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QC to hold its Canadian stocks online general rise after assemblyass meeting surprising US, tomorrow Canada jobs data

SUNDAY 7 JUNE 2020

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Canada added 290,000 jobs QFZA discusses cooperation in May but unemployment opportunities with top US firms rate still up

THE PENINSULA — DOHA AFP — OTTAWA Thales has recently inked H E Ahmad bin Mohamed Al Sayed, an agreement with QFZA Canada added 290,000 jobs Minister of State and Chairman of to establish a center for in May, a 1.8 percent rise, the Free Zones Authority (QFZA), has government statistical agency stressed that the Free Zones in Qatar will digital competencies that said Friday, as restrictions to continue to implement their strategy to will provide its cross-sector slow the spread of coronavirus be a premier hub for technology services for companies were eased and businesses companies that lead the New Economy, started reopening. supported by advanced infrastructure, top across the region. But the jobless rate rose national universities and research centers, 0.7 percent to a record 13.7 and a benefits package that make the Free percent as more Canadians Zones and Qatar the destination of choice H E Ahmad bin Mohamed Al Sayed, looked for work, said Statistics for international companies looking to Minister of State and Chairman Canada. establish a regional presence. of Qatar Free Zones Authority The figure is more than Participating in a webinar, hosted by (QFZA) during the webinar double the unemployment The US Chamber of Commerce for its rate prior to the COVID-19 members, the Minister said the Free Zones economic shutdown. are particularly focused on bringing in Addressing over 85 attendees, international universities in addition to US Chamber of Commerce CEO Thomas The three million jobs lost international companies that make up the including representatives from leading multiple international schools and leading J. Donohue from February to April, New Economy and specialize in technol- US corporations and household names research centers under the Qatar Foun- however, were mostly tem- ogies like the Internet of Things, cloud such as Apple, Boeing and ExxonMobil, dation for Education, Science and Com- tech companies Google and Microsoft - porary layoffs, and those services, cyber security, and industrial Minister Al Sayed noted Thales has munity Development, Qatar University, both of which have a fearsome reputation newly unemployed Cana- intelligence that are contributing to the recently inked an agreement with QFZA and a range of other institutions. for guarding their intellectual property - dians expected to return to fourth industrial revolution. to establish a center for digital compe- The Minister said the government of to establish data centers in the Free Zones. their jobs within six months, The webinar, which discussed the tencies that will provide its cross-sector Qatar has created an extremely wel- Qatar and QFZA are confident that its according to the government investment opportunities and benefits for services for companies across the region. coming regulatory environment for infrastructure will be a significant agency. US companies in the Free Zones, was QFZA is keen to capitalize on this foreign companies in the Free Zones that inducement for companies seeking a global In May, as restrictions opened by US Chamber of Commerce CEO momentum to welcome still more US allows for 100 percent foreign ownership operations hub that provides access to gradually began to ease in Thomas J. Donohue. He said: “A number technology companies to join their com- and the opportunity to establish strategic major markets in Asia, Europe and Africa various parts of the country, of leading companies have partnerships patriots in the Free Zones. partnerships with the Qatari private sector along with all the advantages provided by employment rebounded more in the Free Zones - Microsoft, Google. If Qatar has made substantial invest- and Doha Venture Capital, to help drive world-leading infrastructure and logistics strongly.. that’s where they’re going, everybody ments in recent years on mega projects, these companies’ regional and global operations. The approach is endorsed by “The surprisingly positive should think about getting there and including 5G coverage expansion and expansion. QFZA also offers considerable Patrick Trippel, President and CEO of readings on employment paint working directly with the Zones and US metro systems, and a range of other infra- perks like 20-year tax holidays and no Inventus Power. He said: “We’re already a more optimistic picture of companies that are already set up there.” structure works. The transport network customs duty on imports. partnering our R&D centers with local the early part of the recovery, The arrival of Google and Microsoft is a projects, combined with Qatar’s geographic A major concern for companies setting centers there, and we’re going to build a but there’s still a long road major achievement for QFZA, who has position, make the Free Zones a particu- up overseas, particularly tech companies, regional development center that’s going back,” commented CIBC worked extremely hard to make sure the larly attractive proposition for the logistics is the protection of their intellectual to be integrated with our development analyst Royce Mendes, noting infrastructure and regulatory envi- sector. Qatar has also developed a leading property and customer data. The legal centers in US and in Asia. As far as getting that the gains represented ronment is at the standard needed to bring healthcare sector and a world-class edu- frameworks put in place by Qatar have talent, it’s readily available. Our expe- only 10 percent of the pan- in the world’s leading companies. cation system with more than 15 proven robust enough to attract leading rience so far has been excellent.” demic related jobs shed. Opec, Russia extend record Qatar’s logistics industry to see major output cuts to end of July tech advancement: GWC Group CEO REUTERS — MOSCOW/LONDON While oil prices have par- tially recovered, they are still MOHAMMAD SHOEB for GWC Bu Sulba Ware- of the government’s swift Opec, Russia and allies agreed well below the costs of most US THE PENINSULA housing Park, the first of the response to the public health yesterday to extend record oil shale producers. Shutdowns, nation’s public private part- crisis by creating makeshift hos- production cuts until the end layoffs and cost cutting con- With massive investments, nerships to bear fruit.” He pitals and treatment areas and of July, prolonging a deal that tinue across the United States. efforts and resources being put noted that these are very enforcing new policies meant to has helped crude prices double As global lockdown restric- in place to Qatar’s logistics and important steps in supporting safeguard the business com- in the past two months by with- tions to halt the spread of the supply chain sector, the rapidly SMEs in a critical time of the munity, we can expect the same drawing almost 10% of global coronavirus are being eased, oil growing industry is becoming nation’s economic diversifi- attention to detail and quick supplies from the market. demand is expected to exceed more advanced and robust cation efforts. adjustments to take place as we The group, known as Opec+, supply sometime in July but every passing day. The Group has already won re-establish the strength of our also demanded countries such Opec has yet to clear 1bn barrels The logistics industry, the contract to manage opera- economy,” he said. as Nigeria and Iraq, which of excess oil inventories accu- which is very critical and com- tions at the Bu Fesseela Ware- Asked about GWC’s role in exceeded production quotas in mulated since March. plement to Qatar’s long-term housing Park; and it moved mitigating the impact of the May and June, compensate with Tonhaugen said yesterday’s strategy of economic diversifi- forward with the construction unjust blockade, he said that Ranjeev Menon, Group CEO of GWC extra cuts in July to September. decisions would help Opec cation, is poised to witness bids for the nearly-completed the company took on a pivotal Opec+ had initially agreed in reduce inventories at a rate of 3 major advancement and inno- of operations at a distance that GWC UPS Distribution Center component - and continues to April that it would cut supply by million to 4 million bpd over July- vations in the coming days as have been fast-tracked due to and the newly acquired Al contribute - a crucial role in 9.7 million barrels per day (bpd) August. “The quicker stocks fall, more importance and focus is the containment efforts against Wukair Logistics Park. supporting the nation’s during May-June to prop up the higher prices will get. And being given to the sector, said the true losses experienced “We are confident in our response to the crisis. prices that collapsed due to the that is crucial for many Opec+ a top official of GWC, Qatar’s because of halted or delayed outlook for the logistics “We will always put our coronavirus crisis. Those cuts economies, whose fiscal budgets leading logistics provider. business and trade.” Com- industry in Qatar and the com- every resource to the use of were due to taper to 7.7m bpd count on oil sales,” he said. “Never has the importance menting on the outlook of the mitment to our long-term the government, supporting from July to December. Nigeria’s petroleum ministry of logistics and supply chain industry, he said that in times plans,” said Menon. On gov- their rapid import of food Benchmark Brent crude said Abuja backed the idea of com- routes been so highlighted, of need and times of plenty, ernment’s QR75bn-economic stock at the beginning of the climbed to a three-month high pensating for its excessive output and because of that, there will logistics will always play an package, which include waiver crisis in June 2017 through on Friday above $42 a barrel, in May and June. Iraq, with one of be major advancements and important role. of rents for small businesses hit customs clearance, transport, after diving below $20 in April. the worst compliance rates in May, innovations in the industry “We will face some chal- by the lockdown due to the warehousing, and distri- Prices still remain a third lower agreed to extra cuts although it over the coming years as we lenges from the fall-out of the pandemic, he praised the bution centers. We worked than at the end of 2019. was not clear how Baghdad would work to mitigate the pan- COVID-19 response, but with country’s rapid, proactive with our global network to “Prices can be expected to reach agreement with oil majors demic’s impact,” Ranjeev our track record of excellence response to the crisis. create new freight routes, be strong from Monday, on curbing Iraqi output. Iraq pro- Menon, Group CEO of GWC stretching from our estab- “Thanks to the directives of and retrofitted warehouses keeping their $40 plus levels,” duced 520,000 bpd above its told The Peninsula in an lishment: having built the the Amir H H Sheikh Tamim bin and transport assets in order said Bjornar Tonhaugen from quota in May, while overpro- exclusive interview. Logistics Village Qatar – the Hamad Al Thani. This has to ensure the food stock was Rystad Energy. The April deal duction by Nigeria was 120,000 Menon said “ It becomes a unrivalled 1-million square ensured that the private sector preserved in ideal envi- was agreed under pressure bpd, Angola’s was 130,000 bpd, matter of balancing the gains meter hub of fully integrated can manage to service their ronment, while also ensuring from US President Donald Kazakhstan’s was 180,000 bpd earned through new automa- logistics infrastructure; our loans and meet their operational the fastest turnaround times Trump, who wants to avoid US and Russia’s was 100,000 bpd, tions and efficient management experience with the contract requirements. Moreover, in light in the industry.” oil industry bankruptcies. according to Opec+ data. 02 BUSINESS SUNDAY 7 JUNE 2020 Unpacking the resiliency of global trade It is not all doom and gloom indicator of overall trade Transportation Average, an 40 for manufacturing (50 is Key indicators for global trade for the global economy. In dynamics, are so far down 19 equity index comprised of the threshold that separates (y/y, %) fact, a cautious optimism has percent y-o-y in April 2020. airlines, trucking, marine a contraction from an recently swept markets, as While this represents a signif- transportation, railroads and expansion). several advanced economies icant downturn, it is far off delivery companies, whose Second, the COVID-19 prepare to “re-open” their from the collapse experienced performance traditionally shock affected the export- activities, hopefully leaving during the Global Financial leads exports by 3 months, intensive manufacturing the peak of the pandemic pain Crisis of 2008-09, when are not only signalling a sta- sector after 19 months of steep behind. Make no mistake, the exports crumbled by more than bilization of global trade but industrial deceleration, when fallout from the COVID-19 30 percent. Moreover, a a significant recovery over the manufacturing cycle was shock produced unprece- smoother trend-line of the next few months. ripe to turn into expansive dented market dislocations, 3-month average y-o-y figures Three reasons are contrib- mode. The build-up of inven- and the consequences are uting to the current resiliency tories related to preventive deep and will likely persist for QNB ECONOMIC of global trade. measures against disruptions several quarters. But as new First, because of the need in US-China trade relations in COMMENTARY data is released and the path for social distancing and the 2018 were gradually to a recovery becomes front-facing nature of service drawdown over 2019, clearer, we can take proper for exports point to a better activities, the global spread requiring new orders and an stock of the pockets of resil- picture of a 9 percent slump in of COVID-19 tend to affect the increase in trade flows. The iency and strength as well as April. service sector more than the pandemic did not completely the vulnerabilities of the Most importantly, export-intensive manufac- wipe out the need for this new global economy. This analysis however, there are promising turing sector. This is unusual orders. delves into the resiliency and signs that global trade may as manufacturing and trade Third, global trade is also relative strength of global have bottomed out. South tend to be more cyclical and benefiting from the particu- trade during the current Korean export data, which is less resilient than the service larly strong performance of downturn. the first to be released early sector, i.e., manufacturing the electronics sector and Given the depth and in the month, point to a con- and trade normally contract some crisis-related propping up the demand for pandemic shock and the man- breadth of the recent collapse tinuous contraction of exports more during recessions than sub-sectors. hardware and electronics. ufacturing sector seems better of supply and demand in the in May, but with an services. The adoption of 5G tech- Moreover, the health crisis positioned to benefit from a global economy, merchandise improvement in the rate of The global purchasing nology and the required IT created a pent up demand for gradual economic “re- trade has so far held up better change. Exports for China, in managers survey (PMI) is infrastructure for its proper pharmaceutical products and opening.” This is a positive than anticipated. Exports of particular, have stabilized pointing to a much deeper functioning is boosting personal protective development and should early-reporting and highly significantly, suggesting a contraction of services this demand for the semicon- equipment. provide additional evidence to open economies of East Asia, quick “re-opening” rebound. time with a record low ductor industry. Working from All in all, merchandise the optimistic scenario of a which are a reliable coincident The Dow Jones outturn of 24 for April versus home requirements are also trade is less affected by the big global economic recovery. QC to hold its online Speed up in development projects stimulates general assembly growth of real estate sector: Ezdan report meeting tomorrow THE PENINSULA - DOHA The progress achieved in the THE PENINSULA - DOHA construction of highway net- works in the run-up to Qatar 2022 FIFA World Cup realised The Qatar Chamber (QC) will a significant progress that hold its general assembly accounts for 95 percent of total meeting (GAM) online at 12 delivery, where all roads noon tomorrow (Monday leading to Stadium June 8). and the roads surrounding The meeting will be Al-Bayt Stadium were opened, chaired by QC Chairman in addition to accomplishing multi-use buildings, multi-use Sheikh Khalifa bin Jassim Al all construction works for the space, and residential buildings. Thani. main sewage network Al Rayyan Municipality ranked The Chamber called on its spanning over 17km, which first in terms of the highest deal members and businessmen serves eight areas in northern value by selling a vacant land to register for attending the Doha, including Rawdat Al- plot spreading over an area of meeting through a desig- Jahaniya, Al-Thamid, Rawdat 44,456 square metres, at a price Sheikh Khalifa bin Jassim Al The Ezdan Towers in West Bay. nated link. The registration Thani, Chairman of the Board Iqdam, Northern Al-Nassiriya, of QR313 per square foot, will close one hour before the of Directors at Qatar Chamber. Bani Hajir, Al-Kharaitiyat, and totaling QR 150m. Whereas Al- meeting. After the regis- , according to Ezdan Hadan and Al-Khor. With regard to real estate Daayen Municipality ranked tration closes, each member Real Estate report. The Public Works Authority activity during the period from second by selling two multi-use will receive a link to follow for the year ending December Moreover, QR4bn- ten new (Ashghal) also launched new May 17-21, 2020, the Real Estate buildings in Jeryan Jenaihat up and participate in the 31, 2019 through the auditor’s contracts for infrastructure projects such as Sabah Al-Ahmad Registration Department at the area, with an aggregate value meeting. report on the final accounts, projects, meant to serve more Corridor project, Khalifa Avenue, Ministry of Justice has regis- of QR 21m, each building spans The meeting’s agenda and the statement of income than 8,400 housing plots in ten Maseemir intersection Al Shamal tered 45 property transactions over an area of 1200 square includes the reviewing of the and expenses for the same regions across the country, Bridge on Duhail intersection. worth approximately meters. The buildings were sold board of director’s report on period. were concluded. The covered The continued growth of real QR329.7m, and the deals were at a price of QR1,626 per square the activities of Qatar Similarly, the agenda also regions shall include Southern estate sector is driven by this tre- distributed over eight munici- foot. On the other hand, Al Chamber for the year ended included the approval of the Al-Duhail, Umm Lakhba, Jeryan mendous progress in devel- palities: , Al Khor, Al Shamal Municipality witnessed December 31, 2019. estimated budget for the Najima, South Al-Mashaf, Al-Ab opment projects, which con- Thakhira, Doha, Al Rayyan, Al the lowest property sale deal in The meeting’s agenda fiscal year 2020, and the and Labeeb, Al-Maarad, tribute positively to raising the Daayen, Al Wakrah, Al terms of value for a land plot, also includes a discussion on appointment of a new auditor southwest of , Al- demand for real estate invest- Shammal, Al Shahaniya. at a square foot price less than Qatar Chamber’s fiscal report for the financial year 2020. Kharaitiyat and Izghawa, west ments in various regions of the The deals included vacant QR115, totaling nearly of Sumaysimah, Al-Uqdah, Al- country. land plots of land, housing, QR500,000. Marriott ceases Cuban operations Canadian stocks rise after new Trump sanctions after surprising US, AFP - HAVANA Canada jobs data

Marriott has been ordered by BLOOMBERG the US Treasury Department to close its Four Points Canadian equity markets rallied Sheraton hotel in Havana by with US markets after May jobs the end of August and abandon data for both countries came in plans to open others in Cuba, better than expected. a spokeswoman for the The S&P/TSX Composite American hotel group has told index rose as much as 1.9 percent AFP. in Toronto. Energy, financials and “We entered the Cuban consumer discretionary stocks market in 2016, with per- were among the top performers, mission from the US gov- while materials and tech were the ernment,” the spokeswoman worst performers. said. Canada’s labour market “unlike any other,” Invesco senior “Our operating license was unexpectedly strengthened after investment strategist Talley Leger reviewed and renewed in 2018. two-straight months of record (pictured) said in an interview We have recently received losses as the country gradually with Bloomberg. “The good news notice that the government- reopens from COVID-19 related is that activity can recover in issued license will not be restrictions. The country added some sectors, as quickly as it was renewed, forcing Marriott to 289,600 jobs, Statistics Canada shutdown and that could catch cease operations in Cuba.” said yesterday in Ottawa. some of the negative observers Marriott’s entry into the Cuban Still, the unemployment rate off guard,” he said. Adding market came during the ticked up to 13.7 percent in May. optimism that “its just matter of administration of US president Meanwhile, US nonfarm payrolls time until we get back to pre- Barack Obama, a Democrat. A file photo of the Four Points by Sheraton hotel in Havana, the first administered by the United rose by 2.5 million after a 20.7 covid levels.” The island nation had been States headquarters in Cuba. million tumble the prior month Bombardier Inc plans to subjected to a US embargo that was the largest in records eliminate 2,500 jobs at its aviation since 1962 but, under Obama, “Marriott continues to In the latest move on These remittances, which back to 1939, according to Labor division following a slump in tensions were easing. believe that Cuba is a desti- Wednesday, the US State economist Carlos Mesa-Lago Department data yesterday. The demand for business jets. Manu- But since Republican Pres- nation that travellers, including Department added seven estimated to be worth $3.5bn jobless rate fell to 13.3 percent facturing operations in Canada ident Donald Trump moved Americans, want to visit. Mar- Cuban companies and hotels to in 2017, are vital for many from 14.7 percent . will bear the brunt of the cut- into the White House, he has riott looks forward to reopening its list of sanctioned entities, Cuban families, particularly The rebound in jobs has backs, to be carried out this year, ramped up sanctions once in Cuba if and when the US gov- including the financial company during the coronavirus pan- caught bearish investors by sur- Bombardier said in a release more, cancelling or suspending ernment gives us permission to Fincimex, which makes money demic that has provoked food prise, but some market partici- Friday. Overall, the group many of the agreements made do business there again,” added from remittances sent to Cuba, shortages and spiralling pants have expected such employs nearly 60,000 during Obama’s term. the hotel chain. notably though Western Union. inflation in Cuba. outcome. The sell-off has been employees.