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LG Electronics appoints Jo Seong-jin as CEO

BUSINESSBUSINESSMay heads to

Bahrain to cement ties

Monday 5 December 2016

Dow & Brent before going to press

AFH finds opportunities in shifting investment landscapeThe Peninsula

Some organisations see the portfolio strategy as a top-down statement of

aspirations. For others, the port-folio is merely a bottom-up accumulation of available projects. The place where top-down aspirations meet bottom-up realities is where the details of Al Faisal Holding’s (AFH) foreign portfolio decision comes into play.

Al Faisal Holding “AFH”, the major shareholder of the region’s fastest growing con-glomerate Aamal Company Q.S.C, has been fast expanding its global footprints over the past few years through its hospitality investment arm Al Rayyan Tour-ism Investment Company or ARTIC. ARTIC owns a portfolio of 24 hotels located in Mena, Europe and the US.

With less than half a dozen properties in the US, including in Washington DC, Miami, Chicago and Manhattan, AFHis looking for more deals that complement its

business objectives. “The US market has always been an attractive one for foreign inves-tors for many reasons including a stable economic and political environment, access to advanced technologies and innovations, and supportive government pol-icies and regulations.We are optimistic for a continued rise in our investment returns there in the coming years”, Sheikh Mohamed bin Faisal Al Thani, Vice-Chairman of Al Faisal Hold-ing, told The Peninsula in a rare interview.

Sheikh Mohamed, who holds a degree in business administra-tion from Carnegie Mellon University, is also the Vice Chair-man of the QAR 8.5bnworth Aamal.

ARTIC is geographically diversified so that our invest-ments are not concentrated in one region. AFH’s medium term plan is to broaden the footprints of its investment portfolio in addition to the potentialfloata-tion of the company on one of the leading international stock

exchanges. Ever since the estab-lishment of ARTIC in 2003, its core objective has been to grow by expanding its operations beyond the borders of Qatar, both regionally and internationally. ARTIC’s focus is on creating a diversified investment portfolio of prime, world class hotel assets in terms of brand, commercial strength, architectural and design

quality, location and profit oppor-tunities across its operations, he said.

Another AFH business focused on international expan-sion is Al Faisal International for Investment (AFII) which has recently acquired 78.46 percent stake in Banif Bank in Malta. Al Faisal International for Invest-ment is expanding its activity in

the financial services sector across several geographies. This includes through organic growth, strategic alliances and, where appropriate, acquisitions.

On AFH’s interests in Emerg-ing Markets (EMs) Sheikh Mohamed said EMshave their opportunities and challenges. Emerging markets are rapidly becoming the driver of global growth.

According to the reports of last year, emerging-market econ-omies grew marginally faster than developed nations and we believe this growth advantage is likely to expand again in the com-ing years. “We always seek investment opportunities that are in line with our long term objec-tives. We have a good balance of investments that are based in emerging markets and developed markets. Asia is of particular interest and we are open to opportunities given the positive outlook for the region.”

On the value returns from global investments, Sheikh Mohamed said: “Our remarkable

expansion into new markets in the recent years is an indication of successful investments that are generating positive returns.Our presence in diversified markets has allowed us to benefit from the different opportunities they each offer. We are very proud of what we have achieved so far, and we are looking forward to continue our expansion plan into new mar-kets that offers positive returns.”

Explaining how the low rate scenario was influencing AFH’s foreign interests, Sheikh Mohamed said the low interest rates are encouraging its invest-ment decisions.

“With our solid financial posi-tion as well as our excellent lender relationships, we are well positioned to take advantage of the current environment for our future expansion. This will have a positive impact on the return on investment. However, we fol-low a conservative approach to leverage and always maintain an appropriate balance which doesn’t expose us to any risk of over leveraging our assets.”

Sheikh Mohammed bin Faisal Al Thani during the interview with The Peninsula. Pic : Baher Amin/The Peninsula

Private sector credit jumps by 19.7%: QCB The Peninsula

Qatar’s banking sector witnessed a 19.7 per-cent jump in private sector credit last year. Banks showed higher

growth in credit than deposit during 2015. Credit outside Qatar also recorded strong growth (38.1 percent y/y) slightly lower than the previous year, according to Qatar Central Bank (QCB).

The surge in private sector credit reflected robust non-hydrocarbon sector growth on one hand and government’s push for greater involvement of the private sector as part of eco-nomic diversification.

Within the private sector, credit growth in the real estate and industry was higher than the previous year. Growth in credit to trade, contractors, con-sumption and services sectors decelerated, partly reflecting the base effect of high growth in the previous year.

There was also significant change in the currency compo-sition of both deposit and credit during the year. Growth in local currency credit decelerated, while growth in foreign cur-rency credit accelerated. The deceleration in local currency

credit reflected local currency credit inside Qatar, while growth in foreign currency credit reflected higher growth in for-eign currency credit inside Qatar. Growth in foreign cur-rency credit outside Qatar continued to be strong (39.9 per-cent), in line with sharp growth in foreign currency deposits out-side Qatar (92.7 percent), the central bank’s annual report noted.

The country’s nominal non-oil GDP continued its pace of growth in 2015, though lower than in the previous year. The performance of all non-oil sec-tors was mostly positive during 2015, where all of them had wit-nessed an increase in their nominal terms. On the other hand, real non-GDP growth

decelerated to 7.8 percent, com-pared to 10.6 percent in 2014; however, it has contributed with all the increase witnessed in real GDP, offsetting the decline in real oil GDP.

A sectoral analysis of non-oil GDP shows Finance, Insurance, Real Estate and Busi-ness Services (FIRB) sector was the largest among all non-oil sectors (both in nominal and constant prices). Due to a 43 percent decline in oil prices in the global markets during 2015, GDP of oil&gas sector at current prices declined 43.7 percent. Accordingly, the relative impor-tance of oil&gas share in GDP at current prices decreased by 14.9 percentage points to 36.2 percent in 2015, compared to 51.1 percent in the previous year.

PM to open Boat Show on WednesdayThe Peninsula

Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin

Khalifa Al Thani, will officially open The Qatar International Boat Show 2016 (QIBS’16) on Wednesday at Mourjan Mari-nas - Lusail City.

The show will then be open for boat enthusiasts and poten-tial buyers from the GCC and further, from 2.30 pm to 9.30 pm Thursday to Saturday.

QIBS’16 continues to build on its role in the advancement of local economic diversifica-tion and the regional maritime industry by welcoming a com-prehensive international line up of exhibitors to the fourth edi-tion of the show. Citizens and residents of the Gulf countries now own more than 40,000 boats that are 5-metrs in length or more and one in eight of the world’s super yachts are owned by Middle East buyers.

Contributing to this boom in the recreational marine sec-tor is the rise in the number of marinas in the region, which now stands at over 60.

Furthermore, local and regional boat manufacturers comprise 50 percent of this flourishing market, with the vast share of the growth being witnessed in the UAE, Kuwait and Qatar.

QIBS continues its leader-ship role in advancing the nautical industry and will be hosting a diverse slate of inter-national and regional vendors in 2016.

All of these brands will be engaging with Qatari-based companies to foster new busi-ness and to strengthen existing commercial ties.

The line-up of vendors includes, Ad Mare Sailing from Bucharest, Romania. Ad Mare Sailing will be present at the 4th edition of QIBS as the Middle East’s exclusive retailer of the Zoom 8 dinghy.

Qatar-based Ali bin Ali Group will be showcasing a col-lection of luxury Ulysse Nardin nautical watches inspired by the powerful movement of the ocean.

Inter-trade in GCC surges to $115bnTHE FULL Gulf Co-operation Council's (GCC) resolutions have contributed in facilitat-ing the flow of goods between the GCC countries and raise the inter-trade value from $ 6bn in 1984 to $ 115bn in 2015. According to a report pre-pared by Information Sector at the GCC Secretariat-Gen-eral on the direct impact of the decision establishing the GCC Customs Union in 2003 on the growth of inter-trade, the trade between the GCC countries witnessed a noticeable increase in the first year amounting to 51 percnet.

The intra-regional trade's volume has risen over the past decade from $ 15bn in 2002, a year before the establishment of the Customs Union, to about $ 115bn in 2015, a significant increase of 657 percent, QNA reported.

Since the early years, the GCC countries have worked to remove tariff barriers between them with regard to their products and having them exempt from customs duties and treat them as national goods.

A free-trade zone was launched in 1983. A series of polices facilitated the flow of movement of goods, services between the nations.

QIBS 2016

Local and regional boat manufacturers comprise 50% of the market. Vast share of the growth are from UAE, Qatar & Kuwait.

Qatar-based Ali bin Ali Group will be showcasing a collection of luxury Ulysse Nardin .

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22 MONDAY 5 DECEMBER 2016 BUSINESS

Investcorp completes Agromillora acquisitionThe Peninsula

Investcorp, a global pro-vider and manager of alternative investment products, yesterday announced that it has

completed the acquisition of a majority stake in Agromillora Group. The founders and man-agement team of the Company will maintain a minority stake in the Company as part of the transaction.

Founded in 1986 in Barce-lona, Agromillora is the leading global developer of high yield-ing plants and trees, with a key focus on permanent crops, including stone fruits, citrus,

nuts, berries, olive trees and grape plants. In the 1990s and early 2000s the company pio-neered the production and

marketing of trees for high yielding olive orchards with the disruptive technology of high-density planting and has also been promoting similar agro-nomic improvements for almonds, citrus and other fruit trees.

The company has since diversified providing nurseries and growers worldwide with a complete portfolio of high qual-ity plants through tissue-culture propagation laboratories located across five continents and developing proprietary root-stocks for high-density plantation models and products. Agromillora’s growth in recent years has been driven by its

consistent innovation and strong Research &Development capa-bilities as well as by international expansion in North and Latin America, Australia and the Mid-dle East.

Today, the company has 11 production facilities in ninecoun-tries, reaching a market of more than 300 nurseries and 1,500 growers in more than 25

different countries, and employs over1, 200 employees world-wide. In 2016 the company plans to produce and sell more than 65 million plants worldwide.

Commenting on the invest-ment, Johannes Glas, Managing Director at Investcorp in Qatar, said,“Agromillora is a very well respected name within the glo-bal agriculture industry and has

a strong tradition of innovation, which is something that greatly appealed to us when we initially explored this investment opportunity".

There is an excellent man-agement team at the helm and I believe Investcorp will add sig-nificant operational expertise when pursuing the growth of the business,” Glas added.

The Peninsula

National Car Company (NCC), the sole agent for Mazda vehicles in Qatar,

has introduced the most stylish, smart and compact cross over 5 Seater SUV, The ALL NEW 2017 CX3.

The new CX3 AWD and 2WD models are now on display at the state of the art showroom located in Fereej Al Nasr which is open 7 days a week from 9 am to 9 pm except on Fridays when the showroom is open during evening hours.

Introducing the New CX3, the NCC spokesperson said, “There’s never been an SUV that can move you like this. For the very first time, new generation Mazda thinking combines with

enhanced capability and city-friendly size. Natural agility comes from SKYACTIV TECH-NOLOGY, along with outstanding fuel economy. MZD Connect brings your online world along for the ride while i-ACTIVSENSE integrates intel-ligent safety. It will be a

sensation among the vibrant and adventurous younger genera-tion in Qatar.”

All CX-3 models come standard with a punchy, 146-horsepower SKYACTIV-G 2.0-liter engine paired with a six-speed automatic transmis-sion, featuring Sport mode.

The Peninsula

Qatar Islamic Bank (QIB) has announced that it is sponsoring the 2016

Euromoney Qatar Conference which is being held under the patronage of Prime Minister and Interior Minister H E Sheikh Abdullah bin Nasser bin Khal-ifa Al Thani. The Qatar Central Bank is hosting the conference and it will be attended by the Minister of Finance H E Ali Sherif Al Emadi

The 5th edition of the lead-ing finance and investment conference will be held on December 6 and 7 at the Ritz Carlton Hotel in Doha. The conference is expected to wit-ness attendance from a number of government offi-cials, senior economists and bankers from across the region

as well as international dele-gations. The event will examine critical geopolitical and eco-nomic issues currently facing the GCC economies in order to conclude and recommend potential solutions that deci-sion makers could consider so as to overcome current challenges.

“We look forward to sup-porting this year’s conference,” said Bassel Gamal, QIB’s Group Chief Executive Officer. “Our active participation reflects the Bank’s commitment towards the sustainable development of the financial sector in Qatar and our acumen to exchange knowledge and debate the cur-rent international and regional changes in a constructive way with experts from different backgrounds and with diverse experience and expertise”.

The Peninsula

LG Electronics (LG) announced that Jo Seong-jin (pictured),

the head of its Home Appli-ance & Air Solution (H&A) Company and one of the three Representative Direc-tors responsible for key decisions of the entire organisation, has been pro-moted to the position of sole Chief Executive Officer, effective immediately.

Jo’s responsibility will extend across all of LG Elec-tronics’ business units including the H&A Company, Mobile Communications, Home Entertainment and Vehi-cle Components and oversight of over 120 operations around the world.

Jo (60), joined Goldstar in 1976, becoming part of the team which developed LG’s first automatic washing machine in 1980. Prior to becoming president of the H&A Company in 2015, Jo was the head of LG’s H&A washing machine division.

In 2007, he received the Bronze Tower Order of Industrial Service Merit from the Korean government in recognition of his valuable contributions to the devel-opment of new technologies and Korean industry.

More recently Jo was instrumental in LG’s move into premium appliances with the introduction of the LG SIG-NATURE brand and built-in Signature Kitchen Suite as well as building the foundation for future businesses in the areas of IoT (internet of things) and smart homes.

The Board of Directors of LG also promoted Song Dae-hyun (58), currently head of the CIS Region and president of LG Russia, to president and CEO of the Home Appliance & Air Solutions Company, replacing Jo. A 33-year veteran of LG Electronics, Song has been involved on the business side of nearly every major product line of the H&A Company, including air conditioners, refrig-erators and cooking appliances.

As head of Russia and CIS since 2012, Song was responsible for successfully growing LG’s business in the region during an economically challenging period.

AFTER its recent announce-ment of addition of Colombo to its network of destinations, Gulf Air has rolled out its flight timetable for its 5 weekly flights to/from Bandaranaike International Airport which will launch from January 19.

“Gulf Air’s five weekly service between Colombo and Bahrainaffords conven-ient flight timings for travellers with morning and evening flights departing Colombo alongside afternoon and evening flights departing Bahrain. Our tailored flight schedule satisfies the needs of the varied passenger base we are catering to on this route – both those travelling for business and leisure – and we anticipate their positive feedback,” said Yahya Ali Buali, Director of Sales and Marketing Gulf Air.

Expanding size

The founders and management team of Agromillora will maintain a minority stake in Company as part of transaction.

Agromillora is the leading global developer of high yielding plants and trees.

One of the nurseries of Agromillora.

Mazda launches new compact cross over five-seater SUV

QIB is the sponsor of Euromoney Conference

LG Electronics appoints Jo Seong-jin as CEO

Gulf Air plans more flights to Colombo

The newly launched Mazda CX-3-Dynamic model.

23MONDAY 5 DECEMBER 2016 BUSINESS

The Peninsula

Siemens is showcasing its complete infrastructure solutions for key develop-

ment projects ahead of the 2022 FIFA World Cup at the 'Soccerex Asian Forum 2016', which will kick off today at the Grand Hyatt Doha.

The German engineering and tech giant is highlighting building automation, electricity storage technology for energy efficiency and safety at the two-day event which will conclude tomorrow. Siemens has pro-vided complete infrastructure solutions for major sports events worldwide and technological solutions to more than 150 sta-diums over the past 12 years.

During the event the com-pany will showcase its integrated portfolio, which con-tributes substantially to sports venues and enables them to achieve a high level of sustain-ability and security. Siemens’ offering for smart stadiums includes Total Building Solutions in addition to stadium assess-ment, technical concept, value engineering, products and solu-tions, technical services and

maintenance and integrated security solutions.

In particular, Siemens will highlight its expertise and imple-mentation of its solutions at the 2014 FIFA World Cup in Brazil. The Company's sophisticated security, safety and building automation technology ensured that the ManéGarrincha stadium in Brasilia, Brazil received LEED Platinum sustainability certifi-cation, making it one of the greenest sports arena in the world.

Siemens technologies for energy efficiency can help reduce CO2 emissions and waste at stadiums by controlling water and energy consumption.

The Siemens building auto-mation software installed at theManéGarrincha stadium con-trols the consumption, metering and utilization of water and power, the use of air condition-ing and the integration of fire detection, alarm and security systems.

Additionally, Siemens will present how Go Electric’, a fully integrated power supply solu-tion for stadiums, can secure energy distribution in all criti-cal venues. The company’s latest

innovation in this area is a mod-ular electrical energy storage system called Siestorage.

The energy storage system secures a stable and reliable power supply on matchdays. The system integrates renew-able energy and optimizes the usage of fossil generation to a modern eco-friendly grid. Siestorage combines cutting-edge power electronics for grid applications and high-perform-ance Li-ion batteries.

“We look forward to high-lighting how our high-tech portfolio can contribute to mak-ing stadiums greener during Soccerex 2016,” said Jan Sch-oenig, Business Development Manager for Siemens in Qatar.

“Siemens has contributed to countless major events, pro-viding public transport, security, power generation, water treatment solutions, and many other critical products and services to cities around the world.

We believe success is based on high-quality products, sys-tems and solutions, strong partnerships, integrated project teams and world-class project management”.

Siemens showcases tech for sports venues at Soccerex

May heads to Bahrain to cement tiesLondon Bloomberg

Britain's Prime Minister Theresa May will visit Bahrain this week to meet Gulf leaders to discuss security coop-

eration and boost trade with the UK as she seeks to build new ties after Brexit.

May will attend a dinner with the leaders of Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain and Oman tomor-row (Tuesday), and hold bilateral meetings with each leader. She’ll also discuss the situation in Yemen and Syria, as well as rela-tions with Iran, her office said in an e-mailed statement.

“There is so much we can do together -- whether it is helping one another to prevent terrorist attacks, Gulf investment regen-erating cities across the UK or British businesses helping Gulf countries to achieve their long-term vision of reform,” May said in the statement. “I hope my visit will herald the start of a new chapter in relations between the United Kingdom and the Gulf -- a true strategic partnership that

enables us to together seize the opportunities ahead and ensure the security and prosperity of our people.”

May is seeking to boost Brit-ain’s international profile and foster new trade links amid crit-icism the government is ill-prepared for negotiations to exit the European Union. The two-day visit will mark the first time a British prime minister and a woman attends a meet-ing of the Gulf Cooperation Council in Bahrain. It will be fol-lowed by several visits by cabinet ministers to the region in the coming months.

Foreign Secretary Boris Johnson will attend the Manama Dialogue at the end of the week, Chancellor Philip Hammond will

visit the region in the new year and Home Secretary Amber Rudd will travel to Saudi Arabia in March.

Britain will also host the first annual summit between the UK and the Gulf Cooperation Coun-cil next year.

NIGERIA and Morocco have signed a joint venture to con-struct a gas pipeline that will connect the two nations as well as some other African countries to Europe, Nigeria's minister of foreign affairs said on Saturday.

The agreement was reached during a visit by the Morocco's King Mohammed to the Nigerian capital Abuja, Geoffrey Onyema, the min-ister, said, adding that the pipeline project would be designed with the participa-tion of all stakeholders.

"In this agreement both countries agreed to study and take concrete steps toward the promotion of a regional gas pipeline project that will connect Nigeria's gas resources, those of several West African countries and Morocco," Onyema told reporters in Abuja.

Onyema said the project aimed to create a competi-tive regional electricity market.

Ankara AFP

TURKISH President Recep Tayyip Erdogan said his country was moving towards allowing trade with Russia, China and Iran to be conducted in local currencies, as he con-tinues his efforts to strengthen the falling lira.

"We are taking steps towards trading with Russia, China and Iran with local cur-rencies," he said, ahead of a trip by Turkish Prime Minis-ter Binali Yildirim to Russia for meetings on Tuesday.

"If we buy something from them, we will use their money, if they buy something from us, they will use our currency," Erdogan explained.

He added that instructions related to this proposal had been given to the central bank and previously said that dis-cussions were underway with Moscow, Beijing and Tehran on the issue. Erdogan repeated a call for Turks to convert the euros, dollars and other for-eign currency into Turkish lira.

Masraf Al Rayan bags 'Best Arab Bank Award 2016' The Peninsula

Masraf Al Rayan, one of the leading banks in Qatar and the region, has won

the “Best Arab Bank Award 2016” in its first edition launched in Marrakech, Kingdom of Morocco.

The nomination criteria for the business and financial serv-ices sector were based on several standards; one being the degree of flexibility of the busi-ness model adopted, products and services marketing plan, the financial and social return, the role and activities of the corpo-rate social responsibility, the risk assessment and risk miti-gation processes, the cumulative experience of sen-ior management team and quantity and quality of deci-sions of members of the senior management team in respond-ing to the challenges of local,

regional and international busi-ness. The top winners were chosen in many sub-categories including the financial services and energy sectors, food indus-try, transportation logistics sector, telecom, retail, health-care, information technology, media and publishing, agricul-tural sector, research, insurance and real estate sector petro-chemical sector of various Arabic countries.

Nasser Raeissi, AGM Human Resources and Administration, said: “Masraf Al Rayan is honored to win this award and thankful to the organising committee on the initiative and idea of recog-nizing and honoring leading Arab institutions in business and finan-cial sectors, which will reflect positively on improving perform-ance and service indicators to ensure competitiveness at local, regional and global levels”.

Masraf Al Rayan was granted this certificate in

recognition of its outstanding efforts in achieving high

employment rates in the provi-sion of job opportunities for

GCC citizens and localization of job opportunities at the regional

Officials of Masraf Al Rayan receiving the “Best Arab Bank Award 2016” in Morocco.

Nigeria and Morocco sign gas pipeline agreement

Erdogan wants trade in local currencies

Boosting relation

“I hope my visit will herald the start of a new chapter in relations between the United Kingdom and the Gulf."

May is seeking to boost Britain’s international profile and foster new trade links.

File photo of Britain's Prime Minister Theresa May, who will be meeting with Gulf leaders in Bahrain and discuss issues of mutual interests, including ways to strengthening trade relations.

Warsaw Bloomberg

The jolt Mario Draghi (pic-tured), European Central Bank (ECB) president, is

set to give the euro-area econ-omy may well be his last, economists say.

The ECB president will announce an extension of asset purchases on Thursday at the current pace of €80bn ($85bn) a month, according to most economists in a Bloomberg sur-vey. Slowly accelerating inflation and a moderate but steady recovery will then give Draghi room to start tapering by late 2017, three quarters of the respondents said.

Policy makers have become more vocal in stressing the risks and limits of their ultra-expan-sionary stance, in a sign that a discussion about scaling back bond buying is drawing closer. With a decision on the €1.7 tril-lion quantitative-easing programme coming just four days after a referendum in Draghi’s native Italy, and loom-ing elections in Europe weighing on governments’ will-ingness to overhaul their economies, the onus remains

on the ECB to ensure stimulus will be sufficient.

“The ECB will extend asset purchases of €80bn a month for an additional six months beyond the current planned termination date,” said Ben May, an econo-mist at Oxford Economics in London. “That said, with the economy still growing at a healthy pace by euro-zone standards and headline and core inflation likely to rise steadily in 2017, we expect December to be the last major unconventional policy package from the ECB.”

Eighty-nine percent of the 53 economists surveyed from November 28 to December 2 expect the central bank to announce fresh stimulus or QE changes after its meeting.

Draghi to extend asset purchases

24 MONDAY 5 DECEMBER 2016 BUSINESS

25MONDAY 5 DECEMBER 2016 BUSINESS

Brussels AFP

Eurozone finance min-isters meet today as far apart as ever on the debt relief measures demanded by the

International Monetary Fund for it to back their bailout pro-gramme for Greece.

The IMF played a key role in two massive rescues for Greece but baulked at a third in 2015, worth ¤86bn ($92bn), warning that Athens would never get back on its feet unless its debt moun-tain was cut outright.

The fund is obliged to only lend to countries that can repay and its head, former French finance minister Christine Lagarde, has faced accusations

that she bent the rules in the two previous bailouts to help save the eurozone. Europe's largest econ-omy Germany insists meanwhile that Greece must meet all its commitments on spending cuts

and tax hikes before measures to reduce a debt mountain equal to some 180 percent of annual economic output can be consid-ered. "We are going around in circles," one EU official said, as an end-of-year deadline to resolve the impasse looms large.

The situation is further com-plicated by differences within the 19-nation single currency bloc. France for example -- where public finances are far from healthy -- believes Athens should be cut some slack. Greek Prime Minister Alexis Tsipras and French President Francois Hol-lande agreed Saturday that "a deal on a technical level is needed by (today) and measures for debt relief by the end of the year are imperative".

During a May review, the European Union and IMF agreed

to start discussions on debt relief by end-2016 if Athens met its reform pledges. The issue turns on a key figure -- 3.5 percent, the primary balance, or the surplus on the public finances before debt repayments, that Greece is supposed to reach.

The target is very high -- and most countries do not even come close -- but Germany and other eurozone hardliners believe it is the only way to solve the issue once and for all, even if Greece has to take additional austerity measures to get there. For the IMF, that option is totally unre-alistic -- an economy with an already unsustainable debt bur-den cannot be expected to tighten the screws further.

A source close to the negoti-at ions suggested the Washington-based lender might

appear to go along, "just to show how impossible it is". Eurogroup chief Jeroen Dijsselbloem told European lawmakers that debt relief measures would be dis-cussed Monday in the hopes of persuading the IMF to sign on to the bailout. "The IMF has a point that running a primary surplus of 3.5 percent of GDP for a very long time is a huge thing to ask and we need to be realistic here," Dijsselbloem said.

It will be against this back-drop that finance ministers will also discuss a recommendation by EU Economic Affairs Commis-sioner Pierre Moscovici that after years of hugely unpopular aus-terity, it is now time to ease off the fiscal brakes and boost growth. The austerity drive has stoked growing anti-EU senti-ment, likely to get a fresh airing

in votes Sunday in Italy and Aus-tria which will likely colour Monday's talks. Moscovici -- another former French finance minister -- said governments with strong enough finances could boost spending by an aver-age 0.5 percent of GDP to bolster a modest recovery. His plea got a blunt rebuff from Germany's hardline Wolfgang Schaeuble, who in the 2015 cliff-edge bail-out negotiations famously suggested it would be simpler for all concerned if Greece just left the eurozone. "The role of the Commission is to ensure mem-ber state budgets... meet European rules," Schaeuble told the Bundestag."That is the role of the Commission, to ensure that the eurozone remains stable, that the euro currency remains strong," he said.

EU & IMF 'going in circles' on Greek debt reliefMeet today

The IMF warns that Athens would never get back on its feet unless its debt mountain was cut outright.

Germany insisted that Greece must meet all its commitments before measures to reduce a debt mountain can be considered.

San Francisco AFP

Apple has revealed it is investing heavily in autonomous vehicles in

a letter asking the government to make it easier to develop self-driving cars.

The company is "excited about the potential of auto-mated systems in many areas, including transportation," Apple said in a November 22 letter to the National Highway Traffic Safety Administration offering Apple's opinion about draft reg-ulations for the sector.

"Apple looks forward to col-laborating with NHTSA and other stakeholders so that the significant societal benefits of automated vehicles can be real-ized safely, responsibly, and expeditiously," the company's director of product integrity Steve Kenner wrote.

Apple issued the letter because it is "investing heavily in machine learning and auton-omous systems," an Apple spokesman said. "There are many potential applications for these technologies, including the future of transportation, so we want to work with NHTSA to help define the best practices for the industry." Rumors about

Apple's ambitions in the sector have circulated for years. The company has a separate organ-ization called "Project Titan" that is developing automotive projects.

Although Apple has never officially confirmed the project, several of CEO Tim Cook's (pic-tured) comments have fueled speculation. After a $1bn invest-ment in a Chinese ride-hailing service called Didi Chuxing, he spoke of "some strategic things that the companies can do together over time." However, in early September, The New York Times reported that the group had narrowed its ambi-tions, laying off dozens of staff as part of the project's "reboot." Instead of designing and pro-ducing a complete self-driving car, the group will now concen-trate on developing underlying technologies for autonomous vehicles.

Apple keen to build autonomous cars

Frankfurt am Main AFP

Bosses at troubled German auto giant Volkswagen have been forced to pay

the company back millions of euros for flights on its private jets, the Bild am Sonntag news-paper reported yesterday.

For years members of the group's executive board were offered flights aboard its fleet of private jets at or below the price of a commercial trip.

But by 2014 directors' use of

the planes for personal travel -- including family holidays -- had grown so extensive that Ferdi-nand Piech, then chairman of the supervisory board, demanded they pay back mil-lions in costs.

They included chief execu-tive Martin Winterkorn, who later stepped down over the automaker's admission that it had installed software to fool regulatory emissions tests in 11 million cars worldwide.

Among others presented with a bill -- which in some

cases exceeded ¤1m ($1.1m) -- were Hans-Dieter Poetsch, now chairman of the supervisory board, and Rupert Stadler, chief executive of VW subsidiary Audi.

VW bosses have lost other benefits including subsidised rents on their homes, while there are stricter limits on the use of chauffeured company cars for private travel, Bild am Sonntag reports. Executives continue to enjoy free private jet flights home at the weekend from the firm's HQ in Wolfsburg, northern Germany.

An Indian staffer oversees an assembly line of Amul Stawberry Milk bottles at a factory on the outskirts of Ahmedabad, yesterday. The demonetisation move by the government has impacted the retail industry due to a liquidity crunch as Indian retail industry generates a lot of cash transactions.

Demonetisation hits Indian retail sector

Manila AFP

The Philippines has asked Bangladesh to share details of its investigation

into an $81m cyber-heist from the Bangladesh central bank after the proceeds ended up in Manila, the Finance Depart-ment said yesterday .

The money was shifted electronically from the Bang-ladesh central bank's account with the US Federal Reserve to a Manila branch of the Rizal Commercial Banking Corp, from where it was funnelled into local casinos in February.

Officials from both coun-tries met in Manila last week to discuss efforts to recover the rest of the funds. The Bangla-deshi delegation thanked the Philippines for returning $15m, the finance department said in a statement. Finance Secretary Carlos Dominguez and other Philippine officials "strongly recommended that Bangladesh share with the Department of

Justice and the Anti-Money Laundering Council the results of their investigation into the cyber-heist," the statement added.

This would help speed up recovery efforts in the courts, it added. "The Bangladesh offi-cials said progress has been made in the investigation and that it would send the govern-ment whatever updates they have on the probe," the depart-ment added. Last month the Philippines said it had launched criminal proceedings against six Filipino bankers accused of fail-ing to stop the laundering of the money. The complaint also cited the Filipino respondents' alleged "deliberate refusal to know the unlawful origins of the funds".

No one has been arrested in the Philippines over the heist but the government has recov-ered the $15 million, some of it from a Manila-based casino operator who has pledged to cooperate with the criminal enquiry.

Manila seeks Dhaka help on $81m heist

VW bosses asked to pay flight expenses back

An engine of a Golf VII car is pictured on a production line at the plant of German carmaker Volkswagen in Wolfsburg, Germany.

Abuja QNA

The 11th African Eco-nomic Conference (AEC) kicks off today in

Abuja, Nigeria under the theme " Feed Africa: Towards Agro-Allied Industrialization for Inclusive Growth".

About 300 participants are expected to attend the thee day annual event co-organised by the African Development Bank (AfDB), United Nations Development Programme (UNDP) and the UN Economic Commission for Africa (ECA).

This central theme is in line with the current African and global development agenda. Tackling poverty, hunger and food insecurity are central concerns of the Sustainable Development Goals (SDGs) endorsed in September 2015 by UN mem-ber States.

The theme also builds on the African Union Agenda 2063 which underscore the right of Africans to be well-nourished and lead healthy and productive lives.

Furthermore, the Com-prehensive Africa Agricultural Development Programme (CAADP), as well as the June 2014 Malabo Declaration emphasise the centrality of a structural transformation of African agriculture to growth and poverty eradication on the continent.

In consonance with these goals, agriculture and indus-trialization are at the heart of the core activities of AfDB, ECA and UNDP and their vision and long-term strat-egy for a prosperous and inclusive Africa.

This theme is timely and in line with the current Afri-can and international development agenda. Ending poverty and overcoming hun-ger and food insecurity permanently are the first and second, respectively, of the Sustainable Development Goals (SDGs). Participants at the African Economic Confer-ence will be challenged to investigate the situation in which, despite overall macr-oeconomic growth and improved broad governance across the continent, Africa still has the highest rates of poverty and hunger in the world. No fewer than 230 million of the 795 million people suffering from chronic undernourishment globally live in Africa, resulting in the highest prevalence of under-nourishment worldwide.

Simi Valley Reuters

Britain has signed a $125 m contract with privately held US weapons maker

General Atomics for develop-ment of a new drone, and plans to eventually buy 20 of the new

unmanned planes, Defence Min-ister Michael Fallon said.

“We’re planning to buy 20 aircraft that will double our cur-rent fleet,” Fallon said. “We have 10 aircraft that still have some life in them, but we need to think ahead.” Fallon gave no details on the expected cost of the new

drones. The contract announced Saturday is for development work, not the cost of producing the 20 planes. He said the new aircraft, a modified version of the Predator aircraft, to be called Protector in Britain, would form a vital part of Britain’s security network.

UK to buy drones from General Atomics

11th African economic meet begins in Abuja today

QATAR STOCK EXCHANGE

26 MONDAY 5 DECEMBER 2016 BUSINESS

QE Index 10,010.27 0.97 %

QE Total Return Index 16,195.95 0.97 %

QE Al Rayan Islamic Index 3,709.09 1.26 %

QE All Share Index 2,753.98 0.86 %

QE All Share Banks & 2,766.21 0.84 %

Financial Services

QE All Share Industrials 3,159.24 0.69 %

QE All Share Transportation 2,434.55 0.38 %

QE All Share Real Estate 2,212.36 1.83 %

QE All Share Insurance 4,361.1 0.31 %

QE All Share Telecoms 1,125 0.87 %

QE All Share Consumer 5,739.67 0.96 %

Goods & Services

QE INDICES SUMMARY QE MARKET SUMMARY COMPARISON WORLD STOCK INDICES

GOLD AND SILVER

04-12-2016 Index 10,010.27

Change 96.52

% 0.97

YTD% 4.02

Volume 8,704,557

Value (QAR) 200,012,634.06

Trades 3,371

Up 29 | Down 10 | Unchanged 0301-12-2016 Index 9,913.75

Change 119.92

% 1.22

YTD% 4.94

Volume 12,730,408

Value (QAR) 370,365,039.94

Trades 3,842

GOLD QR139.0638 per grammeSILVER QR1.9555 per gramme

Index Day’s Close Pt Chg % Chg Year High Year LowAll Ordinaries 5502.381 -18.076 -0.33 5691.8 4762.1

Cac 40 Index/D 4581.33 29.87 0.66 4607.69 3892.46

Dj Indu Average 19121.6 23.7 0.12 19152.1 15450.6

Hang Seng Inde/D 22789.77 52.7 0.23 24364 18278.8

Iseq Overall/D 6235.88 11.69 0.19 6791.68 5286.65

Karachi 100 In/D 42622.37 -188.9 -0.44 43297.41 29785

Nikkei 225 Ind/D 18308.48 1.44 0.01 18951.12 14864.01

S&P 500 Index/D 0 0 0 2213.35 1810.1

EXCHANGE RATECurrency Buying SellingUS$ QR 3.6305 QR 3.6500

UK QR 4.6016 QR 4.6946

Euro QR 3.8509 QR 3.9405

CA$ QR 2.7129 QR 2.7788

Swiss Fr QR 3.5640 QR 3.6542

Yen QR 0.0316 QR 0.0325

Aus$ QR 2.6861 QR 2.7584

Ind Re QR 0.0527 QR 0.0539

Pak Re QR 0.0344 QR 0.0349

Peso QR 0.0721 QR 0.0745

SL Re QR 0.0242 QR 0.0251

Taka QR 0.0454 QR 0.0463

Nep Re QR 0.0330 QR 0.0340

SA Rand QR 0.2598 QR 0.2754

QSE index gains 96.52 points

HelsinkiBloomberg

One of the Nordic region’s biggest asset managers is adjusting its portfolio

to reflect a lack of confidence in Europe and a growing faith in the prospects of a US boom.

Ilmarinen, a Finnish pen-sion fund that oversees about € 36bn ($38bn) in assets, plans to adjust its investments so it’s no longer underweight the US, according to Timo Ritakallio, its chief executive officer.

The reallocation primarily affects “fixed-income instru-ments and real assets. Also equities, but to a lesser degree. But overall, the weighting toward US assets will increase,” Ritakallio said in an interview in Helsinki. “We’re monitoring the geographic dynamic and are putting more focus on the US market, and moving away from the euro zone.”

Investors are starting to lose their nerve as Europe embarks on a series of elections that risk being shaped by voter anger

after years of austerity, and on the back of a migrant crisis fed by the war in Syria. Italians and Austrians cast their ballots on Sunday, with both votes hav-ing the potential to push Europe down a less stable path.

In Europe, the issue is the “very poor outlook for the whole economy, because this 1-1.5 percent growth rate will continue for a long time,” Ritakallio said. “It has a very negative impact.”

In contrast, Ritakallio expects the dollar to continue appreciating next year, if the economic plans of President-elect Donald Trump pan out.

The reality TV star has talked of a spending spree that has the potential to put Amer-ican growth into turbo mode after years of Democratic measures generated GDP rates in excess of 2 percent and brought unemployment below 5 percent.

All in all, Trump’s policies spell both faster inflation and greater instability, short term, Ritakallio said.

Doha/Dubai The Peninsula/Reuters

Qatar's benchmark Index closed up 1 per-cent helped by jump in shares of petro-chemical producer

Industries Qatar. Most stock markets in the Gulf rose yester-day as investors cheered a rally in crude oil prices, while foreign buyers continued to support Egypt’s index.

Qatar Stock Exchange (QSE) index gained 96.52 points after the bourse closed trading at 10,010.27 points yesterday.

From the 44 companies listed on QSE, shares of 42 saw trading yesterday. From these 29 gained and 10 companies closed lower, three remained unchanged.

Meanwhile, indices of six sectors ended in green while one sector index ended red.

QSE Total Return Index increased 0.95 perecent to 16,195.95 points. QSE Al Rayan Islamic Index gained 1.26 per-cent to 3,709.09 points and QSE All Share Index added to 0.86 percent to 2,753.98 points.

Brent crude futures ended their best week in at least five years on Friday, settling at $54.46 a barrel following Opec’s

(Organization of the Petroleum Exporting Countries) agreement to cut output to prop up prices.

Saudi Arabia’s general mar-ket index added 0.5 percent in heavy trade, taking its gains for the year to 3.2 percent. The index was down as much as 21.6 percent only nine weeks ago as the economy struggled with low oil prices.

But a string of positive events over the last several weeks - principally the govern-ment’s $17.5bn international bond sale, its promise to settle delayed payments to the private sector, and the Opec decision - has unleashed a wave of buying by institutional funds.

The latest report by the Saudi exchange showed insti-tutional funds were net buyers of Saudi shares by a large mar-gin last month, while retail investors, who often account for roughly 90 percent of activity, were net sellers.

Yesterday’s session was vol-atile in some sectors. Most petrochemical shares lost steam as investors booked profits, turning their focus to year-end earnings after factoring in the oil price rally.

“Now that there has been price discovery in crude mar-kets following the Opec deal, investors will be focusing on the

quality names and those pro-ducers that can still offer attractive value at current prices,” said a Jeddah-based portfolio manager.

After a strong rally in recent weeks, many petrochemical producers are now in line with what analysts estimate to be fair value. Yanbu National Petro-chemical, for example, closed down 1 percent yesterday at 51 riyals; analysts’ average fair value estimate, according to Thomson Reuters data, is 49.73 riyals.

Second- and third-tier stocks favoured by local day traders outperformed. Saudi United Cooperative Insurance soared its 10 percent daily limit and Herfy Food Services jumped 5 percent.

The stock index in Dubai, which was closed for a public holiday on Thursday, gained 1.7 percent in heavy trade. Blue chips Emaar Properties and Dubai Islamic Bank each climbed 3.1 percent.

In Abu Dhabi, Abu Dhabi National Energy surged 10 per-cent on the back of strong oil prices and Union National Bank added 1.3 percent.

But Abu Dhabi’s index was dragged 1.1 percent lower by tel-ecommunications heavyweight Etisalat, which pulled back 3.5

percent. Funds may be exiting the stock, which is seen as a defensive investment, to enter oil-related shares and the bull-ish Saudi Arabian market.

In Egypt, the index of the 30 most liquid shares added 0.7 percent as foreign buyers remained net purchasers of stocks by a small margin of $1m, bourse data showed.

Foreign funds, which have been underweight in the Egyp-tian stock market compared to other emerging markets, have been net buyers since authori-ties floated the local currency on November 3.

Industrial companies seen as most likely to benefit from improved access to hard cur-rency after the float were among top gainers yesterday, with GB Auto jumping 11.3 per-cent and Ezz Steel adding 5.2 percent.

Orascom Telecom Media, the most heavily traded stock, sank 5.3 percent after saying it was closing its Orabank affili-ate in North Korea because of the complexity of complying with US sanctions on that country.

Orascom said its associate Koryolink would continue tel-ecommunications operations in North Korea while complying with the sanctions.

$38bn Finnish Fund Ilmarinen moves assets to US