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Courtesy
of Doha Bank
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R. Seetharaman
Acting GM, Doha Bank.
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Doha Bank is one of the most dynamic, tightly run
commercial entities in Qatar. Their orange and blue
colors are unmistakable. Their ATM machines are
all over Doha. International Reports talked with
Mr. R. Seetharaman, Acting General Manager of Doha
Bank. An ebullient, effective advocate on behalf
of his firm about Qatar’s current business
climate, he discussed the general state of the economy,
and the future.
What is Qatar’s current
business climate and why should American businesses
consider Qatar for investment?
Qatar has probably one of the most promising business
climates in the world today. Almost all leading
sovereign rating agencies have upgraded Qatar this
year. For example, Capital Intelligence upgraded
Qatar’s rating to A+ and so did Standard &
Poor’s. The primary reasons for this are an
abundance of rich natural resources, coupled with
a policy of prudent economic diversification. The
business climate is very positive with the real
estate, manufacturing, capital market, and the financial
sectors all opening up one by one.
Today, Qatar is one of the best investment destinations
in the region in terms of state incentives. For
example, industrial land is provided at a token
rent of 1 QR, or approximately $0.27, per square
meter. Electricity and natural gas are available
at extremely cheap prices. There are no duties or
taxes for 10 years and the exchange rates are stable.
(Approximately $1.00 USD equals 3.65 Qatari Rials.)
Depending on the sector, foreign ownership is permissible
between 49 and 100% per cent. There is absolute
freedom to repatriate the capital or profit. The
rules and frameworks are very investor friendly
to sustain the attractiveness of Qatar. Business
free zones have been established where incentives
are even further liberalized.
As a country, Qatar has a very well developed infrastructure,
communication, medical and education facilities.
Connectivity to anywhere in the world is of very
high order. Telecommunication is highly advanced
and state-of-the-art. In terms of standard of living,
law and order, and recreational facilities, Qatar
is undoubtedly one of the best. The products of
Qatar have free access to the entire Gulf Cooperative
Council (comprised of countries of the Arabian Gulf)
market. And again, the currency rate is stable,
as it is pegged to the US Dollar. All of these benefits
make Qatar a favourite investment destination.
In your view, why is Qatar
becoming a favourite investment destination in comparison
to other countries around the world?
Overall, in a global context, capital has started
chasing the economies that provide best returns.
There have been prolonged difficult economic spells
in many countries globally. Then, we had Asian economies
performing excellently. We have seen huge industries
like service sector and manufacturing units shifting
from one country to another purely for economic
reasons. All this has resulted in a continuous realignment
of economies.
Qatar for its part has been deploying a strong development-oriented
policy with a focus in multiple sectors. The opening
up of various sectors, a huge investment in developmental
activities and fund availability for infrastructure
creation, and an arrest of capital flight due to
other markets losing their attractiveness, have
all contributed to Qatar becoming ever more attractive
than other countries. Indeed, Qatar has come a long
way in establishing itself globally.
What is Doha Bank’s
business focus and whom do you primarily cater to?
We have been a strong local bank with a strategic
international presence and a global correspondent
banking network. Our focus has been retail, corporate,
institutional, treasury and investment. We have
the most comprehensive range of products and services
– offered in the above segments – one
that is unparalleled in Qatar. We have been very
aggressive in deploying consumer-centric technology
solutions as well as creating a one- stop financial
supermarket, in line with the vision of our board
of directors. Most of our products can be described
as trendsetter, as they are the first to be introduced
in the market.
We have completely refined our retail products to
sustain our competitive edge in the market. Innovative
auto financing, housing loans, banking packages
for salaried professionals, Al Assriya Ladies package
of services, education loans, marriage loans, Hajj
assistance loans, and free-for-life credit cards
are a few examples of our retail segment offerings.
In order to inculcate savings habits, we have launched
attractive savings deposit offerings called Al Dana
savings, and long-term deposit formats called AL
Jana deposits.
In the corporate sector, Doha Bank has introduced
advisory services on corporate finance, project
finance, working capital management, joint venture
set-up, and feasibility studies, etc. We are also
very active in the area of financial specialities
related to public stocks, such as IPO arrangements,
rights issue, dividend distributions, etc. We have
also opened a representative office in Dubai, to
augment cross border business.
We have introduced Dbank product suites, consisting
of a variety of electronic banking services, available
24 hours per day. The bank introduced a wide range
of self-service functions through Internet banking,
SMS banking, Telephone Banking and WAP banking.
We introduced Bank-on-wheels, which can be at any
place in Qatar on demand, providing customers all
banking services. We also installed state-of-the-art
heavy-duty deposit machines, which can accept high
volumes of cash and provide instant credit.
Recently, Doha Bank has joined forces with ING for
wealth management services. Please elaborate on
that.
Our collaboration with ING is a landmark milestone
for Doha Bank. Through this synergy, we are offering
a set of highly specialized services to our private
banking customers and institutional customers. ING
is highly specialized in asset management services
with a presence in 65 countries. Our collaboration
provides our esteemed clients with multiple investment
avenues in global markets through ING. We will provide
individual customized attention to each of our institutional
and private banking clients in all aspects of asset
management and structured products depending on
their individual needs.
Do you offer Islamic Banking?
Islamic banking has been maturing over the years
steadily in terms of standards, practices and universal
demand. We have also started our Islamic Banking
operations, which will cover deposits, loans, and
Islamic insurance. We intend to be as comprehensive
as the market demands in terms of products and services,
in coming days.
What development in Qatar’s banking and commercial
sector has Doha Bank made possible?
In our objective of offering one-stop financial
services to our customers, we have been very aggressive
with multi-pronged efforts. To that end, I feel
that we have been a leader in product innovation,
technology deployment, and collaboration with other
financial services providers to better serve the
needs of our clients.
Doha Bank is a multi-award
winning bank. Are you the only bank in Qatar to
receive such recognition?
In terms of awards and accolades, the year 2005
has been very special. Banker Middle East has judged
Doha Bank as "The best commercial bank in the
region." They cited our "spectacular performance,
not just by Qatari standards, but on a regional
level too." Euromoney has judged us as "The
best bank in Qatar" for 2005. They referred
to Doha Bank as "a superbly run bank"
that is "extremely efficient". The Banker
in its country analysis of Qatar has chosen Doha
Bank as "number one in performance."
We are the only bank in the region with bank wide
BS7799 certification, which validates our commitment
to follow the best practices in information security
management. We initiated quality certification for
our processing centers to ensure quality standards
and have achieved ISO 9001 for all our critical
processing centres.
What is your customer and
product strategy in this growing market?
We compare very well with international institutions
in terms of technology, customer service, products
and services. We are committed to deliver maximum
value to our customers in the form of being a one-stop
financial solution provider, offering personalised
service, competitive rates and maximum convenience
on a 24-hour a day basis through the use of best
of the latest technology. We have identified niche
segments and we match our products and services
in a manner that we will allow us to excel and become
market leader. We must be sure that we are always
up-to-date in terms of customer care, technology,
product range, technology, training, regulatory
reporting, and risk management practices.
Qatar has made great strides
in the past 10 years. Where do you see Qatar in
the next 10 years and where do you see Doha Bank?
Going by the current situation, Qatar will be an
extremely prosperous and economically hyperactive
country for years to come. The economy will be much
more diversified in years to come with growing sectors
in education, tourism, real estate, finance and
manufacturing. Within 10 years, I would not be surprised
if Qatar becomes the world leader in the richest
per capita income. It is definitely achievable.
Doha Bank will strive hard to match the growth of
Qatar’s economy in the future. With favourable
economic conditions and with banks competing with
each other to maximise customer value, it is an
exciting time both for bankers and consumers. The
days ahead are full of challenges. Doha Bank has
a clear road map to grow steadily both locally and
internationally in strategic locations. We have
identified niche segments, products and services
where we will continue to excel and become a market
leader. In the next 10 years, Doha Bank will be
much bigger, much stronger and should have an extremely
strong international presence. We would like to
be known as the most preferred bank globally, where
our customers can always look forward to new products,
services, convenience, and care from us. You see,
our customers relate well to us in terms of the
true value they get from our relationship.
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Qatar
