Daily Archives: November 21, 2024

Ensuring business continuity and supporting private sector development in Qatar

Sheikh Faisal bin Qassim Al Thani: Praise be to God that our country, Qatar, has been successful at management. Its management is exemplary in many aspects. The country has a great global standing, with good relationships built on mutual respect and shared interests with other countries. This is attractive to investors both from Qatar and abroad.I believe that Qatar will one day become one of the most important commercial centres in the world, just like Singapore and Hong Kong. We have the potential to become like these countries. When Doha created Al Dafna, and towers were built there, it was the private sector that built 70-80% of them. The Pearl was also built by the private sector, where as the government focused on building infrastructure.The same applies to Lusail. The government ensured compliance with quality standards, and so on. The same approach was followed in the manufacturing sector, as in Mesaieed Industrial City. The more opportunities the government offers, whether in manufacturing, business, real estate, or any other sector, the more creative businessmen, citizens, and entrepreneurs are.Sheikh Mohammed Bin Faisal Al Thani: Much investment has been made in the country, especially in infrastructure. If we look at the airport today in Qatar, it is one of the leading airports globally. One of the advantages that we have today is the new port in Doha, which makes accessibility in Qatar much easier. The free zone is also one of the key strengths of the market here, offering a one-stop shop and all the foundations required for any manufacturing business. These are all aspects that provide a great opportunity for any business or investor that is looking to invest in Qatar.Tarek El Sayed: As part of its economic diversification strategy, Qatar has been focusing on improving its hospitality sector to make it a world-class tourist destination. Al Faisal Holding has created an iconic hotel portfolio through its fully-owned subsidiary, ARTIC. As of early 2024, the ARTIC portfolio had 35 hotels, 12 of which are in Qatar. The remaining are elsewhere in the MENA region, Europe and the US. Al Faisal Holding was one of the first Qatari companies to successfully expand its operations overseas.Sheikh Turki Bin Faisal Al Thani: Al Faisal Holding is a very diverse company that is investing in many different sectors. Having access to the knowledge of those sectors is hugely beneficial to Al Jazi Real Estate. One of the main points of knowledge that we have is the impact of digital transformation on these different sectors.Sherif Shehata: We are starting to think about the next vision, which will focus on health IT. We will continue our business in medical equipment and pharmaceuticals, and we will expand into health IT. We managed to secure a significant countrywide project with the Hospital Information Exchange (HIE) initiative, as well as track-and-trace for medications, which will enhance healthcare services in Qatar.Sheikh Jassim Bin Faisal Al Thani: Qatar National Vision 2030 provides the main guidelines for investors to choose the sectors they want to invest in. We are beginning to recognise that environmental, social, and governance (ESG) principles have become critically important to investors. As a private equity investor, we place great importance on ESG.Sheikha Al Jazi Bin Faisal Al Thani: Qatar has become a cultural hub by showcasing its local heritage and also hosting and displaying its global heritage. The population of Qatar is growing at a fast pace, and it is ethnically and nationally diverse. This have provided the country an opportunity to become a cultural hub for both local and global heritage. We have created one of the largest private museums in the world, the Sheikh Faisal Bin Qassim Al Thani Museum. It houses more than 17,000 artefacts and covers over 25,000 square meters in size. The museum is a symbol of our commitment to the local community, and to nurturing a place for heritage for future generations to enjoy.Mona El Helbawi: The museum launched an international exhibition, “The Majlis – Cultures in Dialogue,” and it has traveled to many European cities and countries, visiting under the patronage of UNESCO. Culture, education, and sports have been essential pillars at Al Faisal Holding. This is due to the vision of the founder, Sheikh Faisal, over the past 40 years.This focus comes not just from his vision, but also, I believe, from a true passion for investing in future generations. Many organizations have been established within the sports sector, such as the Sheikh Faisal Sports Academy, which is affiliated with various national federations in Qatar and the Olympic Committee. We also have the Al Samriya Riding School, which operates in line with international equestrian standards in terms of facilities and programs.Mohammad Ramahi: Al Faisal Holding operates in a dynamic environment, leveraging the strength of its diversified operations. This diversification allows us to mitigate risks and navigate fluctuations in economic conditions and market terms.Ali Mahmoudy: We are a group with more than 60 years of heritage, which is why we need to have solid corporate governance that will ensure family succession, and meet business needs in a rapidly changing environment. In today’s world, we are living in a very complex business environment that pushes all groups to be agile and ensures good corporate governance. This is essential to growing our footprint while preserving our heritage.Abdulrazzaq Kuwari: Currently, Al Faisal Holding has a very robust procurement department. We focus mainly on supporting small and medium local businesses here, depending on their specialty. We look into the companies in terms of how we can support them, offering assistance to all our entities, and following international best practices.Rashid Al Mansoori: Aamal was one of the first companies listed on the Qatar Stock Exchange (QSE) in 2007. The chairman, Sheikh Faisal, has been a key player in the Qatari economy for 60 years. When he was thinking of listing Aamal, he selected a number of companies that were suitable to be listed on the stock exchange. He thus created a catalyst and motivated other companies in Qatar to list on the QSE, as they saw the success of Aamal in capital markets. If you consider the current cost of finance, the listing of family-owned companies is a more affordable means of financing and raising capital.Sheikh Faisal bin Qassim Al Thani: The most important element of success is adhering to highly moral values, and to want for others what you want for yourself. Do not look at competitors as enemies. The market is big enough, and each investor will get their share. You should not try to control the whole market.If you do that, you will fail. Look at competitors as brothers, and support one another. That is better than competing. I was lucky to choose the right people to start this journey with me.I chose people who loved to work. This is the most important pillar of success. The people working with me are more important than capital or any other factor. In the last few years, I have aimed to have an impact on the Qatari, Arab, and global societies.I started with charity work through the Al Faisal Without Borders Foundation, which is focused on education. We try to try to educate others as much as possible; I believe that education is what matters. It is the one thing nobody can take away. If you offer someone something to eat or wear, it will be consumed quickly – but if you provide them with education, they and their family will evolve.Sheikh Mohammed Bin Faisal Al Thani: Qatar had humble beginnings, starting with the discovery of oil. Today it has transformed into a more sustainable economy that is less reliant on the hydrocarbons sector. All this has been achieved by having a vision and a private sector that supports that vision. At Al Faisal Holding, we are very proud of what has been achieved over 60 years.Sheikh Tamim Bin Faisal Al Thani: Al Faisal Holding is an excellent example of a small and medium-sized enterprise (SME), as it started as a small business founded by my father, Sheikh Faisal. Over time, it grew bigger and bigger, and now it is one of the most diverse companies in the country, setting an example of what can be achieved by SMEs. You always have to start with something, even if it is something small.Sheikh Thani Bin Faisal Al Thani: I believe family businesses provide strong foundations for younger generations, as they encourage entrepreneurship. One thing that makes me proud is that we are always together. When I see people working, I see a family working.Sheikh Khaled Bin Faisal Al Thani: If you go back 20 years, there were only a few people involved in the private sector. Today, many hundreds of Qataris are joining the private sector. They have their own businesses; it has become part of the culture. A lot of Qataris, once they grow up and finish high school, start thinking about what to do to create their own business. There is a lot of encouragement from the government for growth. There is also a lot of encouragement for foreign investment, so there is much potential to be seen over the next 10 years.

Starbucks Explores Selling Shares In China Business Amid Growth Plans: Report

Starbucks is currently weighing its options regarding its Chinese operations and considering the possibility of selling shares in the business to a local partner, according to a report.The international coffee chain, which has been experiencing declining demand for its beverages in key markets like the U.S. and China, has been in discussions with advisers to consider bringing a local partner on board, Bloomberg reported, citing people in knowledge of the matter. ‘This development comes as Starbucks aims to revamp its U.S. stores while gaining a deeper insight into its operations in China. The company has been actively gauging interest from potential investors, including domestic private equity firms.A stake sale could also attract interest from Chinese conglomerates or local firms with industry expertise. However, Starbucks is still in the evaluation phase and has not made a final decision.The coffee chain has been under a lot of pressure from Elliott Investment Management, which wants the company to thoroughly review its Chinese business. This approach is not unprecedented, as similar restaurant chains like McDonald’s and Yum! Brands have opted to sell shares to local entities to better harness growth and cater to local tastes.China ranks second in terms of global market share of Starbucks. The Chinese market alone generated approximately US$3 billion of net revenue in the most recent financial year, thanks to an extensive store expansion in the country.Earlier this week, a spokesperson for Starbucks said that the company is “fully committed to our business and partners, and to growing in China.””We are working to find the best path to growth, which includes exploring strategic partnerships,” the spokesperson added.Meanwhile, under the leadership of new CEO Brian Niccol, Starbucks is focused on improving employee work conditions, an issue that’s become so prevalent that it led to unionization. Niccol plans to tackle operational challenges by increasing staffing in 3,000 stores and implementing the Siren Craft System — a legacy from former CEO Laxman Narasimhan — to streamline operations and minimize bottlenecks.Niccol wants to recover the brand by making Starbucks more employee-friendly like his previous employer, Chipotle, which has seen its shares increase by 31%.This year, Starbucks shares have underperformed, with its stock currently valued at 3 times its total sales in 2023. This is lower than McDonald’s, which is valued at 8 times its sales, and Dutch Bros, which is valued at 3.7 times its sales.

Editorial: Meet the new ‘head tax’: Brandon Johnson’s business levy could cause companies to flee for the suburbs

Mayor Brandon Johnson’s administration has been hunting frantically for politically palatable tax hikes to replace the $300 million property tax increase Chicago aldermen rejected unanimously last week.One of the heftiest proposals on the table is an increase in the personal property lease tax on cloud computing — bear with us, we’ll explain what that is in English — which the mayor’s office says would raise $128 million annually. That’s an enormous sum of money, so our curiosity was piqued.Who would pay that? And what would be the impact?This levy effectively is a city sales tax on what businesses pay to license cloud-based software, a critical tool for virtually any modern office. It turns out that this tax, which at the current 9% could well be the nation’s highest on this essential service, behaves like a per-employee tax on all but the smallest of businesses located in Chicago.The mayor’s office wants to hike the exorbitant existing rate to 11%, exceeding even the absurdly high 10.25% sales tax ordinary Chicagoans pay on most purchases. If the City Council approves the increase, the risk is that more than a few of the professional-services firms that have been the source of much of the city’s job growth over the past few decades may well view this measure as the final straw and simply move some or all of their operations out of town.They won’t have to go far if they opt to vamoose. Chicago’s suburbs generally don’t tax business licensing of cloud-based software.By way of background, Chicago is one of a very few cities in the U.S. to impose a sales tax on businesses’ use of cloud-based software, which powers many basic computerized functions of day-to-day work life — email, accounting and the like. Some states (not a majority) do so, although not at rates anywhere near Chicago’s. The state of Illinois taxes business licensing of some software, but the types of transactions the state targets aren’t nearly as expansive as Chicago’s.The city has taxed computer services for business in some form or another for three decades. For the early part of that period, the tax was reasonably straightforward. The 21st-century advent of the cloud, which enabled software licensors to serve customers without need for downloads or other tangible methods, complicated matters. The city applied the tax to the cloud beginning in 2015. Initially, the rate at which Chicago taxed cloud-based software was lower than other software methods, but it wasn’t long before the city applied the same rate to all software licenses. The city increased the rate to 9% from 7.25% in 2021, not coincidentally the last time the city faced a budget shortfall of more than $1 billion.It’s not surprising that mayors turn to this tax in times of budgetary stress. The levy is hard to understand, and isn’t nearly as high-profile as the hated property tax. It’s easy for increases to fly under the radar.For the city, however, the problem with turning to this source of revenue time and again is that businesses can reduce the cost of the levy simply by moving employees out of Chicago. Why? When a business has Chicago as its billing address, the city’s tax collectors assume all of its workers are here and impose the 9% tax on the full cost of its software services. But businesses can reduce their tax bill by demonstrating to the city that only a percentage of its workers are in Chicago.So, for example, if a business with a Chicago billing address employs just 25% of its workforce in the city, it has to pay taxes to the city on only 25% of its software costs.In other words, there’s a built-in incentive for companies doing business in Chicago to move their workers to the suburbs if this tax becomes sufficiently onerous. Such moves are a hassle both to employers and their workers, but in an era of remote work that hassle is reduced.Is 11% high enough to prod Chicago companies to consider a suburban move? Inertia is a powerful force, but we think 11% would start getting the attention of many a chief financial officer.“In my experience, companies will consider leaving the city of Chicago if it means not being subject to a tax that’s such an outlier,” Samantha Breslow, a tax attorney with Kirkpatrick Townsend & Stockton specializing in state and local tax matters for businesses, told us Wednesday.In our discussions with business representatives around town, word seems to be getting out slowly about this potential $128 million revenue grab at the expense of their constituents. Maybe they should think of the issue this way: Would a revival of the so-called head tax, the per-worker levy the city used to impose on businesses until Rahm Emanuel ended the job-killing practice more than a decade ago, get their attention more quickly?The cloud-based software tax is a not-so-distant cousin of the head tax. The city’s business community ought to treat it as such and make their voices heard. Thus far, the floating of the software-tax hike has been met with nary a public word from detractors that we’ve heard.Brandon Johnson has spent far too much of his mayoral term obsessing over where to find more money to finance his progressive agenda. He and too many of his aldermanic allies have ignored a deteriorating business environment that’s at the root of their fiscal woes.A confiscatory tax on an essential tool for modern business only will further fuel the economic headwinds afflicting Chicago. Aldermen should kill the increase, just as they did the $300 million property tax hike.Submit a letter, of no more than 400 words, to the editor here or email [email protected].

Big business heeds President’s call to avoid lavish Christmas parties

MANILA, Philippines — Big business heeded the call of President Ferdinand Marcos Jr. to avoid lavish Christmas parties and instead give the money to their employees as additional incentives.”A lot of our member companies will give the money to their employees as an additional benefit rather than spend it on extravagant parties,” said Sergio Ortiz-Luiz, president of the Employers Confederation of the Philippines (ECOP).

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A Virtuous Business Review – A Rare, Refreshing, Must-See K-Drama

A still from the show. (courtesy: netflixkcontent) New Delhi: A Virtuous Business is a refreshingly bold and entertaining exploration of female empowerment, set against the backdrop of 1990s South Korea, a time and place where traditional values still held strong. Based on the British series Brief Encounters, this drama tells the story of Jeong-suk (Kim…