TRUMP HIT | Page 3 CRS FOCUS | Page 19

Who’s to QFC hosts tax

blame for event to update
costly oil? firms on rules

Sunday, April 22, 2018 EXPLORING OPPORTUNITIES: Page 20

Sha’baan 6, 1439 AH

US firms eye
GULF TIMES spending in
pharmaceuticals,

BUSINESS
agriculture
sectors in Qatar

Al Khaliji posts 5.3% rise in its net

profit to QR169.6mn in 1st quarter
A
l Khalij Commercial Bank’s (Al creased operating income was net inter- reduction in net impairments compared to
Khaliji) net profit in the first quar- est income, which Al Khaliji grew by 5.7%, the same period last year,” he continued.
ter of 2018 stood at QR169.6mn, compared to Q1 2017. Notwithstanding the introduction of
representing a 5.3% increase over the same “This was a key goal in 2017 and re- IFRS 9 effective January 2018, net impair-
period last year, it was announced yester- mains so into 2018. We have also reported ment charges were lower by 6% compared
day. healthy growth in non-interest income in to the first quarter last year, according to
Al Khaliji chairman and managing di- line with our strategy of maintaining a di- al-Khalifa.
rector Sheikh Hamad bin Faisal bin Thani versified revenue base. We have generated “Our balance sheet remains strong and
al-Thani said, “Al Khaliji is starting the top line growth by de-leveraging non-core liquid with 26% of total assets comprising
year 2018 with a solid financial perform- and low yielding assets, effectively man- cash and high-quality investment securi-
ance. We are in line with our Qatar- aging our funding base,” he said. ties, and our liquidity cover ratio (LCR) is
centric strategy and these results depict As the bank grew top line revenues, it well above the minimum regulatory re-
the bank’s sustained positive perform- has continued to maintain focus on oper- quirement. Our capital adequacy ratio re-
ance quarter after quarter. This financial ating costs, which are lower by 3% com- mains robust at 16.6%.
strength will allow us to continue fulfill- pared to Q1 2017, resulting in an improved “Qatar’s economy is solid, we have
ing our strategic objectives for 2018 and efficiency ratio of 26%, which is one of the commenced our journey in 2018 with re-
beyond.” best in Qatar, al-Khalifa said. newed optimism and will continue to sup-
Al Khaliji Group CEO Fahad al-Khalifa “Risk management continues to remain port our clients by working closely with
said the bank reported a strong set of re- at the heart of our operating philosophy. them and further strengthen our franchise
sults for the three months ended March 31, Our proactive approach in managing our in Qatar. We remain confident that this
2018, led by growth in operating income. loan portfolio, coupled with a conserva- will translate into improved financial met-
He said the key contributor to the in- tive approach to provisioning has led to a rics,” he said. Sheikh Hamad and al-Khalifa: Solid financial performance.
 Gulf Times
2 Sunday, April 22, 2018

BUSINESS
Steinhoff urges investors to

Brazil cheers revised help save ‘burning building’

Bloomberg
Johannesburg
has happened, prosecute any
wrongdoing and reinstate trust
in the company,” Sonn said. She

IMF forecast, but

reiterated that Markus Jooste,
Steinhoff International Holdings the former chief executive
NV’s chairwoman likened officer who quit when the
the embattled retailer to a financial irregularities were
burning building when the disclosed, has been referred
accounting scandal broke to law authorities. All other
four months ago, appealing board members have agreed

downplays low number

for shareholder support for an to quit immediately if they are
ongoing investigation into the implicated in any wrongdoing,
smouldering wreckage. she said.
The owner of Conforama in Steinhoff has said it has to
France and Mattress Firm in restate accounts dating back
the US said an investigation to at least 2015. The retailer
by auditors at PwC is well said it plans to publish audited
Bloomberg underway and has already financials for 2017 - which it
Rio de Janeiro uncovered the inflation of was scheduled to do when the
income and asset values accounting scandal broke - by
over several years. More than the end of 2018.

W
ith Brazilian economists cut- 320,000 documents have been The shares reacted wildly,
ting their growth forecasts for studied and 4.4mn records soaring as much as 23% before
the Latin American giant, the gathered in an attempt to find paring gains to trade 2% higher
country’s top policy makers welcomed out what happened and who’s at the close in Frankfurt, where
an upward revision by the International responsible, Steinhoff said. Steinhoff moved its primary
Monetary Fund, while downplaying the The probe is expected to be listing from Johannesburg in
fact its estimate remains lower than oth- completed by the end of the 2015.
ers. year. “The market is telling you it’s
“I don’t know if you saw, but Brazil “There was a time in early turmoil, that there is so much
was one of the countries for which the December that it could be rot there,” Bobby Snodgrass,
IMF most intensely changed its growth likened to finding oneself in a who holds about 100,000
forecast,” central bank chief Ilan Gold- burning building,” Heather Sonn shares, said in Cape Town,
fajn told reporters on the sidelines of the said at the retailer’s annual where Steinhoff hosted a
IMF’s spring meeting in Washington. “It’s general meeting at an airport live broadcast of the event.
possible there’s another adjustment next hotel in Amsterdam, where the Investors “were misled by
time. If our projections are maintained, I Stellenbosch, South Africa- a charismatic leader and
think it’s likely they end up raising it.” based company is registered. everyone listened to him. Those
The IMF increased its forecast for “Typically when in a burning that saw red flags were at the
Brazil to 2.3% in 2018, according to its building you run out. Some trough and didn’t want to upset
World Economic Outlook released this stayed. We are happy some the apple cart.”
month, up from 1.9% previously. But stayed in the burning building Steinhoff’s financial situation
the 2018 forecast remains lower than all to help.” remains “very challenged”
but five of 38 predictions from econo- Steinhoff was facing up to and the company has been
mists surveyed by Bloomberg. A series investors on Friday in its first “drained of working capital,”
of weak economic data have prompted A Porto Sudeste do Brasil conveyor belt loads iron ore into a bulk carrier vessels at a port in Rio de Janeiro (file). With Brazilian AGM since reporting a hole the company said. Even so,
Brazilian economists to cut their 2018 economists cutting their growth forecasts for the Latin American giant, the country’s top policy makers welcomed an upward in its accounts in December. liquidity has been assured for
growth forecast for three straight weeks, revision by the International Monetary Fund, while downplaying the fact its estimate remains lower than others. After laying out salmon wraps now after €750mn ($922mn)
to 2.76%. and fresh fruit juice, senior was raised. The retailer has
While the central bank estimates Latin has more conservative forecasts than the rather its speed, Goldfajn said. He add- its exact path, particularly because pro- management gave an update also sold stakes in South
America’s largest economy will expand market average, it’s a question of the ed that any outlook from 2.5% to 3% is jecting rebound after such deep reces- on the state of the retailer’s African companies PSG Group
2.6%, Finance Minister Eduardo Guar- parameters they used. I prefer to look at “within the reasonable margin.” sion is inherently imprecise. finances and took questions Ltd, KAP Industrial Holdings
dia expects 3%. He hasn’t yet found our number and the average of Brazilian The IMF’s forecast falls outside that “Measuring the effect of electoral un- on everything from debt Ltd and Steinhoff Africa Retail
sufficient reason to lower the ministry’s analysts.” range because it is more pessimistic certainty on investment is more an art levels to the reappointment Ltd to shore up its balance
outlook but he could do so in its next In discussing the IMF’s revised fore- about the prospect of upcoming presi- than a science,” Werner said. “I don’t of auditor Deloitte LLP, which sheet, though it said the
bi-monthly review, he told reporters in cast, both Guardia and Goldfajn stressed dential elections prompting some inves- claim that we have a crystal ball that is was later approved with 73% strategy is unsustainable
Washington. Brazil has emerged from a two-year re- tors to delay projects, Alejandro Werner, much better and much less opaque than of the vote. and €10.4bn of debt, mostly
“I haven’t looked into details of their cession that was its worst on record. director of the Western Hemisphere’s Ilan’s crystal ball. I say both our crystal “We want to uncover the in Europe, needs to be
number,” Guardia said of the multilateral Analysts no longer debate whether the department, said in an interview. He balls are relatively opaque, and we’re truth, show the world what restructured.
fund’s projection. “Traditionally the IMF economy is undergoing recovery, but agreed the trend is more significant than trying to do our best with that.”
 Gulf Times
Sunday, April 22, 2018 3

BUSINESS
Three (and a half) things Trump can do to bring down oil prices
Bloomberg are adding to uncertainty in the market. rapidly since the US and other nations ship between US ports be carried on
New York The Obama administration’s agreement imposed tougher financial sanctions vessels built and flagged in the US and
with Iran has boosted production from to punish President Nicolas Maduro. owned and manned by US citizens. That
the nation by more than 1mn bpd. Among the list of people subject to the drives up the cost of shipping US crude
“Looks like Opec is at it again,” President Seventeen respondents to a Bloomberg sanctions are the former chief financial from the Gulf Coast, for example, to
Donald J Trump tweeted Friday survey of oil-market analysts saw on officer for state-owned Petroleos de refineries on the East Coast, which often
morning. As Opec ministers met in Saudi average a 50-50 chance of a sanctions Venezuela SA. In a partial response to use international oil instead. Arizona
Arabia with prices for the international “snap-back,” which could halt anywhere sanctions, Maduro has introduced a Republican Senator John McCain,
benchmark at almost four-year highs, as much as 800,000 bpd of exports cryptocurrency based on the nation’s among others, has called for the act to
what could the US actually do to bring from Opec’s third-largest producer oil reserves, the largest in the world, be annulled.
down the global price of oil? within the next six months. although the US has warned that may 3 1/2. Just talk
1. Keep Iran deal in place 2. Lift sanctions on also be subject to sanctions. US President Donald Trump delivers remarks during an ‘Unleashing
Venezuela 3. Repeal the Jones Act Oil prices fell 1.6% to $67.70 immediately American Energy’ event at the Department of Energy in Washington on June
Fears that the US will reimpose following Trump’s tweet. Maybe the most 29, 2017. Fears that the US will reimpose sanctions on Iran when the nuclear
sanctions on Iran when the nuclear deal The South American nation – and Opec Section 27 of a law enacted in 1920 effective thing he can do in the near term deal comes up for review again next month are adding to uncertainty in the
comes up for review again next month member – has seen its output decline requires that goods transported by is exactly what he is doing - talking. market.

In Texas,
Who’s to blame for ‘artificially
very high’ oil
costly oil: Saudi, Russia is a job booster
Bloomberg
Houston

and Trump himself T

here’s one place in the US where President
Donald Trump’s tweeted complaint about ris-
ing oil prices isn’t resonating: Texas.
The state where he beat Hillary Clinton by almost
1mn votes in 2016 is booming, thanks largely to a re-
vived oil industry that has seen crude prices rise to
more than $68 a barrel from a low of $26.05 in Febru-
Bloomberg ally in cutting output has backed with no significant new pipes com- ary 2016.
New York extending the effort through the ing online until the second half of With an economy bigger than Australia’s, the
end of this year. Meanwhile, ten- 2019. Lone Star state’s jobless rate has moved inversely to
sions are rising between the West Pipes aren’t the only things car- crude prices as the rally prompted explorers to step

R
ising oil prices are now the and the world’s largest crude pro- rying oil. The Jones Act – Section up spending on everything from rig leases to frack-
latest target in President ducer. The US and Europe an- 27 of a law enacted in 1920 requires ing sand. The bottom line: All that drilling has given
Donald Trump’s cross-hairs. nounced tough sanctions on Russia that goods transported by ship be- Texas the fastest-growing economy among major
The nation’s tweeter-in-chief in recent weeks, including limits tween US ports be carried on ves- states, with a 5% sequential expansion in gross do-
complained on Friday about Opec hitting oligarchs in the energy sec- sels built and flagged in the US and mestic production, based on third quarter 2017 data.
fuelling an “artificially Very High” tor, although Trump did reverse owned and manned by US citizens. Led by the planet’s fastest growing source of new
cost for crude that he said “will not a plan earlier last week to impose That drives up the cost of shipping oil supplies – the Permian Basin – energy payrolls in
be accepted!” more restrictions. US crude from the Gulf Coast, for the state skyrocketed 42% in February, following a
So what’s behind the jump in The Iran deal example, to refineries on the East 17% hike in January, according to the Federal Reserve
prices? Market outcomes, like suc- Coast, which often use interna- Bank of Dallas. And while statewide unemployment
cess, can claim a thousand fathers, Fears that Trump will reimpose tional oil instead. Arizona Repub- hovers at 4%, in the unofficial capital of the Permian,
but here’s a potential rogue’s gallery sanctions on Iran when the nucle- lican Senator John McCain, among the jobless rate is closer to 2.5%.
for Trump following Brent crude’s ar deal is reviewed, largely arising others, has called for the act to be “The Permian Basin economy remains robust in
move to almost $75 a barrel on from the president’s public com- annulled. terms of employment, energy and housing,” the Dal-
Thursday, its highest level in more ments, are adding to uncertainty Finally, the world’s consumers las Fed said in an April 19 report. “Companies are
than three years: in the market. The Obama admin- can blame themselves. Global oil having a hard time finding workers.”
Saudi Arabia istration’s agreement with Iran has demand likely climbed by 2.6mn “For Texas, the immediate effect of higher prices
boosted production from the nation A worker checks the valve of an oil pipe at an oil field owned by Russian bpd in this year’s first quarter, the gets reflected in the rig count,” said Michael Webber,
Trump’s right on this one. The by more than 1mn bpd. A Bloomb- state-owned producer Bashneft near the village of Nikolo-Berezovka, biggest year-over-year jump since deputy director of the University of Texas’ Energy
world’s biggest oil exporter has sig- erg survey of oil-market analysts northwest of Ufa, Bashkortostan, Russia (file). US President Donald Trump 2010, Goldman Sachs Group Inc Institute. “Then, after a lag of a couple of months
nalled it wants to push prices even found a 50-50 chance of a sanctions complained on Friday about Opec fuelling an “artificially Very High” cost said on Thursday. Rising consumer you see it in the unemployment rate. Longer term,
higher, to around $80 a barrel, as “snap-back,” which could halt as for crude that he said “will not be accepted!” spending as well as cold weather it impact decisions about capital deployment” by oil
it seeks to fund the expansive (and much as 800,000 bpd of exports in Europe and the US helped boost companies.
expensive) economic agenda of from Opec’s third-largest producer de Venezuela SA. A cryptocurrency industry said a new White House demand, keeping Brent on track to Even as Trump bashed the spectre of pricey oil,
Crown Prince Mohammed bin Sal- within six months. Watch prices introduced by Maduro, based on levy on steel imports could in- reach $80 in the coming months, an unlikely champion for Texas emerged from an ex-
man and support the valuation of rise then. the nation’s massive oil reserves, crease the cost of steel for wells the Goldman analysts said. pected corner: Russian oil czar Alexander Novak on
state energy giant Aramco before an Venezuela meltdown may also face sanctions, the US has by 25% and discourage pipeline Meanwhile, there’s one lever Friday said the rally helped “restore the industry of
initial public offering. The kingdom warned. construction as well. Trump could pull to tamp down oil Texas.” Opec boss Mohammad Barkindo said Ameri-
spearheaded the successful effort This Opec member has seen its Trade wars And about those pipelines prices: releasing crude from the US can drillers have been enriched by the group’s self-
by Opec, Russia and other major output decline amid political and Strategic Petroleum Reserve. The imposed supply caps.
producers to curtail global supply economic strife. Trump has added Trump’s tough trade talk, and The Permian Basin, the heart emergency supply currently holds “Trump is starting to be a little sensitive to wheth-
and boost prices. In a meeting last to the pressure, with a drive to im- tit-for-tat tariffs between the of the shale boom, is running into about 665mn barrels, according to er or not the impact of tax cuts and things like that are
week, oil ministers signalled a will- pose tough sanctions to punish US and China, have roiled global shortages with labour, equipment the Energy Department. The back- likely to produce the growth he is looking for,” said
ingness to see prices rise further. President Nicolas Maduro. Among markets and raised the spectre and, perhaps most critically, pipe- up has been tapped in the past to Katharine Bays, an analyst at Height Capital Markets.
Russia those hit by sanctions are the of further restrictions, at a time line capacity. The output above deal with market disruptions such “I wonder if some of what he is internalising here is
former chief financial officer for the when American oil and gas ex- pipeline space could grow to almost as Libya’s civil war and Hurricane that these higher oil prices are causing some middle
Saudi Arabia’s most important state-owned oil producer, Petroleos ports are rising. In March, the 1mn barrels a day in the year ahead, Katrina. class pain.”

Total lays out power plan

Novatek reduces cost

after $1.7bn utility deal
Total SA’s $1.7bn utility purchase
will help the French oil giant flour-
ish in a future when fossil fuels are
no longer king, according to its

estimate for second chief executive officer, Bloomberg

reported.
“There’s more and more need
for electricity on this planet,”
CEO Patrick Pouyanne said on

Arctic LNG facility Thursday. The company is putting

together “a portfolio which takes
into account the climate-change
challenge.”
Total agreed on Wednesday to
Bloomberg buy Paris-based utility Direct
Moscow Energie, adding 2.6mn electric-
ity and gas customers in France
and Belgium to its 1.5mn existing

R
ussia’s second multibillion clients. The combination – seen
dollar liquefied natural gas delivering as much as €300mn
plant in Siberia is going to ($370mn) of cost savings – will
be cheaper than estimated earlier. strengthen Total’s efforts to lure
Novatek raised the planned pro- households away from market
duction capacity of its Arctic LNG leaders Electricite de France SA
2 facility, allowing it to reduce the and Engie SA.
cost per tonne of produced fuel to “The more clients you have, the
less than 70% of the nearby $27bn more you can amortise costs, and
Yamal LNG facility. Capital ex- the better offers you can make,”
penditure plans are key for Arctic Pouyanne said at a conference in
LNG 2 as Novatek, which partnered Paris, adding that the acquisition
with Total SA and Chinese inves- expands Total’s market share to 7%.
tors at the first Siberian facility, has “We want to do in gas what we did
yet to find investors for the project. in oil: being integrated all along the
“We will likely exceed the 30% chain from production to trading
reduction figure I gave earlier” for and distribution.”
Arctic LNG 2, Novatek’s billion- Mikhelson: Higher LNG production capacity. While state-controlled EDF lost
aire chief executive officer, Leonid about 100,000 customers a month
Mikhelson, told reporters at the to $1,200 per tonne, Mikhelson So far, Novatek does not aim to in 2017, it still had 82% of the coun-
company’s annual shareholders’ said. speed up talks with potential Arc- try’s 32.4mn residential electricity
meeting in Moscow. “It’s going to The Russian company’s own tic LNG 2 partners, which include accounts at the end of the year,
happen for many reasons, includ- options are limited by sanctions Saudi Arabian investors, Mikhel- according to the energy regulator.
ing higher production capacity.” that prevent Novatek from access- son said. The company also does Engie had 74% of France’s 10.7mn
The plant’s capacity has been ing US debt and equity markets not see any threat of new sanc- residential gas customers.
finalised at 19.8mn tonnes a year, for long-term financing, with lit- tions for itself and considers closer As well as new accounts, the
versus earlier estimates of as much tle clarity on whether the current cooperation with Russian equip- acquisition gives Total power-
as 18.3mn. That’s more than 5% tensions between the Kremlin and ment manufacturers as a protec- generation assets, which it can
of total liquefaction capacity of the White House may at some tion against potential technologi- feed with its own growing natural
365mn tonnes at the end of last point result in new limitations or cal bans, the Novatek CEO told gas output.
year. Yamal LNG capex was $1,100 risks for the Russian producer. shareholders.
 Gulf Times
4 Sunday, April 22, 2018

BUSINESS
India needs
‘Major reforms made India to ensure
more women
work in

fastest growing economy’ formal sector:

IMF official
IANS
IANS United Nations
Washington

I
ndia must focus as a priority

T
he major reforms undertaken on ensuring that more wom-
by the Indian government for en work in the formal sector
raising economic growth and as it continues with labour re-
maintaining macroeconomic stabil- forms, according to Ken Kang, the
ity have made the country one of the deputy director in International
fastest growing major economies Monetary Fund (IMF) Asia Pacific
in the world, said Subhash Chandra Department.
Garg, Secretary, Department of Eco- While “in recent years India has
nomic Affairs (DEA). made very impressive progress
Garg was addressing the Special in reforms,” he said that “looking
Event hosted by US-India Strategic ahead there are important policy
Partnership Forum on ‘Indian Econo- priorities” and listed three among
my: Prospect and Challenges’ in Wash- them.
ington, DC on Friday. “One, is to continue improve-
He said the launch of the Goods and ments in product and labour
Services Tax (GST) represented an “his- market reforms with a focus on
toric economic and political achieve- increasing formal female labour
ment, unprecedented in Indian tax and participation to improve the busi-
economic reforms, which has rekindled ness environment, and reduce
optimism on structural reforms.” complex regulations, but also to
He further emphasised that India address supply bottlenecks, par-
carried-out such major reforms when ticularly in the agricultural sector
the global economy was slow. and distribution networks,” Kang
“With the cyclical recovery in glo- said at a news conference on Fri-
bal growth amid supportive monetary day in Washington.
conditions and the transient impact of As one of India’s major reform
the major structural reforms over, India achievements, he mentioned the
will continue to perform robustly,” Garg “introduction of flexible inflation
said. targeting and of a statutory mon-
During his meetings, Garg high- etary policy which has helped to
lighted that the digital age technologies strengthen the monetary policy
have profound implications for policies framework.”
concerning every aspects of the econo- The Reserve Bank of India Act
my. It also has enormous implications was amended in 2016, to provide
for emerging markets and developing for a Monetary Policy Committee
countries. that decides on the interest rate
He expressed that the response to required for achieving the infla-
such a transformation will have to shift Department of Economic Affairs Secretary S C Garg with World Bank CEO Kristalina Georgieva on the sidelines of the ongoing G20 Finance Ministers’ Meeting and 2018 tion target set by the government
from ‘catch up’ growth to adoption/ Spring Meetings of IMF and World Bank in Washington. Garg said the launch of the Goods and Services Tax represented an “historic economic and political in consultation with the bank.
adaption of digital technologies for de- achievement, unprecedented in Indian tax and economic reforms, which has rekindled optimism on structural reforms. The other achievements in-
velopment and growth. clude the Goods and Services Tax
Garg also informed that India has with digital technologies and access of mobile data in the world with 11 gi- vate sector to adapt these technologies Meetings of the International Monetary (GST) and the “major recapitali-
started adopting policies and pro- through Aadhaar and other such means gabytes mobile data consumption per and also addressing the taxation related Fund and the World Bank and other as- sation plan for the public-sector
grammes for transforming systems of While citing the example of expand- month. issues by introducing equalisation levy. sociated meetings. He is accompanied banks in order to accelerate the
delivery of services using digital tech- ing mobile data access, he mentioned He informed that India is investing in Garg is currently on an official tour by Urjit Patel, governor, Reserve Bank work out of nonperforming loans,
nologies and connecting every Indian that India is now the largest consumer digital technologies, encouraging pri- to Washington, DC to attend the Spring of India and other senior officials. as well as made some important
legal improvements through a
new insolvency and bankruptcy
law,” Kang said.
“We expect and hope that the

RBI makes surprising tilt towards rate hike reform momentum continues,” he
added.
“We are not saying that In-
dia’s structural reform speed will
slow down because of elections,”
Bloomberg Minutes of the policy meeting this “He might be preparing markets for recovery in vegetable prices in coming It expects the second half inflation to Changyong Rhee, the IMF direc-
Mumbai month showed most members of In- a rate hike in the coming months,” said months set to fuel price pressures. ease to 4.4%, having earlier estimated tor of the Asia Pacific Department
dia’s monetary policy committee are Rohan Chinchwadkar, assistant pro- Just two weeks ago, Patel and his it at 4.5%-4.6%. said.
optimistic that Asia’s third-largest fessor of finance at the Indian Institute monetary policy committee lowered The bank’s goal is to keep headline “What we are saying is that

T
he most hawkish member of In- economy will rebound this year with of Management at Tiruchirappalli in inflation projections, raising expecta- inflation close to 4% over the medium the growth momentum and the
dia’s monetary policy panel is the output gap closing, a factor that southern India, referring to the state- tions that interest rates will be on hold term. structural reform momentum
likely to get support from an in- is likely to boost inflation in coming ment of Acharya, who is in charge of for sometime to come. The flip-flops on inflation projec- should continue despite the elec-
fluential colleague, signalling an inter- months. monetary policy. “But it still seems un- But the tone of the minutes show tions plus the surprise in the minutes tion period. So there is something
est rate increase is more probable than A majority of the six-member panel likely to happen in June.” the debate was veering toward a pos- caught many bond investors on the misquoted,” he added.
a cut. flagged upside risks to inflation earlier Governor Urjit Patel said there are sible interest rate increase and the next wrong foot. On Thursday, IMF manag-
At the April 4-5 policy meeting, dep- in April when the central bank retained clear signs of revival with the manu- meeting could see the split deepening. The benchmark 10-year bond yield ing director Christine Lagarde
uty governor Viral Acharya said there the benchmark repurchase rate at 6% facturing sector strengthening, adding “The minutes look more hawkish rose 9 basis points to 7.72% as of had said at a news conference on
was a revival in investment activity and as expected. that input cost pressures were rising than the policy statement,” said In- 1:00pm in Mumbai, undoing most of Thursday, according to the IMF
an improvement in capacity utilisation, Five of the six members voted for and companies were gradually regain- dranil Pan, chief economist at IDFC the price rally seen in March. transcript: “We have seen and we
which boded well for the economy. the decision, while one, Michael Patra, ing some pricing power. Bank Ltd. “From here on, the probabil- The rupee slid to the weakest in more are seeing – I am not sure that
As a result, he was switching from who is an executive director heading All of which indicate that the cur- ity of a rate hike has increased.” than a year while stocks were also low- we will be seeing in the next few
a neutral stance to shift “decisively to the research department, sought an in- rent easing in inflation is likely to prove The RBI is forecasting inflation for er. months given the elections that
vote for a beginning of ‘withdrawal of crease. temporary, with firm energy prices, April to September at 4.7%-5.1%, In the swap market, investors were are coming up – major reforms
accommodation’ in the next monetary The panel also kept its neutral policy an expansionary budget, higher food slower than 5.1%-5.6% made just two pricing in nearly 50 basis points of in- that we had recommended and
policy meeting in June.” stance. procurement prices for farmers and a months back. terest rate hikes before the year end. advocated for a long time.”

Japanese companies see big things in small-scale industrial robots

Reuters operate, cobots are now used by behind Universal Robots, which still has
Tokyo companies of all sizes for small-batch roughly 60% of the global market and
manufacturing and simple processes. is now owned by Teradyne, according
In Japan, food maker Nippon Flour Mills to analysis firm BIS Research.
A two-armed robot in a Japanese uses a cobot made by Kawasaki Heavy Fanuc has 6% to 10% market share, and
factory carefully stacks rice balls in Industries for seasoning packaged food Yaskawa’s share is even smaller.
a box, which a worker carries off for sold at convenience stores. Yaskawa’s head of robotics, Masahiro
shipment to convenience stores. “Labour costs are rising, with more Ogawa, said he was confident the
At another food-packaging plant, a intense competition to hire workers,” company could grow as customers
robot shakes pepper and powdered said Atsushi Honda, technology team looked for more sophisticated models.
cheese over pasta that a person has manager at Nippon Flour’s plant “As users get used to handling cobots,
just arranged in a container. engineering group. they will have more advanced and
In a country known for bringing large- Automating some tasks with machines diverse demands.
scale industrial robots to the factory that didn’t need to be separated from We have the capacity to better meet
floor, such relatively dainty machines human employees helped the company such demands,” Ogawa said.
have until recently been dismissed as solve that labour issue, he said. Mitsubishi Electric Corp plans to
niche and low-margin. Industry analysts say Japanese robot launch a cobot early next year aimed at
But as workforces age in Japan and makers, in addition to underestimating users such as electronics makers and
elsewhere, collaborative robots – or the appeal of cobots, were held back logistics companies, said Katsutoshi
“cobots” – are seen as a key way to help in their home market by government Urabe, senior manager in charge of the
keep all types of assembly lines moving safety regulations. company’s robot sales.
without replacing humans. Heavy industrial robots had to be Kawasaki Heavy, another engineering
Japan’s Fanuc and Yaskawa Electric, fenced off from human contact. giant that entered the market in 2015,
two of the world’s largest robot Robots that worked in closer proximity tied up with Swiss rival ABB last year.
manufacturers, didn’t see the shift to people were limited in how powerful The two companies plan to standardise
coming. they could be. cobot programming, said Tomonori
Now they are trying to catch up. The restrictions on cobots were relaxed Sanada, who is in charge of Kawasaki’s
“We didn’t expect large manufacturers in late 2013 to match international robot marketing and sales planning.
would want to use such robots, standards. But Universal Robots’ von Hollen
because those robots can lift only Japanese robotmakers remained was unfazed by the interest of such
a light weight and have limited cautious at first, but are now trying to heavyweights, saying the market
capabilities,” said Kazuo Hariki, an Kawasaki Heavy Industries’ collaborative robot stacks rice balls at Delicious Cook & Co’s food factory in Narashino, dash into the market. would grow to accommodate new
executive director at Fanuc. Japan. As workforces age in Japan and elsewhere, collaborative robots – or “cobots” – are seen as a key way to help keep Fanuc in February bought Life Robotics competitors.
Although still a small portion of a all types of assembly lines moving without replacing humans. Inc, whose clients include Toyota His company, which reported a 72%
$40bn industrial robot market, the Motor Corp and Omron Corp, for an jump in revenue to $170mn last year,
cobots segment is set to grow over the Danish company Universal Robots, what the cobot is,” said Universal Supported by Berlin’s “Industrie 4.0” undisclosed amount. expects to grow at least 50% in 2018.
next decade to more than $10bn, by founded in 2005, introduced cobots Robots’ chief executive, Juergen von strategy to promote smart factories, It was the first acquisition in 15 years for “Probably only 10% of our target
some estimates – several dozen times for industrial applications in late 2008, Hollen. But the machines quickly the likes of Kuka and Robert Bosch Fanuc, known among investors for its market really knows about
its current size. closely working with major German became popular in Europe because followed Universal Robots into the huge cash pile. collaborative robots,” he said. “So
The concept of a robot co-worker is automakers such as Volkswagen. of their safety, simplicity and ability to market in the early 2010s. Rival Yaskawa Electric released its first there is 90% potential that is gone
relatively new. At first, “a lot of people misunderstood directly assist human workers, he said. Relatively inexpensive and easy to cobot last year. Both, however, lag far untapped.”
 Gulf Times
Sunday, April 22, 2018 5

BUSINESS
Pakistan
working to
establish
robust
Pakistan’s central bank asks
financial
system govt to cut tax on transactions
Internews
Internews Islamabad
Karachi

T
he State Bank of Pakistan (SBP)
Pakistan is in the process of has asked the government to
establishing a robust finan- slash the advance tax from 0.3%
cial system. While the road to 0.1% for filers on cash withdrawals
is lengthy it aims to provide from banks exceeding Rs50,000, and
financing access to around 50% abolish the Super Tax in the upcoming
of the adult population by 2020 budget 2018-19.
the journey has begun. The SBP has referred to sections 231
For this purpose, the State A and 231 AA of the Income Tax Ordi-
Bank of Pakistan (SBP) launched nance pertaining to the withholding
a drive in 2015 to connect at taxes (WHT) on the cash withdrawn
least 50% adult population and banking transactions in cash.
with banks under the National The advance tax 0.3% for filer and
Financial Inclusion Strategy 0.5% for non-filers is collected on cash
(NFIS) 2020. The strategy has withdrawal if the total sum of with-
so far provided 23% of the adult drawal exceeds Rs50, 000 per day.
population access to formal The SBP has proposed that the ad-
financing services compared to vance tax rate should be rationalised
12% in 2008. to 0.1% for filers. All the cash loan dis-
Despite the much needed bursements to microfinance borrowers
growth, which came after inno- and agricultural loan borrowers should
vative mobile banking solutions be exempted from the withholding tax.
launched in recent years, the Accordingly, the SBP proposed that
pace of progress for connecting Section 231A may be revised as every
the targeted number of people banking company shall deduct tax at
in a population size of over the rate specified in Division VI of Part
200mn in the set timeframe IV of the First Schedule.
remains doubtful. To accommodate the compliant tax-
Karandaaz Pakistan – a payers, the SBP suggested that further
not-for-profit financial services relief may be extended in terms of the
company – is one among many withholding tax charged on the cash
playing its part in the support of withdrawals.
achieving the national goal. It is suggested that the withholding
“Our interventions fall under tax for the tax filers may be reduced and
two main rubrics. Firstly, MSME the withholding tax shall be charged
finance where we aim at improv- to non-filers at the existing rate. Such
ing access of finance for micro, measures will help increasing the docu-
small, and medium businesses mentation of economy and will pro-
(MSMEs), and secondly, digital mote financial inclusion. The State Bank of Pakistan has asked the government to slash the advance tax from 0.3% to 0.1% for filers on cash withdrawals from banks exceeding Rs50,000, and
finance, where our goal is to Similarly, the higher rate for non- abolish the Super Tax in the upcoming budget 2018-19.
connect the financially excluded filers will motivate them to become tax
population to financial services filers in order to avoid the additional through cash. The advance tax at the That decline further triggered a hike to a significant hike in Currency in Cir- tional institutions, they have to make
using mobile technology,” said cost. To exempt this WHT on the micro rate of 0.6% (currently 0.4%) has been in currency in circulation, which grew culation. payments exceeding the taxable thresh-
Karandaaz CEO Ali Sarfaraz. borrowers particularly farmers and Mi- imposed on all non-filers including by 21.5% on average during July 2015 to This analysis suggests that the im- old that is subjected to tax.
Whether the country is able crofinance borrowers, the SBP argued it those not liable to pay tax e.g. where June 2017. position of WHT on non-cash banking It is pertinent to mention here that
to meet all the targets laid out in is a burden on them. their income falls below the taxable Private business deposits as a per- transactions needs rethinking. the Educational Fee is already subjected
the strategy is yet to be seen, but These borrowers are facing the bur- threshold, tax is deducted at source on centage of total deposits, on the other The widows and pensioners receive to tax @5% u/s 236-I if the fee exceeds
“we should remain focused on den while utilising financing facility all of their taxable income or they are hand, declined from 27.6% to 25% af- very low compensation, income that Rs200,000 therefore, charging tax on
maintaining this momentum and due to additional cost of WHT on cash otherwise exempt from tax. ter imposition of the WHT on banking also falls below the taxable threshold. students account again would be dou-
working collectively towards the withdrawal from their loan accounts. This section should ideally be re- transactions. And in case they are able to save ble taxation and students cannot claim
NFIS targets, he said. The tax is affecting low-income clients moved. If that is not possible exemp- This shows that the imposition of something, tax is deducted on its with- the credit of amount deducted as they
“The (NFIS) target seems who do not fall within the tax payable tion should be provided to students, the WHT on banking transactions ap- drawal that is unfair as they cannot are not liable to file Income Tax Return,
far-fetched without adequate brackets. widows, pensioners, salaried class and parently defeated the very purpose for claim credit for the amount deducted the SBP added.
technical and advisory support This tax, adds to the cost of doing farmers, the SBP proposed. which it was imposed that is, to dis- being not liable to file return. The State Bank of Pakistan has pro-
from the country’s financial sec- business for the financially vulner- The removal of the WHT on bank- courage the cash economy. Similar is the case with the students posed the enhancement in the limit of
tor,” he added. able individuals whom the government ing transactions would facilitate the According to the annual report of who do not have any source of income Rs50,000 to Rs100,000 for collection
Karandaaz Pakistan is run- is also trying to support by taking a financial inclusion strategy of the SBP. the State Bank of Pakistan for the year that is liable to tax and accounts are be- of advance tax on cash withdrawals and
ning a comprehensive drive number of measures. The WHT on non-cash banking trans- 2016-17, the WHT on cash transaction ing maintained by them solely for pay- online transfers by small and medium
through the financial support of The SBP has also proposed amend- actions led to an increase in currency did not trigger significant hike in Cur- ment of fee and to meet their educa- enterprises and three-year tax holiday
UK’s Department for Interna- ment in section 236P – Advance tax in circulation and a decline in private rency in Circulation, but the WHT on tional and boarding expenses. for women entrepreneurs and start-ups
tional Development (DFID) and on banking transactions other than business deposits. Non Cash Banking Transactions has led Due to increase in fee from educa- for small businesses in budget (2018-19).
Bill and Melinda Gates Founda-
tion to extend support to the
government’s ambition.
“DFID has committed £187mn

Aso brings little home from G20 amid calls to resign

through Karandaaz to be
invested till March 2024, out of
which the company has already
invested about £46mn towards
MSME (micro, small and me-
dium businesses) finance. Bloomberg economist at Nomura Securities Co,
These funds have been used Tokyo said yesterday in a phone interview.
to inject growth capital directly “The political situation for the Abe
into SMEs as well as through administration is worsening and I

J
wholesale arrangements with apanese Finance Minister Taro think the current political chaos will
financial partners to improve Aso won’t have an easy home- continue.”
access to credit for SMEs and coming. The US aims to pursue bilateral
micro-enterprises,” Sarfaraz After he flies back from Washing- negotiations to fix trade imbalances
explained. ton, Aso is likely to face further me- with other nations, while Japan pre-
It is also partnering with the dia questions and calls for his resig- fers a multilateral pact and hopes the
Agriculture Department, gov- nation amid a string of scandals at US will rejoin Trans-Pacific Partner-
ernment of Punjab, for roll-out the finance ministry. ship.
of e-credit for farmers. The com- In Washington, he said he’s not Trump has sent mixed messages
pany is providing technical sup- considering stepping down, but about the TPP.
port to enable digital channels, a political backlash could inten- “Trump doesn’t like the name
such as mobile wallets, through sify given Aso attended his first G20 of TPP and such framework itself,
which credit can be disbursed gathering in a year despite failing to and so his approach is clearly differ-
directly to the farmers. get parliament’s approval. ent,” Aso told reporters on Friday in
So far, more than 16,000 farm- Aso is bringing little tangible dip- Washington after attending the G-20
ers have started receiving loans lomatic progress after his criticism of meeting.
through mobile wallets and the protectionism in his meeting with US Aso, who is in charge of Japan’s
plan is to increase the number Treasury Secretary Steven Mnuchin currency policy, said he and Mnuchin
to 500,000 small farmers with a confirmed clear differences on trade discussed foreign exchange in the
landholding of up to 12 acres. policy between the two nations. context of the global economy.
Moreover, its work with the He didn’t get an exemption from Earlier in the week in Washington,
Central Directorate of National US tariffs on metals, either. Bank of Japan governor Haruhiko
Savings (CDNS), Pakistan Post, Earlier in the week, Prime Minister Kuroda, who also attended the G-20
and its contribution in micro- Shinzo Abe’s meeting with US Presi- gathering, warned against trade pro-
payment gateway will encour- dent Donald Trump also highlighted tectionism, saying that it won’t be
age formalisation of small their differences on trade. good for the world economy.
transactions and segments “No progress was made and we Kuroda, whose new term started
that have not used the formal Japan’s Deputy Prime Minister and Finance Minister Taro Aso speaks to reporters in Tokyo. In Washington, Aso said he’s not simply confirmed the US wants to this month, will be chairing the cen-
financial system till now. considering stepping down, but a political backlash could intensify given Aso attended his first G20 gathering in a year despite pursue a bilateral channel,” Masaki tral bank’s monetary policy meeting
failing to get parliament’s approval. Kuwahara, a Tokyo-based senior on April 26-27 with his new deputies.

China firms have never been this reliant on foreign revenue

Bloomberg listed companies get outside their home For investors, the rising share of overseas Recent events showcased the risks for ers to shield the financial system. China Communications Construction Co
Hong Kong country has climbed to 13%, on a market sales means that buying into China’s stock some Chinese enterprises of ties with the China delayed the publication of asset – an infrastructure powerhouse that’s a key
capitalisation-weighted average, according market isn’t solely a bet on the domestic US ZTE Corp, China’s No 2 telecommunica- management product rules, people with BRI player – is among those where foreign-
to Bloomberg calculations based on the side of the world’s No 2 economy. tions gear-maker, which gets almost half knowledge of the matter have said. sales exposure is at its biggest ever.
When China released its key economic latest full-year financial reports. “The Chinese government is very clear its revenue from overseas, was suspended The delay, coupled with a surprise cut in “From foreigners’ point of view, you
indicators on Tuesday, the statistics agency The figure, which excludes banks, is the on their desire to have large corporates from trading on Tuesday after the US the reserve requirement ratio for banks on want to go to China to buy China’s GDP
was quick to highlight how the country’s do- highest in Bloomberg data going back 10 participate in global markets as much banned it from buying crucial American Tuesday, suggested that maintaining stabil- story,” which has two key indicators – do-
mestic consumption had propelled growth years. as possible,” said James Sullivan, the technology for seven years. ity has become a more urgent priority. mestic consumption and fixed-asset invest-
in the first quarter, offsetting external risks The shift underscores China’s incentive Singapore-based head of Asia ex-Japan More broadly, the US Treasury is Among some of the biggest companies ments, said Paul Chan, head of multi-asset
as trade tensions escalate. to shield itself from disruptions stemming equities research at JPMorgan Chase & Co. considering using an emergency law to that have increased their global exposure and Hong Kong pensions at Invesco Ltd,
Yet for the country’s publicly listed from any US trade war, and to focus its com- “One of the biggest impacts of the OBOR curb Chinese investments in sensitive is China Molybdenum Co, which saw which oversees about $938bn worldwide.
companies, foreign business has never been panies’ attentions on President Xi Jinping’s project is to drive a lot of the state owned technologies. overseas revenue climb to 84% of the total Growing overseas revenue doesn’t
so important. Belt and Road Initiative to deepen ties with entities offshore,” he said, using another Trade worries with the US might also last year from 49 % the previous year after always mean companies can’t be a play on
The percentage of sales that mainland- economies across the Eurasian landmass. term for Xi’s initiative. have had a hand in moves by policy mak- purchasing a Congo copper mine. domestic growth too.
 Gulf Times
6 Sunday, April 22, 2018

BUSINESS
US signals
US and China trade tension support for
increase in
dominates IMF gathering World Bank
funding
AFP AFP
Washington Washington

T U
rade tensions between the S Treasury Secretary Ste-
United States and China, which ven Mnuchin yesterday
threaten to spill over into the signalled Washington
global economy, are dominating a would support the World Bank
gathering of world finance officials request for a sharp increase in
even as the Group of 20 avoided the lending capacity in exchange for
topic on Friday. reforms to curb loans to higher
Official after official has called for income countries like China.
disputes to be resolved through dia- The United States, the insti-
logue rather than unilateral tariffs, and tution’s biggest shareholder, re-
warned about the threat to the eco- jected the World Bank request in
nomic recovery. October but yesterday Mnuchin
French Economy Minister Bruno Le praised the progress the insti-
Maire criticised what he called a “vain tution was making, notably the
and pointless” spat with China. plan “to significantly shift lend-
“We run the risk of trade war. We run ing to poorer clients.”
the risk of multilateral order breaking While he did not mention
down that is good for no one, and most China by name, Mnuchin ap-
definitely not for the world economy plauded the shift to a “new in-
and growth,” Le Maire told reporters come-based lending allocation
during the spring meetings of the In- target and the re-introduction of
ternational Monetary Fund. differentiated pricing” for loans
But US President Donald Trump’s – meaning wealthier countries
top finance official said the fault lies would pay higher interest rates.
with countries that employ unfair “The latter will incentivise
trade policies. better-off, more creditworthy
“We strongly believe that unfair glo- borrowers to seek market fi-
bal trade practices impede stronger US nancing to meet their needs for
and global growth, acting as a persist- development,” Mnuchin said in a
ent drag on the global economy,” US statement to the Spring meeting
Treasury Secretary Steven Mnuchin of the World Bank’s governing
said in a statement to the IMF. committee.
While IMF chief Christine Lagarde The World Bank is seeking a
has offered the fund as a forum to re- $13bn capital increase, includ-
solve differences, Mnuchin instead ing $5.5bn to the bank’s private
said the IMF “should be a strong voice” financing arm, the International
in urging members “to dismantle trade Finance Corp, according to
and non-tariff barriers and to protect press reports. The last increase
intellectual property rights.” (From left) Bank of Canada governor Stephen Poloz with Federal Reserve chairman Jerome Powell and Vice President of Switzerland and Finance Minister Ueli Maurer with occurred in 2010 and added
Le Maire agreed China must respect Indonesia’s Central Bank governor Agus Martowardojo chat at IMFC plenary during the IMF/World Bank spring meeting in Washington yesterday. The IMF has $5bn to the bank’s capital and
the rules, but said the country is a key highlighted the trade tensions as a major downside risk to the otherwise solid global recovery, and Lagarde said the dispute undermines confidence and creates $200mn for the IFC.
part of the world trading system. uncertainty that could choke off investment which has been a prime engine of the global recovery. World Bank President Jim
“We must redefine international Yong Kim said Friday the in-
trade with China, not against China.” calation “could be serious,” and poor which has been a prime engine of the G20 is not the place to discuss specific But German central bank chief Jens stitution held “extensive de-
Theft of American intellectual prop- countries would be the collateral global recovery. measures. That’s the WTO.” Weidmann said the G20 officials all tailed discussions” with mem-
erty and technology has been a key irri- damage. The WTO projects global merchan- It was a surprising omission for the agreed trade must benefit all countries. ber countries on the changes
tant in the dispute with Beijing, which “A breakdown in trade relations dise trade will expand by 4.4% this group that was key to shepherding the “Protectionism, not to mention a needed to win approval but he
prompted President Donald Trump among major players could derail the year, after increasing by 4.7% in 2017. global economy through the 2008 fi- trade war, is certainly not the solu- denied the reforms targeted any
to announce steep tariffs on tens of recovery that we have seen in recent Despite the intense focus on the US- nancial crisis and preventing another tion.” specific economy.
billions of dollars’ worth of Chinese years, threatening the ongoing eco- China dispute, the Group of 20 finance depression. Le Maire repeated his criticism of The bank agreed to increase
goods, on top of last month’s punitive nomic expansion and putting many ministers, from the world’s major But Dujovne said, “We have to also the US tariffs on steel and aluminium lending “to lower middle-in-
duties on steel that were primarily tar- jobs at risk,” he said in a statement to economies, avoided discussion of the recognise the limitations that we as a which were aimed at China but only come countries” but “there’s
geted at China as well. the meetings. issue on Friday, even while acknowl- group have... and try to find a consen- spared the EU and other key trading nothing in the agreement that
Washington and Beijing have traded The IMF has highlighted the trade edging the potential danger it posed to sus even if the consensus is more lim- partners under a temporary exemption targets any specific country,” he
tariff threats and also filed complaints tensions as a major downside risk to the global economy. ited than we want.” that is due to expire on May 1. told reporters.
against each other at the World Trade the otherwise solid global recovery, “We didn’t have a discussion on The ministers did express concern As close allies in the EU “we ex- “We believe we’ve made a
Organisation. and Lagarde said the dispute under- specific measures on trade,” Argentine over the growth of “inward looking pect not only temporary exemption good case for how a stronger
WTO director Roberto Azevedo mines confidence and creates uncer- Treasury Minister Nicolas Dujovne policies,” he said, using a frequent eu- but a full and permanent exemption,” World Bank Group can meet the
warned that the effects of a major es- tainty that could choke off investment told reporters after the meeting. “The phemism for trade protectionism. he said. aspirations of our shareholders,
respond to global challenges,
mobilize capital at scale, and
make the institution even more
efficient and effective,” Kim said.

ECB sees scope to wait for July to signal end of QE The final decision rests with
the bank shareholders who will
vote on the proposal later Sat-
urday. China’s Vice Finance
Minister Guangyao Zhu indi-
Bloomberg see the announcement in July and a cated support for increasing
Frankfurt similar proportion forecast September. World Bank resources, but said
Why one bank says Draghi won’t get Beijing had reservations about
to raise rates as president?. The eco- the agreement for changes in

E
uropean Central Bank policy- nomic surprise index that is now at a lending policies.
makers see scope to wait until six-year low. “We are concerned about
their July meeting to announce The euro area posted its strong- some of the policy commit-
how they’ll end their bond-buying est economic expansion in a decade in ments in the capital package,
programme, according to euro-area 2017, but started this year with a slump such as those on graduation,
officials familiar with the matter. in output and confidence that threat- maturity premium increase for
Governing Council members want ens to slow the central bank’s progress loans and differentiated loan
sufficient time to judge if the economy towards its inflation goal. Explanations pricing based on national in-
is overcoming its first-quarter slow- range from bad weather and flu, which come per capita,” he said in a
down, the officials said, asking not should fade away relatively quickly, to statement.
to be identified because the internal deeper concerns such as global trade “We hope that the Manage-
deliberations are confidential. That conflicts that could damage growth. ment take different national
could mean the June meeting, which Bundesbank President Jens Wei- circumstances into full account
would have the advantage of link- dmann, who has repeatedly called on the in the implementation of the
ing the decision to updated economic ECB to communicate when it will end graduation policies... to ensure
forecasts, might be too soon. QE, said earlier on the sidelines of the that these policies will not im-
Some governors don’t see any need IMF meetings that “what we certainly pede cooperation between the
to change the ECB’s guidance on in- don’t see is an economic turning point.” (bank) and upper middle in-
terest rates at the same time, arguing Well past: The ECB has pledged to buy come countries.”
that they can afford to wait to see how €30bn ($37bn) a month of debt until But Zhu said the capital in-
the market reacts to the announce- at least September, taking holdings to crease would be “a concrete
ment of an end-date for quantitative The headquarters of European Central Bank in Frankfurt. ECB president Mario Draghi acknowledged the region’s slowdown on €2.55tn. Economists in the survey pre- measure to support multilat-
easing, though not everyone agrees. Friday in a statement at the International Monetary Fund meetings in Washington, but maintained his optimism that the dict a short taper – totalling €35bn – in eralism” at a time when “an-
The officials said there have been no expansion will continue. the final quarter to end the programme. ti-globalisation sentiments,
formal discussions at all on a strategy The Governing Council also says it unilateralism, protectionism
for rates. day in a statement at the International growth momentum is expected to con- pushed out their estimates of when the expects to keep interest rates at record in trade” were creating uncer-
An ECB spokesman declined to Monetary Fund meetings in Washing- tinue,” he said. council will take its next steps toward lows until “well past” the end of net as- tainties in the global economy.
comment. The euro briefly dropped to ton, but maintained his optimism that He’ll hold a press conference on normalisation. Just 36% predict a de- set purchases, a vague phrasing that it French Economy Minister Bru-
the lowest level in two weeks, and was the expansion will continue. April 26 after the Governing Council cision to end QE will be taken in June, recognises will have to be clarified at no Le Maire said he was confi-
down 0.5% on Friday in Frankfurt. “Notwithstanding the latest eco- next sets policy, though there are few down from almost half in last month’s some point. Investors and economists dent the members would agree
President Mario Draghi acknowl- nomic indicators, which suggest that expectations for any shift then. Econo- poll. largely expect a first rate hike around “on a substantial capital in-
edged the region’s slowdown on Fri- the growth cycle may have peaked, the mists surveyed by Bloomberg this week About a quarter of respondents fore- the middle of 2019. crease.”

World economy’s main threats are protectionism and debt: EU

Bloomberg “The two main risks for growth, respond to the next recession. China and has announced tariffs on The global debt burden clouded the Lacqua.“And this is not only for
Brussels which is now very solid all over Global public and private debt imports of steel and aluminium. IMF’s otherwise upbeat outlook of Europe; this is worldwide.”
the world, are on the one hand increased to 225% of worldwide The EU is seeking a permanent the world economy, which is in its With the deficit in the US, the
protectionism and trade tensions, economic output in 2016, the fund exemption from the metals levies strongest upswing since 2011. largest economy, “there are short-
The biggest threats to global and on the other hand debt,” said on Wednesday in its semi-annual after Trump granted a waiver to the The fund forecasts expansion of 3.9% term effects macro-economically;
economic growth are government Moscovici said Friday in a Bloomberg Fiscal Monitor report. bloc until May 1 and left open the in 2018 and 2019. long-term effects, that we cannot
debt and protectionist leanings, Television interview in the US The Washington-based fund also possibility of a longer exclusion. “For the medium term, as always really foresee; and there are political
European Union economy capital.“There is no trade war for the warned this month that the global The European Commission, the EU’s when you have a high debt and a effects,” Moscovici said.“For the
commissioner Pierre Moscovici time being, so that’s good.” commercial order risked being “torn executive branch in Brussels, has high deficit, you need to watch that short-term effects – they are positive,
said, underlining the challenges The IMF warned this week that the apart” by trade wars. said that failure to gain a longer to avoid imbalances,” Moscovici, the since the American growth is picking
confronting finance chiefs at the world’s debt load has ballooned to US President Donald Trump is exemption from the US metal-import EU’s economic and financial affairs up and with a booming American
International Monetary Fund a record $164tn, a trend that could pushing for a crackdown on what he duties would lead to a tit-for-tat commissioner, said in the interview economy it’s good for the rest of the
meetings in Washington. make it harder for countries to considers unfair trade practices by response by the bloc. with Tom Keene and Francine world.”
 Gulf Times
Sunday, April 22, 2018 17

BUSINESS
Old Mutual to list

Russia central bank official emerging market

and UK asset
management

hints at pause on rates as units in June

Reuters
London

sanctions throw off easing Old Mutual said on Friday that the next stage
of a planned break-up of the Anglo-South
African financial services group would take
place in June with the listing of its emerging
market and UK asset management units.
The listings will see shareholders receive
Bloomberg
Washington one share in new UK wealth management
company Quilter and three in Old Mutual
Limited for every three Old Mutual shares

R
ussia’s central bank is back- currently held.
ing down from its guidance Old Mutual has been working towards a
for faster cuts in interest rates break-up since 2016 after deciding that
this year after the latest round of regulatory changes had made the firm too
US sanctions jolted the rouble and complex to run, and has already sold out of
threatened to touch off inflation. its US fund arm.
Less than a month after seeing a “There were four good businesses that did
quicker transition to looser monetary not need to be held together in a group
policy, Bank of Russia First Deputy structure,” Old Mutual chief executive
Governor Ksenia Yudaeva conceded Bruce Hemphill told Reuters by phone,
that “the probability of a reduction adding that the firm’s share price had been
has declined” at a meeting next week. suffering from a “conglomerate discount”.
While all options will be on the Old Mutual’s shares, which have been trading
table, currency weakness could close to multi-year highs on prospects for
feed into consumer prices, a proc- a break-up, closed little changed at 242.6
ess that Yudaeva said may take a pence.
few months. “The trajectory of cuts The next stage of the break-up will see
in the key rate will be adjusted slight- the Old Mutual Wealth unit spun out and
ly upward,” Yudaeva told reporters in renamed Quilter, with a listing in London
Washington. “It will be reduced more and Johannesburg, while the rest of the
slowly than we planned earlier.” company, which includes the emerging
The outlook offers the clear- markets unit, will list a day later in
est glimpse into the central bank’s Johannesburg and London as Old Mutual
thinking before a week-long com- Limited.
munication blackout starts on Fri- Under the Quilter demerger, existing Old
day ahead of its meeting. Mutual shareholders will receive 86.6% of
With the toughest US sanctions An exterior view of the Russian central bank building in Moscow. The Bank of Russia is backing down from its guidance for faster cuts in interest rates this Quilter and up to 9.6% will be placed with
yet sending the rouble to its steep- year after the latest round of US sanctions jolted the rouble and threatened to touch off inflation. institutional investors.
est drop since June 2015, the Bank of The rest would be held on behalf of
Russia has already had to tweak its central bank said in a report on Friday. management and staff.
approach, pausing purchases of for- The rouble has lost over 7% ‘Forex buying shows discretion, not intervention’ The fourth step of the company’s break-up
eign currency for the Finance Minis- against the dollar this month, plan will take place six months later and
try for six days. the worst performance in emerg- Bloomberg it only this week. “As a rule, we mirror the purchases under the budget rule, see Old Mutual Limited separate out its
Until this month, record-low infla- ing markets. It traded 1% weaker Washington it right away and in full, gradually over which began last year, have kept the stake in South African lender Nedbank, by
tion has allowed policymakers to de- against the dollar in Moscow on the course of the day, but in certain rouble weaker than it otherwise would distributing 32% of Nedbank’s stock to Old
liver rate cuts at five straight meetings. Friday. Investors anticipate the Rus- cases we may diverge from that,” First have been given the recovery in oil Mutual Limited shareholders.
But now most economists say sian currency will remain among the The Bank of Russia uses its own discre- Deputy Governor Ksenia Yudaeva said prices, according to economists. After that, Old Mutual Limited will retain
policy makers will hold off from world’s most unstable, with its one- tion in timing tens of billions of roubles in an interview in Washington. The Finance Ministry calculates the a minority stake of 19.9% in Nedbank, it
easing on April 27 and leave their month implied volatility at the high- of purchases of foreign currency on Last week, when the rouble was slid- purchase amount at the start of each said. Old Mutual is aiming for “material
benchmark at 7.25%. Before the lat- est globally. Currency pass-through the market, a top official said, even as ing, the bank “suspended the mirroring month based on the oil price, with completion” of the break-up by the end of
est sanctions, almost all the analysts to consumer prices has become less the regulator remains committed to its purchases of foreign currency for a short revenues when oil is above $40 a bar- 2018.
surveyed saw another quarter-point potent, meaning a weaker rouble policy of letting the rouble float freely. time because they would have worsened rel swept into the national wealth fund. Hemphill stands to receive a bonus of up to
cut in the key rate. The central bank may not have a big impact on infla- The bank’s handling of the trades some market indicators,” she said. Usually, regulators divide the monthly 1,000% if it completes on schedule.
is unlikely to change its “neutral” tion, according to Yudaeva. has become a major focus for the The move wasn’t intervention, which total by the number of trading days The Old Mutual break-up comes as other
range for rates from between 6% and Since the shock was relatively market since the rouble dropped 6% is aimed at stabilising the market and the central bank conducts the insurers and asset managers such as
7% since it’s already “quite wide,” short-lived, its effect may be “less last week after the US imposed sanc- during periods of extreme instability, purchases in equal amounts. Prudential and Standard Life Aberdeen are
according to Yudaeva. pronounced and more spread out tions on major Russian companies and according to the central bank. “Markets But Yudaeva said it’s up to the also changing their structures to become
That’s the level of borrowing costs over time” as the economy takes tycoons. The buying matches transac- were functioning normally, that is why central bank to decide “how best to more competitive.
that contributes neither to “a reduc- longer to respond, Yudaeva said. tions the central bank conducts with no additional measures were neces- mirror these purchases on the market,” The plan also follows an agreement by Old
tion nor an acceleration” in inflation “The weakening of the exchange the Finance Ministry under a budget sary,” Yudaeva said. with the total completed by the end of Mutual to sell part of its asset management
relative to its target level of around 4%. rate will have a certain effect on in- rule aimed at insulating the economy Since the central bank shifted to each month. arm, Old Mutual Global Investors, to private
The fallout from new sanctions on the flation and will affect the next fore- from the volatility of prices for oil, the free-float policy in 2014, regulators For the April 6-May 8 period, the equity firm TA Associates and management
Russian currency means consumer- cast,” she said. “It will be clearer at Russia’s main export. The central bank have studiously sought to avoid any purchases are expected to total for £600mn. Bernstein analysts valued
price growth, which already acceler- subsequent meetings how the situa- said it suspended the buying on the interventions that appeared aimed 240.7bn roubles ($3.9bn), or about Old Mutual Wealth at £2.8bn excluding Old
ated last month, may return to the tion is developing and what effects it market as the ruble dropped, resuming at shifting the exchange rate. Still, 11.5bn roubles a day. Mutual Global Investors.
goal quicker than earlier estimated, the has on inflation.”
 Gulf Times
18 Sunday, April 22, 2018

BUSINESS
T
he Qatar Stock Exchange (QSE) the second biggest contributor to the QSE Index and Volume
index increased 278.14 points, or overall trading value, accounting for
3.12%, during the trading week 23.4% of the total trading value.
to close at 9,196.62. Market capitalisa- QNBK was the top value traded
tion increased by 4.1% to QR514.0bn stock during the week with total trad-
versus QR493.8bn at the end of the ed value of QR247.5mn.
previous trading week. Of the 45 listed Trading volume increased by 26.0%
companies, 31 ended the week high- to reach 61.4mn shares versus 48.8mn
er, while 14 declined. Ezdan Holding in the prior week. The number of trans-
Group (ERES) was the best performing
stock for the week with a gain of 14.1%
on 2.2mn shares traded. On the other
actions increased by 13.3% to reach
19,886 versus 17,559 transactions in
the prior week. The telecoms sector
Weekly Market Report
hand, Qatar Cinema (QCFS) was the led the trading volume, accounting for
worst performing stock for the week 32.1%, followed by the banks and finan-
with a decline of 9.6% on 276 shares cial services sector which accounted
traded only. for 22.1% of the overall trading volume.
QNB Group (QNBK), Barwa Real Es- Vodafone Qatar (VFQS) was the top Source: Qatar Exchange (QE)
tate Co (BRES), and Qatar Islamic Bank volume traded stock during the week
(QIBK) were the primary contributors with 19.4mn shares.
to the weekly index gains. QNBK was Foreign institutions remained bull- Weekly Index Performance
the biggest contributor to the index’s ish with net buying of QR192.1mn
weekly increase, adding 102.8 points versus net buying of QR74.4mn in
Source: Qatar Exchange (QE)
to the index. BRES was the second the prior week. Qatari institutions
biggest contributor to the mentioned remained bearish with net selling
gain, tacking on 43.7 points to the in- of QR156.3mn versus net selling of
dex. Moreover, QIBK contributed 37.1 QR11.0mn in the week before. For-
points to the index. However, Indus- eign retail investors remained bear-
tries Qatar (IQCD) deleted 11.9 points ish with net selling of QR4.7mn ver-
from the index. sus net selling of QR18.5mn in the
Trading value during the week in- prior week. Qatari retail investors
creased by 0.5% to reach QR1.44bn remained bearish with net selling
versus QR1.43bn in the prior week. The of QR31.1mn versus net selling of
banks and financial services sector led QR44.9mn the week before.
the trading value during the week, ac- Foreign institutions bought (on a net Source: Bloomberg
counting for 36.4% of the total trad- basis) $200mn worth of Qatari equi-
ing value. The industrials sector was ties since the beginning of 2018. Source: Qatar Exchange (QE)

DISCLAIMER
This report expresses the views and opinions of QNB Financial Services Co WLL
One Person Company (“QNBFS”) at a given time only. It is not an offer, promotion or
recommendation to buy or sell securities or other investments, nor is it intended to
constitute legal, tax, accounting, or financial advice. We therefore strongly advise
potential investors to seek independent professional advice before making any
investment decision. Although the information in this report has been obtained from
sources that QNBFS believes to be reliable, we have not independently verified such
information and it may not be accurate or complete. Gulf Times and QNBFS hereby
disclaim any responsibility or any direct or indirect claim resulting from using this report.

Qatar Stock Exchange

Top Five Gainers Top Five Decliners

Most Active Shares by Value (QR Million) Most Active Shares by Volume (Million)

Investor Trading Percentage to Total Value Traded Net Traded Value by Nationality (QR Million)

Technical analysis of the QSE index

A
s we expected last week, the in- level of 9,000, which means the contin-
dex ended positive for the week, uation towards the 9,500 (our updated
and closed higher by 3.12% from resistance level) is very much likely.
the week before. The recent move lifted Our weekly support level remains at the
the index higher than our resistance 8,000 level.

Definitions of key terms used in technical analysis

C
andlestick chart – A candlestick represents one trading day) in our analy-
chart is a price chart that displays sis.
the high, low, open, and close for a Doji candlestick pattern – A Doji can-
security. The ‘body’ of the chart is portion dlestick is formed when a security’s open
between the open and close price, while and close are practically equal. The pat-
the high and low intraday movements tern indicates indecisiveness, and based
form the ‘shadow’. The candlestick may on preceding price actions and future
represent any time frame. We use a one- confirmation, may indicate a bullish or
day candlestick chart (every candlestick bearish trend reversal.
 Gulf Times
Sunday, April 22, 2018 19

BUSINESS
Monetary Authority of Singapore begins to normalise policy: QNB
Singapore’s monetary policy regime dollar nominal effective exchange rate There have been only two occasions The monetary policy decision was
centres around the management of (SGD NEER) from the zero per cent since then when the MAS has moved to accompanied by an Advanced
the exchange rate rather than a policy appreciation path that has been in place a flat path or zero percent appreciation Estimate of GDP which showed GDP
interest rate, according to QNB in its since April 2016. anchor for the SGD NEER. growth rising to 4.3% y/y in 2018Q1
latest report. In its accompanying statement, the The first such occasion was in October from 3.6% y/y for 2017 as a whole.
The Monetary Authority of Singapore MAS noted that “the width of the policy 2008 following the global financial Looking ahead, the MAS expects global
(MAS) estimates that the exchange rate band and the level at which it is centred crisis when external and domestic demand to remain firm, although the
has twice the impact on the economy will be unchanged. demand fell sharply and inflation risks to global trade have increased
as interest rates as a result of the This policy stance is consistent with a declined to levels incompatible with as trade tensions rise between the US
extreme openness of Singapore to modest and gradual appreciation path price stability. and China.
trade and capital flows (trade is about of the SGD NEER policy band that will The second occasion was April 2016 The gradualism in the MAS approach
230% of GDP, compared with around ensure medium-term price stability”. when the economy was struggling to tighten monetary policy appears
26% of GDP in the US, for example). While the MAS does not explicitly with disinflationary pressures and core to be motivated by uncertainty
The value of the Singapore dollar is announce the slope of the SGD NEER inflation was projected to remain below surrounding trade tensions between
allowed to fluctuate within a band policy band, it is believed that it has 2% over the medium. the US and China and the fact that the
(currently estimated to be +/-2%) been set at an appreciation slope of The move in April 2018 to “increase Singapore economy is highly sensitive
against an undisclosed basket of 0.5% per annum. slightly” the slope of SGD NEER should to fluctuations in global trade.
currencies – also known as the nominal Since April 2004, the MAS has set an be seen as the beginning of a gradual This suggests that if trade tensions
effective exchange rate (NEER). appreciation bias for the NEER as the normalisation process in monetary between the US and China ease
At its semi-annual monetary policy anchor for monetary policy as the policy as the economy continues to meaningfully over the coming months,
statement on April 13, the MAS decided country ran large current account expand, resulting in a tighter labour the MAS is likely to further increase
to tighten policy by “increasing surpluses and continues to be a highly market while inflation is projected to the slope of the SGD NEER at the next
slightly” the slope of the Singapore open economy. rise over the medium term towards 2%. policy meeting in October 2018.

Deutsche Bank celebrates

its 10th year in Qatar QFC hosts tax
D
eutsche Bank has celebrated its 10th an-
niversary in Qatar with the attendance of
high-profile guests and other dignitaries
during a ceremony held at the Four Seasons Hotel,
it was announced in a statement.
First Bank; and German ambassador Hans-Udo
Muzel.
Deutsche Bank AG was represented by Ashok
Aram, CEO Europe Middle East and Africa (exclud-
ing Germany and the UK); Peter Hinder, head of
event to update its
firms on new rules
The bank’s guests during the celebration in- Wealth Management Europe Middle East and Afri-
cluded Nasser Bin Khaled (NBK) Holding chair- ca; and Salah al-Jaidah, chief country officer Qatar
man Sheikh Nawaf bin Nasser bin Khaled al-Thani, and chairman Middle East and North Africa.
who is also chair of Al Wa’ab City, Doha Insurance To mark the occasion of Deutsche Bank AG Doha
Company, and Nasser Bin Nawaf & Partners; Qatar (QFC) Branch’s 10th anniversary, HE the Qatar
Financial Center CEO Yousuf Mohamed al-Jaida; Central Bank Governor Sheikh Abdulla bin Saoud
Ibrahim al-Jaidah, GCEO & chief architect of Arab al-Thani met with Aram and al-Jaidah at the Qatar

T
Engineering Bureau and board member of Qatar Central Bank office in Doha. he Qatar Financial Cen-
tre (QFC) recently held
an event to update its
firms on the new rules being
introduced globally to auto-
matically exchange financial
accounts information between
countries.
During the event, firms were
presented with the context
and key features of Common
Reporting Standard (CRS),
and offered an in-depth ex-
planation on the obligations of
financial institutions in QFC
under CRS.
The event also provided
the QFC with an opportunity
to present the arrangement
agreed with the Ministry of
Finance on how QFC entities
would need to comply with
their obligations under CRS,
while explaining the process
of reporting.
Hamed Ali al-Saadi, chief
Deutsche Bank executives with HE the Qatar Central Bank Governor Sheikh Abdulla bin Saoud al-Thani. financial & tax officer at the
QFC Authority, commented on
the importance of hosting the
event: “At the QFC, we take
pride in ensuring that we are
always ahead of any changes
in international tax and fiscal
laws, which is just one of the
many reasons our firms choose
the QFC platform to expand
and grow.
“We continuously look for
new incentives to support our
firms and attract new busi- Al-Saadi: Looking for new incentives to support firms.
nesses, and are consistently
working towards enactments relationship manager is ap- based on English common countries. In addition, the
and amendments to our Tax pointed to provide guidance on law, the right to trade in any Employment Standards Office
Rules and Regulations to en- the registration process, ob- currency, 100% foreign own- of the QFC is the first Admin-
sure we remain one of the taining a licence and setting up ership, 100% repatriation of istrative Employment Dispute
world’s most favourable tax operations. profits, 10% corporate tax on Resolution Centre in the Mena
environments.” QFC firms enjoy competi- locally sourced profits and an region operating under Inter-
Once a company submits its tive benefits, such as operat- extensive double tax treaty national Labour Organisation
Deutsche Bank officials with dignitaries at the Four Seasons Hotel celebrations. application, a dedicated QFC ing within a legal environment agreement network with 60+ standards.

Turkey seeks US compensation

Turkey central bank seen hiking top for Trump’s metal tariffs
rate by 50 basis points to 13.25% By Bryce Baschuk
Bloomberg Law
measure and to reach an understanding” on ways
to ensure the US compensates Turkey for lost trade
stemming from the measures.
Reuters points. Three economists each The WTO safeguards agreement requires coun-
Istanbul saw hikes of 25 and 75 basis The Turkish government requested compensa- tries to provide the opportunity for consultations
points. Another three predicted tion stemming from the Trump administration’s with any substantially affected WTO members about
it would leave the late liquidity tariffs on steel and aluminium imports, according the possibility of compensation in the form of trade

T
urkey’s central bank is window rate untouched. to a World Trade Organisation filing published concessions equal to the amount of trade affected
likely to lift interest rates The central bank last hiked April 20. by their safeguard measures.
at its meeting this month, its late-liquidity window rate Turkey said it has a “substantial interest” in National security: The Trump administration
with a 50 basis point increase in by a less-than-expected 50 ba- Trump’s 25% tariff on steel and 10% tariff on alu- has repeatedly told WTO members that its steel and
its top rate seen probable after sis points in its monetary policy minium and requested consultations to compensate aluminium tariffs are not safeguard measures but
President Tayyip Erdogan de- meeting in December. Turkish manufacturers for lost trade, according to are national security measures permitted under the
clared snap elections for June, a Its reluctance to aggressively the filing. WTO’s national security exemption.
Reuters poll showed on Friday. tighten policy in the face of dou- Turkish companies likely to be affected by the US Trump imposed the steel and aluminium tariffs
Ten of 13 economists polled ble-digit inflation has increased tariffs include: Eregli Demir ve elik Fabrikalari TAS, under Section 232 of the Trade Expansion Act of
after Erdogan’s surprise an- concern it is under pressure from Iskenderun Demir ve elik AS, and Kardemir Karabuk 1962, which permits the president to impose trade
nouncement this week said they Erdogan, helping send the lira to Demir Celik Sanayi ve Ticaret AS. restrictions if imports are found to harm US national
expected the central bank to hike Turkey’s central bank headquarters in Ankara. Turkey’s apex bank is a series of record lows. Turkey’s approach follows the same initial proce- security.
its late liquidity window, the likely to lift interest rates at its meeting this month, with a 50 basis point Inflation rate hit a 14-year dural step that China, the European Union, India, and US officials told China, the EU, India, and
highest of the multiple rates it increase in its top rate seen probable after President Tayyip Erdogan high of 12.98% in November but Russia used to confront Trump’s tariffs within the Russia this month that it has no obligation to
uses to set policy, on April 25. declared snap elections for June, a Reuters poll showed on Friday. has since eased somewhat, to context of the WTO. engage in WTO safeguard consultations over
The rate now stands at 12.75%. 10.23%. The central bank’s lat- If the US rejects Turkey’s request, it could lead the tariffs but would “discuss this or any other
Erdogan on Wednesday called elections will give the central were called, we were thinking est survey showed economists’ to a WTO dispute and retaliatory tariffs against US issue” outside the context of the WTO safeguards
for snap elections on June 24, bank leeway to tighten sooner the central bank would choose to inflation expectations for the products. agreement.
saying economic challenges and rather than later. manage without a rate hike,” said year-end have worsened in the Safeguard claim: Turkey said it considers China rejected the US approach, filed a WTO
the war in Syria meant Turkey Elections had previously been one economist, who declined last month — to 10.07%, from President Donald Trump’s metal tariffs to be dispute into the matter, and pledged to impose
must switch quickly to the pow- scheduled for November 2019, to be named.”We think that the 9.49%. safeguard measures, which are temporary trade $611.5mn worth of retaliatory tariffs on 128 US
erful executive presidency that meaning Erdogan, a self-de- possibility of the central bank “The (central bank) decision restrictions that help countries protect their goods.
goes into effect after the vote. clared “enemy of interest rates”, taking a noteworthy step have next week will be the most im- domestic producers from a sudden surge of In response, the US said the WTO could not
Turkish assets rallied on the could have continued to pressure increased notably.” portant factor in the lira’s per- imported products. review the matter because they’re exempt under
news, with the lira seeing its big- the central bank for lower rates Four of the 13 economists formance, going forwards,” said Turkey said it exercised its right under the WTO WTO rules that permit countries to take “any action”
gest one-day advance in a year. well into next year. polled said they expected the Erkin Isik, a strategist at BNP Safeguards Agreement to “exchange views on the to protect their “essential security interests.”
Investors are betting snap “Before the early elections bank to tighten by 50 basis Paribas TEB.
 Sunday, April 22, 2018

GULF TIMES BUSINESS

New phase of trade co-operation between Qatar, US: Qatar Chamber

Qatar’s economic roadshow in the US, organised that Qatar is still able to move towards
by the Ministry of Economy and Commerce developing its economic and trade relations
(MEC), has elevated the economic and investment with the strongest country in the world,” Sheikh
levels between the two countries, according Khalifa said.
to Qatar Chamber chairman Sheikh Khalifa bin “The associated exhibition highlighted Qatar’s
Jassim al-Thani. In a statement yesterday, Sheikh culture, heritage, and strong economic
Khalifa said the tour witnessed the signing of a potential, as well as the major development
slew of memoranda of understanding (MoUs) projects that are being implemented in the
and agreements between Qatari and American country,” he continued.
companies. Sheikh Khalifa commended the close
He said officials from both sides held several co-operation between Qatar Chamber
meetings to discuss ways to enhance joint co- and the US Chamber of Commerce,
operation. which contributes to activating mutual
They also reviewed bilateral relations in the visits between Qatari and American
economic, trade, and investment fields, and businesspeople and exchanging expertise
discussed the prospects of co-operation in and information.
several fields, highlighting the investment Underlining the importance of broadening co-
opportunities available in the state of Qatar. operation ties between business communities,
The economic tour started from the city of Sheikh Khalifa noted that economic forums
Miami, Florida followed by Washington, DC, held on the sidelines of the tour served “as an
Charleston, South Carolina, and the city Raleigh, optimal platform that enabled both sides to
North Carolina. Sheikh Khalifa said this is the explore the investment opportunities in both
largest and “most important visit” by a Qatari countries.”
business delegation to a foreign country, and Sheikh Khalifa: Keen to promote investment Sheikh Khalifa joins other dignitaries from Qatar during a forum held in Washington, DC. “Qatar and the US enjoy strong and thriving
assured that Qatar Chamber’s participation opportunities. economic relations. The US is one of Qatar’s
reflects its leading role as a representative of roadshow is of a special importance to the on potentials and investment opportunities in largest trade partners. There are several Qatari
the Qatari private sector. countries, noting that the visit encouraged Qatari economy in general and to the private which both sides could co-operate. investments in the US, while there are many
He said Qatar Chamber is keen to promote American businessmen to increase their sector in particular. This visit represented a strong blow to the American companies operating in the Qatari
the available investment opportunities in both businesses in the Qatari market. “The economic The tour provided a clear vision for both parties unfair siege imposed on Qatar. It demonstrated market,” he added.

US firms eye investments in Qatar’s Qatar to showcase

investment
opportunities at

pharmaceuticals, agriculture sectors Hannover Fair

QNA
Doha
By Peter Alagos
Business Reporter
Qatar, represented by 15 enti-
ties from the public and private
US firms are keen on exploring investment sectors, will participate in the
opportunities in Qatar’s pharmaceutical, Hannover Fair, which will be
agriculture, and services sectors, according held tomorrow in Hannover in
to an official of the Washington-based US Germany until April 27.
Qatar Business Council. The participating Qatari enti-
Also, the council’s partnership with ties will showcase the country’s
the Qatar Financial Centre and ongoing leading initiatives, projects,
discussions for a headquarters at the QFC services and products, and
is “critical in engaging US companies in the investment opportunities, and
Qatari market,” said Max McGee, associate incentives available to inves-
director, Business Engagements, at the US tors and businessmen looking
Qatar Business Council. to invest Qatar’s in various
“Right now, there is a major need for sectors.
pharmaceuticals. We have heard from The Hannover Fair is one of the
several Qatari companies that they are in largest trading exhibitions in
need of medical supplies, drugs, and are the world, attracting some of
interested in manufacturing those drugs in the biggest industrial compa-
Qatar,” McGee told Gulf Times. nies in the world.
He added: “With Qatar Development The Ministry of Economy and
Bank’s recent announcement of opening Commerce will hold a unique
nearly 40 farms in the next year, there will pavilion of 990 square metres
most definitely be a need for more agricul- to accommodate the Ministry
ture technology companies and farm tech of Energy and Industry, the
companies. Qatar Chamber, the Qatar
“Generally speaking as well, with the Financial Center, Manateq
economy shifting away from hydrocarbons Special Economic Zones,
and diversification underway, there is a ma- the Supreme Committee
jor need for service providers. Manateq’s for Delivery & Legacy, Qatar
economic zones coming online provide Industrial Manufacturing Com-
a great opportunity for manufacturing pany (QIMC), Qatar Aluminum
companies, thus we will explore this sector Extrusion Company (QALEX),
as well.” Amiantit Qatar Pipes Company
On having an office at the QFC, McGee (AQAP), SICO Middle East and
said the US Qatar Business Council “deeply National Paints.
values” its relationship with the centre be- The exhibition will highlight
cause it provides them key access to QFC Qatari industries, and techno-
officials “and gives a certain level of trust as logical developments in the
we work with US companies.” country’s industrial sector.
“The QFC is a one-stop-shop and perfect The exhibition also repre-
for many US companies seeking to open sents an important oppor-
offices in Qatar…it is also critical that more Al-Jaida: Targeting US firms for investments. McGee: Keen to explore opportunities. tunity to share experiences
American companies are aware of QFC, and knowledge of Qatari
which is part of our partnership because it office in the QFC for us to be able to reach from now, but many factors are at play. It would allow us to work faster and more as a forum of discussion for US companies companies, explore partner-
is a game changer for doing business in the out to US companies. We have hosted is critical that we are able to quickly serve efficiently with our Qatari partners. It would operating there, but has since grown sub- ships with international
region,” he pointed out. several delegations from the US. There are our Qatari member companies, and having ease communications and speed up the stantially in the role it provides. companies.
Speaking to Doha-based reporters re- many opportunities for US firms; we intend a presence there can increase the level process of partner identification and re- “Our bread and butter are our consulting The MEC will use the exhibition
cently, QFC CEO Yousuf Mohamed al-Jaida to target through Qatari-US Business Coun- of service we provide. We currently have search, creating a higher level of service all services, which are available to all member to highlight the advantages of
spoke about the centre’s participation cil,” al-Jaida said. quite a small staff, but if we are able to around.” McGee said the US Qatar Business companies, both Qatari and American. the investment environment in
in Qatar’s recent economic roadshow in Asked about the impact of having an bring on more Qatari member companies, Council was founded under the patronage We offer matchmaking services, research Qatar and introduce the laws
several US cities. office in Qatar in terms of opening more we would have to have an office in Qatar. of His Highness the Father Emir Sheikh Ha- services, consulting, and conduct trade and legislations adopted by
“Our delegation was there for purely opportunities for US firms in the Qatari “The more Qatari members we induct, mad bin Khalifa al-Thani in 1996 by a group missions in the US and Qatar. We are the the State to stimulate domestic
marketing purposes. We are talking to the market, McGee said: “We very much hope the more there is a need for an office. To of American companies that first invested gateway for business between the US and and foreign investment.
US Qatar Business Council to set up an to have an office established within a year work in the same time zone, on the ground, in the Qatari economy. The council existed Qatar,” he said.

Qatar’s economic tour of the US, which covered four American cities and sought to strengthen co-operation, trade and investment partnership with the United States, included several meetings between HE the
Minister of Economy and Commerce Sheikh Ahmed bin Jassim bin Mohamed al-Thani and senior government officials, members of the US Congress, World Bank officials, the International Monetary Fund,
businesspersons and senior corporate executives. The Qatar-US economic forums took place in Miami, Washington, DC, Charleston and Raleigh. Discussions between business representatives from both sides as
well as on specific sectors, included food security, tourism, logistics, infrastructure, etc. A number of agreements were also signed between Qatari and American entities during the tour. Pictured are some of the
highlights of the economic tour.