Transcript Qatar - victor z. chen

Emerging Market Global Players: Institutions,
Governance and Strategy:
The Case of Qatar
Yasir Yasin Fadol
Assistant Professor of International Business and Strategy
College of Business and Economics
Qatar University
Qatar
[email protected]
AIB 2014 Annual Meeting
Vancouver
June 25, 2014
Introduction
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Qatar at A Glance:
Qatar is the world’s largest exporter of liquefied natural gas (LNG).
Qatar is ranked amongst the three fastest growing world economies.
Growth averaged 14 percent over the past decade with per capita GDP reaching $100,000,
the highest in the world.
• Investments by TNCs in West Asia increased by 65% in 2013, souring FDI by TNCs from
Qatar (more than quadrupling), explained most of the increase. Despite this increase,
Qatar is still in the first steps in enhancing its outward investments.
 However, the Qatari economy is still heavily reliant on state-owned enterprises
(accounted for approximately 60% of GDP, 2009). Most of Qatar’s investments in
international markets are dominated by state owned enterprises.
 Major challenges:
1. Development of a strong financial system to encourage the privately owned
companies and publicly owned enterprises to invest globally.
2. Enhancing the education system to produce qualified and educated leaders
capable of managing their companies internationally and to conduct related
research studies.
 In 2008 the government created its first national strategic plan for future
development, the Qatar National Vision 2030 (QNV).
Some of the Institutions on Qatar’s Foreign Investments
 Qatar’s authorities continue pursuing development and diversification strategy
and promoting competition, trade, and investment.
 Government has indicated broad plans to encourage investment and
development of industry outside the oil and gas sectors. In so doing, the
authorities are striving to make major reforms:
 Economic Reform Initiatives
• Enhancing the institutional framework for fiscal policy;
• Strengthening financial regulation and monetary operations to maintain financial
stability;
• The establishment of Qatar Financial Centre (QFC);
• The establishment of capital markets;
• Taking initiatives for trade and investment policy implementation, which include:
• Adopting the WTO Code of Good Practice in 2006.
• Becoming a member of ISO, Codex, and the IEC, and utilizes their international
standards.
• Becoming a member of the GCC’s Gulf Standardization and Metrology
Organization (GSMO).
Some of the Institutions on Qatar’s Foreign Investments
 Economic Reform Initiatives (Contd.)
• The establishment of agencies in charge of trade and investment policy
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implementation. These include:
The Ministry of Business and Trade: was given responsibilities for developing
programs necessary to execute policies on the development of trade and
investment.
Qatar Investment Authority: (QIA) is the government's sovereign wealth fund
established in 2005 to strengthen the economy and build long-term strategic
investments for the State. It invests in a variety of assets, both domestically and
abroad, and is considered a global investor for the State of Qatar.
National Committee on WTO Affairs: was established in 2001 to coordinate and
liaise on WTO policy matters.
Qatar Chamber of Commerce and Industry: was established to develop the
private sector.
Qatar Standards and Metrology Department: part of the Ministry of the
Environment, prepares standards based on international standards.
Some of the Institutions on Qatar’s Foreign Investments
 Human Development Initiatives
• Human Development: Qatar Vision 2030 and National Development Strategy
place high importance on education during the country’s transition process. Two
major actions were taken improve education and research services:
• Qatar Foundation (QF): was established in 1995 to support the Qatari people in
three main areas: education, science and research, and community development.
It supports an innovative and open society that aspires to develop sustainable
human capacity, social and economic prosperity for a knowledge-based economy.
• Education City: was established by QF to provide a common education facility for
the establishment of world renowned universities in Qatar and to facilitate
interaction with research institutions and industries.
The Influence of Institutions on the Corporate
Governance of MNEs
Enacting and implementing the aforementioned institutions led to the appearance
of new forms of ownership MNEs other than state-owned enterprises. Although no
statistics are available, a number of business firms such as banks and
telecommunication companies began to expand their businesses globally.
Qatar National Bank (QNB)
Today operates in 26
countries and across three
continents.
Board
N1
N2
Acting CEO
CFO
QNB Switzerland
Chairman of the Board
COO
QNB Capital
Director
Business
QNB Syria
Director
Risk
QNB China
Director
Services and Special Proj
QNB Mauritania
Director
International Business
QNB Singapore
Director
Retail
QNB Kuwait
Director
Asset and Wealth Mgt.
QNB Oman
Director
Communication
QNB Yemen
Director
Human Resources
Operations
Information Technology
QNB Africa
Strategy
QNB Europe
International Banking
QNB Lebanon
Treasury
QNB Sudan
Audit
QNB France
Compliance
QNB Iran
Ownership structure:
From a bank wholly owned by Qatar
state to a bank with ownership
structure split between the Qatar
State (50%) and the private sector
(50).
QNB Simple Organizational Chart
QNB Libya
QNB Financial Services
The Influence of Institutions and Corporate Governance
on MNEs’ Strategies, Behaviors, and Performance
 No information is available since most of MNEs in Qatar are still new to measure
the relationship between these variables.
 In this context, support from researchers and research and consultancy centers
and regional and international partners in the form of policy advice, sharing the
experience of other countries, and market access will all be helpful.