AQARI - English - Oct 2012

SHAPING QATAR
B-INSIDE
4
Barwa Real Estate Group:
building new horizons
5
Barwa Key `Subsidiaries
7
Activities & Social
Responsibility
Award-winning
Barwa Commercial
Avenue: a global
project on
Qatari
land
ONE-ON-ONE
10
Interview with Abdulla
Abdulaziz Turki Al Subaie
Barwa Group CEO
Barwa City
An iconic development
offering unrivalled luxury
AROUND
THE
WORLD
28
26
London property
market a safe
haven
Barwa implements five
phase safety action plan
22
24
EYE ON THE
MARKET
15
Real Estate in Q2: flash
assessment
16
Qatar’s Economic
Diversification
18
Hospitality Sector in
the spotlight
HERE & THERE
Barwa Action Plan
27
30
'Safety Week' at Qatar
Petroleum District Project
Real Estate FAQs
HAYAKOM
Team
Editor in Chief:
Hamad Rashid Al Kuwari
Editorial Team:
Mohamad Baadarani
Neveen Aljajeh
Dear Readers
Welcome to Aqari, the Qatari magazine specializing in the national real estate market; everything from trading to investment and development.
Today, Qatar is enjoying a huge boom in its construction industry, and the business community as a whole is experiencing an exciting period of growth. This success is down to the
wise leadership and guidance being shown by His Highness
the Emir Sheikh Hamad bin Khalifa Al Thani and the Heir Apparent Sheikh Tamim bin Hamad Al Thani, may Allah protect
them. Their endeavors have promoted Qatar on the world
stage attracting major investments from global organizations.
In line with the vision being shown by the State of Qatar,
and as a result of being awarded the opportunity to host the
2022 World Cup, the country is witnessing a massive growth
in real estate activity. Infrastructure expansion and the new
rail network being built demonstrate Qatar’s ambition, as
does the building of state-of-the-art sports stadiums and various service buildings. It all reflects the progress being made
in the State of Qatar, which is in line with its vision for 2030.
Rana Al Wehaibi
Aqari is a periodical magazine published by Barwa Real Estate
that will convey all the latest news from the real estate market
in Qatar and the GCC countries. It will shed light on global Qatari investments. The magazine aims to help organize the real
estate and urban development sector by offering studies and
analyses that will contribute to laying down the foundations
that will regulate this sector. Moreover, it will contribute to the
creation of a transparent platform for property transactions
between the developer and investor. In essence, the magazine
is a tool that will assist investors and entrepreneurs in making
the correct investment decisions. Therefore, we hope Aqari
magazine will become a proactive, fully specialized magazine
in the study of the real estate market, and will provide information and analyses for real estate investment. We hope it
will live up to the expectations of reader and investor alike.
Khalid Almoathen
Writers:
Dr. Tarek Coury
Mohammed Siddique
Sameer Sheikh
Chris Santiago
Published by:
I would like to thank all those who have contributed to the
launch of Aqari, hoping to become your first destination for
real estate and investment information. Barwa is also looking forward to responding to your inquiries and contributions
sent via the ‘Inboxer’ – the specialized channel to receive and
respond to your inquires.... Hayakom
Tel: +974 4408 8888
Fax: +974 4499 8994
www.barwa.com.qa
In Collaboration with:
Hitmi Bin Ali Khalifa Al Hitmi
Chairman - Barwa Real Estate Group
Call Center
B-INSIDE
Barwa Real Estate Group: building new horizons
Barwa’s key subsidiaries:
Al-Aqaria
Qatar Real Estate Investment Company– Al-Aqaria, established in 1995, is a leading Qatari private joint shareholding
company with a mission to identify and invest in long term
projects which contribute to Qatar’s growth. In 2010 Barwa
Real Estate Company took ownership of Al-Aqaria Following
this, Al-Aqaria acquired 100 per cent of ASAS Real Estate
Company in 2012.
Creating lasting value
Beyond Expectations
Qatar the inspiration
Established in 2005, Barwa Real Estate Group is considered to
be one of Qatar’s leading real estate and investment companies. The group was created with the mission of contributing
towards the sustainable development of Qatar by investing in
businesses, services and expertise.
Qatar remains the key focus of Barwa’s investment strategy,
as it capitalizes on the infrastructure and development plans in
the country, and aims to support Qatar’s aspirational leadership with its National Vision 2030.
Since its formation, Barwa has proven to be a dynamic and
powerful contributor to Qatar’s ambitious development plans
as envisioned by His Highness the Emir, Sheikh Hamad bin
Khalifa Al-Thani, in the Qatar National Vision 2030. The National Vision aims to transform Qatar into a modern country
with a diversified economy for the benefit of generations to
come.
Despite its short history, Barwa has grown from being a purely
real estate-driven company into an internationally diversified
business conglomerate. It has a multitude of investments in
real estate development in Qatar, international real estate,
business services, as well as infrastructural and financial services.
With an ever expanding portfolio of projects, Barwa has built
a solid track record of taking on major and complex domestic
and international projects and completing them to the highest
standards. While the group’s main activities remain in Qatar,
Barwa also has a wide array of investments and operations in
13 countries across the world.
Barwa is currently the largest publicly listed real estate company in Qatar in terms of real estate developments, and the
group recorded an impressive total asset capitalization of approximately QR 66 billion at the end of 2011.
6
From day one, the company’s mission has been to become
a cornerstone in the development of Qatar and its industrial
areas, creating lasting value and maximizing returns for the
stakeholders. Over the past 17 years, Al-Aqaria has built
a major presence in Qatar and has emerged as one of the
country›s leading real estate development companies. The
company’s core business is in real estate investment and
development, with a focus on developing residential projects in Qatar’s industrial areas, namely Dukhan, Mesaieed,
and Al Khor.
Al-Aqaria complements Barwa and provides a significant
addition to the Group’s asset base, with its portfolio of industrial properties and projects, thus helping to position the
group very strongly for future growth. Al-Aqaria completed
projects worth QR. 2.36 billion in the last two years and approximately QR. 2.8 billion worth Qatar Petroleum, government and energy related projects which are in the pipeline
up to 2015.
Waseef
The Group will look to diversify internationally to make the
most of opportunities in the United Kingdom, Turkey, Russia,
France and Egypt. Barwa’s legacy will lie in its creation of a
strong sense of community through its investments and projects. These range from providing world-class business hubs,
to affordable community housing and the largest workers’ city
in the GCC.
Building Qatar’s future
Barwa is a key player in Qatar’s emergence as a vibrant investment hub with a progressive long-term outlook. The group
also plays a vital role in serving the local community.
Barwa’s vision is to be a reliable real estate company recognized for strong values, excellence and sustainable returns to
it’s stakeholders. The mission of the Group is to create better
places in an efficient manner for people to live, work and enjoy,
while ensuring sustainable returns for its stakeholders.
As Barwa continues to expand and diversify from being purely
a real estate company into an international investment and
real estate conglomerate, ensuring development that is sustainable and which offers a lasting positive legacy for future
generations is intrinsic to Barwa.
Waseef is a subsidiary of Barwa Real Estate and is regarded
as one of the largest fully integrated asset, property and facility management service companies in Qatar. Waseef was
incorporated in 2009 merging three subsidiaries of Barwa.
Waseef offers a comprehensive range of fully integrated
physical asset, property and facility management services,
with highly trained professional staff and a fully integrated
centralized management software system.
Born to service a nation
With a mission to extend its management services in Qatar
and internationally, Waseef has emerged as a leading property and facility management services company that is able
to offer high quality services for every stage of a property’s
life-cycle. Services include asset, property and facility management for a number of iconic Barwa projects.
Waseef has also partnered with best-in-class organizations to
provide a comprehensive supply chain covering the full range
of services required to consistently meet clients’ needs.
Waseef Property Management provides a wide variety of
services including; Lease Management; Tenant Coordination;
Cost Control; Rental Collection; Rent Maximization; Asset
Protection and Client Representation. Waseef’s main objective is to create and add value to the property, provide customer satisfaction and guarantee the quality of service delivery that would earn loyalty from leaseholders and ensure
revenue to valued clients.
Today Waseef is a local company, strategically positioned to
lead in some of the world’s most important and dynamic markets. In future Waseef will become a regional and global force
serving nations, developers and their customers in emerging
markets and established destinations.
7
Qatar Project Management
Established in 2008, Qatar Project Management (QPM) is one
of the region’s leading project management companies and
the first Qatari firm in the field. QPM provides world class real
estate and infrastructure project management services with a
focus on efficiency.
Managing for a better future
The company is well positioned to provide services for civil
infrastructure, commercial, leisure, real estate, and residen-
Activities and Social Responsibility
Barwa sponsoring Qatar Society of Engineers
tial projects within the growing global marketplace. QPM’s
international and local expertise is grounded in a full range of
professional project management services including; project
management; design management and construction management. QPM is currently managing a number of mega projects
in seven international markets, and locally in Qatar including:
Phase one of Barwa City, Barwa Commercial Avenue and The
Qatar Petroleum District.
As a leading real estate developer in Qatar and the region,
BARWA sees the importance of giving back to the community.
It offers sponsorship to the Qatar Society of Engineers (QSE),
aiming to empower Qatari engineers, and support the initiative to create sustainable building projects while addressing
the specific sustainable needs of a booming Qatar.
Tanween
Eng. Ahmad Jassim Al-jalo, Chairman of Qatar Society of
Engineers, alongwith other board members, received Barwa Group Communications Director, Mr. Hamad Rashid AlKuwari, at the society premises in Katara on September 9th
2012. During the reception ceremony, Kuwari handed over
financial aid to the society, to support their activities, and the
production of the engineering newsletter published regularly
by the society.
Barwa believes in the important role of the Qatar Society of
Engineers. They raise Engineering practice standards in Qatar, and develop national talent in line with the social responsibility approach the Group adopts and the vision of Qatar 2030.
For his part, Al-jalo thanked Al Kuwari and Barwa Real Estate
Group, on behalf of the members of Qatar Society of Engineers for the generous contribution.
Barwa Signs MOU with Katara Hospitality
Established in 2007, Tanween is a pioneering development
management consultancy in Qatar and manages the development process from end to end. From market research, land
acquisition, project finance, property legal advice, design,
planning consent, construction, marketing, sales, asset management and advice on exit strategy, Tanween’s services
cover all aspects of the real estate and construction industry.
Beyond the meaning
Since its inception, the company has grown substantially
and currently services a large portfolio of projects under development. These range from planned communities to fully
fledged integrated cities that will shape the future of Qatar
and the region. Tanween aims to create world-class destinations, through expert development strategy advice and professional management services.
Tanween, meaning ‘vocalization’ in Arabic, brings the essence
of meaning to the words by accentuating the characters in
a visual but silent form. When these special characters are
utilized in full; they give a unique meaning, individuality and
artistic form to the word and relation to its context. In this
8
true form, Tanween is essentially the ingredient that complements the comprehensiveness of the Arabic language.
Being an integrated multi-disciplinary development management service provider, the Tanween team takes strength
from the vibrancy of its name to add value throughout the
development life-cycle utilizing a diligent, professional and
cohesive approach. When this is combined with the clients’
aspirations, market drivers and end-user perceptions, it results in a unique, personalized process that maximizes the
potential of the development and differentiates it from all
others. It is through this process that Tanween aims to go
beyond the meaning.
Tanween is currently working with several high profile clients offering a varied suite of services. These range from development consultancy, to assisting the client in setting the
strategy, developing business and delivery plans for its assets, through to acting as client representative and managing
all of the clients’ consultants working on the asset throughout its lifecycle. Tanween services are offered in Qatar, the
GCC and various other countries throughout the world.
Barwa signed a Memorandum of Understanding with Katara
Hospitality, Qatar’s leading hotel and resort owner, manager
and developer, previously known as Qatar National Hotels,
aiming to become one of the leading hospitality organizations
in the world. The signing ceremony comes as part of Barwa
Real Estate’s efforts to expand its partnership platform and
provide better services to its clients.
His Excellency Sheikh Nawaf Bin Jassim Bin Jabor Al Thani –
Chairman of the Board of Directors at Katara Hospitality, and
Mr. Hitmi Bin Ali Al Hitmi – Chairman of Barwa Real Estate,
signed the agreement at a ceremony held at the Sheraton Hotel in Doha, alongside a number of senior officials from Katara
Hospitality and Barwa Real Estate.
Under this 1.1 billion Qatari Riyals transaction, Katara Hospitality purchases Barwa Al Sadd Hotel and Recreational Building,
in addition to Somerset West Bay Serviced Residencies, one of
the most popular serviced apartments in West Bay – Doha. On
this occasion, H.E. Sheikh Nawaf Bin Jassim Bin Jabor Al-Thani
– Chairman of Katara Hospitality said: “As hospitality is an essential infrastructure element which supports the development
of the country, the acquisition of the properties from Barwa
Real Estate is a significant step in increasing our portfolio in
Qatar and we are confident that the superior products we are
talking over today will flourish under our management”.
Mr. Hitmi Bin Ali Al Hitmi – Chairman of Barwa Real Estate
commented on the collaboration, saying: “In Barwa Real Estate
we pay a lot of attention to the development of local projects
which support the diversity of the national economy by supporting tourism. Such collaborations are our priority, due to the
great impact they have on Barwa’s plans of growth. Hence,
we are pleased to be working with Katara Hospitality - known
around the world for its originality, generosity and leadership.”
Moreover, Somerset Serviced Residencies consist of 200 hotel
apartments, built on a total area of 52.305 square meters and
height of 1,141 meters, with 25 floors in addition to the basement and the ground floor. Singapore-based Ascott International, one of the largest hotel services providers in the world,
is now managing the property.
Barwa Al Sadd Hotel covers a land of 28.330 square meters on
Doha’s bustling Suhaim Bin Hamad Street. The hotel consists
of 18 floors in addition to two basements and a ground floor,
while the recreational building covers a total area of 4.494
square meters. Barwa confirmed its commitment to deliver
Barwa Al Sadd Hotel. It is expected to be completed by the
second quarter of 2013.
9
Barwa, a strategic sponsor of Dubai Cityscape
Global 2012
Barwa launches its new Lusail Golf Residential
Development
Barwa announced the launch of its latest community-oriented
residential property, Lusail Golf Residential Development, during Cityscape-Qatar that took place in Doha Exhibition Center
earlier in 2012.
The new development covers an area measuring 3,659,736
square meters. The development is split across three distinct
zones: Lusail Gharb, Souq Lusail, and Lusail Sharq. Lusail
Gharb is an up-market, exclusive zone that features a Greg
Norman 18-Hole Golf Course, Golf & Country Club and Chris
Evert Tennis Center. It also includes an exclusive branded
cluster of Norman Estates. Souq Lusail on the other hand is
a contemporary inspired Souq which offers retail and lifestyle
services, sports and residential clubs, an international school
and a mosque. The third zone, Lusail Sharq is characterized by
its family orientation as reflected in its green spaces, 6-hole
Academy Golf Course and accessibility to schools, the village
center and other facilities.
Designed to be a unique mix of Arabian, Mediterranean and
contemporary architectural styles, the residences include a
wide range of traditional oriental and contemporary villas and
townhouses, which offer magnificent views of the main boulevard and Golf Course. The residences also feature Norman
Estates, which are luxury golf villas, in addition to Mediterranean style apartments and The Central Corridor Boulevard
– an exclusive residential and retail complex.
The Lusail Golf Residential Development also includes a retail
village, a boutique hotel which offers 80 rooms, and community facilities such as schools, mosques, and health clinics.
Barwa a strategic partner of the 6th Gulf
Conference for Quality
As a strategic sponsor of Cityscape Global 2012, Barwa Real Estate Group’s exhibition display showcases a variety of presentations and models for eight of its key local and international projects.
Cityscape Global 2012 is a premier international real estate and
development event, which serves as a platform for insightful and
strategic debate covering real estate market trends, investment,
development and financing.
Qatar-based projects being highlighted during the event include,
Barwa Commercial Avenue - a unique QR seven billion multi-use
project which extends over more than 8.5 kilometers and offers
a mix of modern commercial complexes, showrooms, offices
and high-quality apartments. Barwa Al Sadd - is considered one
of Qatar’s largest real estate developments and features three
office towers, a five-star hotel, a retail centre, three apartment
buildings and extensive parking facilities. Barwa Al-Baraha on the
other hand is designed to serve as an integrated workers’ city
that will accommodate 53,000 workers and employees, making it
the GCC’s largest workers’ accommodation. With an investment
volume of QR two billion, the project is expected to include a hotel, entertainment center, mall, laundry, health centre, mosque,
Islamic centre, police station, civil defense center, fire-control
center, sports facilities, shops, restaurants, offices and ample
public spaces.
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Barwa Real Estate Group’s chairman, Hitmi Ali Khalifa Al Hitmi
said: “Barwa Real Estate Group takes pride in its innovative outlook towards real estate and property development. Cityscape
Global 2012 provides an effective platform to showcase our Qatar-based and overseas projects, while exchanging expertise with
fellow industry leaders.”
Furthermore, the Group is also showcasing two impressive international projects during Cityscape Global 2012, these include,
Barwa New Cairo - the group’s largest real estate development
to-date and one of the region’s largest and most challenging
projects. The project is considered a natural extension to Egypt’s
capital and is expected to accommodate approximately 39,000
residential units, schools, hospitals, mosques, parks, shopping
complexes and health facilities. Additionally, Barwa Real Estate
Group’s Ottoman Project is an upcoming luxury residential and
hotel development in Istanbul, Turkey. The project is expected
to include a five star hotel, hotel apartments and condominiums
which will provide guests with a contemporary setting along Istanbul’s famous Marmara shores.
Previously in Qatar, Barwa was the Platinum sponsor of
Cityscape-Doha, where it showcased three of its leading projects
in Qatar: Barwa Commercial Avenue, a mixed-use development;
Barwa Al Baraha, the largest workers’ accommodation in the
Gulf; and Barwa City, a 1.35 million square meter development.
To be held at Sheraton Doha Hotel in January 2013, the 6th
Gulf Conference for Quality and Institutional Development
organized by the Gulf Development Center, is having Barwa
Group as a strategic Sponsor, reaffirming the Group’s commitment to implementing quality systems in its practices and
daily procedures. It is worth mentioning that Barwa Real Estate Company and its subsidiary Waseef, received the ISO
9001:2008 certification recently, a certification very few companies in Qatar achieved for all its departments.
At the conference, good institutional experiences and per-
formances, both locally and regionally will also be featured.
Special attention will be paid to the development of activities
in the industrial, financial, health, service and educational sectors. Abdulla Abdulaziz Al Subaie, board member & GCEO at
Barwa discussed the importance of quality systems as an effective tool in servicing society, and talked about its role in
meeting customers’ requirements and winning their satisfaction. He expressed his interest in this key opportunity, which
opens a channel of engagement for all developmental leaders
in the Gulf .
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“Intellectual creativity”
Barwa’s secret to success
ONE
on
ONE
An exclusive interview with
Abdulla Abdulaziz Turki Al Subaie
Abdulla Abdulaziz Turki Al Subaie – - Board Member and
Barwa GCEO – combines a vast range of public and service
activities in Qatar. He is the Managing Director of Qatar
Railways Company (QRail). He was previously the CEO of
SMEET- a subsidiary of Qatari Diar Real Estate, which offers
an integrated product mix and innovative building solutions.
Can you tell us about Barwa’s new corporate strategy?
Barwa’s new vision is to be a reliable real estate company
recognized for its strong values, excellence and sustainable
returns to its stakeholders. Over the last few years, Barwa
has grown substantially from being a purely real estate-focused company into an international and diversified business
conglomerate with a multitude of investments in real estate,
infrastructure, business and financial services. The new corporate strategy is built on disciplined and sustainable growth
and is structured around four core elements.
1. Barwa’s core business is real estate development, investment and operations. We will build a Barwa way of planning
and delivering real estate projects and replicate the model to
emerging real estate portfolios (local & International).
2. Pursue selective portfolio diversification and focus on building synergistic businesses that will be driven by strategic fit,
affordability and strong returns potential.
3. Effective governance - implementing the best practice efficiencies, performance management, good internal controls
and risk management which will sustain the value proposition.
4. Performance driven organization - Barwa’s offer to its employees is to enable them to build successful careers on the
basis of sound decisions and accountability.
Abdulla Abdulaziz Turki Al Subaie
Barwa Group CEO
12
It also demonstrates Barwa’s commitment to its own independence so that it is free to make its own decisions, to be
master of its own reputation and deliverer of its own success.
Barwa’s story should conjure up a sense of pride for employees, stakeholders and the nation of Qatar as each successive
He held several leadership positions in Kahramaa - the Qatar
General Electricity & Water Corporation, where he engaged in
the planning and management of a multitude of investments
worth billions of QAR in Qatar.
In an exclusive interview with Al Subaie, we discussed
Barwa’s new corporate strategy, the iconic mixed-use Barwa
Commercial Avenue, the influence of the Arab Spring and
regional conflicts, on Barwa’s foreign investments, among
other eventful topics.
project undertaken by the company serves as a benchmark
against which future projects not just in Qatar, but around the
world, will be judged.
Qatar winning the bid for the 2022 FIFA World Cup generated
a strong motivation to revive the real estate market. What is
your outlook for Barwa with reference to Qatar 2022?
Barwa, being Qatar’s leading real estate development and investment holding company, will surely be a key beneficiary
of the 2022 development plans in the Qatar. Barwa’s projects
will support the infrastructure needs of the country to host
such mega events like the World Cup 2022.
Under the visionary leadership of His Highness the Emir, the
country has introduced significant public-private partnerships
as a very effective mechanism to promote and strengthen its
economy. Given the country’s infrastructure growth plans, we
believe that the process will continue and will definitely benefit the ongoing and future infrastructure projects and presents
opportunities for enterprises to form strategic alliances and
connect to the global value chain. Barwa sees itself as one
of the most important facilitators of Qatar’s emergence as a
vibrant investment hub for the global community. The opportunities in Qatar are immense and Barwa already enjoys the
reputation of being a preferred partner, either for strategic
investors looking to participate in its exciting developments
or global players looking to gain a foothold in other segments
of the real estate value chain.
In line with its corporate strategy, Barwa is seeking to leverage global expertise and partner with leading international
companies in order to also support its strategy to capitalize
on the FIFA 2022 infrastructure growth plans in Qatar by
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ONE on ONE
developing many of the signature projects. Barwa’s significant plans have already initiated work on major projects with
QRAIL and Lusail City, in addition to other projects that will be
announced in the near future.
Barwa is distinguished mostly by establishing mega-residential and commercial properties; So how do you do it?
In Barwa we use intellectual creativity as our work approach.
We love to adopt advanced sophisticated ideas. Let’s take Barwa Commercial Avenue, as an example, the project radically
transformed the area into a world class commercial huband
created great positive reaction among target audience like
tenants and trademarks owners, especially after the completion of its supporting services in residential and commercial
divisions. Barwa’s flagship project Barwa Financial District,
which has been bought by Qatar Petroleum is unique inspired
by local Qatari heritage and culture and with its state of the
art technology . Another example is Barwa City, which offers
its residents modern homes in contemporary living spaces in a
self-sufficient community atmosphere
Talking about Barwa Commercial Avenue, are there still complaints of high rents?
The preliminary results of the ongoing advertising campaign
reflect an overall market satisfaction, and even more demand
for similar models that will enrich the real estate market. And
this comes as confirmation of the market research study we
conducted earlier. There are some vital things that may not
be clear for many, for instance, the study concluded that the
leasing rate per square meter averages between 150 and 180
QAR; however, most of showrooms do not provide supporting services. The leasing rate that we set per square meter
was only 120 QAR, and above that we support state-of-the-art
comprehensive services, such as air conditioning, security services, maintenance and parking spaces, as well as many other
services that position Barwa Commercial Avenue as the best
in terms of price and services. In addition, we grant the tenants a grace period that varies between one to three months,
while the rest of the shopping strips or malls do not provide
such generous grace periods and insist that tenants pay the
rent from the first day.
In the end, we do not want to cause a rise or a fall in market
rents, as we know that a sharp reduction in rental prices will
harm the real estate sector, affect the investors, contractors,
banks and the economy. So we want to maintain a balanced
real estate sector, and at the same time protect the rights of
our shareholders.
Tell us about Barwa’s contributions to the Qatar National Vision 2030
Barwa’s investments strategy complements and supports Qatar National Vision 2030 and National Development Strategy
that stresses human, social, economic and environmental development. Continuously, we strive to ensure that every project plays a role in supporting the National Development Strategy. It is in this spirit that Barwa has not only taken on some of
the country’s most ambitious projects, but further, undertaken
their development according to internationally award-winning
standards.
Barwa contributes significantly to all 4 pillars of Qatar National Vision 2030.
•
•
•
•
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Human development - Barwa contributes through the
education, training, development of national talents and
establishment of internationally recognized standards.
Social development - Barwa’s emphasis on building not
just houses and buildings, but homes and communities
exemplifies our commitment in this regard. Also our quality affordable housing projects reflect this strong commitment.
Economic diversification - Continued profitability through
prudent management has provided a robust investment
opportunity for the country in the booming real estate,
infrastructure and related sector.
Environmental – Barwa has become a leader in Qatar for
the development and application of sustainable and energy efficient building standards.
What about Barwa’s foreign investments in the region, and the
Arab Spring?
Barwa’s strategy focuses on a balanced portfolio of developments, businesses and investments, and this is reflected in the
spread of its operations overseas in 13 countries including UK,
Turkey, Egypt, France and Russia. The business industry is always the first to be affected by political conflicts, and we’ve
witnessed this happening to some of the largest companies
operating or developing projects in the Middle East. Barwa’s
foreign projects were affected, but not to the extent of terminating the development projects in the conflicting areas. We
recommenced the operations of most of our international projects, and we are expecting that the regional markets will flourish once the situations are alleviated.
With the completion of most of Barwa’s local projects, how do
you see this affecting the Qatari market?
Experts, along with the Qatari community and expats, highlighted that Barwa’s local projects have positively affected the
real estate market in Qatar through providing distinctive and
unique developments that formed a balance between supply
and demand in the real estate market. This is indeed a difficult
equation that can only be achieved through a company with
vast high quality experience.
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EYE On The MARKET
Projects
Managed for
Excellence
Our organization is built on innovation; a practice that is evident in our
management of mega projects throughout the MENA region. QPM utilises the
skills and experience of its associates – as well as cutting-edge technologies and
methodologies – to deliver world-class Project Management, Design Management
and Construction Management services.
www.qpm.com.qa
PROJECT MANAGEMENT
CONSTRUCTION MANAGEMENT
DESIGN MANAGEMENT
As the Qatari economy continues to grow, so does its complexity. EYE ON THE MARKET provides concise and up-todate market intelligence on the real-estate sector in Qatar, along with an economic overview of recent developments
in Qatar. EYE ON THE MARKET also provides a segment-specific focus on market opportunities in Qatar, with a look
this quarter at the hospitality sector in Qatar.
Real Estate in Q2: flash assessment
Qatar’s real estate market bottomed out in Q1 of 2012 follow- cent in 2012. Mall rental rates remained stable in the range of
ing two years of declining activity. Recent upward movements QAR 200/m² to QAR 250/m² per month during H1 2012. The
in rents, sales and number of transactions point to growing sector is however poised for further growth with increased
business optimism in Qatar’s real estate market. While rentals asking rentals in upcoming shopping malls in Qatar.
for fully furnished apartments in prime locations such as the
Pearl Qatar and the West Bay have remained stable, rentals in Total office supply in Qatar is estimated to grow by 15 per
the secondary residential areas have witnessed a five per cent cent in 2012, with an estimated upcoming supply of 475,000
increase in Q2 2012 relative to Q1, ostensibly on the back of m² by Q4 2012. Office rentals have increased marginally in
above normal growth in the building and construction sectors Q2 relative to Q1 2012 in the Central Business District and re(up 21 per cent from Q3 2011 to Q1 2012).
main stable elsewhere. Although growth in the office sector is primarily driven by government entities in the
Barwa City project for instance, which is a
“Retail is
range of 50 to 60 per cent market share, there is
major integrated residential project for Barwa
growing at a
Real Estate in Qatar, was one of the projects
increasing demand from the private sector, with
faster pace when
that began leasing its units starting with corfurther growth anticipated in the secondary and
compared to other
porate tenants. With increasing demand for
asset classes in the tertiary office segments. Barwa Commercial Avsingle and double bedroom apartments, the
enue, one of Barwa Real Estate’s largest mixed
RE sector”
supply glut witnessed during the crisis period
use development projects in Qatar, is poised to
is shrinking.
benefit from the segmented nature of Doha’s office
market by targeting businesses seeking affordable ofWith demand outstripping supply, the retail sector in Qatar is fice solutions where location in the Central Business District
growing at a faster pace when compared to other asset class- is not essential.
es in the real estate sector. Malls in Qatar comprised 575,000
m² of gross leasable area (GLA) distributed across eleven ma- The hospitality sector experienced a cyclical fall with hotel ocjor shopping malls in 2011 and this is set to grow by 13 per cupancy declining from 63.3 per cent to 55.6 per cent from Q1
17
EYE on the MARKET
to Q2 2012. The total stock of hotel rooms in Qatar increased expanding high value-added services such as air transport,
by over 11,000 in 2011, corresponding to an increase of 16 per financial services, trading, as well as expanding the role of
cent relative to 2010. 11 new hotels opened in Qatar during small and medium enterprises. The transition to a more diQ1 and Q2 2012, taking the total number of
versified economy has already begun, evidenced by the
hotels to 85. The government’s focus on tourlatest economic indicators.
ism and MICE (meetings, incentives, confer“Growth in the
ences and exhibitions) growth signal a potenPositive institutional changes have already transnon-hydrocarbon
tial upside for the hospitality sector.
formed Qatar into a vibrant open economy with
economy will be
led by the services limited trade and investment restrictions. The
sector”
World Bank’s Doing Business Indicators places
Economic diversification: the
Qatar third among Gulf States and 36th among
transition begins
183 countries globally in 2012. Qatar’s economy was
ranked 14th of 142 countries surveyed by the World EcoPosting an overall economic growth rate of over 13 per cent
nomic Forum’s Global Competiveness Index 2011-2012.
per annum (pa) between 2000 and 2011, Qatar’s ascent in
The government’s drive in shifting towards a knowledgethe past decade has been nothing short of spectacular. While
based economy is already being implemented in the LNG secthe hydrocarbon sector has been the main driver behind the
country’s economic transformation, growth in the non-hydrocarbon sectors (all economic activity other than upstream oil
and gas production) has been equally impressive, standing at
nearly 20 per cent pa for the period 2004-2011. This economic
diversification has however been directly linked to retained
earnings from oil and gas income. Government investment
has resulted in considerable growth in building and construction, utilities, and the real estate sector. Attendant growth in
population, mostly service and construction workers, and a
considerable increase in disposable income for nationals have
on the other hand been the main drivers of growth in the housing and retail sectors.
The reliance of the non-hydrocarbon economy on government investment presents a challenge to achieving a sustainable and diversified economy. Toward this end, the government has formulated medium and long term strategies in the
form of a National Development Strategy: 2011-2016 and the
Qatar National Vision 2030. The objective of these strategies
is to shift growth patterns from the hydrocarbon to the nonhydrocarbon sector in a phased manner, with an emphasis on
18
Sector size in non-hydrocarbon GDP 2011
Agriculture and Fishing
<1%
Manufacturing
16%
Electricity and Water
1%
Building and Construction
18%
Trade,Restaurants & Hotels
14%
Transport and Communications
12%
Finance, Insurance, Real Estate & Business Services
Social Services
20%
Imputed Bank Services Charges (FISIM)
-5%
Government Services
19%
Household Services
1%
Imports Duties
1%
2%
production in the hydrocarbon sector, remains promistor. Qatar’s self-imposed investment moratoing. Manufacturing growth outside of hydrocarbons
rium on further investment in LNG until 2015
“Tourism/travremains elusive and will require local production
caused year-on-year (y/o/y) growth in the oil and
el account for
to feed into regional and global supply chains to
gas sector to slow to 4.6 per cent in Q1 2012.
3.2 pct of GDP,
create sustainable non-hydrocarbon based ecoIn contrast, oil and gas output nearly tripled in
as compared to
nomic growth.
the period 2001-2011. In Q1 2012, growth in the
over 30 pct
construction sector was moderate at 6.1 per cent
for Dubai”
y/o/y, and manufacturing growth (mostly petroHospitality sector in the spotlight
chemicals, oil refining, steel and cement) was 4.3 per
cent y/o/y. Going forward, non-hydrocarbon GDP is expected
to post a steady growth rate of 9.2 per cent in 2012 up from The hospitality sector, which comprises hotels, hotel apart9 per cent in 2011. This growth will be led by the services ments, cafes, restaurants, catering firms and other leisure
sector. As a result of the investment moratorium, Qatar’s services constitutes a key pillar of Qatar’s economic divereconomy will enter a cycle of slower growth in 2012. Q1 real sification strategy. The growth of Qatar’s hospitality sector
GDP registered 6.9 per cent y/o/y growth and is projected to has been robust in recent years due to sustained growth in
reach 6.2 per cent in 2012 compared to 14.4 per cent growth business and MICE (meetings, incentives, conferences and
in 2011. Despite higher oil prices, oil and gas output growth exhibitions) tourism on the back of government initiatives to
was minimal at 0.6 per cent on quarter-to-quarter basis, the foster investment in the sector, and a government strategy of
attracting sporting and other events. Doha hosted the Asian
slowest in the past decade.
Games in 2006, the Asia Cup in 2011, the Arab Games in 2011
Qatar’s economy remains dominated by the hydrocarbon sec- and various Women’s Tennis Association tournaments. It has
tor which accounts for 45 per cent of the country’s economy. also won the bid to host the FIFA World Cup in 2022. Beyond
As a proportion of the non-hydrocarbon economy, the manu- sports, Qatar played host to the World Petroleum Congress
facturing sector accounts for 16 per cent of economic activity in 2011.
while building and construction contributes 17 per cent of economic activity. In contrast, Singapore’s manufacturing sector The long-term financial viability of the sector however rests
accounts for 29 per cent of its GDP. Excluding government on the capacity for Qatar to attract tourists outside of specific
services, services account for 46 per cent of non-hydrocarbon
economic activity. In contrast, the services sector accounts
for 64 per cent of Singapore’s GDP and 73 per cent of the
United Kingdom’s GDP. These numbers suggest that a successful economic diversification strategy will both reduce the
size of the hydrocarbon sector in the overall economy while
increasing the size of the services and manufacturing sectors
in the non-hydrocarbon economy.
Recent experience in the GCC suggests significant growth
potential in banking and financial services while growth potential in the manufacturing sector, especially downstream
19
EYE on the MARKET
from over 11,000 in 2011 to slightly
over 15,000 by end 2012.
Prominent brand names include the
St. Regis, the Hilton and the King’s
Gate Hotel. The sheer number of four
and five star hotels (82 per cent of
total available rooms) reflects current trends in international visitors
to Qatar, with over 90 per cent of
business visitors (a majority originating from the Gulf countries) and 10
per cent leisure tourists. In contrast,
Dubai’s upscale hotels account for 34
per cent of its 555 hotels and 56 per
cent of total available rooms, with a
greater balance between business
and leisure tourism. This suggests
potential growth in the lower end of
the asset mix for the hospitality sector in Qatar.
Hotel supply is set to more than double with 77 new hotels
planned or under construction in Qatar. The Qatar Tourism Authority (QTA) is targeting 30,000 hotel rooms in the medium
term - by 2016 - at a cost of USD 17 billion. This substantial
growth is in line with Qatar’s long-term tourism strategy and
will meet the requirements for the 2022 FIFA World Cup. It
also points to a potential risk of oversupply that may impact
performance in the sector. Hotel occupancy in Q2 2012 fell to
56 per cent compared to 63 per cent in Q1 2012. This compares to an average of 77 per cent occupancy for Dubai during the same period. A number of long-term strategies have
been adopted by the government to boost tourism numbers to
bridge potential gaps. Qatar is looking to capitalize on the ex-
sporting events. Recent trends suggest that tourism growth
has been robust. The country hosted 2.5 million international
visitors in 2011, compared to only 1.8 million in 2010: an increase of over 40 per cent in one year. The current contribution of the tourism and travel sector to Qatar’s GDP of about
3.2 per cent is forecast to grow by 5.8 per cent per annum up
until 2022. This would see it account for about six per cent of
Qatar’s GDP by 2022. In comparison, Dubai’s well-established
tourism and travel sector accounts for over 30 per cent of its
GDP with the emirate seeing 8.1 million tourists visiting in
2012.
Qatar’s current asset mix remains dominated by an upscale
offering of luxury hotels and resorts. Qatar boasts 74 hotels,
over half of which are four and five star hotels. Barwa Real
Estate’s recent sale of Barwa Al Sadd Hotel and Recreational
Building, and the Somerset West Bay to Katara Hospitality: a
transaction valued at over QAR 1.1 billion, signals Katara Hospitality’s plans to grow as a hospitality service provider while
accomplishing Barwa Real Estate’s strategy of consolidation
in the real estate sector. The remaining hotels in Doha consist
of 21 three star hotels, 12 two star and three one star hotels.
2012 is witnessing the opening of 11 new hotels and six new
hotel apartments; increasing the number of available rooms
20
21
EYE on the MARKET
C
M
Y
CM
MY
CY
CMY
K
pected 50 million passengers moving through the New Doha
International Airport and is targeting five per cent, or 2.5 million tourists. The objective is to sustain a 20 per cent growth
in the total number of visitors for the coming five years under
a special promotional package called ‘48 hours in Qatar’. The
QTA also plans to replicate the success of the Doha Park Festival, an annual event held over a period of 44 days at the year’s
end. The QTA is upgrading hospitality services; preparing new
qualification guidelines for tour guides and raising awareness
among Qatari residents. It is also commissioning a review of
the hotel classification system by a third party operator, as
well as launching the Qatar Hotels Committee, made up of 60
General Managers of four and five star hotels.
In contrast to the leisure tourism segment, the MICE segment
is already well-established. Qatar will boast nearly 100,000m²
of exhibition space by the end of 2012 comprising the Qatar
National Convention Center (QNCC, 40,000m²), Doha Exhibition Center (15,000m²), the Qatar Foundation and Doha City
Center Exhibition Centers (40,000m²). The QNCC will hold 77
exhibitions in 2012 alone, prominent among them the scheduled UN Climate Change Summit in December 2012 set to attract over 20,000 global participants.
22
SHAPING QATAR
Award-winning
Barwa Commercial Avenue:
a global project on Qatari land
become a trademark of all Barwa Real Estate projects. The
property management is led by Waseef, a subsidiary of Barwa
Real Estate that offers a full array of services for the integrated management of assets, real estate and facilities in Qatar.
In June 2011, the marketing campaign for the development
was launched and Waseef opened its doors to receive enquiries from those wishing to reserve retail and commercial units.
Barwa Commercial Avenue consists of five distinct areas that
complement one another well. Jeera represents a group of
upscale residential apartments in addition to community essentials, show rooms and general trade while Safwa will symbolize the first centralized location for all of the country’s furniture needs including furnishing and interior design. Safwa
includes showrooms and offices offering a distinct interior
design. On the other hand, Joud will be an indoor mall that
includes shopping outlets, a business center, health center and
serviced apartments and offices. Finally, Arkan features retail
spaces and office units.
The project includes a sophisticated and strategic retail mix as
well as flexible and dynamic designs for offices and housing
options that meet the requirements of residents, shoppers and
businesses alike.
A unique location
Divided into five phases and extending over 8.5 kilometers, it
is a project that brings together modern architecture and local
culture.
Until a few years ago, the area to the East of Doha city was
lying unused, despite it being in the middle of one of the most
important traffic communication hubs in the Qatari capital.
Then Barwa Real Estate Group
recognized the real potential of
the place, and started an extraordinary real estate project,
creating a design that conveyed
the culture and heritage of the
local environment and reflected
the very best in modern architecture and sustainable living.
Barwa Commercial Avenue is
not just a business venture; it
contributes to economic life in
Qatar. It is a business district
that meets the exacting requirements of the business world.
This means retail spaces, offices and residential units built to
the very highest standards. Barwa Commercial Avenue was
presented with the ‘Best Project’ award during the 2011 Construction Awards Week in Qatar.
Barwa Commercial Avenue has created a hugely positive shift
24
in the urban landscape of the Ain Khalid area, where the previously desolate spaces have been transformed into an energetic, active and fast-moving environment. The project has laid
the foundation for a new urban society with a high-quality network of infrastructure and road systems. It was planned to be
the center for all types of businesses, and to meet the needs of
Qatari and multinational investors and entrepreneurs.
During 2008, Barwa Commercial
Avenue signed a contract with
Hochtief: an internationally renowned German company working
in the construction and contracting
industry. The contract was to develop the largest commercial real estate project in the region extending
over 8.5 kilometers and occupying
an area of 1,000,000 square meters.
Even though the State of Qatar and
the region were facing a global financial crisis, and despite the
fact that work has stopped on many real estate developments,
Barwa Commercial Avenue was still racing against time to execute the work according to the assigned schedule - and the
project is scheduled for completion by the end of 2012.
Barwa Commercial Avenue is distinguished by its high international standards in construction and development, which have
This commercial strip represents a meeting point for all major
traffic hubs in Doha that connect Doha with the surrounding
cities in the north and south and it is the link to the industrial
area and other residential areas in Doha. The project also enjoys the advantage of being close to other Barwa residential
projects such as: Barwa City and Barwa Village.
The first phase, Sayer, witnessed a huge demand in Barwa
Commercial Avenue. It covered a built area of 277 thousand
square meters cleverly planned to provide an ideal location for
business and retail activities providing car showrooms, building materials and food and beverage facilities.
Barwa Commercial Avenue is a golden opportunity for the integration of business and residential space in the State of Qatar.
It demonstrates evolution and innovation in modern lifestyles,
especially with its parking areas and green spaces. The project
consists of about 600 shopping units and showrooms and 185
thousand square meters of office space. This is in addition to
460 residential units equipped with all the services that suit
business conditions. The units vary between three bedrooms,
two bedrooms and one bedroom apartment. The project also
includes 11,700 internal and external parking spaces.
Barwa Commercial Avenue offers a range of options to suit
a variety of investors and businessmen at local, regional and
global levels. It also includes several shopping centers featuring international brands, and boasts specialized stores that will
meet the needs of elite tenants.
Due to the proximity of this project to the industrial zone,
Sayer was the first phase to open its doors. It offers a shopping strip for a variety of business activities and services that
are increasingly needed in the area. Sayer provides corporate
spaces of up to 172 thousand square meters including 38 per
cent dedicated to retail space. The project is easily accessible
via highways and the ‘Doha Metro’, set to be established in
Qatar in the future.
A lot of local and international businesses have been competing to reserve their areas in the promising project, starting
with Dragon Mart, the first store in Qatar specializing in Chinese products.
25
SHAPING QATAR
Barwa City
An iconic development offering unrivalled luxury
Leasing in Barwa City
Barwa City is an iconic project for Barwa Real Estate Group in
Qatar. It is a large housing development that speaks for itself
and tells the story of an ambitious nation enjoying a renaissance in its fortunes; one that is benefitting the welfare of its
people.
The ambitious Barwa City project was a big challenge for
Barwa Real Estate. It is a residential city with international
standards, and the first city in Qatar to adopt green building
standards and establish concepts of sustainability in the Qatari
society.
It was only within the past five years that the first foundation stones for Barwa City were laid on an area of 1.35 million
square meters. The aim was to build a modern residential city
in the Mesaimeer area, specified to the highest standards that
would provide its residents with luxury and peace of mind. The
goal was to give them the enjoyment of a quiet haven where
they could fulfill their dreams.
In 2012, the dream is turning into a reality as people in Qatar
are now competing to be part of Barwa City and enjoy the advantages of living in one of the most modern cities in the Gulf
region. Barwa City has become the benchmark for everything
26
Barwa Real Estate stands for; building dreams not merely
somewhere to stay. Barwa City delivers all the ingredients for
a luxurious life its residents can enjoy.
Barwa City is located just 15 minutes from the international
airport and the city center. A QAR 7.3 billion-worth project
constructed in two phases with the first phase including the
construction of over 128 residential buildings. This provides
tenants with about 6,000 housing units, with different internal areas to meet their needs. Barwa City is designed to accommodate up to 25 thousand residents. The city contains
schools, kindergartens, mosques, retailers, a shopping center,
a ballroom and banks to serve the residents of the city. In
addition to a health club, sports arenas, restaurants, a commercial complex and all other types of facilities are provided.
The second phase will includes a fully integrated community
with the very best services and facilities including schools, a
hospital providing around 250 beds, kindergartens as well as
hotel apartments and residential & commercial units.
The project implements ‘District Cooling Technology’ to provide the air conditioning chilled water throughout the development. It also has access to enjoy natural central gas system
and private television and telephone network.
Waseef, a subsidiary of Barwa Real Estate, offers a full array of
services for the integrated management of assets, real estate
and facilities in Qatar and is now processing requests for lease
rentals in Barwa City. The leasing prices are reasonable and affordable, especially when one considers the range and quality
of services provided to residents of the project. This includes
maintenance, gas supply to all units and integrated infrastructure services such as central air conditioning and an integrated
network connecting all residential units with other facilities.
working markets in the Gulf region. It boasts extensive experience in providing integrated solutions for copper and fiber
equipment at reasonable prices. Indeed, Barwa City has become the largest complex of residential units to benefit from
modern technologies, such as broadband fiber-optic systems,
supplied by the Qatari Broadband Network, where each unit
is provided with multi fiber-optic connections. Each of these
connections can be used differently to access the various services on offer.
The Barwa City rates of rent are fairly balanced, and are set to
be commensurate with the wider real estate market, in order
not to create any imbalance in overall market values.
Barwa City ensures the highest standards of safety and security are followed for the benefit of its tenants. Free and easy
movement can be enjoyed within the city, as congestion is
minimized in the project and surrounding areas thanks to expert planning. The city’s green spaces cover around 200 ,000
square meters, which contributes to the basic components of
modern family life and makes the city an ideal environment for
families to enjoy.
In order to guarantee quality services for residents, Barwa City
has teamed up with Schneider Electric, a global specialist in
energy management renowned for its role in boosting quality of life within mega projects. Schneider Electric provides integrated solutions for the communication network within the
project. The company is the leading name in integrated net27
HERE & THERE
For a safe
environment
inventory of Barwa Real Estate’s facilities and its subsidiaries.
The aim is to attain the highest levels of security and safety,
and to produce a detailed report of the situation as it currently
stands. The committee has devised a five stage action plan,
starting with an inspection of its buildings and the Group’s
subsidiaries. This will determine the state of each facility,
indicate what work needs to be carried out, with costs and
timescales, to ensure that the most stringent safety measures
are in place.
Qatar makes a giant leap
forward in safety and
security procedures
Barwa implements five phase safety
action plan
The economic, social and cultural boom currently taking place
in Qatar has attracted some major global investments and key
projects into the state. Qatar has made a commitment to do
more than just create the right conditions for industry though;
it has to ensure the safety of those working there. To this
end, a number of organizations in Qatar have been putting in
place security measures that will guarantee the safety of both
employees and customers.
His Highness Sheikh Hamad bin Khalifa Al Thani, the Emir,
has made amendments to the 1977 law on Civil Defense to
make the lives of workers and customers across Qatar safer
and more secure. Whether it is property owners, property
beneficiaries, owners of commercial and industrial units,
owners of consulting offices, engineers or building contractors;
everyone must ensure they conform to the health and safety
standards set by the Department of Civil Defense on all
work carried out. These new laws being implemented by the
Minister of Interior Affairs are a major step in securing the
safety of all.
Additionally, an official authorization will need to be sought
from the Civil Defense Department after the conclusion of
any construction project before any further work could be
undertaken on it by the company. Without this no changes
could be made, whatever it may be. Permission would have to
be granted by the Civil Defense Department first.
The laws also set down the need to apply all new security and
safety requirements where stipulated. The law also outlined
the importance of utilizing emergency exits in the design of
new petrol and gas stations, as well as commercial property.
The new security and safety measures aim to protect human
28
And finally booklets which contain security and safety
information for employees working at its facilities were
distributed by the committee.
There have been some obstacles to overcome in Barwa’s action
plan namely the requirement to make changes in the security
and safety procedures according to the recent updates on the
laws of the Civil Defense Department. These alterations then
had to be applied to Barwa›s extensive portfolio of projects.
This has involved a large investment of time, money and effort
which the Group has undertaken fully.
inventore veritatis
et quasi architecto
beatae vitae dicta sunt
explicabo. Nemo enim «
‘Safety Week’ at Qatar Petroleum District
Project
‘Safety Week’ is one of the most active campaigns organized
to raise the level of safety awareness among workforces. The
campaign took place from 23rd to 30th of September in the
Qatar Petroleum District Project (QPD) construction site which
is being developed by Barwa Financial District Company. This
campaign embodies Qatar’s commitment to implementing
safety procedures across all companies and projects.
life, by setting out a collection of procedures, measures and
prerequisites that will minimize risk and lead to a reduction in
injuries and accidents.
Consolidation of security measures
Various ministries and governmental institutions have already
begun to establish safety and security procedures. The Ministry
of Interior Affairs has been a front runner in this respect. It
issued bulletins and periodicals regarding safety procedures,
most recently during the summer period, when it acknowledged
its dedication to safety procedures. It also made assurances not
to neglect anyone’s safety; whether people are at home, in the
workplace or anywhere else, they should be protected.
The safety measures culture is the cornerstone of prevention.
This culture must be adopted by everyone in the community,
and should be promoted through organized campaigns. This is
especially true at a time when Qatar is witnessing the resurgence
of its construction industry; as adequate safety measures and
regulations must go hand in hand with the resulting surge in
major building projects.
Barwa Real Estate Group has always complied with safety and
security legislation. Indeed it has long excelled in comparison to
other companies, mainly because it has always been driven to
provide the highest levels of security and safety at its facilities
and on its projects. This is in line with the Group’s ethos to
protect both its employees and customers from undue risk.
Barwa Action Plan
As a result, the Group’s senior management made the decision
to establish a security and safety committee that will make an
The ‘Safety Week’ activities included video messages and a
series of hard-hitting posters, translated into Arabic, Hindi,
Thai, Tagalog and English to reflect the multilingual workforce.
The campaign also featured a series of toolbox/STARRT talks
which were disseminated to the workers on a daily basis,
in addition to dedicated training sessions in the onsite HSE
training centre, covering the main elements of the campaign.
Moreover, prizes were distributed to some of the workers
who were able to answer questions about health and safety.
The week was concluded with a closing ceremony attended
by a number of ambassadors as well as representatives of
the Labor Department, Qatar Petroleum, Barwa Real Estate
and other contractors, who spoke to the workforce and
encouraged them to follow the health and safety practices in
their work places.
29
AROUND
THE
WORLD
AROUND
THE
WORLD
properties worth more than £5 million. Investors, both institutional and high net worth individuals, from the GCC and the
Far East accounted for over a quarter of total PCL residential
property transactions in 2011.
Qatar’s activity in London’s booming property market has
been significant. Qatar’s long-term strategy of increasing
economic interdependence with its major trading partners
and achieving a sustainable rate of return on investments has
resulted in substantial investment deals and acquisitions over
the last few years. Qatar is currently one of the top foreign
investors in the United Kingdom with total investments worth
more than £10 billion. Qatar’s coveted British assets include
the Shard, the tallest building in Europe; One Hyde Park, the
world’s most expensive apartment block and Athletes’ Village
in the London Olympic Park. Qatar’s other most visible equity
investments in the UK include Harrods, a 26 per cent stake
in Sainsbury’s, and a 20 per cent stake in Camden Market.
Qatari investment is also
prominent in the London
office property market in
West End areas such as
Mayfair and Belgravia.
inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo. Nemo enim inventore veritatis et quasi architecto beatae vitae dicta sunt eni
London property market a safe haven
The Prime Central London (PCL) property market continues
to defy recessionary trends witnessed elsewhere in the aftermath of the 2008 global financial crisis. Buoyant market
fundamentals, a strategic location as a global financial hub, a
stable political environment, and a clear framework for property ownership have attracted risk-averse foreign investors to
the PCL. Despite the sterling’s fluctuations against the dollar
in the past decade, the PCL continues to be viewed as a safe
haven on the back of the global recession and uncertainties in
the Eurozone periphery.
The residential sector in the PCL continues to surpass average trends for London as well as the UK national average.
The average home price in the PCL is £1.2 million – almost
six times the UK national average in 2012. While the PCL is
30
only 0.5 per cent of the UK housing stock, it accounts for 2.5
per cent of its housing value. It has appreciated in value 30
per cent faster than the London market and 34 per cent faster
than the UK market since late 2007. Assets in the PCL have
also continuously outclassed the performance of UK Gilts over
the period 1999-2012 or investment categories such as the
FTSE and gold.
Foreign investment in PCL residential property averages over
£3 billion a year. Foreign buyers (mostly from Europe, the Middle East, the Far East and South Asia) account for 34 per cent
of all London property transactions catering to investments
into high-value residential properties areas such as Mayfair,
Kensington, Notting Hill and Chelsea. Within the PCL, foreign
buyers account for 65 per cent of total funds transacted for
district with many offices in both converted houses and new
buildings, including major corporate headquarters, a concentration of hedge funds, real estate businesses and many different embassies. The building consists of high quality office
accommodation arranged over basement, ground and five
upper floors. These strategically located assets cater to multinational corporations and command premium rentals. BRE’s
investment strategy will continue to target high-growth investment assets in the UK residential, office and industrial
sectors.
Ongoing demand from Asia and medium-term uncertainties
in Europe point to the continued robust performance of London’s prime residential and office sectors in the near future.
The risk-return outlook for London’s property market investment is well-balanced and points to an ongoing bull run in the
medium-term.
Barwa Real Estate Company (BRE) has several
high profile projects
in these prime localities. Among them is the
11,510 sq ft office block
at Cavendish Square,
one of the most desirable office addresses in
London as many international companies have
a presence there. Traditional features characterize the property both
externally and internally.
It comprises premium
refurbished office accommodation over basement, four upper floors
and attic, in a building
dating back to the 1740s.
BRE’s prime assets also
include a 24,000 sq ft
office building at North
Row – a commercial
31
THE
INBOXER
Do you have any questions regarding any aspect of the property sector in Qatar? From rental to sales and
commercial activity, THE INBOXER is a two-way communication between readers and property market specialists,
shedding light on your rights and obligations as market participants in Qatar’s vibrant property market. If you have
any queries you would like addressed in THE INBOXER, please send us an email to [email protected]
Real Estate FAQs
tate and Residential Units by Non Qataris (“Law”). The Law
differentiates between the following three zones for foreign
ownership:
“Designated Areas” - in such areas, freehold ownership of
property is allowed for non-Qatari nationals. The Gulf Pearl
Island, Arab Gulf Lagoon Project and the Creek Resort Project
are amongst the designated areas.
“Investment Areas” - these are areas where non-Qatari nationals may have the right of usufruct over a property for a
term of 99 years, renewable for further similar terms. Currently, there are 18 Investment Areas in Qatar: Musheireb, Ferij
Abdul Aziz, Doha Al Jadeed, Ghanem Al Qadeem, Al Refa’,
Al Hitmi Al Ateeq, Al Salata, Bin Mahmoud, Rawdat Al Khalil,
Al Mansoura and Bin Dirham, Najma, Umm Ghouleinah, Al
Khuleifat, Al Sadd, Al Mirqab Al Jadeed and Al Nasser, Doha
International Airport, Al Qassar, Al Dafna, Onaiza , Lusail, Al
Kharayej and Jebel Al Tha’aleb.
residential use only, such as villas and multistory buildings.
Non-Qatari nationals may have the right of usufruct in respect
of one or more residential units for a term of 99 years, renewable for further similar terms. GCC nationals may own one or
more property in the Residential Areas provided that the total
area does not exceed 3.000 square meter.
Overall, the Law gives a Non Qatari and Non-GCC nationals
the right to (i) own real estate in Designated Areas; (ii) own
usufruct rights in Investment Areas on a property for a term
of 99 years (renewable for further similar terms); or own the
right of usufruct in respect of one or more residential units in
Residential Areas for a term of 99 years (renewable for further
similar terms). The Law entitles GCC nationals the right to
own real estate rights in Designated Areas, own properties
in Investment Areas and own up to three properties in Residential Areas (provided that the total area of such properties
does not exceed 3,000 square metres). Obviously there are no
restriction on Qatari nationals to own real estate rights anywhere in Qatar.
The “Residential Areas” these are areas that are not part of
the Investment or the Designated Areas and are reserved for
What is the difference between a freehold right, a usufruct and
leasehold right?
A freehold is a real right (enforceable against third parties and
not merely a personal right) of ownership of real estate, unlimited in time. The owner of a freehold interest can sell the
property, grant a lease, grant a usufruct or mortgage over it
to a third party.
A usufruct is also a real right that grants its holder the right
to use and occupy a property belonging to another person for
a limited period of time (or, if the term is undefined, the life
of the recipient) and in accordance with the terms and conditions contained in the instrument that creates the right. The
rights granted under a usufruct arrangement attach to the
land and create a real interest in the property, rather than a
personal right between the grantor and grantee. A usufruct
right can be sold or mortgaged and, in addition, the holder
of an usufruct can lease it to a third party without the prior
consent of the ultimate owner of such property. Both freehold
and usufruct rights are registered on the title of the property.
Any modification to these rights should be made in writing and
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should be registered with the Real Estate Registration and Authentication Department at the Ministry of Justice.
A lease is a personal right that grants a tenant the right to
occupy a property during a limited period of time (which must
be specified in the lease) in exchange for a specified rent. The
lease is enforceable against the landlord, but is not directly enforceable against third parties. As opposed to a real right such
as a freehold or usufruct, a lease cannot be mortgaged. The
relationship between landlord and tenant is largely regulated
by Law No. (4) of 2008 and its amendments which, amongst
other matters, established a designated committee within the
Doha Municipality to deal with lease disputes between landlords and tenants. In addition, it is compulsory for landlords to
register all their leases at the Municipality, otherwise a penalty will be applicable.
As an expat which areas in Qatar can I buy a property?
In June 2004, the Government of Qatar enacted Law No. 17
of 2004 Regulating the Ownership and Usufruct of Real Es33