QATAR TODAY TOP

2014

A SPOTLIGHT ON QATAR

QATAR TODAY TOP 10 IS BACK Inc.

36 > QATAR TODAY > JUNE 2015 The Qatar Today TOP 10 TOP 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 was a dramatic month for Qatar Exchange. The stocks plunged during the last of 2010 were calculated based on seven week of May after MSCI index adjustments and news of arrests and criminal financial ratios in line with their respective probes at world football body FIFA. Other markets in the Middle East were also weighted average criteria. mostly negative. FIFA President Sepp Blatter secured re-election for a fifth term, partially easing concern that Doha might conceivably lose the tournament Widam Food Company 01 hosting rights. But just as we go to press, the news of Blatter’s resignation has Consumer Services 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. Medicare Group 02 Through a tumultuous month, and the year 2015 heading in the same direction Health Care 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 Masraf Al Rayan 03 at the Qatar Exchange. The annual ranking process, the Qatar Today Top 10, Financial recognizes those companies that have made a mark in their investors’ portfolio A SPOTLIGHT ON by showing resilience, immense growth and returns. This year we also honour Gulf International Services 04 the winners through the Qatar Today Business Excellence Awards. Consumer Services ALSHALL Economic Services, General Manager, Camille Raphael, the brains behind the formulation and the process of calculation of the Qatar Today Top Islamic Holding Group 05 10, feels that 2014 has proved to be an excellent year for the Qatar Exchange. Financial 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 06 Al Meera Consumer Goods Company era. Other initiatives leading up to the upgrade in the same year were the law Consumer Services QATAR allowing up to 49% ownership of non-Qatari investors in listed companies and other liquidity-enhancing measures taken by QE.” Industries Qatar The Qatar stock market gains were higher than its regional peers, ignoring the 07 Industrial 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, Qatar Fuel (Woqod) although some of higher gains were lost in the last months of the year. 08 Utilities 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 Barwa Real Estate Co. historical performance from an investor’s perspective and we tried to answer 09 Consumer Services a simple logic: which company would have made an investor happier from a financial performance perspective had the investor bought one share of that National Leasing Holding Co. company at the beginning of 2010 and sold it at the end of 2014, along with any 10 additional shares received free of charge during this period.” Consumer Services 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 Inc. 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.” Weighted Average Criteria: The methodology also includes other measures of profitability such as Price Growth 20%, Dividend Yield 20%, Liquidity 20%, return on equity, which shows the size of the profits of a company in relation Net Profit Growth 10%, Total Revenue Growth 10%, to the amount the shareholders have invested in it, and return on assets, which Return on Equity 10%, and Return on Assets 10%.

QATAR TODAY > JUNE 2015 > 37 QATAR TODAY TOP 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 2014 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 “We have thus the computations were made on a per share basis. This calculated the overall was done to offset any ownership dilution from corporate actions such as mergers and acquisitions, or capital top 10 rankings of increases,” says Raphael, “It should be noted that from time the companies listed to time, Qatar listed companies distribute cash to their on Qatar Exchange shareholders during the year, depending on their previous since the beginning year’s performance (what is referred to as cash dividends), of 2010 based on a as well as free share dividends.” The Qatar Today Top 10 methodology as formulated selection of financial by ALSHALL also measures all the financial and trading measurements, which performance as an average of the five-year period to may not be the only smooth-out extraordinary one-time performances, and ones used to assess assess the listed companies during a period of extended the attractiveness of a recent history. company.” “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, Camille Raphael which may not be the only ones used to assess the General Manager ALSHALL Economic Services 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.” “For this year, Al Meera Consumer Goods Company It is important to note that the rankings apply only to was included for the first time in our computations as it 40 companies out of the 43 currently listed on the Qatar satisfied the five-years criteria for selection,” he says. Exchange because only companies that have been listed on the Qatar Exchange since the beginning of 2009 and have at The Winners least five years of public disclosure on record were selected. 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. Source: came from the consumer services sector. One company, Audited Financial Statements for the past five years Industries Qatar, came from the industrial sector while (2010-2014), Qatar Exchange and ALSHALL Calculations. Qatar Fuel (Woqod) came from the utilities sector. Finally, All the following calculations are carefully reviewed Medicare Group, which came from the healthcare sector based on financial analyses and statistical data. ALSHALL and ranked second place this year, was included in the Top cannot, however, be held liable for any errors or omissions 10 for the third time since the ranking process was started. appearing in the report nor does this constitute an offer or recommendation to invest in any of the listed securities.

38 > QATAR TODAY > JUNE 2015 Top 10 Companies in Top 10 Companies in Terms of Price Growth Terms of Dividend Yield

TOP 10 RANKINGS FOR THE PERIOD TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014 STARTING YEAR 2010 AND ENDING 2014 Historical data of year-end share closing prices and share One major criterion in our methodology for determining a dividend distributions for the past five years were used to company’s overall ranking is the calculation of its dividend assess each company’s ranking in terms of price growth (or yield, which demonstrates how much a company pays average yearly portfolio value increase based on 1 share out dividends each year in relation to its average market purchased in each company at the beginning of 2010). capitalization. Doha Bank achieved the highest rank in terms Medicare Group took the number one spot in this category, of dividend yield. It is also evident that five of the top 10 moving up from second in last year’s ranking in terms of companies in terms of dividend yield came from the Financial price growth, followed by Gulf International Services. Sector, one from the Healthcare Sector, while the rest came from the Consumer Services sector.

70.2% 43.4% 8.1% 8.0%

Medicare Group Gulf International Doha Bank Masraf Al Rayan 01 Health Care 02 Services 01 Financial 02 Financial Consumer Services

42.4% 39.4% 7.8% 7.3%

Islamic Holding Al Meera Consumer Widam Food Salam International 03 Group 04 Goods Company 03 Company 04 Investment Limited Financial Consumer Services Consumer Services Consumer Services

38.5% 36.7% 6.8% 6.7%

Dlala Brokerage & Widam Food Qatar International Al Meera Consumer 05 Investment Holding 06 Company 05 Islamic Bank 06 Goods Company Company Financial Consumer Services Financial Consumer Services

30.0% 28.8% 6.5% 6.2%

Qatar Fuel (Woqod) Masraf Al Rayan The Commercial Medicare Group 07 Utilities 08 Consumer Services 07 Bank of Qatar 08 Health Care Financial

27.9% 26.2% 6.1% 5.7%

Gulf Warehousing Qatari Investors Mannai Al Khalij 09 Company 10 Group 09 Corporation 10 Commercial Bank Industrial Industrial Consumer Services Industrial

Price Growth = Average Growth of Share Closing Price each year multiplied by the Total Shares Held on the basis of 1 Average Dividend Yield = Average of the Yearly Cash Dividends Share Purchased at the beginning of 2010 plus additional over the Average Market Capitalization (2010-2014) shares distributed in dividends over the 2010-2014 period QATAR TODAY > JUNE 2015 > 39 QATAR TODAY TOP Top 10 Companies Top 10 Companies in in Terms of Net Terms of Total Revenue Growth Profit Growth TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014 2014 TOP 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 Net profit growth has been calculated total revenue growth, the more the potential for future profits. Total on a cumulative shares held basis revenues consist of all positive inflows on a company's profit and loss statement and include not only revenue from operations but also other to reflect whether the shareholder’s revenues such as income from investment, sale of assets, etc. Qatar original claim over each company’s General Insurance & Reinsurance Co. significantly led the rankings in net profit has increased or decreased this assessment criterion, with cumulative shares held multiplied by over the five-years period, and by how revenues per share growing at an average of 45.7%, followed by Gulf much on average. This has been done Warehousing Co. at 45.3% average RPS growth. to offset any possible dilution resulting from corporate action. Medicare Group still ranks the highest, achieving a remarkable 1,054% percent average 45.7% 45.3% increase in net profit per share held.

Medicare Group 01 Qatar Gen. Insurance Gulf Warehousing Health Care 01 & Reinsurance Company 02 Company 1053.9% Financial Industrial Qatar Gen. Insurance & Reinsurance Company 02 Financial 218.7% 40.1% 30.8% Gulf Warehousing Company 03 Industrial 98.1% Ezdan Real Estate United Development 03 Company 04 Company United Development Company Consumer Services Industrial 04 Industrial 97.1%

Ezdan Real Estate Company 29.0% 24.7% 05 Consumer Services 76.2% Aamal Company Gulf International Al Khalij Commercial Bank 05 Consumer Services 06 Services 06 Financial Consumer Services 36.8%

Widam Food Company 07 Consumer Services 24.2% 23.1% 33.2%

Gulf International Services Widam Food Medicare Group 08 Consumer Services 07 Company 08 Health Care 31.7% Consumer Services

Qatari Investors Group 09 Industrial 31.4% 20.9% 19.1%

Islamic Holding Group 10 Financial Qatari Investors Qatar Fuel (Woqod) 09 Group 10 Utilities 31.2% Industrial Average Net Profit Growth = Average Yearly Growth of Earnings per Total Revenue Growth = Average Growth of Total Revenue per Share (EPS) multiplied by the Total Shares Held on the basis of 1 Share * multiplied by the Total Shares Held on the basis of Share Purchased at the beginning of 2010 plus additional shares 1 Share Purchased at the beginning of 2009 plus additional distributed in dividends over the 2010-2014 period shares distributed in dividends over the 2010-2014 period

40 > QATAR TODAY > JUNE 2015 *Earnings per Share = Net Profit divided by total number of subscribed shares Top 10 Companies in Top 10 Companies in Terms of Terms of Average Average Return on Equity (ROE)

Return on Assets (ROA) TOP 10 RANKINGS FOR THE PERIOD STARTING YEAR 2010 AND ENDING 2014 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 ROA determines the company’s shareholders. Qatar Fuel (Woqod) maintained its top position ability to put to use its assets effectively as in last year’s ranking in this category, followed by Qatar and efficiently, thus earning a good Electricity & Water Co. 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) 41.9% 30.8% second place in last year’s results.

Industries Qatar Qatar Fuel Qatar Electricity 01 Industrial 01 (WOQOD) 02 & Water Company 21.2% Utilities Utilities

Qatar Islamic Insurance Company 02 Financial 18.7% 26.9% 26.7%

Qatar National Cement Company 03 Industrial 16.4% Al Meera Consumer Industries Qatar 03 Goods Company 04 Industrial Qatar Fuel (Woqod) Consumer Services 04 Utilities 15.4%

Al Meera Consumer Goods Company 24.0% 22.8% 05 Consumer Services 13.2% Mannai Gulf International Qatar Industrial Manufacturing Company 05 Corporation 06 Services 06 Industrial Consumer Services Consumer Services 12.7%

Widam Food Company 07 Consumer Services 22.6% 21.1% 12.3%

Qatar Gen. Insurance & Reinsurance Company Widam Food Qatar National Bank 08 Financial 07 Company 08 Financial 11.8% Consumer Services

Gulf International Services 09 Consumer Services 21.1% 20.1% 11.5%

Al Khaleej Takaful Group Qatar Islamic United 10 Financial 09 Insurance Company 10 Development Co. 10.5% Financial Industrial

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

Ranking is determined by taking the arithmetic average Ranking is determined by taking the arithmetic average ROA for the five-year period from 2010 to 2014 ROE for the five-year period from 2010 to 2014 QATAR TODAY > JUNE 2015 > 41 QATAR TODAY TOP Top 10 Companies in Terms of Liquidity Looking forward

TOP 10 RANKINGS FOR THE PERIOD 2014 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 obin Butteriss and Milhan Baig of Deloitte (Qatar) this criterion, followed by Widam Company talk about the Qatar Exchange Venture Market which had ranked first last year. that is in the process of being launched by Qatar Exchange. Masraf Al Rayan Widam Food The Small and Medium Enterprise (SME) segment 01 Financial 02 Company is an integral part of any economy; it stimulates Rgrowth, improves diversity and encourages entrepreneurship. Consumer Services The Qatar Exchange Venture Market (QEVM), which is the stock Barwa Real exchange for SMEs, is a strategic government initiative which, once Islamic Holding 04 03 Group Estate Company launched, should support and enhance SME development in Qatar. Financial Consumer Services 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 Qatari German Industries Qatar is required for the QEVM compared to QR40 million on the main 06 Company for 05 Industrial market. However, the process of listing on the QEVM is still a Medical Devices challenging one and requires the company to be equipped for this Health Care transformational step in its evolution. Qatar Gas An initial diagnostic review will determine what changes and/or 07 Transport Company Qatar Oman 08 Investment enhancements are needed to meet the requirements as stipulated Limited (Nakilat) by the Qatar Exchange and the Qatar Financial Markets Authority Industrial Company Consumer Services (QFMA). Some of the key considerations for readiness include having the right legal structure, an adequate financial track record, National Leasing Qatari Investors 09 10 a clear view of the company’s outlook with a robust business plan, Holding Company Group compliance with QFMA’s corporate governance code, as well as Consumer Services Industrial having appropriate management and financial operating processes in place. Liquidity = 50% Ranking of Average Daily Transaction plus 50% Ranking of Average Daily Listing on the QEVM requires appointing and working closely Volume per Outstanding Shares (2010-2014) 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. ALSHALL ECONOMIC SERVICES: ALSHALL Economic Services QSC is a private Qatari shareholding company providing The process for selecting companies to list on the QEVM and different economic, business and corporate finance advisory services to local and regional institutions. ALSHALL has built its track record and accumulated experience through preparing for listing is already underway. Deloitte and other approved continuous involvements in the business sectors in Qatar, Kuwait and MENA region during different economic cycles. This directly has strengthened the business consulting listing advisors are currently working closely with companies, the 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. Qatar Exchange and Qatar Development Bank with a unified vision 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, of success for SMEs, the QEVM and, above all, Qatar. 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 Robin Butteriss 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, Head of Financial Advisory Services | Deloitte (Qatar) 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 Milhan Baig 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 Director of Financial Advisory Services | Deloitte (Qatar)

DELOITTE The numerical accuracy of the calculations have been The opinions expressed here are the views of the authors and do verified by Deloitte. not necessarily reflect the views and opinions of Deloitte & Touche (M.E.)

42 > QATAR TODAY > JUNE 2015 Performance of the Qatar Exchange for 2014

erformance indicators measuring the QE Rebased QE Price Index AL SHALL Index

showed a positive performance for 2014. 90,000,000 85,000,000 Major indicators such as market value, 80,000,000 75,000,000 general index, total trading value, number 70,000,000 65,000,000 of deals and total trading volume have 60,000,000 55,000,000

50,000,000 lume

increased during the year. 45,000,000 Vo 40,000,000 ALSHALL Index (Cap. Weighted / 43 35,000,000 30,000,000 stocks) finished the year at 1,546.26 points on 31/12/14, 25,000,000 20,000,000 showing an increase of 9.54% compared to 2013 year end 15,000,000 10,000,000 when it closed at 1,411.66 points. 5,000,000 0 At the end of 2014, the QE Price Index finished at Jan. 14 Feb. 14 Mar. 14 Apr.14 May 14 Jun. 14 Jul. 14 Aug. 14 Sep. 14 Oct. 14 Nov. 14 Dec. 14 12,285.78 points, gaining 18.36% of its closing value at the YEAR 2014 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 The value of traded shares for 2014 (246 trading days) which was 1.938 billion shares. The amounted to QR199.293 billion. The daily average of traded shares during 2014 stood at 17.903 million shares compared to a daily average during 2013 of value of traded shares during 2014 was 7.876 million shares. Total number of deals stood at 2.059 166.1% higher than the value of 2013 million for 2014 compared to the total number of deals (QR74.886 billion), and the daily average during 2013 (0.962 million). traded value was QR803.60 million The value of traded shares for 2014 amounted to QR compared to a daily average traded value 199.293 billion, which was 166.1% higher than the value for during 2013 of QR 304.41 million. 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 Traded Volume by 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 5,000,000,000 Holding Co.) during 2014, bringing the new number of listed companies to 43 in all. Thirty one stocks of the total 43 4,000,000,000 listed companies advanced and ended at higher prices than 3,000,000,000 in 2013, while 11 stocks declined. Total subscribed shares 2,000,000,000 during 2014 reached 12.021 billion shares; this was higher 1,000,000,000 by 14.6% as compared to the total subscribed shares during 2013 which was 10.491 billion shares. Market capitalisation 0 of the 43 listed companies increased to QR676.79 billion Year 2013 Year 2014 during 2014, an increase of 21.8% compared to 2013 market Consumer Services Financial Health Care Industrial Telecommunications Utilities value which was QR 555.61 billion.

QATAR TODAY > JUNE 2015 > 43 QATAR TODAY TOP The Comparative Performance 2014 of Selected Stock Markets

he year 2014 was characterised by fluctuating The biggest loser was Muscat market which dropped by performance. The seven Gulf markets led the -7.2%. Oman was the most affected member within the GCC gains for most of the year since its beginning by falling oil prices. Next in losses was the Kuwaiti weighted though they lost most of their gains in its index which lost about -3.1%. In addition to the British and last quarter after oil prices declined. Gains the French markets, the Saudi market shared the negative went to the states which benefited most zone with the Omani and Kuwaiti markets with losses by Tfrom falling oil prices. In brief, in 2014, nine out of fourteen -2.4% though it had surpassed them in gains for most part markets that we are tracking achieved varying gains, while of 2014. The Saudi budget for 2015 was issued lately with 5 markets registered varying losses, three of which were SAR 145 billion deficit, influenced by the negative oil market Gulf markets, with two of them settling at the bottom of the conditions. group. In summary, Gulf markets began 2014 with oil prices The biggest gains in 2014 belonged to the Chinese market above $100 per barrel and oil production at its peak, but which added about 52.8% to its level at the end of 2013. ended the year with oil prices at about half of that level with Most of its gains came in the later months of the year. The pressures to reduce production. second gainer was the Indian market, which added 29.9%. This was reflected in the relaxed performance of the The two markets were the largest beneficiaries of falling economies of consuming countries, simultaneous with oil prices. The third gainer was the Qatari market, which increased panic in GCC markets commensurate with the increased by 18.4% although losing some of its higher gains fall of oil prices. 2015 began as 2014 ended, i.e. continued in the last months of the year. The Bahraini market came weakness of oil markets and continued redness of Gulf next and added 14.2%, and then Dubai market which added markets performance. about 12% after it had taken the lead by about 50%. Three Accordingly, the performance in the second half of major markets achieved medium and weak gains led by the the current year will depend on the final situation of the US market which increased by 7.5% due to strong economic oil market. If prices hold without significant losses in performance and the continued quantitative easing production, performance should be stable until the end of the program for most of the year. The Japanese market came year. However, the situation could be worse if weak oil market next by 7.1% due to falling oil prices despite signs of failing coincided with uncomfortable geopolitical conditions. On economic policy of the Prime Minister. The German market the other hand, it is likely that the performance of consumer achieved low gains by about 2.7% due to continued concern states markets would continue to achieve gains under all with the European growth, the Ukrainian crisis problems, circumstances. The difference then will be in the volume of and sovereign debts. these gains and not in their achievement.

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

60% 50% 40% 30% 20% 10% 0% -10% -20%

52.8% SSE Composite (China) 29.9% BSE Sense (India) 18.4% Qatar Exchange 14.2% Bahrain Bourse 12.0% Dubai Financial Market 7.5% DJI (USA) 7.1% Nikkei225 (Japan) 5.6% Abu Dhabi Securities Exchange 2.7% DAX (Germany) -0.5% Saudi Stock Exchange -2.4% CAC40 (France) -2.7% FTSE100 (UK) -3.1% Kuwait Stock Exchange (Weighted Index) -7.2% Muscat Securities Market -13.4%% Kuwait Stock Exchange (Price Index)

44 > QATAR TODAY > JUNE 2015 WIDAM FOOD COMPANY

st AVERAGE PRICE GROWTH: 6 LIQUIDITY: 2 1 DIVIDEND YIELD: 3 RANK 2012 - 2013 NET REVENUE GROWTH: 7 AVERAGE RETURN ON ASSETS: 7 AVERAGE RETURN ON EQUITY: 7 A MEATY VICTORY For 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.

he 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 Tthe 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 ABDULRAHMAN AL KHAYARIN General Manager, Widam 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 veterinary services, revamping the mechanised abbattoir meat shop in Al Qutaifiyah area in Doha’s West Bay, as part at Abu Hamour, and following up all the process until the of the newly launched Al Furjan markets. The outlet was slaughter and preparation process. “The sales outlets and opened by Widam chairman Sheikh Nayif bin Eid Al Thani, meat shop is the final stage. We are keen to adopt the best accompanied by Al Khayarin, company and municipality practices in the field. Besides expansion of outlets to make officials. This is the fifth of such outlets which is currently them easily accessible for individual consumers, we have selling subsidised Australian sheep meat products and introduced a home delivery service, where customers could the company plans to expand in the future to include order their requests by phone and get them in the shortest other types of meat. This is a natural extension in the possible time delivered to their doorstep in our modern spectrum of Widam's work from importing good qualities fleet of freezer vehicles to guarantee fresh and hygienic of cattle, keeping them in well-equipped barns with quality products,” explained Al Khayarin.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEAR AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 37% 8% 33% 24% 23% 12%

QATAR TODAY > JUNE 2015 > 45 QATAR TODAY TOP MEDICARE GROUP nd AVERAGE PRICE GROWTH: 1 LIQUIDITY: 16 2 DIVIDEND YIELD: 8 RANK

2014 NET REVENUE GROWTH: 8 2013 - 3rd RANK AVERAGE RETURN ON ASSET: 13 AVERAGE RETURN ON EQUITY: 31

TOWARDS A HEALTHY NATION Established 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.

his 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. TQatar 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 KHALID MOHAMMED AL EMADI CEO, Medicare Group 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 comprehensive bone treatment and physical therapy units, is the difficulty to recruit medical doctors due to the as a distinguished center in this spcialication." routine of finalising the formalities, which we do our best It is understood that the true wealth of any successful to surmount as fast as possible through dedication and company is its employees. “We have carefully studied the continuous follow up. " conditions of our employees, increased their salaries by 18% For any project to succeed the trust of clients must to 20%, revised salary grades, took care of the psychological be secured. Al Emadi says: “We consider the increasing aspects related to their work conditions and amended the frequency of visits to the hospital and the trust the whole health insurance system for their benefit.” patients have in the services we provide for them as strong Among the projects planned in the future are Al Wakrah motives to maintain and improve the standard of these Hospital, which includes an emergency unit, women’s services with regard to the safety of patients. This trust, clinics, a children’s section, an internal diseases and general has prompted us to expand our premises and services, surgery section, X-Ray section and the pharmacy. Al Emadi increase our bed capacity, improve the distribution of the adds that among the most outstanding achievements of clinics which has enabled us to retrieve nearly 18 additional the hospital is the development of the heart and blood beds, and open a new wing incorporating 22 beds. Other vessels surgery unit. Open heart surgeries were carried out developments include the dedication of a building within in this unit. “We also set up and opened a fertilisation and the main building of Al-Ahli Hospital, with specialised and sterilisation treatment section.”

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA - FIVE YEARS AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 70% 6% 1054% 23% 10% 9%

46 > QATAR TODAY > JUNE 2015 MASRAF AL RAYAN rd AVERAGE PRICE GROWTH: 8 3 LIQUIDITY: 1 RANK DIVIDEND YIELD: 2 nd 2012 - 2 RANK NET REVENUE GROWTH: 18 2013 - 2nd RANK AVERAGE RETURN ON ASSETS: 28 AVERAGE RETURN ON EQUITY: 15 FROM STRENGTH TO 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.

ts 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; IMurabaha, 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 ADEL MUSTAFAWI expected to provide Gulf Cooperation Council (GCC) Group CEO, Masraf Al Rayan 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 to the GCC and ultimately look beyond. When the time at an event attended by senior members of the Masraf Al was right for us to develop outside of the GCC, the United Rayan and Al Rayan Bank boards, including, Masraf Al Kingdom was the natural place for us to begin.” Rayan Chairman and Managing Director, HE Dr. Hussain Al Rayan Bank CEO, Sultan Choudhury said, “The last Ali Abdulla, Group CEO, Adel Mustafawi, Al Rayan Bank year has been momentous for Al Rayan Bank, beginning Chairman Robert Sharpe, Al Rayan Bank CEO, Sultan with the acquisition in February 2014 by Masraf Al Rayan, Choudhury and Al Rayan Bank CCO, Keith Leach. Speaking which was followed later in the year by the successful at the opening of the branch, Masraf Al Rayan Group rebrand to Al Rayan Bank, and continued with the posting CEO, Adel Mustafawi said, “When Masraf Al Rayan was of the bank’s most successful financial performance to date. established nine years ago we set ourselves the ambitious The opening of this new branch follows that remarkable goal of becoming a truly global bank. From the very year and, we believe, marks our transition to a new iconic beginning our strategy was to start from Qatar, then expand banking brand for London and the UK.”

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEARS AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 29% 8% 18% 15% 18% 3%

QATAR TODAY > JUNE 2015 > 47 QATAR TODAY TOP GULF INTERNATIONAL SERVICES

AVERAGE PRICE GROWTH: 2 th LIQUIDITY: 12 4 DIVIDEND YIELD: 14 RANK 2014 NET REVENUE GROWTH: 6 2013 - 6th RANK AVERAGE RETURN ON ASSETS: 9 AVERAGE RETURN ON EQUITY: 6

SWINGS AND ROUNDABOUTS Gulf International Services (GIS) was incorporated as a Qatari shareholding company in February 2008, by Qatar Petroleum (QP) which fully owned GIS prior to this.

he company has complete ownership five years. By contrast GIS's Gulf Helicopters Company has of four subsidiaries: Al Koot Insurance had a very busy year with the signing of contracts with Saudi and Reinsurance Company, Gulf Drilling Arabian Oil Company (Aramco) for the use of two AW 139s International Limited, Gulf Helicopters in support of its petroleum operation in Tanajib in Saudi Company and Amwaj Catering Services Arabia, and with ENI North Africa’s Libya branch for the Limited. Through these companies, GIS use of two AW 189s in support of its petroleum operation in Thas interests in a broad cross-section of industries, ranging Libya. from insurance, re-insurance, fund management, onshore The company ordered the first AW189 Full Flight and offshore drilling, accommodation barges, helicopter Simulator (FFS) in the region last year and has now taken transportation, and catering services. GIS has steadily delivery of two more AW189 helicopters. identified opportunities for strategic diversification of their Gulf Helicopters has a total of fifteen AW189s on order investment portfolio to expand and develop their group of and the delivery of the whole batch of aircraft is scheduled companies, offering attractive growth and high returns to to be completed by 2017. It also recently launched a new valued shareholders. tourism project called “Samana” (Our Skies), which provides The sharp decline in oil prices resulted in one of GIS's helicopter tours and sightseeing in and around Qatar. jack-up rigs under contract to be released by one of its GIS celebrated its highest annual revenue and net profit clients in May this year but the company worked quickly on record last year with revenue of QR 3.9 billion, up 69.7% with other potential clients to secure a work contract for the since the end of 2013 and net profit of QR 1.4 billion, an released rig and started leasing it out once again for shorter increase of 108.4% compared to 2013. terms. The Board proposed cash dividend of QR5.50 per share, They have also entered into negotiations to reduce the equivalent to a 72.5% payout ratio. In a statement released current rigs day rates of another client at that client’s request. with the year end financials, the company said, “GIS is It is expected that despite the good results of Q1 2015, these considered a long-term investment. Through the future reductions will negatively impact GDI’s 2015 financial expansion plans and initiatives being laid out by the group year-end results. There was some good news, with four new companies, the strength of GIS will become apparent contracts and four contract extensions signed with QP for year-on-year through key performance indicators such as the provision of drilling rig services, each having a term of profitability, earnings and return to shareholders.”

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEAR AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 43% 5% 32% 25% 23% 11%

48 > QATAR TODAY > JUNE 2015 ISLAMIC HOLDING

AVERAGE PRICE GROWTH: 3 th LIQUIDITY: 3 5 DIVIDEND YIELD: 28 RANK NET REVENUE GROWTH: 20 AVERAGE RETURN ON ASSETS: 37 AVERAGE RETURN ON EQUITY: 18 A STEADY CLIMB Islamic 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.

his 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 Taddition 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 DR YOUSEF AL NAMA return for the shareholders and a better percentage of Chairman and Managing Director, Islamic Holding Group growth,” said Dr Yousef Al Nama, Chairman and Managing Director at Islamic Holding Group.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA - FIVE YEARS AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 42% 4% 31% 14% 15% 2%

QATAR TODAY > JUNE 2015 > 49 QATAR TODAY TOP AL MEERA

AVERAGE PRICE GROWTH: 4 th LIQUIDITY: 20 DIVIDEND YIELD: 6 6 2014 NET REVENUE GROWTH: 26 RANK AVERAGE RETURN ON ASSETS: 5 AVERAGE RETURN ON EQUITY: 3 HOME-GROWN RETAIL STORY Al 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.

t 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 Aoperate 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 MOHAMED BIN NASSER AL QAHTANI million. Their recent financial report indicates that over the Deputy CEO, Al Meera 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. academics, based on modern scientific research methods “The year 2014 saw a remarkable success not only at the using state-of-the-art technology. Through WHSmith profits level but in regards to our ongoing expansion plan. stores, our customers will have access to selected sources The various new projects aim at fulfilling the different and of information, helping them boost their education level, daily needs of Qatar’s residents wherever they are,” said sense of creativity and enhance their active contribution to Mohamed bin Nasser Al Qahtani, Deputy CEO Al Meera. building the society.” Al Qahtani said. Another subsidiary that Al Meera is focusing on is the Al Meera is also planning a strategic expansion into the Al Meera Bookstore Company which is the exclusive local logistics side of the business, transforming the operations franchise owner of the WHSmith brand, which is one of that have been a cost to business to a revenue-generating the largest bookstores in UK. The company opened three arm in itself. In September, Al Meera Consumer Goods WHSmith stores in Hyatt Plaza at Al Aziziya, Ezdan Mall at Company, together with Regency Group Holding and Al Gharrafah District, and Nuaija Mall at Al Hilal. “Al Meera Aramex Regional, Dubai – UAE, incorporated a logistics Bookstore Company will offer library services that meet the company, Aramex Logistics Services Co to develop and requirements and needs of our students, researchers, and operate a logistics facility and services business in Qatar.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEAR AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 39% 7% 21% 8% 27% 13%

50 > QATAR TODAY > JUNE 2015 INDUSTRIES QATAR th AVERAGE PRICE GROWTH: 26 7 LIQUIDITY: 5 RANK DIVIDEND YIELD: 15 th 2012 - 5 RANK NET REVENUE GROWTH: 32 2013 - 5th RANK AVERAGE RETURN ON ASSETS: 1 AVERAGE RETURN ON EQUITY: 4 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.

Q 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 Iis 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 ABDULRAHMAN AHMED AL SHAIBI to competitively priced natural gas feedstocks and, in Chief Coordinator, IQ 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 as by strong full-year average key petrochemical product important public policy role.” prices. However, the group faced significant challenges from These competitive advantages have been recognised by extended, planned shut-downs noted across all plants during two international credit rating agencies, Standard & Poor’s the first half of the year, continued weak urea prices, and and Moody’s, that rated IQ at AA- and Aa3, respectively, with heightened operating costs. a stable outlook. In addition, IQ is focusing on maximising It is important to emphasise that the planned maintenance the value of its current operating assets through various and challenging market conditions experienced were largely efficiency improvement programmes. The group has expected and accounted for in the group’s 2014 budget. already commenced a number of these initiatives, targeting Reported revenue for the year ended December 31, 2014 improving the operational efficiency and effectiveness under IFRS 11 was QR6.0 billion, a marginal increase of throughout the entire value chain in order to achieve QR0.1 billion, or 2.5%, over the previous year; on a like- operational excellence, growth and value for all stakeholders. for-like basis, management reporting revenue – assuming Earnings in 2014 were supported by the launch and proportionate consolidation under IAS 31 – was QR18.2 subsequent ramp-up of Qatar Steel’s EF-5 facility in the first billion, a decrease of QR1.0 billion, or 5.4%, versus the same quarter and Qafac’s CDR plant in the third quarter, as well period in 2013.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEARS AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 11% 5% 7% 1% 27% 21%

QATAR TODAY > JUNE 2015 > 51 QATAR TODAY TOP WOQOD th AVERAGE PRICE GROWTH: 7 LIQUIDITY: 26 8 DIVIDEND YIELD: 27 RANK rd 2014 NET REVENUE GROWTH: 10 2012 - 3 RANK 2013 - 4th RANK AVERAGE RETURN ON ASSETS: 4 AVERAGE RETURN ON EQUITY: 1 ENABLING GROWTH Qatar 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.

he 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 Ttankers 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. ENG. IBRAHIM AL KUWARI WOQOD’s innovative Shafaf LPG cylinder is lighter and CEO, WOQOD 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 see the increase in the number of vehicles on Qatar’s roads safety and excellence in customer service, according to Al which is reflected in our annual growth in gasoline and diesel Kuwari. Fahes is the vehicle testing company responsible demand at around 9% per year. WOQOD presently operates for the annual inspection of all vehicles on the road that are 25 full-service stations with Sidra convenience stores, car more than three years old. “The recently opened inspection washes, lube change, tyre shops and vehicle maintenance. centres at Wadi Al Banat and in Mesaimer use the latest Our vision is to have 100 WOQOD service stations by the end technologies in vehicle inspection, thus contributing to the of 2018 and this is what our management team is focused safety of vehicles on the roads in Qatar and the reduction in on. Currently we have 10 stations either under construction fuels emissions,” he says. “Qatar Jet Fuel Company (QJet) or in initial planning phase. These will open through 2015 provides all the aviation fuel for Hamad International and early 2016. In addition we are working closely with the Airport and works closely with all airlines to ensure their Ministry of Municipality and Urban Planning to make sure fuelling requirements are met safely and in time for their land is made available for service stations in locations where demanding schedules. WOQOD Marine Services Company customers want them. This is essential for the new roads provides shipping logistics for the importation of bitumen being built by Ashghal,” says Al Kuwari. into Qatar and supplies fuels to all ships within Qatari Explaining what the company has planned for the future, waters. “ Al Kuwari speaks about the recent issue highlighted Al Kuwari says, “We are always looking to improve the by the media and by the common man in general of the lack service we give to our customers. By the end of 2015 we of sufficient petrol stations in the country, resulting in a will introduce an RFID fuels management system that will crowding at existing petrol stations. “We recognise that improve the accuracy of fueling and reduce the opportunity there are not enough service stations in Qatar. We can all for theft of fuel.”

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEARS AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 30% 4% 6% 19% 42% 15%

52 > QATAR TODAY > JUNE 2015 BARWA REAL ESTATE CO.

AVERAGE PRICE GROWTH: 36 th LIQUIDITY: 4 9 DIVIDEND YIELD: 21 RANK NET REVENUE GROWTH: 14 AVERAGE RETURN ON ASSETS: 25 AVERAGE RETURN ON EQUITY: 22 LIVE TO FIGHT ANOTHER DAY Considering Barwa’s troubled past, the position it holds today on the Qatar 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.

ver 2014-15, Barwa conducted some shares in Lusail Golf Development Company. distinctive transactions which resulted In the financial year ended 31 December 2014, the group’s in a full restructuring of the financial results showed a net profit of QR2.7 billion, with QR7.14 position of the group. The year saw the profit per share for 2014, compared to QR1.4 billion and conclusion of the agreement to sell the QR3.53 profit per share for 2013, showing a 102% increase. group’s shares in Barwa Bank, Barwa The Board of Directors proposed a cash dividend of QR2.20 OCommercial Avenue, Barwa Al Sadd and Barwa City, and per share (22% of the share value). some other assets to Qatari Diar with all those transactions Salah bin Ghanem Al Ali, Chairman of Barwa Real Estate utilised to settle Barwa's debts. Barwa announced amending Group, pointed out that the powerful results of the group's the agreement with Qatari Diar after Barwa took back its financial position were accomplished by the continuous shares in the Barwa Al Sadd project after studies confirmed efforts of the Board of Directors to utilise the group’s the economic importance of retaining this project. As per assets whether by developing, operating or selling those the transaction, Qatar Diar, strategic partner of Barwa Real assets, which are the core activities of Barwa as a real estate Estate, decided not to proceed with the transfer of the rest investment company. of the assets as the part which was already completed had With the increasing demand on commercial & residential significantly reduced Barwa's debts. The assets which were units, Barwa Real Estate has started its expansion project not transferred to Qatari Diar are some local and international for Barwa Village on Al Wakra road and the leading local assets from Barwa's investment portfolio which are worth consultancy, Arab Engineering Bureau, for the delivery QR1.4 billion. On the development side, Barwa Real Estate of the company’s newest development “Motor City” in was able to complete phase one of Barwa Al Baraha (workers agreement with the Ministry of Municipality & Urban accommodation). The group has almost completed the Al Planning in Qatar. Khor Shell project, in addition to announcing a number of Under this signed agreement Barwa will rent land new projects including the Madinat Al Mowatir, Mostawdaat extending over 1,150,000 square meters, located in Rawdat and Alaateda projects. On the operating side, the group Rashid near Salwa Road, to develop and run a distinctive focused on improving the performance of its subsidiaries project offering used-vehicles services. including Qatar Real Estate Investment Company, Qatar The group announced the appointment of Salman Project Management and Waseef Property Management Mohamad Ahmad Al Hasan Al Muhannadi as Group CEO of Services. They also focused on improving the performance Barwa Real Estate in March 2015. of real estate projects owned by the group such as Barwa The group is reportedly finalising its new strategy, Al Sadd, Barwa Village and Masaken. The group could also reviewing current investments to determine best approaches strengthen its asset base through the purchase of Arcapita of utilising them, and studying potential opportunities.

COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEAR AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 7% 5% 26% 18% 13% 3%

QATAR TODAY > JUNE 2015 > 53 QATAR TODAY ALIJARAH: NATIONAL TOP LEASING HOLDING CO. th AVERAGE PRICE GROWTH: 27 LIQUIDITY: 9 10 DIVIDEND YIELD: 12 RANK th 2014 NET REVENUE GROWTH: 27 2012 - 4 RANK 2013 - 7th RANK AVERAGE RETURN ON ASSETS: 15 AVERAGE RETURN ON EQUITY: 14 PEGGING ON GROWTH Established 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 .

pelling 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 Sproviding 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 HAMAD SHERIF AL EMADI our heavy equipment fleet. Our wide portfolio of work CEO, Alijarah Holding 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 a significant portion of the group’s revenue, however in of the acquisition of a driving school which is expected to 2014, Alijarah Holding was ranked first with a decline in start in the forthcoming years.” property revenue which was a reflection of the completion Going into the specifics of the company’s performance, he of the Lusail Infrastructure Project as the plots have been says, “Our investment strategy is quite aggressive; strategies handed over to the owners,” he says. “Further, the taxi and are made on the portfolio and deposits to increase return equipment business also are slated to grow faster with the on investments. During the last five years, QR169 million economic activities picking up in Qatar and contributing of income was generated through investment activities higher profit margins.” with an ROI of 28%.” Alijarah Holding makes extensive Exploring other infrastructure and real estate efforts to diversify the Islamic financing options to Qatari development opportunities is on the cards for Alijarah nationals, expats and corporates based on market trend and Holding, capitalising on the growth potential in Qatar. customer-based requirements. "Construction of the state-of-the-art driving school and In the transportation business, Alijarah was vested taxi complex, building comprehensive accommodation, with a franchise agreement by Mowasalat to run a fleet service area and warehousing facilities in the Industrial of 500 Taxis in 2012 which later expanded to 1,000 taxis area,” he says. in 2014. “Within Alijarah Properties, we have successfully With increased economic activities in Qatar, completed the Lusail Infrastructure Project and handed transportation requirements are growing. "We are over the plots to owners to start construction.” While each negotiating additional contracts. We are also planning to of the segments has been instrumental in Alijarah’s success, add additional trailers to replace the old ones and also to some of the branches seem to have fared comparitively cater to the additional requirements.” The leasing segment well.” is consistent in its business and there are strategic options In the previous years the property business formed being explored in growing this business further,” he says. COMPANY'S PERFORMANCE BASED ON ASSESSMENT CRITERIA: FIVE-YEAR AVERAGE (2010-2014) Price Growth Dividend Yield EPS Growth with RPS Growth with ROE ROA Dividend Dividend 10% 6% -5% 7% 18% 8%

54 > QATAR TODAY > JUNE 2015 WINNERS ALL THE WAY The 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.

QATAR TODAY > JUNE 2015 > 55 QATAR TODAY TOP

2014

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 and emphasised the implementation of regulatory reforms as part of revamping the global financial architecture after the crisis.

56 > QATAR TODAY > JUNE 2015 BUSINESSMAN OF THE YEAR

DR R SEETHARAMAN GROUP CEO, DOHA BANK A SOCIAL COMMITMENT 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.

oha Bank is now not just a local bank but an leadership,” Seetharaman says, “success is inevitable.” international name with its extended global But to keep to this perfect scenario, 24/7, 365 days, must be a footprint across 15 nations worldwide. In this mental strain. Seetharaman disagrees, saying: “If passion comes in, pursuit, Doha Bank was also the first Qatari bank to performance follows. It doesn’t even seem like a job, but becomes establish its full-scale banking operations in India. a part of your life. You should have pride in what you do. Humility, For a man who travels continents on a weekly basis, persistence, hard work, transparency are all part of the core values.” DSeetharaman still kept the late appointment he had fixed with us and The list never ends and it does seem as if being on top is not as easy sat down for a chat on the banking industry in general (which will be as it looks. “You have a bigger vision, and when you achieve what you carried in the next issue of Qatar Today) and his career in particular. have aimed for, you lift your vision and aim for the next,” he continues. Seetharaman was also one of the first businessmen who popularised From being an underperforming institution with seven branches the term Green Banking, introducing Doha Bank to a phase of to a bank with a global footprint which has ensured 10 times return corporate social responsibility programmes through sustainable to the shareholders over the last 12 years with a high respect from actions. regulators, Seetharaman has indeed changed the banking landscape Musing on 12 years of being at the helm of Doha Bank, Seetharaman through his active role in the industry. says, “I have always aimed at sustainability in my outlook; whether Ask him about his contribution and he is happy to expand on his in my personal or professional life. It is important to sustain your roles. He says, “I have contributed to the expanded presence of Doha credibility. Especially being in a financial institution, which is truly Bank across GCC, established relationships with leading corporates public, and global. What you need is to take care of all the stakeholders, in the GCC industry and fulfilled their banking and financial socially commit yourself, and most importantly, you have to ensure services requirements. I have highlighted the changing dynamics that whatever you do is ethical and moral,” he says. in the banking industry pre-crisis and post-crisis, emphasised the Focussed and intent, Seetharaman takes his role in society very implementation of regulatory reforms as part of revamping global ascetically. His list of virtues for staying ahead of the competition financial architecture after the crisis.” is relentless. “Your operating efficiency has to be topmost, as this “We developed working relationships with GCC banking regulators is highly crucial and it makes sure that your stakeholders and and now look forward to implementing various reforms in the GCC shareholders are always satisfied. Everything that you do needs to region. Doha Bank has kept abreast of developments in technology have a customer-centric focus. On top of it, you should contribute and leverages on it to provide value advantage to the customer.” to and also benefit from a knowledge-based society. You also need to It therefore was a no brainer for Qatar Today, to institute the build on the knowledge assets through talks with experts and share Businessman of the Year to this personality who has come to the the intellectual assets and empower others through these exchanges.” country and made a strong partnership with stakeholders based on “If all these balances are in place, and with such a thought integrity and social commitment.

QATAR TODAY > JUNE 2015 > 57 QATAR TODAY TOP

2014

“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.”

Abdul Hameed KC Managing Director, RASTEC Properties

58 > QATAR TODAY > JUNE 2015 EMERGING REAL ESTATE ENTREPRENEUR

ABDUL HAMEED KC Managing Director, RASTEC Properties HUNGRY FOR NEW CHALLENGES 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.

t was this that first brought him to our notice. In a country reasonably priced real estate and we have from the beginning strived where diversification is the game of governments and to fill this.” Every customer is special, says Hameed, irrespective of conglomerates, Hameed, managing a business of just under whether they are a diplomatic mission or someone with surprisingly 40 employees, stands out for his tenacity and sheer will to more complicated demands like a family of five. “Each client is fight for his piece of the pie, irrespective of which business treated with care from the time they get in touch with any of our sector. representatives. Throughout the process, we make sure a qualified IChoppy growth, unpredictable trends and changing regulations manager is assigned to them who becomes their one point contact for have made the real estate sector a gamble that seems to defy the laws anything related to their real estate needs. These personal managers of economics. It was such a quagmire that Hameed entered back in are complemented by our skilled maintenance team, available on call 2011 when he launched RASTEC Properties. Behind this venture, anytime,” he says. besides his many years' worth of accumulated business savvy, was The ensuing years, of course, weren’t without its challenges. RASTEC Trading & Services Co. The core business of the company, “It has been getting progressively difficult to acquire properties which he founded in 1995, is currently the Chemicals division from landlords at affordable prices. But we were able to overcome which provides innovative specialty chemicals, technical services this with perseverance, regular meetings with both parties and and support for broad range of industrial applications. It grew into leveraging on our reputation in the local market,” says Hameed. He this from trading, surplus and scrap collection and ISO consulting has high ambitions for RASTEC Properties but quality service and before branching out further into properties and IT. affordability will always be its core tenents, he assures us. It was a carefully considered, market-study led, network-approved The Qatar Today Business Excellence Awards for Best Emerging expansion and Hameed reckons that RASTEC’s attentively nurtured Real Estate Entrepreneur is a great achievement for him and his reputation and the consequent trust in the brand stood him in good entire team, Hameed tells us. “It is definitely a milestone for our stead in this new undertaking. company and gives each one of us a sense of motivation to build a Speaking about RASTEC Properties, which has made quite a name brand that people can trust. This also means we have started the for itself in this highly competitive segment, he says, “Currently we process to reach our ultimate objective of becoming the Real Estate handle diplomatic clients, corporates, international companies and Partner of Choice for Qatar and be proud participants in its growth,” individuals. There is a void in the Qatari market for high-quality, he says.

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2014

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 Azeem Founder and CEO of Coastal Qatar

60 > QATAR TODAY > JUNE 2015 MOST INNOVATIVE COMPANY

COASTAL QATAR PIONEER AT HEART 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.

ere he speaks to Qatar Today about how the demand form (ABB). We also have a 3D modeling system, and will be the first for basic goods affects the industry, and how Coastal company to implement software controlling in all our productions focuses on sustainability in construction. The lines.” Azeem talks also about the company`s vision: “To us customer company was established back in 2005 during the service, customer satisfaction and safety come above everything else. Asian Games, back when the contracting industry Our team of competent professionals and specialists is supported was booming in Qatar. According to Azeem, “We by an experienced workforce in construction, fabrication, erection Hstarted with just two professionals and we were fortunate to get and logistics support. Our facilities include a well-equipped, modern one major project within the Aspire Zone. We did the whole sealing and automated fabrication workshop, blasting and painting unit, inside that stadium, and that actually put Coastal on the map as carpentry workshop and a fleet of transportation and construction a specialised construction company.” Azeem adds: “After that we equipment. Our main strength is being able to manage complex started the trading division as we wanted to expand in the market. projects by going into the detail of the project.” Azeem adds, “Our We represent products for interior fit outs.” Coastal was involved in strength lies in embracing engineering challenges, in simplifying the some major construction works, like the interiors of Oryx Rotana, complex, and incorporating passion into all that we do. The Coastal Barwa (Al Sadd) and the gymnasium flooring in the new airport. way has always been about constantly challenging the boundaries of He continues: “With that we started another division which is the engineering innovation, commitment to safety, schedule and quality, steel fabrications division. We did major projects in Ras Laffan, and thereby delivering excellence to the construction and engineering also within Hamad International Airport. Coastal has broadened landscape of Qatar and its neighbouring regions.” its business streams and also made a foray into the transportation Azeem speaks about his company slogan and says: We believe sector. But that is not the end of diversification; Coastal has also in doing it right the first time, every time. It’s our commitment to made an entry into the business of steel fabrication. “And now delivering excellence and incorporating passion into all that we do. we are among the top players in the steel fabrication field with a And our strength too.” He adds: “I take pride in having a free and open thousand tons per month,” Azeem says. He adds: "We are trying to be structure that inspires trust. Ours is a diverse, multicultural group technologically advanced. I think we are the first company in Qatar of professionals who are driven towards accelerated growth, while to have a robot in steel and stainless steel, and this is a Swedish robot being completely ethical.”

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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 Attiyat Country Manager of DHL

62 > QATAR TODAY > JUNE 2015 BEST LOGISTICS COMPANY

DHL SIGNED, SEALED, DELIVERED 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.

atar Country Manager Nael Attiyat explains some been a challenge,” admits Attiyat. of the company’s main goals. “Providing great In the globalised world, setting up shop locally is no longer enough service quality consistently to our customers for smaller players to succeed. International trade has become a vital is our main priority. We aim not only meeting component to the long-term survival of SMEs. This is where logistics their expectations but exceeding them when it comes into play. Trading across borders can be a time-consuming, comes to their express logistics requirements.” complex and risky business; issues such as cultural differences, high QThe company has a diverse customer base, serving the oil and gas, administrative costs and inadequate infrastructure can be daunting healthcare, education, financial, aviation, automotive, retail and for smaller players. In such a scenario logistics providers present FMGC sectors. solutions for small businesses and can grant them access to the In a recent interview with Qatar Today, DHL Express MENA, world’s biggest consumer markets, making it a fundamental part of CEO, Nour Suliman said, “DHL’s SME segment in Qatar has their service and giving them an edge over the competition. witnessed a significant jump in the last five years, and this is a “Another aspect that we keep closely in focus is continuously reflection of the rise in smaller enterprises setting up in the local looking at investment opportunities to support customer market. Our growth in this sector has experienced double-digit requirements,” says Attiyat. numbers year-on-year, with many of our new customers outside the In 2014 the company set up in the UAE the largest DHL Express oil and gas industries.” centre for ground operations in the Middle East and North Africa. Recognising its efficiency and years of dedicated service, DHL Covering over 17,265 square metres, it connects the region to was awarded the Best Logistics Company by Qatar Today Business DHL’s global network and provides improved transit times and Excellence Awards. It is an important achievement for DHL who performance. have grown for more than 25 years. Attiyat says, “We feel proud and “As a company, DHL has always invested in the region to support honoured to be recognised for our role in developing the landscape growth expectations. We also have a regional hub in Bahrain to of Qatar. It also showcases that DHL Express is trying to be the support the Middle East,” explains Attiyat. ‘provider of choice, investment of choice, employer of choice.” Looking ahead the company is confident to meet customer Over the past decade, Qatar has undergone rapid expansion in expectations. “We hope to maintain the double-digit growth DHL terms of business growth and development. The logistics industry Express has experienced in previous years,” says Attiyat. “We would as a whole has had to adapt to the demands of a growing economy. also like to invest in Qatar to support local projects, industries and “Keeping up with the pace of Qatar’s fast-growing economy has companies with the rest of world,” he concludes.

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