on theQatar Today Top 10 is nothing short of miraculous. For several months now, the company has been trimming the fat from its organisation - liquidating non-performing companies

and selling assets to pay off debts. Over the past year, it was decided to liquidate five dormant companies that haven’t been generating revenues – Nuzul Qatar, Okaz Media, Barwa Technology, Lucair Real Estate and Knowledge Group.


LIQUIDITY: 4

DIVIDEND YIELD: 21




BARWA REAL ESTATE CO.




ROE ROA

7% 5% 26% 18% 13% 3%


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Spelling out the reasons for Alijarah figuring among The Qatar Today Top 10 listed companies for the third successive year, Alijarah Holding, CEO, Hamad Shareef Al Emadi says, “We offer the best choice of leasing options under Islamic principles by

providing the most flexible options for customers to finance their capital acquisitions at competitive rates. In the transportation sector we have been supporting Mowasalat and the public by running a fleet of 1,000 taxis and 60 private limousines. In addition to this is the successful completion of the various material transportation contracts through our heavy equipment fleet. Our wide portfolio of work includes the completion of the Lusail Infrastructure Project in preparation of 895 plots of land to be ready for villa construction by the owners. We are also in the process of the acquisition of a driving school which is expected to start in the forthcoming years.”

Going into the specifics of the company’s performance, he says, “Our investment strategy is quite aggressive; strategies are made on the portfolio and deposits to increase return on investments. During the last five years, QR169 million of income was generated through investment activities with an ROI of 28%.” Alijarah Holding makes extensive efforts to diversify the Islamic financing options to Qatari nationals, expats and corporates based on market trend and customer-based requirements.

In the transportation business, Alijarah was vested with a franchise agreement by Mowasalat to run a fleet of 500 Taxis in 2012 which later expanded to 1,000 taxis in 2014. “Within Alijarah Properties, we have successfully completed the Lusail Infrastructure Project and handed over the plots to owners to start construction.” While each of the segments has been instrumental in Alijarah’s success, some of the branches seem to have fared comparitively well.”

In the previous years the property business formed

a significant portion of the group’s revenue, however in 2014, Alijarah Holding was ranked first with a decline in property revenue which was a reflection of the completion of the Lusail Infrastructure Project as the plots have been handed over to the owners,” he says. “Further, the taxi and equipment business also are slated to grow faster with the economic activities picking up in Qatar and contributing higher profit margins.”

Exploring other infrastructure and real estate development opportunities is on the cards for Alijarah Holding, capitalising on the growth potential in Qatar. "Construction of the state-of-the-art driving school and taxi complex, building comprehensive accommodation, service area and warehousing facilities in the Industrial area,” he says.

With increased economic activities in Qatar, transportation requirements are growing. "We are negotiating additional contracts. We are also planning to add additional trailers to replace the old ones and also to cater to the additional requirements.” The leasing segment is consistent in its business and there are strategic options being explored in growing this business further,” he says.

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PEGGING ON GROWTHEstablished in 2003, Alijarah Holding is a Qatari shareholding company listed in the

Qatar Exchange, with a diversified business portfolio covering leasing, equipment and transportation, property development and hospitality services. Till 2010,

Alijarah Holding was known as National Leasing Holding .


LIQUIDITY: 9

DIVIDEND YIELD: 12




ALIJARAH: NATIONAL LEASING HOLDING CO.




ROE ROA

10% 6% -5% 7% 18% 8%

HAMAD SHERIF AL EMADICEO, Alijarah Holding


WINNERSALL

THE WAYThe second category of the Qatar Today Business Excellence Awards congratulates

prominent companies and individuals who have done the nation proud by excelling in the fields of business and economy and also by aligning their company goals to the National Vision 2030. These special awards will be presented in the following

categories: Best CEO, Lifetime Achievement Award, Emerging Real Estate Entrepreneur, Most Innovative Company, Businessman of the Year, Excellence in CSR and Social Values

and Best Logistics Company. In Part one of this story, we talk to some of the winners.


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I have contributed to the expanded presence of Doha Bank across GCC, established relationships with leading corporates in the GCC industry and fulfilledtheir banking and financial services requirements. I have highlightedthe changing dynamics in the banking industry pre- crisis and post-crisis and emphasised the implementation of regulatory reformsas part of revamping the global financial architecture afterthe crisis.

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Doha Bank is now not just a local bank but an international name with its extended global footprint across 15 nations worldwide. In this pursuit, Doha Bank was also the first Qatari bank to establish its full-scale banking operations in India. For a man who travels continents on a weekly basis,

Seetharaman still kept the late appointment he had fixed with us and sat down for a chat on the banking industry in general (which will be carried in the next issue of Qatar Today) and his career in particular. Seetharaman was also one of the first businessmen who popularised the term Green Banking, introducing Doha Bank to a phase of corporate social responsibility programmes through sustainable actions.

Musing on 12 years of being at the helm of Doha Bank, Seetharaman says, “I have always aimed at sustainability in my outlook; whether in my personal or professional life. It is important to sustain your credibility. Especially being in a financial institution, which is truly public, and global. What you need is to take care of all the stakeholders, socially commit yourself, and most importantly, you have to ensure that whatever you do is ethical and moral,” he says.

Focussed and intent, Seetharaman takes his role in society very ascetically. His list of virtues for staying ahead of the competition is relentless. “Your operating efficiency has to be topmost, as this is highly crucial and it makes sure that your stakeholders and shareholders are always satisfied. Everything that you do needs to have a customer-centric focus. On top of it, you should contribute to and also benefit from a knowledge-based society. You also need to build on the knowledge assets through talks with experts and share the intellectual assets and empower others through these exchanges.”

“If all these balances are in place, and with such a thought

leadership,” Seetharaman says, “success is inevitable.”But to keep to this perfect scenario, 24/7, 365 days, must be a

mental strain. Seetharaman disagrees, saying: “If passion comes in, performance follows. It doesn’t even seem like a job, but becomes a part of your life. You should have pride in what you do. Humility, persistence, hard work, transparency are all part of the core values.”

The list never ends and it does seem as if being on top is not as easy as it looks. “You have a bigger vision, and when you achieve what you have aimed for, you lift your vision and aim for the next,” he continues.

From being an underperforming institution with seven branches to a bank with a global footprint which has ensured 10 times return to the shareholders over the last 12 years with a high respect from regulators, Seetharaman has indeed changed the banking landscape through his active role in the industry.

Ask him about his contribution and he is happy to expand on his roles. He says, “I have contributed to the expanded presence of Doha Bank across GCC, established relationships with leading corporates in the GCC industry and fulfilled their banking and financial services requirements. I have highlighted the changing dynamics in the banking industry pre-crisis and post-crisis, emphasised the implementation of regulatory reforms as part of revamping global financial architecture after the crisis.”

“We developed working relationships with GCC banking regulators and now look forward to implementing various reforms in the GCC region. Doha Bank has kept abreast of developments in technology and leverages on it to provide value advantage to the customer.”

It therefore was a no brainer for Qatar Today, to institute the Businessman of the Year to this personality who has come to the country and made a strong partnership with stakeholders based on integrity and social commitment.

A SOCIALCOMMITMENT

BUSINESSMANOF THE YEAR

DR R SEETHARAMANGROUP CEO, DOHA BANK

For almost a decade, a colourful bow tie was always associated with one of the most powerful figures in Qatar’s banking sector. Dr R Seetharaman, Group CEO, Doha Bank has moved away from that strict bow tie style, though he still maintains a distinguished flair

for power dressing. His skills in negotiation, in achieving the impossible, leading his team in opting for innovation at every step of Doha Bank’s banking feet, though, are largely

unaffected and have even happened with his growing expertise in the field of banking.


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“Currently we handle diplomatic clients, corporates, international companies and individuals. There is a void in the Qatari market for high-quality, reasonably priced real estate and we have from the beginning strived tofill this.”

Abdul Hameed KCManaging Director, RASTEC Properties


It was this that first brought him to our notice. In a country where diversification is the game of governments and conglomerates, Hameed, managing a business of just under 40 employees, stands out for his tenacity and sheer will to fight for his piece of the pie, irrespective of which business sector.

Choppy growth, unpredictable trends and changing regulations have made the real estate sector a gamble that seems to defy the laws of economics. It was such a quagmire that Hameed entered back in 2011 when he launched RASTEC Properties. Behind this venture, besides his many years' worth of accumulated business savvy, was RASTEC Trading & Services Co. The core business of the company, which he founded in 1995, is currently the Chemicals division which provides innovative specialty chemicals, technical services and support for broad range of industrial applications. It grew into this from trading, surplus and scrap collection and ISO consulting before branching out further into properties and IT.

It was a carefully considered, market-study led, network-approved expansion and Hameed reckons that RASTEC’s attentively nurtured reputation and the consequent trust in the brand stood him in good stead in this new undertaking.

Speaking about RASTEC Properties, which has made quite a name for itself in this highly competitive segment, he says, “Currently we handle diplomatic clients, corporates, international companies and individuals. There is a void in the Qatari market for high-quality,

reasonably priced real estate and we have from the beginning strived to fill this.” Every customer is special, says Hameed, irrespective of whether they are a diplomatic mission or someone with surprisingly more complicated demands like a family of five. “Each client is treated with care from the time they get in touch with any of our representatives. Throughout the process, we make sure a qualified manager is assigned to them who becomes their one point contact for anything related to their real estate needs. These personal managers are complemented by our skilled maintenance team, available on call anytime,” he says.

The ensuing years, of course, weren’t without its challenges. “It has been getting progressively difficult to acquire properties from landlords at affordable prices. But we were able to overcome this with perseverance, regular meetings with both parties and leveraging on our reputation in the local market,” says Hameed. He has high ambitions for RASTEC Properties but quality service and affordability will always be its core tenents, he assures us.

The Qatar Today Business Excellence Awards for Best Emerging Real Estate Entrepreneur is a great achievement for him and his entire team, Hameed tells us. “It is definitely a milestone for our company and gives each one of us a sense of motivation to build a brand that people can trust. This also means we have started the process to reach our ultimate objective of becoming the Real Estate Partner of Choice for Qatar and be proud participants in its growth,” he says.

HUNGRY FORNEW CHALLENGES

EMERGINGREAL

ESTATE ENTREPRENEUR

ABDUL HAMEED KCManaging Director, RASTEC Properties

Abdul Hameed KC is a veteran of Qatar’s business world. Over his lifetime, both in India and three decades in Qatar, Hameed has built and expanded several companies,

each a new venture. From textiles to trading, he has done it all and continues to boldly embrace new business opportunities like Real Estate and Information Technology

which are a far throw from his traditional business interests.


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We believe in doing it right the first time, every time. It’s our commitment to delivering excellence and incorporating passion into all that we do. And our strength too.

Nishad AzeemFounder and CEO of Coastal Qatar


Here he speaks to Qatar Today about how the demand for basic goods affects the industry, and how Coastal focuses on sustainability in construction. The company was established back in 2005 during the Asian Games, back when the contracting industry was booming in Qatar. According to Azeem, “We

started with just two professionals and we were fortunate to get one major project within the Aspire Zone. We did the whole sealing inside that stadium, and that actually put Coastal on the map as a specialised construction company.” Azeem adds: “After that we started the trading division as we wanted to expand in the market. We represent products for interior fit outs.” Coastal was involved in some major construction works, like the interiors of Oryx Rotana, Barwa (Al Sadd) and the gymnasium flooring in the new airport. He continues: “With that we started another division which is the steel fabrications division. We did major projects in Ras Laffan, and also within Hamad International Airport. Coastal has broadened its business streams and also made a foray into the transportation sector. But that is not the end of diversification; Coastal has also made an entry into the business of steel fabrication. “And now we are among the top players in the steel fabrication field with a thousand tons per month,” Azeem says. He adds: "We are trying to be technologically advanced. I think we are the first company in Qatar to have a robot in steel and stainless steel, and this is a Swedish robot

form (ABB). We also have a 3D modeling system, and will be the first company to implement software controlling in all our productions lines.” Azeem talks also about the company`s vision: “To us customer service, customer satisfaction and safety come above everything else. Our team of competent professionals and specialists is supported by an experienced workforce in construction, fabrication, erection and logistics support. Our facilities include a well-equipped, modern and automated fabrication workshop, blasting and painting unit, carpentry workshop and a fleet of transportation and construction equipment. Our main strength is being able to manage complex projects by going into the detail of the project.” Azeem adds, “Our strength lies in embracing engineering challenges, in simplifying the complex, and incorporating passion into all that we do. The Coastal way has always been about constantly challenging the boundaries of engineering innovation, commitment to safety, schedule and quality, thereby delivering excellence to the construction and engineering landscape of Qatar and its neighbouring regions.”

Azeem speaks about his company slogan and says: We believe in doing it right the first time, every time. It’s our commitment to delivering excellence and incorporating passion into all that we do. And our strength too.” He adds: “I take pride in having a free and open structure that inspires trust. Ours is a diverse, multicultural group of professionals who are driven towards accelerated growth, while being completely ethical.”

PIONEERAT HEART

MOSTINNOVATIVE

COMPANY

COASTAL QATAR

The winner of the Most Innovative Company, Coastal Qatar believes in doing things differently and with passion. Nishad Azeem is the Founder and CEO of Coastal Qatar, a

conglomerate that specialises in construction and healthcare.


QATAR TODAY

TOP

2014

QATAR TODAY

TOP

2014

“DHL’s SME segment in Qatar has witnessed a significant jump in the last five years, and this is a reflection of the rise in smaller enterprises setting up in the local market. Our growth in this sector has experienced double-digit numbers year-on-year, with many of our new customers outside the oil and gas industries.”

Nael AttiyatCountry Manager of DHL


Qatar Country Manager Nael Attiyat explains some of the company’s main goals. “Providing great service quality consistently to our customers is our main priority. We aim not only meeting their expectations but exceeding them when it comes to their express logistics requirements.”

The company has a diverse customer base, serving the oil and gas, healthcare, education, financial, aviation, automotive, retail and FMGC sectors.

In a recent interview with Qatar Today, DHL Express MENA, CEO, Nour Suliman said, “DHL’s SME segment in Qatar has witnessed a significant jump in the last five years, and this is a reflection of the rise in smaller enterprises setting up in the local market. Our growth in this sector has experienced double-digit numbers year-on-year, with many of our new customers outside the oil and gas industries.”

Recognising its efficiency and years of dedicated service, DHL was awarded the Best Logistics Company by Qatar Today Business Excellence Awards. It is an important achievement for DHL who have grown for more than 25 years. Attiyat says, “We feel proud and honoured to be recognised for our role in developing the landscape of Qatar. It also showcases that DHL Express is trying to be the ‘provider of choice, investment of choice, employer of choice.”

Over the past decade, Qatar has undergone rapid expansion in terms of business growth and development. The logistics industry as a whole has had to adapt to the demands of a growing economy. “Keeping up with the pace of Qatar’s fast-growing economy has

been a challenge,” admits Attiyat. In the globalised world, setting up shop locally is no longer enough

for smaller players to succeed. International trade has become a vital component to the long-term survival of SMEs. This is where logistics comes into play. Trading across borders can be a time-consuming, complex and risky business; issues such as cultural differences, high administrative costs and inadequate infrastructure can be daunting for smaller players. In such a scenario logistics providers present solutions for small businesses and can grant them access to the world’s biggest consumer markets, making it a fundamental part of their service and giving them an edge over the competition.

“Another aspect that we keep closely in focus is continuously looking at investment opportunities to support customer requirements,” says Attiyat.

In 2014 the company set up in the UAE the largest DHL Express centre for ground operations in the Middle East and North Africa. Covering over 17,265 square metres, it connects the region to DHL’s global network and provides improved transit times and performance.

“As a company, DHL has always invested in the region to support growth expectations. We also have a regional hub in Bahrain to support the Middle East,” explains Attiyat.

Looking ahead the company is confident to meet customer expectations. “We hope to maintain the double-digit growth DHL Express has experienced in previous years,” says Attiyat. “We would also like to invest in Qatar to support local projects, industries and companies with the rest of world,” he concludes.

SIGNED, SEALED, DELIVERED

BESTLOGISTICS COMPANY

DHL

From dispatching important business documents, to delivering personal items across the miles, DHL has delivered on demand to customers around the world. The company is present in over 220 countries across the globe. Its office in Qatar was set up in 1979 and

it is now present in 10 locations across the country with more to be opened soon.

2014...qatar fuel (woqod) utilities gulf warehousing company industrial 70.2% 42.4% 38.5% 30.0%...

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