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Qatar Today Editorials - "Family businesses need to restructure"
Sheikha Hanadi bint Nasser bin Khaled Al Thani
By Vani Saraswathi
Sheikha Hanadi bint Nasser bin Khaled Al Thani talks to Qatar Today about the future of family-owned businesses in Qatar, and the way ahead for her various businesses.
She is the CEO of Al Waab City, Vice President of Nasser Bin Khaled Al Thani & Sons Holding Group and Vice Chairperson & Managing Director of Amwal.
She was named ‘Woman CEO of the Year’ by Middle East CEO Awards Institute. Recently, Amwal was named “Leading Investment Firm” in Qatar by Iktissad Wa Aamal during the Turkish-Arab Economic Forum held in Istanbul last June.
|q| From Qatar Ladies Investment Company to Amwal. Did you forecast this kind of a leap?
|a| I founded QLIC in 1998 with the support and encouragement of HH Sheikha Mozah bint Nasser Al Misnad. It would have been impossible without her guidance. Not just guidance towards achieving my goals only, but guidance at the society level as well.
As an entrepreneur, and being new at it, I wanted everything to be structured and timelines in place, to ensure a solid foundation for the Firm. I must say that obtaining the first investment license was not easy.
I have always kept my eye on the horizon. Venturing into a new business was by no means an easy thing to do. I am a strong believer in building partnerships throughout the region.
As a result, in 2003 two of the most reputable regional investment houses, Abraaj Capital and SHUAA Capital, joined Amwal as shareholders, enriching the Firm with their expertise in asset management and investment banking.
Our shareholders base also includes Qatar Foundation, Qatar National Bank and Qatar Navigation.
Integrity is core to Amwal’s values and our commitment to maintaining the highest level of integrity is reflected throughout all aspects of our business. In particular, we are committed to adhering to international best practice reporting and corporate governance standards.
Our company’s strong track record is attributable to the outstanding quality of our people. We take pride in having participated in key landmark transactions in the region and intend to aggressively build on our solid foundation through our innovative strategy and proactive approach.
|q| Is the toughest part yet to come, with the setting up of Qatar Financial Centre and entry of international players?
|a| Not at all. It is an excellent initiative for the Qatari economy. I see QFC as a major step taken by the Government. Setting up of new independent bodies such as QFC will help share workload from ministries and bypass red-tape.
QFC will contribute to the development of the financial sector and the current market developments in Qatar are forming an attractive investment climate.
There is a growing demand from clients for innovative investment products and services and this will contribute to a growth in the investment banking, asset management and financial planning sector in Qatar.
I believe competition will only make it more interesting. Having more players in the market will drive international standards, Corporate Governance and will open up the market.
|q| You spoke about expansions, are you stepping out of Asset management and investment banking?
|a| Yes, I think investment banking and asset management have a very wide scope. The role of investment banking is a crucial component for increasing the efficiency of Arab economies.
One of the important aspects of investment banking is restructuring family businesses, which we have started doing. WTO will have its effect on all aspects of the economy.
As you know, the biggest businesses in Qatar are family-owned. These progressive Qatari family groups will need to be restructured and re-engineered to compete in the new environment.
Moreover, they are increasingly looking to expand into other markets in the Middle East, transforming their local businesses into regional conglomerates.
Our regional reach and private equity experience position us well to advise these families on their expansion.
With restructuring of family-run businesses, the stock market will witness an increase of IPOs and investment products like Islamic private equity and mortgage-backed securities.
With these IPOs there will emerge numerous advisory opportunities in real estate and restructuring of family groups. However, not all family businesses are going to be listed companies. And by no means should that be the only path.
You should not look at re-structuring only in terms of stock market listing. There are successful family businesses that are closed yet successful.
Each business has its own criteria and needs – be it expansion or restructuring or introducing new areas of business.
In the rapidly growing Qatari economy, we aim to capitalise on the significant opportunities arising in the sector by providing the best investment banking and Asset Management services in the market.
|q| Do you expect large casualties, especially if not all family businesses rise to the challenge?
|a| Family businesses that are looking at a brighter future are looking at restructuring. Most of these businesses are now in the second generation, and handing over family business from the second to the third generation is not a simple procedure.
Studies have showed that this is the time where family businesses begin to break, and this is why it is important to put in place strategies and structures in finance and operations.
|q| You work on investments, automobiles and now real estate. What kind of orientation is required for each?
|a| They are all management roles. The interesting thing about studying economics is that you learn to see the larger picture.
Investment banking background, makes your realise where value can be added and competitiveness can be achieved. |q| How has the response been to Al Waab City?
|a| Al Waab is a land that belonged to my late father. It was founded on the principle that at the heart of every vibrant community is a public gathering space.
It will be a community that is integrated into the existing fabric of the city. We hope to build a community that epitomises Qatari values.
We are looking to give back to the community – to Qatar. It is not a mere real estate play alone. We are establishing a company to manage it. And this is the first project of this scale that is completely run by the private sector.
Though we haven’t started marketing it, there have been so many enquiries. The response has been positive. Al Waab City is a $1 billion, 1.2 million sq mtr project, catering to the needs of both nationals and expatriates.
It integrates a variety of housing types, small and large scale retail, offices, health facilities, a cultural centre and a world class hotel.
|q| Congratulations on your recent award. But does it bother you that the award carries the ‘Woman’ prefix?
|a| It is no longer a gender issue. I was not was not easy for me to accept the award in the beginning. We should be evaluated based on our achievements, not on our gender.
But they convinced me... and I understood where they were coming from. They said that first of all it was for women who have founded their own company.
Women who have broken the glass ceiling. “Sometimes women don’t realise their full potential. They stop themselves from going further, and fail to see the bigger picture.'
This article is reproduced with special permission from Qatar Today - Qatar's only news, business and lifestyle magazine
