BUSINESSWednesday 27 February 2019

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Beema records solid full year

net profit for 2018

Siemens Qatar’s QR3.1bn Kahramaaproject well on track, says CEO

QIC to accelerate its global expansion driveSATISH KANADY THE PENINSULA

QIC, the largest insurance company in the Mena region, announced yesterday its inter-national expansion drive is set to further accelerate on the back of GIC Global, a newly formed brand under which it is consol-idating its Group’s international entities.

Unveiling QIC’s future plans to expand its global foot print and maintain robust profitability at the shareholders’ meeting yes-terday, QIC Group revealed that in 2018, about three quarters of its revenues generated outside Mena region.

“QIC now operates as an organisation with a local presence in 13 geographies across the Middle East, Europe, the Americas and Asia. This geo-graphical expansion went hand-in-hand with the establishment of a well-diversified and resilient book of business”, QIC Group told the shareholders at the annual general assembly meeting held here yesterday.

Addressing QIC Group’s annual general meeting yes-terday, Abdulla bin Khalifa Al Attiya, Deputy Chairman said QIC Group will continue to focus on its drive for interna-tional expansion on the back of QIC Global, a newly formed brand which consolidates QIC Group’s international entities namely Qatar Re, Antares, QEL and the Gibraltar-based insurers acquired from Mark-erstudy. In fact the Group’s continuing diversification, both geographically and in terms of products and services, posi-tively contributes to lowering the risk and volatility of risks it underwrites. QIC Group aims to continue its expansion through organic and inorganic growth and progress towards its vision of becoming a top-50 global insurer by 2030.

QIC Group’s international carriers recorded above average premium growth of 11 percent in 2018 and now account for about 77 percent of the Group’s total premium base. As a result of its strategic global expansion,

Qatar Re ranks 27th amongst the global top 50 reinsurers, up from rank no.35 in 2016.

Significantly, S&P Global Ratings, yesterday noted that Inter-national expansions and acquiring of local businesses from foreign players have helped a section of Qatari insures to achieve healthy growth rates in 2018.

QIC Group’s consistent per-formance lies in its robust underwriting prowess, global business diversification and strong risk-adjusted capitali-zation. The Group’s consistent approach of applying global standards and best practices in its assessment of the current and future solvency and capital ade-quacy requirements ensured that it remained well positioned and capitalized amidst the pressures of global market conditions, Deputy Chairman added.

Key contributors to the reported growth were the Group’s dedicated global reinsurance and specialty insurance subsidiaries as well as the life and medical seg-ments of the business emanating from the Middle East. �P04

Abdulla bin Khalifa Al Attiya (second left), Deputy Chairman, QIC Group; and other Board members during the Annual General Assembly Meeting at Four Seasons Hotel Doha, yesterday.

QIIB’s $500m Sukuk oversubscribed by more than six timesTHE PENINSULA DOHA

QIIB has announced the successful issuance of $500m Sukuk under the Bank’s Sukuk programme of $2.0bn.

The offering was oversub-scribed six times with investors bidding for more than six times the amount offered, reflecting the positive outlook of the Qatari economy and the strength of its financial position.

The issue was arranged and offered through a syn-dicate comprising of QNB Capital, Al-Khalij Commercial Bank (Al Khaliji), Barwa Bank, Boubyan Bank, Barclays Bank, MayBank and Standard Char-tered Bank.

The offering was oversub-scribed by investors, mostly from outside the Middle East, with a total of $3.3bn. The issue was priced at a spread of 175 basis points over the 5-year mid swaps carrying fixed coupon of

4.264 percent per annum. The participation included investors from around the world with 30 percent from the MENA and 70 percent to other investors from Europe, Asia and other coun-tries. “The Bank’s success in issuing sukuk and securing good pricing is primarily due to the strength and high rating of the Qatari economy, which is con-sidered one of the highest credit ratings in the entire region,” said Dr. Abdulbasit Ahmad Al-Shaibei, QIIB Chief Executive Officer.

“All indicators and market researches place the Qatari economy at the forefront of the economies in the region. The Qatari banking sector enjoys the confidence of investors because it provides a very high solvency and is in a strong financial position. This is in addition to the strength of the Qatari economy, thanks to the prudent policies being pursued by the Qatari financial sector,” he said.

“The strong appetite of investors from MENA ,Asia and

Europe, some of whom are dealing with sukuks for the very first time,

reflects the strong financial position of QIIB and the continued

strong support and confidence of both international and local investors in the Bank’s strong fun-damentals and its ability to design and launch high quality products at competitive prices.”

“Despite the abundance of liquidity in the Qatari banking sector, sukuk issuance is vital because it enhances our presence in the international financial markets and opens new horizons with investors outside the region, especially those who do not deal with the Qatari market,” he said.

“The launch of the QIIB sukuk and the huge turnout of investors we have seen is further evidence of the failure of attempts being made to stifle the Qatari economy through an unjustified blockade. It clearly underscores the resilience of the Qatari economy,” Dr Al Shaibei emphasised. This issuance is the second such experience for QIIB, as the bank succeeded in issuing sukuk worth $700m in 2012.

Dr. Abdulbasit Ahmad Al Shaibei (centre), QIIB Chief Executive Officer, with other officials on the sidelines of the Sukuk issuance announcement.

UDC unveils plan to invest QR5.5bn in new projectsMOHAMMAD SHOEB THE PENINSULA

United Development Company (UDC), the master developer of The Pearl-Qatar (TPQ), announced yesterday to invest QR5.5bn as part of its five-year business plan to develop new projects.

These funds are expected to be spent on various projects including the development of the Gewan Islands and some other residential and commercial projects in the Gewan as well as in TPQ.

“We are planning a number of projects and most of them are residential projects within The Pearl. These projects also include the construction of a school (United School International), Gewan Islands which will be having different types of accom-modations and other facilities, including a golf course,” UDC Chairman Turki bin Mohammed Al Khater told The Peninsula on the sidelines of the company’s Annual General Assembly meeting, yesterday.

Al Khater added: “In addition to all these projects, we are also

planning to develop some com-mercial complexes and other facilities, including a hospital in The Pearl. However, we are still discussing about the hospital project with potential partners to develop the healthcare facility for the residents of TPQ and others.”

Asked about more details whether it would be a general hospital or a super-specialty medical centre, he said that things are still not very clear but it would be a 100 to150 bed hos-pital providing world-class healthcare services. �P02

Turki bin Mohammed Al Khater (centre), Chairman of UDC; with Ali Hussain Al Fardan (right), Board member; and Nasser Jaralla Almarri, Board member, during the Ordinary and Extraordinary General Assembly meeting 2018 in Doha, yesterday. PIC: ABDUL BASIT / THE PENINSULA

Single Window System set to go onlineLANI ROSE R DIZON THE PENINSULA

Investors trying to set up their businesses in Qatar will soon find it much easier to do so when the Single Window System will go online by the second quarter of this year.

The government-initiative Single Window service centre

located at the Ministry of Com-merce and Industry building was launched in 2016 on a pilot phase where it has linked 21 gov-ernment and semi-government entities related to the application of trade licenses under one roof.

In an interview with The Peninsula, an official from the Single Window System said the platform will soon be automated

and will feature an electronic approval portal. “With the new platform we’ll launch, you don’t have to come. You can do it from anywhere in the world. Submit the documents, start the application, and get all the necessary approvals signed with the digital signature. Verifications will happen simul-taneously from all relevant authorities online. �P04

02 WEDNESDAY 27 FEBRUARY 2019BUSINESS

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MARKETWATCH

Sir Gerry Grimstone appointedas Chairman of Investcorp and ASI joint ventureTHE PENINSULA DOHA

Investcorp, a leading global provider and manager of alter-native investment products, and Aberdeen Standard Investments (ASI), a leading global asset manager, part of Standard Life Aberdeen plc yesterday announced the appointment of Sir Gerry (pictured) Grimstone as Chairman of its joint-venture.

Sir Gerry’s appointment follows his decision to step down from his roles as a Non-executive Director of Barclays PLC and Chairman of its sub-sidiary Barclays Bank PLC.

The joint venture will invest in social and core infrastructure projects in the Gulf Corporation Council countries. GCC coun-tries have a population of around 57 million people and have almost half the world’s oil reserves. The region has bene-fited from the world’s demand for oil over recent decades but their governments are now taking steps to diversify econ-omies away from oil. As part of this, various initiatives have been launched to prioritize the development of critical social and core infrastructure.

The joint venture will actively target greenfield and brownfield social and core essential infrastructure assets in sectors including healthcare, education, utilities, social housing, smart cities, roads and rail.

Mohammed Alardhi, Exec-utive Chairman of Investcorp, said: “Our joint initiative to invest in Gulf infrastructure projects is an exciting step forward for Investcorp and Aberdeen Standard Invest-ments, and we are very pleased to welcome Sir Gerry as

Chairman of the venture. Sir Gerry’s leadership, combined with the alternative investment expertise of two established, leading global investment firms, will position the business strongly in what is an exciting stage in the region’s development.

“ Martin Gilbert, Co-Chief Executive of Aberdeen Standard Investments, added: “Having someone of Sir Gerry Grim-stone’s stature and quality chairing this new joint venture shows just how significant this opportunity is for both Investcorp and Aberdeen Standard Investments. We are delighted our joint venture will benefit from his expertise, energy and experience.” Sir Gerry Grimstone, commented: “I am delighted to be appointed Chairman of the joint venture. The long-term economic potential of GCC is unques-t i o n a b l e b u t r i g h t l y

governments across the region recognise the need to build and improve their countries’ infra-structure. The private sector has a key role to play. Aberdeen Standard Investments’ and Investcorp’s experience and expertise can help to deliver these essential projects.” Sir Gerry Grimstone served as Chairman of Standard Life Aberdeen for over 10 years from 2007 to December 2018. He currently co-chairs the privati-sation and corporatisation workstream for the British and Saudi Governments under the UK-Saudi Arabia strategic part-nership and is the Board Adviser to the Abu Dhabi Commercial Bank.

In the UK, Sir Gerry is the Lead Non-Executive on the Board of the Ministry of Defence, and a member of HM Treasury’s Financial Services Trade and Investment Board. He is also an Independent Non-Executive Board Member of Deloitte North West Europe.

Gerry has held a number of Board appointments in the public and private sectors and has served as one of the UK’s Business Ambassadors. He was previously a senior investment banker at Schroders and ran businesses in London, New York and Asia Pacific. He specialised in mergers and acquisitions and capital-raising for major com-panies worldwide. Prior to that, he was an official in HM Treasury where he was respon-sible for privatisation and policy t o w a r d s s t a t e - o w n e d enterprises.

Investcorp employs approximately 400 people across its offices in Doha, Bahrain, New York, London, Abu Dhabi, Riyadh, Mumbai and Singapore.

Beema records solid full year net profit for 2018THE PENINSULA DOHA

Damaan Islamic Insurance Company (Beema) reported solid financial results for the full year 2018. The Company’s total amount of contributions reached QR332m, as the surplus insurance operations reached QR20m. The shareholders portfolio posted a net profit of QR42m.

Beema has succeeded in achieving the results that reflect the outstanding performance, despite the difficult economic situation and the competition between insurance companies operating in the country, by upgrading the level of its services, developing its products by launching different insurance programs, that suits all cate-gories, and by developing its electronic systems to keep up with modern technical standards, the company said in a statement yesterday.

The current difficulties facing the insurance sector have not affected the company’s credit or its financial position that had been one of the most success factors, and established a basis for its strategy based on increasing production, devel-oping operating mechanisms and staff training to enhance their technical and administrative capacities and seek to upgrade the company’s credit rating, cur-rently it’s (BAA1), according to Moody’s agency.

Growth and success achieved by Beema were made despite the increased level of competition in insurance sector, either between national companies working under the umbrella of the Ministry of Commerce & Industry or Qatar Financial Centre. This success makes Beema looks forward to the future at a steady pace to achieve

more successes in its quest to reveal its ability to lead Qatar’s Takaful insurance sector on the local market level.

In light of such good results, the General Assembly of the Company approved a distri-bution of 7 percent in surplus to policyholders, who had no claim records in 2018, and approved distribution of dividends to the shareholders with a rate of 10 percent.

The Board of Directors expressed its sincere gratitude and appreciation to His Highness, the Amir of the State

of Qatar, and H E the Prime Min-ister, for their support and encouragement to the company. The Board also extend its sincere thanks to the employees of the Ministry of Commerce & Industry and the Qatar Central Bank for their sincere cooperation, Sharia’ Supervisory Board of the company for its generous guidance, shareholders and the customers, policyholders, for their precious trust and con-tinuous support, and to com-pany’s management and its employees for their dedication and hard work.

Beema Chairman Sheikh Jassim bin Hamad bin Jassim bin Jabor Al Thani (centre); Deputy Chairman Abdulatif bin Abdullah Al Mahmoud (fifth right); and other Board members reviewing the 2018 financial results.

The joint venture will invest in social and core infrastructure projects in the Gulf Corporation Council countries.

The current difficulties facing the insurance sector have not affected the company’s credit or its financial position that had been one of the most success factors, and established a basis for its strategy based on increasing production,

UDC unveils plan to invest QR5.5bn in new projects

FROM BUSINESS PAGE 1

Al Khater presided over the yesterday meetings (Ordinary and Extraordinary General Assemblies), which approved all the items on the agenda, including the Board’s recom-mendation for a dividend dis-tribution of QR354.086m rep-resenting 10 percent of share capital (equal to QR1 per share).

The meeting elected six new members to UDC’s Board of Directors, representing the private sector, for the period 2019 – 2021, who are: Sheikh Faisal bin Fahed Al Thani( rep-resenting himself); Ali Hussain Al Fardan (representing Al Fardan Holding); Ibrahim Jassim Al Othman (representing himself); Abdulaziz Mohamed Al Mana (representing himself); Abdulrahman Abdullah Al Abdulghani (representing himself); and Abdulrahman Saad Al Shathri (representing himself).

While three seats have been allotted to board members rep-resenting the State of Qatar, which completes the number of the Company’s board members of nine, as follows: Turki bin Mohammed Al-Khater (repre-senting the Civil Fund of the General Retirement and Social Insurance Authority); Mubarak Ali Mubarak Al Nuaimi (repre-senting the Civil Fund of the General Retirement and Social Insurance Authority); and Nasser Jaralla Al Marri (representing the

Military Fund of the General Retirement and Social Insurance Authority).

Elaborating on UDC’s 2018 activities and financial results, Al Khater said: “The Company has achieved a net profit of QR544m and total revenues of QR1.6bn. The net profit attrib-utable to shareholders of the parent company was QR501m with basic earnings per share of QR1.41.”

“The financial results achieved amid challenging cir-cumstances demonstrate that UDC has embraced a viable business model that would enable the Company to sustain sound financial results during difficult times, given our flexi-bility to access diversified revenue streams from the sale of real estate and the rental of residential and commercial units,” he added.

Ibrahim Jassim Al Othman, UDC President and CEO and Board Member, said 2018 marked another successful year for UDC with the achievement of good financial results and the com-pletion of numerous develop-ments projects across The Pearl-Qatar while enhancing customer experience for residents, visitors and retailers on the Island.

“The sound financial results for 2018 were driven primarily by a combination of the sale and lease of real estate properties, as well as cost efficiencies...,”he added.

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International expansions help Qatar insurers achieve growth rates; competition to weigh on 2019 earnings

SATISH KANADY THE PENINSULA

International expansions and acquiring of local businesses from foreign players have helped a section of Qatari insures to achieve healthy growth rates in 2018. Restrictions of foreign companies writing motor business at very low rates and hardening reinsurances rates could support the industry in Qatar this year, S&P Global Ratings noted yesterday.

The rating agency that noted that “some GCC insurers will Increasingly feel the heat In 2019’ said that the overall premium volumes in Qatar have gone up only marginally over the past few years, since competition has restricted growth in some business lines. Although rein-surance rates in some lines are rising, and so will infrastructure spending for the FIFA World Cup in Qatar in 2022, S&P Global does not see much growth potential in the local market in 2019 in the absence of new mandatory insurance covers.

Insurers in Qatar are also likely to remain exposed to some earnings volatility. This is because some of them may

increase their risk appetite while in search of top-line growth, either via lowering rates or exploring new or unfamiliar foreign markets. “Overall, market conditions in Qatar will remain highly competitive and, like in the UAE, several Qatari insures could be required to increase provisions for bad debt and aging receivables com-panies, leading to a decline in profitability in 2019 compared with 2018. However, some restrictions on foreign com-panies writing motor business at very low rates and hardening reinsurance rates could be mit-igating factors, in our view,” S&P said in its report.

S&P Global Ratings said it believes mounting competition, more volatile investment returns, higher regulatory costs, and stricter accounting standards will weigh on Gulf Cooperation Council (GCC) insurers’ earnings this year. What’s more, growth of gross written premiums (GWP) in most GCC markets will likely stay sluggish, due to the lack of new mandatory insurance cov-erage and difficult economic conditions. Although the GCC’s six insurance markets should remain profitable, it anticipates

a decline for some of them this year.

The main factors threatening insurers’ earnings in 2019 are increasing competition in the region’s overcrowded insurance markets, higher operating costs, and lower investment results due to volatile equity markets and falling real estate prices. Added to this is the need to increase provisions amid tighter regu-lation and standards. Under the

new accounting standard (IFRS 9), insurers are now required to apply a more forward-looking approach to provisioning for credit losses, which will increase such provisions on initial adoption.

S&P took negative rating actions on nearly every sixth insurer we rate in the GCC in 2018, mainly because of weak earnings, rising risk exposure, and/or weaknesses in governance arrangements. Yet about 30 percent of its ratings still carry negative outlooks or are on Cred-itWatch, indicating the possibility of further downgrades in 2019.

Over the past 12-18 months, an increasing number of com-panies were unable to cope with high competition and either a lack of effective regulations or tougher regulations, resulting in a rising number of qualified audit opinions or even temporary license suspensions. Taken together, these are initial signs that smaller or weaker players will have to improve their prof-itability, derisk asset exposures, and update their control and governance frameworks to reduce risks from a further weakening of credit conditions in 2019. Having said that, S&P’s

ratings on most GCC insurers are still relatively high. This is because many of the GCC insurers it rates are among the largest and strongest entities in their markets.

Most companies show healthy capital levels according to S&P’s risk-based model, which the rating agency views as a key rating strength. In many cases, capitalisation is stronger than that of peers in other emerging or developed markets in Europe, the Middle East, and Africa.

Following years of double-digit year-on-year GWP growth, most of the GCC insurance markets are now experiencing a relative lull because of weaker economic conditions and the absence of new mandatory cov-erage. However, longer-term growth prospects remain satis-factory, since the percentage of premiums to GDP of 1.5 percent-3.5 percent in most GCC markets is still relatively low compared with that in other developing markets. S&P believes top-line growth will continue to stem mainly from government-led initiatives, such as infrastructure projects and new mandatory medical and other insurance cover

White House Business Session US President Donald Trump greets attendees after addressing the 2019 White House business session with governors in the State Dining Room of the White House in Washington, DC.

Most companies show healthy capital levels according to S&P’s risk-based model, which the rating agency views as a key rating strength. In many cases, capitalisation is stronger than that of peers in other emerging or developed markets in Europe, the Middle East, and Africa.

Siemens Qatar’s QR3.1bn Kahramaaproject well on track, says CEOLANI ROSE R DIZON THE PENINSULA

Siemens Qatar’s QR3.1bn-project to expand Qatar’s power trans-mission network is well on track according to its CEO Adrian Wood. Speaking to The Peninsula on the sidelines of the Carnegie Melon University in Qatar’s Dean’s Lecture Series where he was the guest speaker, Wood said the project, which is the company’s largest contract to date, will complete the required substations this year as planned earlier.

He added: “It’s progressing very well. It was a number of primary substations. The actual contract itself is on various phases. It’s a framework contract according to the requirements of Kahramaa and the demands change as per the growth of the market. It’s been progressing very well and we’re very pleased. The substations which have been required are to finish this year”.

Awarded by the Qatar General Electricity and Water Corporation (Kahramaa) in 2017, the project includes the delivery of 35 substations for Phase 13 of the Qatar Power Transmission System Expansion project to answer the country’s growing demand for electricity. The

substations are required to supply power for various infra-structure development projects currently underway across Doha.

With regards to the com-pany’s energy conservation projects, Wood also said that the 9th electric car charging station will be launched this week at the Qatar Foundation. The electric car charging station is part of the National Programme for Con-servation and Energy Efficiency

(Tarsheed) which was estab-lished by the Kahramaa in coop-eration with Siemens Qatar. The programme seeks to cut Qatar’s harmful carbon emissions by seven percent by 2022.

Aside from promoting the green vehicle initiative, Wood said Siemens Qatar is also inter-ested to bring autonomous driving to Qatar. “We’re trying to bring awareness to the idea of bringing e-cars, but more towards autonomous driving, which is the way the country needs to go in our opinion. This is the catalyst to drive both sus-tainability and future technology.

A number of organizations are looking at autonomous driving. It’s quite a new area. Siemens is heavily involved in this type of technology and we would love to be part of bringing it to Qatar,” Wood also said. He added that autonomous driving brings technology on the roads and reduces the risk for human error, which is the leading cause of road traffic accidents.

During the event, Wood dis-cussed the various projects implemented by Siemens Qatar to contribute to Qatar’s devel-opment. To date, Siemens’ con-tribution to Qatar’s economy is valued at QR5bn.

Adrian Wood, Chief Executive Officer, Siemens Qatar, addressing the Dean’s Lecture Series at Carnegie Mellon University in Qatar, yesterday. PIC: SALIM MATRAMKOT/ THE PENINSULA

Mannai reports QR1bn EBITDA, QR10.7bn in revenueTHE PENINSULA DOHA

Mannai Corporation reported a net profit of QR407m on revenue of QR10.7bn for the year ended 31 December, 2018.

The Company’s EBITDA for the year rose by 18.4 percent to QR1bn compared to QR850m last year. While Profit before interest and tax increased by 11 percent in the year, the overall net profit declined by 20 percent, mainly due to increase in finance costs relating to acquisition funding and higher interest rates. Earnings per share stood at QR 8.92 The board of directors has proposed a cash dividend of QR2 per share which is subject to the approval of the share-holders at the Annual General Assembly.

ICC Qatar, QC to host workshop on trade financeTHE PENINSULA DOHA

The International Chamber of Commerce Qatar (ICC Qatar) in partnership with the Qatar Chamber (QC) will host its fourth banking workshop under the Patronage of H E Sheikh Khalifa bin Jassim Al Thani on March 27 at the Grand Hyatt Hotel Doha.

Titled ‘Trade Finance Training 2019’, the one-day workshop will be facilitated by Mr. Kim Sindberg in collabo-ration with The London Institute of Banking and Finance.

The workshop will benefit professionals working in trade

finance departments with various products and instru-ments such as best practices of letters of credit, letters of guar-antees, highlights from Inco-terms 2020, and status on the demand guarantee standard banking practices. The training will also be beneficial to business executives active in trade finance. This comprehensive banking workshop will enable attendees to obtain 6.5 PDUs.

The key speaker will be Mr. Kim Sindberg, Technical Advisor to the Banking Commission of the International Chamber of Commerce and founder of Sindberg Consult (www.

kimsindberg.com). Mr. Sindberg is also a member of several national and international trade finance forums and has served in several ICC working and drafting groups.

The banking workshop is being supported by Qatar Chamber and organized by ICC Qatar.

In a press statement, ICC Qatar stressed its keenness on holding this workshop for a fourth year in a row that seemed enormously beneficial to the attendees within the banking industry. It said that it should continue to host this workshop on various topics in the future.

QIC to accelerate global expansion driveFROM BUSINESS PAGE 1

The international carriers namely Qatar Re, Antares, QIC Europe Ltd. (QEL) and Marker-study now account for approx-imately 77 percent of the Group’s total GWP.

“2018 was a challenging year due to the effects of a number of hurricanes and typhoons that QIC was exposed to through its international subsidiaries - Qatar Re and Antares’. In addition to this, QIC was also impacted by the unprecedented Californian wildfires and a major marine

loss in Germany (Lürssen shipyard)”, Al Attiya said.

QIC Group’s net investment income came in at QR780m. This result can be attributed to QIC’s prudent principle of managing the Group’s investment portfolio and pursuing an effective cost discipline. In fact last year QIC was conferred many prestigious awards and titles, including “Top Investment House” and The QIC GCC Equity Fund, which won the award for “The Best GCC Fund Performance in 2017.”

Commenting on the Group’s financial performance in 2018,

Group President and CEO Khalifa Abdulla Turki Al Subaey commented: “Despite global repercussion, which has mas-sively influenced major sectors in the region, QIC Group has wit-nessed strong business momentum and has performed in line with our expectations.”

He added, “The overall per-formance in 2018 highlights the Group’s well thought out strategy and its successful execution. For 2019 our outlook remains cau-tiously positive. We shall focus on consolidation and enhance our operational efficiency.’’

Single Window System set to go onlineFROM BUSINESS PAGE 1

And then investors can pay in a single payment instead of actually using multiple payments to various entities. For some com-panies, instead of getting a company registration in 30 days with multiple visits to various entities, the Single Window will reduce that to almost a single working day by automation,” he added.

According to the official, investors will also be able to manage their companies through a dashboard provided by the portal. Investors can use the portal to apply and renew visas for their employees and be updated of any warnings or vio-lations by the company.

He also said, “On top of that, there will be some value added services, which range between opening a bank account for your company straight from the Single

Window. If you wish to have the PO Box, and other communi-cation services from either Ooredoo or Vodafone, you can do it all through the Single Window system. Investors can also pay their bills including filing their tax returns through the system”.

The official noted that investors will also be notified if there are any changes in the laws relevant to their businesses. He added, “Also, sometimes, espe-cially in the past, regulations keep on changing. Certain internal regulations such as internal requirements of entities will impact services and approvals of other entities. Single Window will assess the impact of any kind of changes in the requirements or procedures, and will simplify it as much as possible. It will be a platform for the government to address the investors and let them know

about the new initiatives, new incentives, or changes in gov-ernment regulations”.

According to the official, the automated system will be con-ducted in two phases. The first phase will be made available to those establishing new busi-nesses in Qatar. The second phase, which will be imple-mented later this year, will involve investors making changes to their companies such as selling or closing their busi-nesses, removing partners, adding new signatories and activities, and updating their contact information.

The service centre which has been operating manually since its launch, has received over 4,000 investor applications for setting up their businesses here in 2018. Over 1,000 investors have also used the centre to open their businesses from the beginning of this year.

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Citroen electric concept car Ami One

Rate-hike talk perks up on $10bn Polish stimulus planBLOOMBERG WARSAW

Poland’s ruling populists, faced with sagging opinion-poll ratings and a growing challenge from a freshly united opposition, are about to fire off a set of new stimulus measures, reaching back to the policy that’s been the backbone of their popularity.

Central bankers were quick to indicate that the spending boost is likely to fuel arguments for the country’s first rate increase since 2012. Earlier this month, policy makers thought that the chance of rising interest rates had declined, according to the minutes of their Feb. 5-6

meeting. Poland will spend as much as 40 billion zloty ($10.5bn) to raise pensions and expand family subsidies, will cut the income tax for workers under 26 and invest in the transport infra-structure. Most of the incentives will kick in either before European Parliament ballots in May, or ahead of general elec-tions in the fall.

The zloty strengthened 0.1 percent against the euro to 4.3335 at 10:43 a.m. in Warsaw, the yield on 10-year notes dropped 3 basis points to 2.87.

Here’s a round-up of what policy makers and analysts are saying: The plan raises the chance that the central bank will

start discussing higher interest rates by early next yearStable rates remain the most likely policy scenario for this year. In Polish conditions, amid a slowing economy, fiscal stimulus “is a better tool to counter slowdown than a risky monetary impulse such as a rate cut”Monetary Policy Council member Eugeniusz Gatnar

The plan will help keep Poland’s GDP growth above 4 percent in 2019. Increased spending may show the need for some “light” monetary-policy tightening in the second half of this year. The plan “completely rules out any discussion about monetary easing”Monetary Policy

Council member Jerzy ZyzynskiStimulus could help accel-

erate economic growth to as much as 5.5 percent this year and push the MPC to consider interest-rate increases it’s unlikely that the fiscal impulse will lead to inflation accelerating above 3 percent in 2019 and 2020Plan doesn’t address long-term issues, doesn’t offer growth incentives or spending on edu-cation Morgan Stanley economist Pasquale Diana

Remains “very skeptical” that the MPC would reach consensus to raise interest rates while core inflation remains low”Any sug-gestion that rates could be lowered is likely to disappear

pretty quickly, once the package is approved”Sees risks to own GDP growth forecast of 3.5% this year moving “to the upside”Erste Group Bank AG economist Katarzyna Rzentarzewska

The proposals are likely to have pro-inflationary effects the possibility of interest-rate cuts or non-conventional monetary policy moves is gone Depending on the global economic outlook next year, the expectations for monetary tightening may arise if economic momentum strengthens PKO Bank Polski SA economists including Piotr Bujak

Plan reduces risk of GDP growth slowing below 4 percent reduces scope for monetary

loosening, both via rate cuts or via unconventional measures sees total net cost for budget, once increased proceeds from VAT tax are taken into account, at 1.2 percent-1.5 percent of GDP given EU’s 3 percent deficit cap, new expenditures will reduce the scope for any additional fiscal stimulus PKO analysts share finance ministry view that imple-mentation of plan will likely be possible without amending 2019 budget mBank analysts led by Ernest Pytlarczyk

Higher GDP growth stemming from fiscal stimulus and higher likelihood of interest-rate hikes should support zloty in near term.

Oil edges up to $65 as Opec seen rebuffing Trump pressureREUTERS LONDON

Brent oil edged up to $65 a barrel yesterday as Opec were expected to stick to their policy of cutting production, despite renewed pressure from US President Donald Trump.

Crude had slid on Monday, when many traders were out of the office attending IP Week, a series of industry events in London, after Trump called on Opec to ease its efforts to boost the oil market. Prices were “getting too high”, he said.

“Yesterday was a typical price action you see during IP Week when you have a headline,” said Olivier Jakob (pictured), oil analyst at Petro-matrix. “But I don’t think it will change anything in current Opec supply policy.”

Brent crude, the global benchmark, rose 24 cents to $65.00 by 0939 GMT, after losing 3.5 percent on Monday. US West Texas Intermediate crude eased 15 cents to $55.33.

Expectations that US crude inventories had risen for a sixth straight week limited the rally.

US crude stocks were seen 3.6 million barrels higher in

weekly inventory reports, underlining that supply is ade-quate in the world’s top con-sumer. The first such report is due at 2130 GMT from the American Petroleum Institute.

Oil is up about 20 percent since the start of the year, when the Organization of the Petroleum Exporting Coun-tries and non-member pro-ducers, such as Russia, began cutting production in an effort to reduce a global glut.

Opec members are likely to be cautious about relaxing their supply-cut plan, Jakob said, after a boost in output in the second half of last year ahead of US sanctions on Iran led to a steep slide in prices.

Oil broker PVM took a

similar view.“Will the kingdom budge

and increase production or at least keep it steady,” said PVM’s Tamas Varga. “Just two weeks after announcing deeper cuts, it would be a capitulation.”

US sanctions against Opec members Iran and Venezuela have also contributed to the gains and are providing a floor for prices, analysts say.

Optimism about a US-China trade deal also helped prices to rally.

Trump on Monday said he may soon sign a deal to end a trade war with Chinese Pres-ident Xi Jinping if their coun-tries can bridge remaining differences.

Yesterday was a typical price action you see during IP Week when you have a headline, But I don’t think it will change anything in current Opec supply policy.”

THE PENINSULA DOHA

A PwC and Mergermarket study of 600 global senior corporate executives has found that only 61 percent of buyers believe their last acquisition created value. However, acquirers that prior-itise value creation from the onset of the deal outperform their industry benchmark by 14 percnet on average 24 months after completion, while divestors that prioritise value creation can outperform industry peers by 6 percent for the same period.

The Creating value beyond the deal report explores how corporations – both on the buyer and seller side - approach value creation throughout a deal. Using industry data, inter-views with senior corporate executives, and academic support from the Cass Business School, the research team ana-lysed eight years of transaction data to determine what made them so successful.

Although value creation strategies are becoming vital to

long-term success, the study shows that 53 percent of acquirers are underperforming their industry peers, on average, over the 24 months following completion of their last deal based on total shareholder return (TSR). Similarly, 57 percent of divestors are under-performing their industry peers, on average, over the 24 months following completion of their last deal based on TSR.

In this regard, private busi-nesses and family groups are rethinking how they can manage their portfolio of assets to max-imise value over the longer term by improving transparency and intervening to drive better performance.

Karl Mackenzie, Value Cre-ation in Deals Leader at PwC Middle East said: “Value cannot be created unless you have the right talent in place to create the transformation required. When performing transactions, clients are finding it hard to retain key executives. In addition under-standing and respecting the culture of the target is important to ensure talent is retained and value is not lost post acquisition.”

Karl added: “Our clients in the Middle East are also finding their existing assets (across most sectors) are under pressure causing values to decline. This has resulted in clients rethinking their current asset strategies leading to restructuring and sale of non core asset sales.”

Three main considerations emerged from the research. First, Stay true to the strategic intent:

Organisations should approach deals as part of a clear strategic vision and align deal activity to the long-term objectives for the business. 86 percent of buyers surveyed who say their latest acquisition created significant value also say it was part of a broader portfolio review rather than opportunistic.

Secondaly, be clear on all the elements of a comprehensive value creation plan – it should be a blueprint, not a checklist. Ensure a thorough and effective process for conducting the deal with the necessary diligence and rigour in the value creation planning process across all areas of the business. Consider how each of these support the business

model, synergy delivery, oper-ating model and technology plans. For acquisitions with sig-nificant value lost relative to pur-chase price: 79 percent didn’t have an integration strategy in place at signing, 70 percent didn’t have a synergy plan in place at signing, and 63 percent didn’t have a technology plan in place at signing.

Finally, pu culture at the heart of the deal: Talent management and human capital affect how businesses are able to deliver value pre- and post-deal. 82% of companies who say significant value was destroyed in their latest acquisition lost more than 10% of employees following the transaction.

The conversations with cor-porate executives show that com-panies that genuinely prioritise value creation early on – rather than assume it will happen as a natural consequence of the actions they take as the transaction pro-ceeds – have a better track record of maximising value in a deal.

“It was interesting to see that only 34 percent of acquirers say value creation was a priority on Day One (deal closing) in their latest deal, though 66 percent said it should have been a priority,” says Malcolm Lloyd, Global Deals Leader. “This highlights the need to continually evaluate and refine the way value creation i s approached within organisations.”

Deals value creation becomes increasingly hard to find: PwC

The Creating value beyond the deal report explores how corporations – both on the buyer and seller side - approach value creation throughout a deal.

The Chairman of the Managing Board of French carmaker PSA Group, Carlos Tavares, poses in front of the new Citroen electric concept car Ami One following the presentation of the group full year 2018 financial results at PSA headquarters in Rueil-Malmaison, yesterday.

French bond yields at two-year low as ‘yellow vest’ effect wanesREUTERS LONDON

France’s 10-year government bond yield dropped to its lowest since November 2016 yesterday as the effect of the country’s “yellow vest” protests faded. Broader euro zone yields fell on monetary policy expectations.

Support for the “yellow vest” movement is waning, and French President Emmanuel Macron’s popularity has recovered to levels not seen since the protests broke out in mid-November, a poll showed this week.

In addition, a survey showed that French consumer confidence jumped in February as unemployment fears receded, reinforcing last week’s strong purchasing managers’ index.

“What markets are starting to realise is that Macron seems to be quite stable in his saddle now and the ‘yellow vest’ effect is starting to fade,” said DZ Bank rates strategist Christian Lenk.

“The move (in French yields) is also in line with the idea that investors are looking for a pick-up with Bund yields so low, and the French curve at the long end in particular seems to be quite attractive.”

US consumer confidence rebounds in FebruaryAFP WASHINGTON

American consumers regained some cheer this month, putting a Wall Street rout and extended government shutdown behind them, according to survey results published Tuesday.

The news helped reverse

some of the decline in recent months. The monthly Consumer Confidence Index, which can figure into forecasts of consumer spending, overshot expectations as views about the present and near-term hopes for jobs and business both recovered somewhat.

The index rose nearly 10

points to 131.4 for the month, well above the 125 economists had predicted and the highest level since October.

“Consumer confidence rebounded in February, following three months of consecutive declines,” Lynn Franco, the board’s senior director for economic indi-cators, said in a statement.

07WEDNESDAY 27 FEBRUARY 2019 BUSINESS

Telecoms industry sees need to tighten network security, regardless of Huawei

Visitors take pictures at the China Mobile booth at the Mobile World Congress in Barcelona, Spain, yesterday.

REUTERS BARCELONA

The telecoms industry is

acutely aware of the need to

ensure that ever-more

complex mobile networks are

safe, the head of its main

lobby group told Reuters, as

debate swirls over whether to

bar some equipment vendors

on national security grounds.

The GSMA, which groups

300 operators worldwide, has

pushed back against US calls

on its European allies to bar

Huawei Technologies over

concerns the firm is too close

to the Chinese state and its

equipment may be open to

cyber spies.

It has instead proposed a

stronger Europe-wide testing

regime to ensure that, as oper-

ators build next-generation 5G

networks, smartphones and

the billions of connected

devices that will be hooked up

to the ‘Internet of Things’ are

protected from hackers.

“We are now moving into

intelligent connectivity, which

means that more stuff will be

connected,” said Mats Granryd,

director general of the GSMA

that is hosting the Mobile

World Congress, a major

annual industry gathering in

Barcelona.

“If we have doubts today,

the risk is that those doubts

would be magnified going

forward.”

The GSMA finds itself

caught up in a broader political

struggle as trade tensions

between the United States and

China buffet the telecoms

industry.

US officials have lobbied

their European allies to ban

Huawei, the global networks

market leader. That is

opposed by operators, with

some saying the rollout of 5G

services could be delayed by

years if they have to rip out

and replace Chinese kit in their

networks.

Huawei denies that it has

ever spied for Beijing, and

says no credible evidence has

ever been presented that its

gear allows illicit access to the

country’s intell igences

services.

European industry leaders

have called for the United

States to substantiate its argu-

ments. Vodafone CEO Nick

Read said in Barcelona that

this was needed to enable a

“fact-based, risk-assessed

review”.

The European Commission

is weighing whether to impose

what would amount to a de-

facto ban on Huawei, sources

in Brussels have told Reuters.

In a keynote address to the

Mobile World Congress, Digital

Single Market Commissioner

Mariya Gabriel said she took

the industry’s concerns seri-

ously and also called for a

“fact-based assessment”.

It’s not yet clear whether

that this similar rhetoric means

Brussels will heed the indus-

try’s arguments and refrain

from imposing a blanket ban

on Chinese suppliers.

For European operators,

though, the preference is clear

that competition between, and

choice of, network vendors is

vital to ensure that they can

innovate and seek new ways

to grow.

“We have always worked

with security and we will

always continue to work

security and network

integrity,” said Granryd, a

57-year-old former CEO of

Sweden’s Tele2.

“We live from scale, from

having a community that can

help us propel through inno-

vation, through cost-

effective solutions, through

quick rollout. “That is our

aim, to make sure that we

have a healthy supplier base,

that competing with each

other.”

Note: Programme is subject to change without prior notice.

CROSSWORD

A hypochondriac working as an airport baggage handler is forced to confront his fears when a British teenager with a terminal illness enlists him to help her carry out her eccentric bucket list.

THEN COME YOU

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