Oil markets have been over-supplied since the beginning of 2014. As supply growth outpaced that of demand, markets have become imbalanced, leading to a large build-up of inventories and a sharp fall in prices. But oil markets, like other markets, have a tendency to adjust, and to clear excess supply. The adjustment was expected to take the form of supply cuts among high-cost producers (mainly in the US) as well as a pickup in demand as low prices encourage higher consumption. The latest data suggest that the adjustment process is already underway, although the market is not expected to clear until the second half of 2016.

US oil production has so far been resilient to the decline in oil prices, but less resilient than previously thought. In August, the US Energy Information Administration (EIA) changed its methodology for estimating US crude production. The new methodology is based on surveying producers directly rather than relying on incomplete state-level data. The new estimates show that the US is pumping less oil than previously reported. For example, in the month of June, the difference is around 149k barrels per day (b/d). Both the old and new methodology show US oil production peaking in April this year, but the speed of subsequent decline is higher under the new methodology.

The fall in rig count, which has resumed again after stalling mid-year, also confirms that US shale oil production might already be past its peak. We have previously argued that there is no link between rig count and oil production because producers tend to first shut down wells in the least productive regions (see our previous commentary, Are oil prices poised for a rebound?). However, the EIA data now show accelerating output declines at the seven most productive regions. Furthermore, due to the large cuts in capital expenditure, any rebound in drilling activity is unlikely to happen in the short term. Consequently, the International Energy Agency (IEA) forecasts that the US production of light tight oil will fall by 0.4m b/d from 2015 to 2016.

On the demand side, the IEA expects additional demand to rise to a five-year high ­in 2015, reaching 1.7m b/d. This is remarkable given that global economic growth is forecast to hit a six-year low this year, according to the International Monetary Fund (see our previous commentary, EMs are the third wave of the global financial crisis). The pick-up in demand is due to lower oil prices, which are encouraging higher consumption, particularly among US motorists. Demand was also boosted by a cold European winter in the first quarter of this year and China’s continued purchases of crude oil despite its economic slowdown and financial market turmoil, partly to fill up its strategic reserves.

What does this mean for the demand/ supply balance? Despite the strong demand growth, markets are still expected to be oversupplied by 1.5m b/d in 2015, reflecting additional production from both OPEC and non-OPEC countries. Continued demand growth in 2016 (1.2m b/d according to the latest IEA’s forecasts) and production cuts in non-OPEC countries (0.4m b/d, mostly from US shale oil) should tip the market back into balance in the second half of 2016 (see chart). However, potential increased OPEC production due to the lifting of economic sanctions on Iran could delay the re-balancing until 2017.

Overall, we continue to forecast that oil prices will stabilise around an average of USD55.0 in both 2015-16 before picking up to USD60.2 per barrel in 2017 as the supply glut gets gradually eliminated. The adjustment in the market is working as expected, but the process is slow and protracted.

QNB, The Leading Financial Institution in the Middle East and North Africa, extended its support, as the Gold sponsor, to the International Conference on Access to Financing SMEs and Entrepreneurs in the Arab World. The two-day conference, which was organized by Qatar University, College of Business and Economics, witnessed a large number of participants and attendees from many countries across the world. The conference aimed at encouraging academics, researchers, practitioners and policy makers to disseminate and exchange knowledge about the use of global benchmarking indicators of the business environment in the Arab world. Participants also looked at better alternatives to articulate the positive impact of efforts and initiatives that aim at developing SMEs, private sector and the economies of Arab world.

As the largest financial institution in Qatar, QNB has always designed innovative and state-of-the-art solutions to support SMEs and its development in the country. The bank introduced bespoke products that meet and exceed the growing demands of SME customers, while giving them enhanced finance facilities that aligned and work in collaboration with the bank’s partners from both private sector and the government. With a dedicated team to help and support SME customers, QNB offers a 24 hour turnaround time for Account Turnover Facilities and Professional Loans, a tool that is considered one of the most convenient and fastest approval processes of professional loans. QNB believes that SMEs are drivers of the national economy and prime contributors to the Qatar 2030 Vision.

QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines

The Bedaya Center for Entrepreneurship and SME Development (Bedaya Center), a joint initiative by Qatar Development Bank and Silatech recently hosted a workshop on customer service management.

Held at Katara Cultural Village in Doha, this workshop focused on introducing and identifying the most important and the best ways to communicate, deal and retain customers. Led by specialists from Qatar National Bank (QNB), this workshop witnessed participation from Mr. Bilal Sato, the well-known training and development specialist as well as “WE” cafe. Together, they provided an opportunity for the participants to identify effective ways to communicate and deal with customers and maintain successful relationships with them.

The workshop started with a session by Prof. Imad Nabil, a specialist in training and development at QNB. He explained the nuances of maintaining customer relationships in today’s fiercely competitive financial sector, and the techniques for measuring service quality.

This was followed by an address by Mr. Bilal Sato on the three most important questions that have been unique to customer service management: Defining the problem & solving it; identifying value- added services that can improve customers’ experience; and evaluating customer service within the business. Mr. Sato also highlighted the importance of communicating with clients through social media platforms and the ways in which one can evolve and develop skills in this area.

Mr. Hassan Al Ibrahim, founder and CEO of “WE” Café that specializes in national cuisine, introduced the idea behind the establishment of this café. He offered insights into the manner in which he brought together several people as part of his quest to showcase local products in the best possible manner, thus supporting the Qatari and homemade products. Mr. Ibrahim also reflected on some of the most important lessons which he learned from his experience at “WE” Café, and expressed that “We” café is the first of his kind in Qatar and the region where the cuisine is cooked and served to customers by local talents.

Reem Al-Sowaidi, General Manager of Bedaya Center, commented, “We organize workshops every second Sunday of each month to enable young people in Qatar access to guidance, training and support to enhance workplace experience. The target group can meet experts and achieve practical knowledge, as we invite and hosts guests with great track records across several industries. We also invite entrepreneurs from different sectors who share insights into their beginnings, how they started and their experiences in order to provide positive contribution to the local society.”

“For this workshop, we are delighted to have experts and specialists from QNB, “We” Café and Mr. Bilal Sato. The response has been quite favorable and witnessed a large attendance of entrepreneurs, thus supporting the principles and objectives of the Bedaya Center to support entrepreneurs,” she added.

As part of its continuous efforts  to offer innovative banking solutions and payment products to its customers, QNB started offering  the QPay Payment Gateway platform for the Bank’s E-commerce merchants, providing an online shopping experience using debit cards.  

The QPay Payment Gateway is the latest online card acceptance solution in Qatar that allows all NAPS (National ATM POS Switch) Debit cardholders to purchase goods and items online. By having this payment portal, E-commerce merchants are able to accept NAPS Debit Card payments directly from their customers in a fast and secured environment, which is not present nor accepted with other payment gateway channels. It is a simple and convenient way for customers to pay online, anywhere and at any time.

The QPay portal enabled for QNB merchants, customers can shop and pay online at the merchant website using their NAPS card by inputting a One Time Password (OTP) received via SMS and their PIN code as an additional security step to complete the transaction. The process ensures the most security and safety for the cardholder and the merchant as PIN based card’s verify the ownership of the card, thus significantly reducing any unauthorized use, especially on the E-Commerce space.

With the new service, NAPS Debit cardholders can shop and pay online using all major internet browsers or can pay using their smart phones or devices, therefore providing 24/7 online shopping accessibility and convenience which enriches customer experience. Key merchants establishments have benefited from the ease and security this new platform brings to their online sales. Having NAPS acceptance routed through this payment gateway further encourages and empower NAPS card usage throughout Qatar which leads to an increase in sales and card acceptance for establishment operating in the e-commerce space.

QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

Qatar’s prospects for delivering growth during a period of international economic turbulence will be under review in a special session at The Euromoney Qatar Conference 2015, set to run from 9-10 December 2015 at The Ritz-Carlton, Doha. The session, “Qatar’s Strategy in a Changing World,” will include experts from Qatar National Bank, US Department of the Treasury and the IE Business School, and will examine the potential impact of global trends such as volatility in China and on-going austerity in the Eurozone on Qatar’s long-term plans for development.

Qatar saw 4.8% growth in Q2 2015, driven in particular by major projects that have boosted investment spending and population growth. However, on-going uncertainty about the wider global economy may result in a slowdown on some major projects. Despite the strategic push to diversify the economy, hydrocarbon revenue still accounted for nearly half of GDP in 2014, and a significant share of government’s revenue and exports, so lower prices in 2015 will have an impact.

Held under the patronage of H.E. Sheikh Abdullah bin Nasser bin Khalifa Al Thani, Prime Minister of the State of Qatar, The Euromoney Qatar Conference 2015 will host international banking leaders and senior government figures from Qatar who will discuss the changing global paradigm and how it will affect Qatar and other countries in the GCC. H.E. Ali Sharif Al Emadi, Finance Minister of the State of Qatar, H.E. Sheikh Abdulla Bin Saoud Al Thani, Governor of Qatar Central Bank and H.E. Dr Hessa Al Jaber, Minister of Information and Communications Technology will deliver speeches on the opening day of the event.

Other key speakers include Dimitris Tsitsiragos, Vice President of the International Finance Corporation, and Sir John Scarlett, Former Head of MI6. Other sessions at the event will examine the role of technology in finance, the changing direction of the global energy market and new rules and regulations relating to the financial sector. More than 600 senior finance and banking executives are expected to attend this year’s Conference. For more information on The Euromoney Qatar Conference or to register, visit www.euromoneyconferences.com/qatar. 

After five years of negotiations, an agreement was reached on 5^th October on the Trans-Pacific Partnership (TPP), the largest trade deal in two decades. The TPP is a regional trade agreement among 12 countries that account for 26% of world trade and 37% of global GDP. It aims to eliminate tariffs and non-tariff barriers to trade in goods and services between the member countries and also contains rules covering new technologies, the digital economy, services, and intellectual property rights (for example, drug patents) as well as setting standards for the environment and labour laws. The TPP has the potential to support global trade growth by reducing protectionism, revitalising global supply chains and setting the stage for further regional agreements.

World trade has been sluggish in 2012-15, growing by an average of 3.2% a year compared with 6.2% in the previous 20 years. This is a concern as trade has huge benefits for the global economy. It supports a more efficient allocation of resources between countries that have diverse comparative advantages and encourages the spread of technology and know-how. The slowdown in world trade is being driven by a combination of weaker demand, changing global supply chains as the US and China onshore more manufacturing, and rising protectionism (see our previous commentary, Why Is World Trade in the Doldrums?).

Protectionism has increased since the global financial crisis. The World Trade Organisation (WTO) has warned of “creeping protectionism” as governments have implemented new trade restrictions.  Additionally, the WTO has had little success recently in advancing a new global trade agreement to remove tariffs and other barriers to trade. The current round of the WTO talks, the Doha Round,  has been ongoing since 2001, but is stalling as developing and developed nations have failed to resolve conflicts. With little progress being made on a comprehensive global trade agreement within the WTO, a series of regional and bilateral trade agreements, such as the TPP, are currently being negotiated outside the WTO which could help reverse the protectionist slant by reducing barriers to trade.

The TPP should also encourage more offshoring of production, revitalising global supply chains, benefitting global consumers through lower prices and making member countries’ producers more competitive. For example, clothes manufactured in Vietnam and exported to Australia receive their inputs from Malaysia (buttons) and Singapore (fabric)—both TPP members. Tariffs are currently applicable on all the inputs (~5% of the cost) as well as the final exported product (~5%). Therefore, the removal of tariffs through TPP could reduce the cost of the product in Australia, a member country, by around 10% and in non-TPP members by 5%. So, Vietnam sells more clothes, Malaysia and Singapore sell more buttons and fabric, and Australian consumers get a cheaper product.

As a result, exports from TPP countries would increase and GDP would gain from higher exports. The greatest gains would be in emerging market countries, such as Vietnam, as the removal of relatively high tariffs would make their manufacturing exports significantly more competitive in large markets like the US and Japan. Meanwhile, the benefits for an advanced economy such as the US would be less dramatic as tariffs are already low and the economies of the other TPP members are small in comparison to the US.

In addition to boosting trade and income, the TPP also provides a template for other regional trade deals, such as the Transatlantic Trade and Investment Partnership (TTIP) between the US and the European Union (42% of world trade and 59% of global GDP). It is also likely that the TPP will add new members over time, extending the benefits from the treaty.

However, the benefits will take time to realise. The TPP still needs to be approved by national parliaments, which is unlikely to take place until 2017 at the earliest, with significant risks of failure or delays. Additionally, many of the changes required by the TPP will only be implemented gradually over the next ten years, particularly in areas that face high tariffs. Therefore, although the TPP could significantly revitalise global trade, it will take time to realise its full potential.

QNB to offer Remote Cheque Deposit service, which allows QNB First Members to deposit cheques in a fast and efficient way to their accounts. The feature, offers customers easy and convenient banking through QNB Mobile Banking.

Using this innovative feature, a QNB First Member will be able to take a picture of a cheque with his smartphone or tablet and directly deposit it to his account. The new feature will save QNB First Members the time and effort to visit a branch in order to deposit QNB issued cheques while maintaining safety and security. QNB has recently launched a new version of its Mobile Banking application, which has an easy to use interface offering a variety of new features available for all QNB customers.

The new Application, which is available in three languages (English, Arabic and French),also allows QNB customers and non customers the ability to find the closest ATMs, Branches, and Life Rewards partners, apply for Loans and Credit Cards, or book an appointment with QNB as well as being able to read the latest QNB related news and promotions. The new version of QNB Mobile Banking gives customers the ability to create and modify Fund Transfer and Western Union beneficiaries. Customers are able to view their Accounts from all around the world. Customers can pay with Cards and redeem their Life Rewards loyalty points for Utility payments or convert them to Ooredoo Nojoom or Qatar Airways Qmiles privilege points.

Customers will still enjoy all the previous features offered by QNB Mobile Banking such as conveniently accessing their accounts, credit card balances, transfers, bill payments or request cheque books. As part of its commitment to offer advanced banking solutions and payment products, QNB focuses on providing its customers with the market’s leading offers and services. The QNB customer experience is enriched with the simplicity of making any banking transaction from any location in a few steps using the latest mobile technologies. The registration is quick and easy for QNB Mobile Banking and only requires a QNB Retail Debit or Credit Card.

QNB Mobile Banking can be downloaded from Apple’s Appstore or Google Play or tried on one of QNB’s innovative Mobile Banking Tablet Kiosk at QNB Branches. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

Japan’s Q3 GDP will be released this week. Analysts expect data to show that the economy shrank by 0.3% on an annualised basis. If their expectations materialise, Japan would have fallen into a technical recession, defined as two consecutive quarters of negative growth. Beyond quarter to quarter numbers, it is important to consider the big picture.

When Shinzo Abe assumed the prime minister’s office in December 2012, the Japanese economy was facing a number of challenges. First, it was stuck in a seemingly permanent state of deflation, which was damaging to investment and growth. Second, the fiscal balances were stretched as public debt was almost 240% of GDP. And third, the economy was facing structural challenges from the aging and declining population. Abe came with a comprehensive plan based on three “arrows” to tackle these challenges. How has he fared in the last three years?

The first arrow is centred on active and aggressive monetary policy to solve the problem of deflation. Deflation increases the real rate of interest, making it more burdensome to borrow and invest. It also hurts consumption, which is postponed in anticipation of lower prices in the future. The overall effect is lower aggregate demand and growth.

Shortly after Abe took office, he changed the leadership at the central bank, the Bank of Japan. The Bank of Japan then embarked on a large scale open-ended qualitative and quantitative easing (QQE) programme in April 2013, which was then significantly expanded in October 2014 in order to try and achieve the 2% inflation target. While Japan is still someway from its inflation target, the country has clearly exited the state of deflation. Core consumer price inflation (which excludes volatile items such as food and energy) was0.9% in September, and has been consistently out of the negative territory since the summer of 2013.

The second arrow aims at addressing the problem of high public debt in the medium term while providing stimulus in the short term, when necessary. Part of the problem is the low taxation rates in Japan, especially consumption tax. Consumption tax (a value-added tax) in Japan was only 5%in early 2014, one of the lowest in the world, much lower than the European average of around 20%. The International Monetary Fund estimates that consumption tax needs to rise to around 15% to contribute to a more sustainable path for public debt. Abe’s strategy to address this was to combine permanent increases in consumption tax (to make public finance sustainable) with temporary fiscal stimulus (to boost demand in the short run).

The first increase in consumption tax (from 5% to 8%) occurred in April 2014, and its impact was dramatic. Real GDP declined by 7.6% on an annualised rate in Q2-2014 and 1.1% in Q3-2014. This prompted Abe to postpone the next tax hike (to 10%), which was originally planned in October 2014, to April 2017. The government now seems determined to implement this round of tax increase to avoid larger hikes in the future. On this arrow, despite the government’s initial steps to improve the fiscal arithmetics, there is still some way to go.

The third arrow of Abenomics is concerned with improving the supply capacity of the economy. The declining and aging population have led to lower potential growth. Official Japanese sources estimate that potential GDP growth has declined from 4.9% in the late 1980s to only 0.5% today.Abesoughtto tackle this problem through numerous structural reforms to improve competition and productivity in the labour market, agricultural and health sectors. Structural changes, by nature, take time to implement and it could take years before they start bearing fruit. But one area of reform is already making progress:the higher participation of women in the labour force to counteract the demographic decline. Through a number of financial and non-financial incentives, Abe succeeded in increasing the number of women in the labour force by nearly half a million in around three years. This is significant in a country with a total labour force of around 66 million.

Overall, the three arrows of Abenomics have been travelling at different speeds. Beyond the importance of Japan as one of the world’s largest economies, Abenomics is an important case study on how to tackle problems that many countries are facing or are expected to face in the near future. Many countries, such as those in the Euro Area, are experiencing the risk of deflation, want to implement fiscal consolidation  without creating economic depression and face the challenge of declining productivity and a smaller and older population. The Abenomics experiment should be closely monitored by the rest of the world.

QNB, ‘The Leading Financial Institution in the Middle East and North Africa’, was recently distinguished as the “Best Transaction Bank in the Middle East & Africa” at The Asian Banker’s Middle East & Africa Transaction Banking Awards 2015 held in Abu Dhabi.

QNB was also named “Best Cash Management Bank in Qatar” and “Best Trade Finance Bank in Qatar” at the prestigious event. The award wins reflect QNB’s ongoing commitment to innovation in order to produce outstanding results for its customers. As a leading provider of strategic intelligence on the financial services industry, The Asian Banker facilitates awards programs known for their rigor, impartiality and transparency. The Middle East & Africa Transaction Banking Awards program recognizes the pursuit of excellence amongst banking institutions across the region.Stringent criteria for the highly competitive awards included evaluation of QNB’s market share, customer satisfaction, and product innovation. An independent council of advisors ensures that the awards reflect industry benchmarks and best practices.

QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

QNB, ‘The Leading Financial Institution in the Middle East and North Africa’, was recently distinguished as the “Best Foreign Exchange Provider in Qatar 2016” by Global Finance Magazine in a survey to be published in the January 2016 issue. QNB was named the ‘Best Foreign Exchange Provider in Qatar’ under a very competitive criteria that has taken into account transaction volume, market share, scope of global coverage, customer service, competitive pricing and innovative technologies.

The input of a panel of experts and feedback from industry analysts, corporate executives and technology specialists was also considered when choosing the winner. Global Finance Magazine is a leading International publication recognized as a reliable source of news and analysis of market insights around the world. Its target audience includes Chairmen, Presidents, CEO’s, CFO’s, treasurers and other senior financial officers responsible for making strategic decisions at multinational companies and financial institutions.

QNB continues to implement its strategy by diversifying and expanding sources of funding, widening its customer base while nurturing existing relationship with key clients, furthering solidifying QNB Group presence in global markets and providing sound investment and risk mitigation advice to its growing number of counterparties. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

As part of its commitment to better serve newly arrived expatriates in Qatar, QNB, the Leading Financial Institution in the Middle East and North Africa,  launched  the “Welcome To Qatar” program, allowing new residents to manage their day-to-day financial matters while availing exclusive offers.

Knowing that newcomers to any country have a number of immediate needs, QNB offers new residents a swift and smooth integration process through this new package. They can open their new account online from their home country or at any of QNB’s local branches once they have arrived, and get a head start on their move. The package comes with exclusive offers and benefits allowing newcomers to comfortably settle in their new home.  In addition to all the advantages of a salary account such as free debit card, cheque book and no minimum balance charges.  On top of that new resident will receive up to 10,000 welcome points (equivalent to Qr.500) by transferring their salary in QNB account.

QNB has made an  arrangement with Ooredoo, Qatar’s  leading communications company, to provide new QNB salary account holders with the best mobile bundle offers, allowing new residents to get instantly connected to Ooredoo’s Supernet and call their loved ones. The offer includes a SIM card with up to 250 minutes of calls and a data plan of up to 15 GB, as well as numerous other benefits. Moreover, the “Welcome To Qatar” program comes with a free coupon that offers a great “buy one get one free” deals from different outlets across Qatar.

QNB continues to redefine what it means to be the best bank in Qatar and the Leading Financial Institution in the Middle East and North Africa as it strives to be the bank of choice for customers. To take advantage of this QNB program, newcomers are invited to visit the nearest QNB Branch or www.qnb.com for more details. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

As part of its ongoing activities to better serve people with special needs and the elderly, QNB, ‘The Leading Financial Institution in the Middle East and North Africa’, organized a sign language training course titled “Methods of Communicating With the Hearing Impaired – Sign Language, the Mother Tongue” at QNB’s Mathaf tower. The course was dedicated to increasing awareness of and improving services offered to people with hearing disabilities, with a focus on training 20  employees in sign language to facilitate their communication with hearing impaired customers.

The course, which was organized by QNB’s Service Quality Department, and delivered by The Qatar Society for Rehabilitation of Special Needs, was composed of 8 modules targeted toward serving customers with hearing disabilities, and it was attended by Customer Service and Service Quality heads, officers, and staff. The modules included an introduction into the types and causes of hearing disability, how to serve this type of customers, and an introduction to sign language, where they were taught over 1000 sign language words and expressions to facilitate communication.

This training course comes as part of QNB’s initiatives aimed at improving the service offered to customers with special needs. The Bank has exerted many efforts in this area to better serve these special types of customers, whom the Bank has classified into categories based on disability to form a better understanding of how to offer exceptional service to each individual based on their needs. QNB’s efforts do not stop there, they also include dedicating 17 branches to serving special needs customers, giving instructions to staff to serve them without need for a number, equipping  branches with ramps and special desks, and always giving special attention to this special group of customers to ensure that they are served quickly and efficiently.

The special needs customers targeted by the ongoing initiatives also include the elderly. QNB always aims to pay special attention to this group of customers, giving them the care and respect they need and priority in service, in order to make sure they are comfortable, satisfied, and provided the respect and appreciation they deserve for their great contributions to society and future generations. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

QNB, ‘The Leading Financial Institution in the Middle East and North Africa’, continuing on from the successful launch (since 2012) of its contactless payment services offers its customers a high-end Tap & pay solution powered by Near Field Communication (NFC) technology.

The NFC sticker payment service allows customers to make transactions that are less than 100QR by simply tapping it. The new technology gives customers the convenience of paying without having to pull out a card, memorizing a PIN code or fumbling for cash. The innovative technology shares the same level of protection and security as a regular chip and PIN transaction. Customers can apply to get an NFC sticker from QNB’s card center located in West Bay. The sticker can be applied to your smartphone, card, key chain or any other object. NFC technology works by establishing radio communication with between the Point of Sale (POS) and the sticker card when they touch or are into very close proximity with one another.

QNB is always looking to deliver innovative premium products and services while rewarding  their customers. QNB has recently been ‘Best Transaction Bank in Middle East and Africa’by The Asian Banker, ‘’The Best Bank in the Middle East 2015” and “The Best Bank in Qatar 2015” by the renowned international finance magazine Euromoney. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

As winter is approaching, Aspire Zone is organising plenty of fun-filled sport and community activities throughout December to give visitors the opportunity to enjoy a warm and pleasant atmosphere of fitness and health. On the sports side, the Aspire Banks League – organised in collaboration with the Qatar Central Bank – continued for a seventh week at Aspire Dome.

The league has continued to witness exciting competition between the participating banks. Qatar National Bank is currently in the lead, followed closely by Qatar Central Bank and Barwa Bank. Aspire Dome is also hosting the Aspire Embassies’ Futsal Tournament, which takes place every Friday and Saturday. The competition demonstrates the strength of ties between the various embassies and diplomatic posts in Qatar, and is a fine example of the important role sport plays in building and strengthening relationships between different world states.

On the community side, Aspire Zone Foundation hosted on December 9 the “Aspire Challenge” for students aged 13-16. The competition, which was held on December 9 near the lake at Aspire Park, saw the participation of students from eight different schools. It included a number of physical and mental challenges including sack-racing, monkey-climbing, running, cycling, puzzle-solving and other mentally stimulating activities. At the end of the tournament, students from Al Hekma International School went home with the first place title, followed by the Iranian school in second place and Al-Furqan School in third. 

Aspire Zone is also continuing with the “Splash & Dash” programme until December 26. The programme involves activities such as running and swimming that are held in Aspire Dome, where participants can utilise the venue’s swimming pool and air-conditioned indoor athletics track to improve their fitness and health. The programme takes place every Saturday from 3:30PM until 5:30PM.

In addition, Aspire Park hosts a number of different activities including the second phase of the Aspire “Run in the Park” on December 12 at 8:00AM and the “Kids Art in the Park” activity every Saturday from 10:30AM to 12:30PM. Families and children are able to enjoy activities such as paddle boating in the lake at Aspire Park, pony rides around Aspire Park, and more. For more information, please visit www.lifeinaspire.qa

Aspire Zone Foundation organises a number of community events and activities throughout the year, providing access to its state-of-the-art venues and facilities for all members of the community. It is the ideal location to practice sport and exercise, and provides a range of cultural activities for the wider community. 

Abu Dhabi Islamic Bank has been named ‘Best Bank in the GCC’ for the second year running in the 2015 Retail Banking Customer Experience Benchmark Index developed by Ethos Integrated Solutions, the regional leader in delivering excellence in customer experience. QNB was named ‘Best Bank’ in Qatar.

The Index – the 11^th in the annual series – recognised the efforts of 12 GCC banks out of a total of 65 studied over six months measuring branch experiences, website interactions and call centre responses with 40 contacts made with each bank across all three delivery channels. Of the 65 GCC banks studied, the bulk - 22 - were in the UAE. Ten were in Saudi Arabia, there were nine each in Bahrain and Qatar, eight in Kuwait and seven in Oman. They were evaluated on reliability, assurance, responsiveness and empathy, in line with Ethos’ ‘Value Moments’ customer experience criteria.

“In essence the Index reveals that banks in the GCC are getting better although the trend is not exactly uniform across the region,” explained Robert Keay (pictured), Ethos’ founder and Chief Executive Officer. The report reveals that the UAE saw a slight (-1%) dip in overall banking experience in 2015 but reports that over the last 10 years UAE bank customers have reported an 18% percentage point rise in improved experiences. “The banking experience index for the UAE now stands at 79.4% and is considered to be the leader within the region,” explained Keay. “This is closely followed by Kuwait and Qatar.”

The report also identifies a continuous shift towards usage of alternative delivery channels. “We have reflected this in our research methodology,” said Keay. “Today the overall online experience constitutes 15% of the overall banking experience index as compared to our initial weighting of 5%. “In 2015, customers regarded their branch experience as the highest out of the three engagement channels of the study, and the data suggests that banks should focus and prioritize enhancing their online channels and capabilities.”

Keay says the decade-long trend towards improved performance is a result of greater market competitiveness and higher customer expectations. “These are driving a strong focus on delivering customer experiences comparable with other more well established markets.” During the Index study – the biggest to date - Ethos researchers made 1,300 branch visits, 780 call centre calls and had 520 website interactions asking in total 68,000 questions and completing 2,600 research interactions.

Other Index UAE winners were: ‘Best Branch Experience’ - Mashreq Bank; ‘Best Call Centre Experience - Abu Dhabi Islamic Bank; ‘Best Online Experience - Dubai Islamic Bank; ‘Most Improved Bank - Ajman Bank; ‘Most Improved Branch Experience - Commercial Bank International; ‘Most Improved Call Centre Experience - Standard Chartered Bank; ‘Most Improved Online Experience’ - Sharjah Islamic Bank. In regional results, the National Bank of Kuwait was named the country’s ‘Overall Best Bank’ while in Oman the ‘Best Bank’ honour went to Bank Sohar, in Bahrain it went to HSBC Bahrain and to Al Rajhi Bank for the Kingdom of Saudi Arabia.

The full Retail Banking Benchmarking Study with specific reports on each bank and individual countries can be purchased from www.ethosplc.com

The gas market is likely to begin to recover in 2016, which is "positive" for Qatar and other energy producers in the Gulf Co-operation Council (GCC) in the long term, experts told Euromoney Qatar Conference. In the 'Energy Strategy' session, the panel expressed optimism in the gas market as nations around the world look to reduce emissions and introduce cleaner energy sources. Gas demand globally has grown at a better rate than oil in recent years - averaging 2.5% - and is likely to increase as more nations look to phase out coal and other "dirty" fossil fuels, said the panel consisting of Sabri Asfour, general manager FAS Energy; John Butler, president and head of wealth services, GoldMoney; Tim Guinness, founder and chief investment officer of Guinness Asset Management and Jonathan Osborne, finance director of Qatar Shell.

As a result, the longer-term picture is positive for nations like Qatar and other energy producers in the GCC, given their long-term investments in the sector and their status as low-cost producers, the panel told the conference, which concluded yesterday. With global demand expected to remain weak in the first half of next year, senior executives from leading asset managers and energy companies agreed that the disruption of the last 15 months is likely to continue. The energy panel found that oil supply is continuing to fall, as less economically-viable projects are postponed and cancelled. In this regard, the experts cited that the US rig count declined to the lowest level since 1999 in December, with 737 rigs engaged in exploration and production - less than half the 2014 level of 1,920. Given the current dip on the supply-side, analysts expect demand will outstrip supply as early as April 2016, leading to a recovery in oil prices. 

Recently, Saudi Aramco chief executive Amin H al-Nasser had told the recently concluded International Petroleum Technology Conference that with additional supplies drying up, the current demand supply imbalance will "stablise", which will see a concomitant "adjustment" in prices by 2016. The energy session focused on falling demand from industrial powerhouses around the world, such as the Brics (Brazil, Russia, India, China and South Africa), which has driven oil prices down in 2015. On the "Technology and Finance" panel, senior executives from Hive Technology, FinTechStage, QNB and Visa outlined some of the innovations that are impacting the financial sector, as well as the challenges preventing institutions from fully realising the benefits of these technologies. "Technology risk is very prevalent today.

Organisations need to recognise that new technologies can provide tools to mitigate risks - by identifying fraud attempts and verifying identities more accurately - and also that these technologies themselves can generate new risks," according to Duncan Fairley, Head of Group Operational Risk, QNB. He said the next generation of cyber-threats - which include identity theft, 'spoofing' and theft of assets online - will require a new skill set and operational model by banks and financial institutions. Lazaro Campos, co-founder, FinTechStage, said the move towards a cashless society is taking place, and we will need central banks, financial services companies and technology leaders to work together in order to stay ahead of the pace of change.

One area that is likely to generate significant disruption is the move towards mobile and online payments, and the wider social shift to a "cashless society". In the GCC region, where 90% of retail transactions are still conducted in cash, the adoption of more cashless payment channels is likely to have a transformative effect.

source: Gulf Times

QNB, The Leading Financial Institution in the Middle East and North Africa, stressed its commitment to supporting SMEs in the State of Qatar, as well as its support of all manner of logistic and industrial projects that will diversify the country’s economy and enhance the competitiveness of its private sector.

QNB has always been keen on having a strong presence as a key supporter of the rapidly growing Qatari logistics sector. The Bank recently signed a memorandum of understanding with the Logistics Committee of the Ministry of Economy and Commerce and Manateq for one of the largest government projects in these economic sectors, focusing on three areas: South al-Wakra, Birkat al-Awamir, and AbaSalil. The project aims to reduce investors’ operating costs and improve their productivity.

QNB continues to support SMEs through introducing many products that offer suitable solutions to business owners who wish to expand their businesses or start new, creative ventures. The bank paid special interest to the industry, tourism, healthcare, and education sectors, by launching various products and offers to encourage investment in these sectors, since they are some of the most important sectors for the realization of the 2030 national vision.

Commenting on the matter, Yousef Al-Neama, QNB’s General Manager  – Group Corporate and Institution Banking, said: “At QNB Group, we aim to maintain our standing as a key supporter of the projects that serve the private sector and enhance its competitiveness, so that it can play its part in the development process. We are proud, being the biggest bank in Qatar, to participate in the sustained economic development process in line with Qatar’s 2030 national vision.”

Al-Neama added: “We invite everyone to avail QNB’s special operating capital financing, loan refinancing, and other creative products recently launched by the Group in line with its vision to encourage Qatari startups and entrepreneurs, who will contribute greatly toward the creation of a successful national workforce with a clear future outlook.” For example, the manufacturing sector can avail any number or group of financial products. The finance options available cover Equipment, Infrastructure Loans, Business buy out , Vehicle loan and lease , Working Capital, Raw material and refinancing of existing Term Loans or Working Capital.

The financing for government supported projects includes the development of the logistic zones, as well as warehouse, labor city, and food security projects among others. To set up and support a company’s operations in the Tourism and Leisure industry, QNB offers SME’s financing in the areas of Asset Finance, Tourism Premises, Business Buy-Out, Vehicle Loan and Lease, Working Capital and Refinancing of existing Term Loans or Working Capital.

Support of SME’s in the Medical and Healthcare sector, will see QNB offer Medical Equipment, Medical Facility Loan, Healthcare Buy-Out, Vehicle Loan and Lease, Medical Transportation, Working Capital and Refinancing of existing Term Loans or Working Capital Finance. Another important and integral part of the comprehensive product offer is the availability of the QNB Credit Card for SME’s. Through this card, SME’s can manage and control their day to day business expenses in a convenient and easy way.

Also notably, QNB launched the first SME online portal (www.businesspulse.qa) in partnership with Enterprise Qatar and Thomson Reuters. This will further strengthen the “One Stop Shop” service concept being promoted across a diverse range of economic sectors. QNB is also the main supporter of QDB’s Al-Dhameen SME program.

QNB carries out its SME financing operations in collaboration with a number of different government and private sector partners, including: Enterprise Qatar (EQ), Ministry of Information and Communications Technology (ICT), Ministry of Energy and Industry, Mannai Trading, Qatar Insurance Company (QIC), Qatar Life and Medical Insurance Company (QLM), Bedaya Center for Entrepreneurship and SME Development, and Qatar Development Bank (QDB).

The bank also participated in many SME conferences and events, including extending its support, as the Gold sponsor, to the International Conference on Access to Financing SMEs and Entrepreneurs in the Arab World. The two-day conference, which was organized by Qatar University, College of Business and Economics, witnessed a large number of participants and attendees from many countries across the world. The bank was also the Platinum Sponsor of the Global Entrepreneurship Week, which was recently hosted by QDB  under the patronage of H.E. Dr. Hessa Al Jaber, Qatar’s Minister of Information and Communication Technology.

The bank also recently opened  its newest SME Centre in Al Shoumoukh Towers as part of its steadfast commitment to supporting SMEs and as a distinguished addition to its corporate branches strategically placed across the country. The new SME Centre will further increase QNB’s capacity to support all current and future business owners who are seeking access to finance in order to expand or start a business. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

QNB, ‘The Leading Financial Institution in the Middle East and North Africa’, was named “Best Customer Experience - Overall Bank in Qatar” by Ethos Integrated Solutions.

The prestigious award was announced during the 11th Annual Customer Experience Benchmarking Index awards ceremony for retail banks and exchange houses throughout the GCC, recently held at the Burj Al Arab hotel in Dubai. The Customer Experience Benchmarking Index 2015 (CEBI 2015) is the most extensive customer experience benchmarking study in the GCC; its aim is to provide the retail banking industry with a methodology of benchmarking their products and services against the competition to drive constant improvement.

The prestigious award reflects QNB’s commitment to deliver the highest level of customer service and its ongoing efforts to find innovative, creative and compelling new ways to engage with customers in a fast and efficient way. Ethos Integrated Solutions use professional researchers to focus on real life scenarios of a prospective customer using the bank and exchange house services, by visiting and testing the service provided in its customer delivery channels primarily branches, Call Centre and online. The studies are based on evaluating four key variables of service provision: “reliability, responsiveness, assurance, and empathy”.

QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

QNB, ‘The Leading Financial Institution in the Middle East and North Africa’, participates with a special booth in Darb Al Saai’s National Day festivities held this year in ‘’Doha tent’’.

A large number of visitors have poured into QNB’s booth at Darb Al Saai, to experience an educational activity designed for children. Children have been taken through ‘The Cycle of Money’ which aims to show children the path in which money is withdrawn, and deposited into the bank in a simplified and miniature form. They were also taught about the history of inventing currency, and the development to reach the phase of using debit and credit cards and ATMs.

QNB also distributed its educational book of ‘’ Money Made Easy’’ after briefing children on its content about the world of economy and finance in a joyful way that suits their young age. The interactive booth also included a model of an ATM in which the children were asked a question about the Cycle of Money they were taught, those who answered correctly were photographed by the machine, with a national day themed photo.

The activities are aimed not only to educate children, but also to instill patriotism and national pride in future generations. QNB continuously contributes to the perseveration of Qatari national heritage through its various campaigns and sponsorship efforts. QNB is also a proud strategic partner of Qatar National Day as an expression of its pride in Qatar’s history and traditions. QNB Group’s presence through its subsidiaries and associate companies extends to more than 27 countries across three continents providing a comprehensive range of advanced products and services. The total number of employees is more than 15,000 operating through more than 635 locations, with an ATM network of more than 1,350 machines.

Global food prices have not escaped the commodity rout, falling 24.3% since early 2014, according to the World Bank. Bumper harvests, weak demand and collapsing oil prices have driven food prices lower. Qatar’s food inflation has fallen with lower international prices as it imports almost all of its food. Looking forward, we expect global food prices to only fall marginally in 2016, before recovering moderately in 2017. As a result, they are likely to be less of a drag on inflation in Qatar in the next two years.

Three main factors are pushing global food prices lower. First,demand growth for food is weakening as global growth has been slower than expected, pushing down prices. The International Monetary Fund’s (IMF) revised expected global GDP growth down by 0.2% to 3.1% for 2015, compared with growth of 3.4% in 2014. Second, favourable weather conditions have boosted supply and stocks across a number of food products. Stock-to-use ratios for grains such as maize, wheat and rice, a measure of the abundance of supply compared to demand, are above their historical averages. Production of other products such as soybeans, soybean oil and palm oil are all rising. Third, lower oil prices have pushed down food prices as agriculture is highly energy intensive. For example, fertiliser prices are an important input for agriculture and are closely linked to energy prices.

These three factors are expected to continue to play an important role for the outlook of international food prices in 2016 and 2017. In 2016, higher global grow this expected (3.6% according to the IMF).Additionally, wheat production is expected to reach a new high as output in China, the EU and Kazakhstan has been revised up. Production of other products is also expected to rise. For example, the World Bank forecasts higher output of soybean seeds and soybean oil in 2016. Finally, oil prices are expected to stabilise around current levels in 2016 as excess supply is reduced.As a result food price deflations is expected to be reduced to 1.6% in 2016.

By 2017, we expect food prices to recover moderately. Global growth is expected to pick up again slightly to 3.8%. Additionally, supply and demand should adjust to lower food prices, gradually working out excess supply. Food producers are likely to invest less in productivity enhancements due to lower prices, while consumers should demand more. Finally, oil prices are projected to recover as investment cuts, mainly among US shale-oil producers, impact supply. As a result, we expect international food prices to rise 3.7% in 2017.

It should, however, be noted that food price forecasts are subject to unpredictable  weather events. This is particularly relevant currently as the strongest El Nino on record is expected to peak this December-February, which could disrupt food output. El Nino is a weather pattern that recurs every 2-7 years and can lead to abnormal levels of rain, mainly in the southern hemisphere. For example, drier conditions in East Asia, which are expected to persist, have led to lower production of rice, particularly in Indonesia, where rice production is expected to be 1m-2m tons lower in 2015.While international food prices should be insulated from supply shocks due to high stock levels, there is a risk that a particularly severe El Nino could disrupt global food production.

The outlook for international food prices has implications for Qatar, which imports most of its food from abroad. This means that the food component of the consumer price index (CPI)in Qatar, which has a weight of 12.6% in the CPI basket, is closely linked to the World Bank food price index, as the chart below shows. If the historical relationship between domestic and international prices persists, then we forecast that domestic food prices should rise slightly in 2016 (1.5%) before picking up further in 2017 (3.2%).International food prices are not necessarily fully transmitted into the Qatari economy because of local factors such as transportation, manufacturing and retailing costs as well as domestic policies limiting price increases on staple foods.

In conclusion, global food prices are expected to fall slightly in 2016 before recovering in 2017. The transmission of this into the Qatari economy should lead to rising domestic food price inflation in 2016-17. As a result, food prices are expected to create progressively more upward pressure on Qatar’s CPI inflation, although this should be offset by disinflationary pressures in other sectors. Overall, we expect inflation in Qatar to remain moderate over 2016-17.