Annex 2

Go-To Market Strategy.

Architecture & Engineering Sector.
Country: Qatar
August 2011
Table of contents

Section 1 Executive Summary

-Project assumptions and constraints

-Methodology
-Main findings
-Accountability and responsibility for implementation
-How to use this strategy
-Recommendations

Section 2 Market Analysis

-PEST Analysis
-Industry Analysis

Section 3 Go-To Market strategy

-Segmentation (where to focus)

-Value chain (who are the high level value chain partners)
-Registration & investment procedures (How to register and invest)
-Expenses: capital and operational (How much investment is needed)
-Competitive analysis (which competitors to take care of)
-Pricing Strategy (How to price competitively in the market)
-Products and services (what products and services are most needed in the market)
-Location (what are the best locations to open an office at)
-Promotion (How to promote company and services)
-Business intelligence (How to gather information from the market)
-Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field
-Sector improvement (what internal initiatives needed to improve sector chances of expansion)
-Program Management Organization (PMO)

Section 4 Appendix
Appendix 1-Regional Market Selection
Appendix 2-A/E Firm Check List
Appendix 3-Balanced Scorecard
Appendix 4- References
Executive Summary
Executive Summary

Guidance To A/E Firms on How to Use the Strategy

In strategy, there is no “One size fits all” approach. Therefore given that A/E firms have :

•Different sizes
•Different risk appetites
•Different services and products
•Different expansion levels and geographic coverage

We advice A/E firms to read the strategy carefully and try to customize and adjust the strategy based on their
current condition and future aspirations.

USAID Jordan
Economic Development Program
 Executive Summary

Methodology-High Level

Stage 1: High Level Stage 3: Go-To Market

Stage 2: Detailed Analysis
Screening of Countries Strategy

Desktop Research PEST Analysis Build Strategy

How

A/E Member Firms

Industry Analysis
Interviews
Deliverables

Selection of Markets Analysis of Markets Go-To Market Strategy

USAID Jordan
Economic Development Program
 Executive Summary

Methodology-Strategy Questions
The Go-To Market Strategy aims at answering crucial strategy questions to enable A/E firm to penetrate the market effectively.

What is the political situation like in Qatar?

MACRO Environment What is the Macro Economic situation?
(PEST Analysis) What is the social environment in Qatar?
What is the technological environment in Qatar?
How is competitive landscape?
What is the assessment of Suppliers?
MICRO Environment
What is the assessment of Customers?
(Industry Analysis)
What is the assessment of Barriers to entry?
What is the assessment of Substitute Products?
Where should A/E firms focus in terms of countries (Country Segmentation)?
Where should A/E firms focus in terms of clients/customers (Client segmentation)?
Where should A/E firms focus in terms of competition (Competitor segmentation)?
Go-To Market Strategy Where should A/E firms focus in terms of Geography/Cities (Area segmentation)?
(Segmentation) Where should A/E firms focus in terms of sub-sectors (Sub-sector segmentation)?
Where should A/E firms focus in terms of top projects (Top Projects segmentation)?
Where should A/E firms focus in terms of contractors (Contractors segmentation)?
Where should A/E firms focus in terms of project life cycle (Project life cycle segmentation)?

Go-To Market Strategy What is the high-Level value chain?

(Value Chain) Who are the players under each part of the value chain?
What effort should be done at each part of the value chain?

USAID Jordan
Economic Development Program
 Executive Summary

Methodology-Strategy Questions
The Go-To Market Strategy aims at answering crucial strategy questions to enable A/E firm to penetrate the market effectively.

What are the registration and investment procedures in Qatar?

Go-To Market Strategy Who is the main body handling registration and investment procedures?
(Registration & Investment) What are the incentives offered to foreign companies in Qatar?
Are there any barriers against 100% full ownership?

What are the average (unit rate) expenses?

Go-To Market Strategy Utilities costs
(Expenses: Capital and Residential costs
Operational) Office costs
Employee costs
Who are the main regional (Middle East) Players in terms of Revenue?
Who are the main regional (Middle East) Players in terms of staff?
Who are the top players in construction management?
Go-To Market Strategy Who are the top players in Project management?
(Competition) Who are the top players in Design?
Who are the top players in Leisure?
Who are the top players in Urban Planning?
What are the rankings of these firms/competitors?
What is their country of origin?

How Should Different type of A/E firms price their products and services?
Go-To Market Strategy What are the implication of each pricing strategy?
(Pricing Strategy) The relationship of cost leadership, differentiation and focus strategies with pricing?

USAID Jordan
Economic Development Program
 Executive Summary

Methodology-Strategy Questions
The Go-To Market Strategy aims at answering crucial strategy questions to enable A/E firm to penetrate the market effectively.

Go-To Market Strategy What are the most preferred products and services in Qatar?
(Products and Services)

Go-To Market Strategy What might be the best location/City to open an office in Qatar?
(Location)

How can A/E firms promote their themselves?

Go-To Market Strategy What is an ideal promotional calendar for A/E firms?
(Promotion) What is the frequency of promotional activities?
What is the description of each promotional activity?

Go-To Market Strategy What type of business intelligence should A/E firms do before entering a market and during its
(Business Intelligence) operation in the market?

USAID Jordan
Economic Development Program
 Executive Summary

Methodology-Strategy Questions
The Go-To Market Strategy aims at answering crucial strategy questions to enable A/E firm to penetrate the market effectively.

What are the top strategic actions and options available to A/E Firms?
What are the Pros and Cons of each strategic action/option?
What is the strategic action of “Outsourcing”?
Go-To Market Strategy
What is the strategic action of “Acquisition”?
(Strategic Actions)
What is the strategic action of “Green Field”?
What is the strategic action of “Export”?
What is the strategic action of “Partnership”?

What are the list of top strategic initiatives/actions to be done on the Jordanian country level in
order to uplift and improve the A/E sector performance and reputation?
Go-To Market Strategy Who are the key implementers/drivers of these initiatives?
(Sector Improvement) What is the main KPI for each initiative?
What might be the timeframe for implementation?
An estimate for budget, if possible?

USAID Jordan
Economic Development Program
Executive Summary

Methodology-Market selection
Methodology used for selecting regional markets is twofold:

•Quantitative/Objective, through comparison of key indicators across markets.

•Qualitative/Subjective, through interviewing A/E member firms

Quantitative/Objective method utilizes the BMI methodology to analyze the infrastructure business environment. The infrastructure
BE rating is the principle rating. It is comprised of two sub-ratings “Rewards” and “Risks”, which have a 70% and 30% weighting
respectively. In turn, the “Rewards” Rating is comprised of Industry Rewards and Country Rewards, which have a 65% and 35%
weighting respectively and are based upon growth/size of the infrastructure industry (Industry) and the broader economic/socio-
demographic environment (Country). The “Risks "rating is comprised of Industry Risks and Country Risks which have a 40% and
60% weighting respectively and are based on a subjective evaluation of industry regulatory and competitive issues (Industry) and
the industry’s broader Country Risk exposure (Country), which is based on BMI’s proprietary Country Risk Ratings. BMI utilizes 14
indicators in their analysis and comparison of markets, such as sector growth rates, construction sector size, sector capital
investment as a % of GDP, access to electricity, policy continuity, transparency of tendering, and corruption among others.

Qualitative/Subjective method utilizes a set of meetings and interviews with key A/E member firms. Member firms are chosen from
different segments to ensure that different firms (small and large) are represented in the discussion. Member firms interviewed are
asked to suggest their preferred markets.

USAID Jordan
Economic Development Program
Executive Summary

Main findings
Annual growth in construction industry value in 2010 17%. Key factors driving the rapid growth of
the construction industry:
• Revenues from rising production of LNG and other natural gas liquids.
Market Size & Growth • Rise of residential and commercial construction projects.
Rates • Small relative industry size, meaning that even small projects made a substantial impact on
growth.
• Large new infrastructure plans.

As a result of the FIFA 2022 news, Qatar expects to spend as much as US$80-100bn over the next
five years as it prepares its infrastructure for the huge influx of visitors. Beyond 2010 BMI sees
Construction boom and growth rising sharply by 11.6% to QAR27.4bn (US$7.5bn) in 2011 and continuing in an upwards
FIFA 2022 trajectory to the end of our forecast period to 2015. For a construction industry the size of Qatar's,
the country's hosting of the FIFA 2022 World Cup will provide a huge boost for the sector over the
coming years.

The government continues to invest in infrastructure projects in an attempt to diversify the oil and
gas dependant economy:
• Boosted by rising LNG output and recovering oil prices, government revenues are projected to
increase to almost USD 50bn a year.
• 37% of the 2010/2011 fiscal budget, or USD 11.9bn, has been allocated for major capital projects,
The Importance of Qatar’s
especially infrastructure.
Infrastructure
Qatar’s transport infrastructure is a key sector benefiting from recent investment:
• Qatar has plans to invest USD 20bn on road infrastructure projects between 2009 and 2014.
• The major transport infrastructure projects include the Qatar-Bahrain causeway, an east coast
passenger and freight rail link and a high-speed rail link between the airport and city center.

USAID Jordan
Economic Development Program
Executive Summary

Main findings
A major barrier to entry is the government block to Jordanian visas. We believe there are three
ways to overcome this barrier to entry:
•Sending Jordanian engineers with foreign passports (Canadian and American)
Barriers to Entry •Collaborating with a Qatari Office, where work is obtained and signed by the Qatari Office , while
the Jordanian Office executes the work remotely from Jordan
•The expectation that in the near future the relationships would be improved, especially after the
announcement of the possibility of Jordan joining the gulf countries cooperation council .

Segmentation is key in strategy. It allows A/E firms to “FOCUS”, and provides the right answers to
key strategy decisions. Main highlights of the segmentation conducted are the following:
•Qatar is the second most attractive market.
•Doha, Ras Laffan, Mesaieed are key areas/cities for construction and infrastructure work.
•Key projects are government infrastructure projects, especially in transportation.
•Infrastructure and construction represent 60% of all sectors
•56% of the value of planned infrastructure projects are transportation projects
•Top cities to focus on : Doha, Lussail, Mesaieed, Ras Laffan,& Dukhan
•Top consulting firms operating in the Middle East by revenue are: National engineering bureau,
KEO International, and Foster and Partners.
Segmentation Results
•Top Qatari contractors are Midmac and Al Jaber Engineering
•Top International contractors in Qatar: HOCHTIEF ,CCC, and Morganti
•Top consulting firms operating in the Middle East by Staff size are: Atkins and KEO International
•Top Engineering Consulting firm in Construction Management: KEO International
•Top Engineering Consulting firm in Project Management: HDR Architecture
•Top Engineering Consulting firm in Urban design : Gensler
•Top Engineering Consulting firm in Infrastructure : KEO International
•Top Engineering Consulting firm in master planning: Kikken Sekki
•Top Engineering Consulting firm in Leisure : WATG

USAID Jordan
Economic Development Program
Executive Summary

Main findings
Low cost Strategy and Pricing Logic
Architectural firms (Type B/C) have two pricing options:
•Undercut rivals’ prices and sell more than they do
•Match rivals prices and attain higher price-cost margins than they do.

Focus Strategy and Pricing Logic

Architectural firms (Type D) configure their value chain so as to create superior economic value
Pricing Strategy .within a narrow industry segment (Design/Architecture). In this segment, Type D firm are able to
have a lower cost per unit than its broad-scope competitors (Type A,B,C) or it may be capable of
commanding a price premium relative to others, or achieve both.

Differentiation Strategy and Pricing Logic

Architectural firms (Type B/C) have two pricing options:
•Match rivals prices and sell more than they do
•Charge price premium and attain higher price-cost margins they do

A/E Firms have five strategic options for market penetration to consider:

1. Acquisition strategy
2. Export strategy (suitable to Qatar)
Strategic Options
3. Outsourcing strategy (suitable to Qatar)
4. Partnership strategy (suitable to Qatar)
5. Green field strategy

Type A Firms: Operating in a huge number of countries; Providing all possible products and services
Type B Firms: Operating in a moderate number of countries; Providing many products and services
Type C Firms: Operating in 1-3 countries ; Providing many products and services
Type D Firms: Operating 1 country; Providing Design and Architectural work USAID Jordan
Economic Development Program
Executive Summary

Main findings
Strategic Grouping has led to the conclusion that Four strategic groups are competing in an in-
direct and direct way. Each strategic group is different in terms of market coverage and breadth of
products and services. Strategic groups are the following:

Strategic Grouping Type A Firms: Operating in a huge number of countries; Providing all possible products and services
Type B Firms: Operating in a moderate number of countries; Providing many products and services
Type C Firms: Operating in 1-3 countries ; Providing many products and services
Type D Firms: Operating 1 country; Providing Design and Architectural work

There are five main ways for conducting business intelligence:

oSite visits
oRegistration with specific industry websites such as business monitor
Business Intelligence o3rd party consulting and research
oNetworking
oExhibitions and cityscapes

Promotions are crucial for building A/E firms brand name abroad; promotions include the following:
oCorporate social responsibility promotions
oDirect sales and business development meetings
Promotions oWebsite promotions
oPublic relations
oEvents

USAID Jordan
Economic Development Program
Executive Summary

Main findings
In order to uplift and enhance A/E sector’s performance and reputation, twenty five strategic
initiatives are needed. These initiatives cover the following categories:

oQuality of engineers
oMarketing and branding of A/E firms
oGovernment support to A/E firms
oA/E council’s role in supporting A/E firms
oQuality of education system
Jordan Country Level oImproving design culture in Jordan
Strategic Initiatives oMinimizing export risk
oCreating a linkage between academia and industry
oChanging rules and regulations to support the sector

These initiatives are usually prerequisites for the success of any export strategy, and in an ideal
situation should have been implemented before the go-to market strategies. Nevertheless, given
the current condition, we suggest parallel implementation of both export strategy and local country
level initiatives

USAID Jordan
Economic Development Program
 Executive Summary

Accountability and responsibility for implementation

Accountability and responsibility for implementation is divided between the A/E council and member A/E firms.

A/E council has the overall responsibility for following up on the four go-to market strategies and
ensure successful implementation by A/E firms, In addition, the A/E council will play the following
roles:
RESPONSIBILITY
•Driving Strategy Implementation and overall responsibility.
(TIER 1)
•An alignment role between A/E firms
•A lobbying role with other entities and government
•A collaboration role with other entities and government

The A/E firms, on the other hand, are responsible for implementation ,penetrating and increasing
market share in the suggested four markets. Their responsibilities include:
RESPONSIBILITY
(TIER 2) Customization of the strategy to fir their size, current situation and future aspirations.
Implementation of the strategy and monitoring their performance.

USAID Jordan
Economic Development Program
Executive Summary

How to use this strategy1

Customize this strategy

Choose one or more of the 5
based on: Company size, Price projects based on one
strategic options: Export,
Read the whole strategy company breadth of or more of the pricing
partnership, acquisition,
services, and company strategies provided
green field, and outsourcing
geographical coverage

Choose from the

Choose type , quantity &
segmentation analysis where
frequency of promotion Choose type of business
Assess possible partners and to focus based on your
based on company size, intelligence needed to bid
or acquisition targets company’s size, coverage
appetite for growth and for projects
and type of products and
financial ability
services

Formulate a “Strategy
Build your firm’s strategy
Implementation Committee”
budget based on strategic
at your firm to ensure
option chosen, promotional
proper implementation and
level, and resources needed
monitoring of strategy

1: A/E Firms are of different sizes, types, and appetite for growth and risk. Therefore USAID Jordan
customization of the strategy based on their condition is crucial.
Economic Development Program
 Executive Summary

Recommendations
oA/E firms are advised to read the strategy and customize the strategy based on their size, scope, and growth and risk appetite.

oSegmentation provides crucial answers to A/E firms on a variety of strategic decisions covering:
oCountry Segmentation: Market size of Qatar compared to Gulf
oCity/Area Segmentation: Value of projects in different areas.
oSub-sector Segmentation: Sub-sector market size, and comparison between sub-sectors
oProject life cycle Segmentation: Value of projects at different life cycles
oProject Segmentation: Top projects in Qatar under each sub-sector
oCompetitor Segmentation: top competitors in the Middle East, and according to area of specialization.
oContractor segmentation: top Qatari contractors in Qatar.

Therefore the variety of choices and strategic actions are numerous. The strategic decisions and segmentation choices will depend
on each A/E firm’s size, scope, appetite for risk and growth.

oA/E firms must choose from the five strategic options provided to penetrate Qatar. While some firms might choose “Green Field”
strategy due to their financial strength and high appetite for growth and risk, others might choose an “Export” option that entails
keeping an eye on Qatar and trying to export some services from Amman/Jordan.

oA/E firms need to translate these strategies into company specific long term budgets and to commit resources for expansion.

oA/E firms need to formulate a “Strategy Committee” to start the implementation of the strategy

oA/E firms should focus on “Marketing “ ,“Design” and “Financial Management” as three key capabilities.

oA/E council will play a crucial role in driving strategy implementation through the follow-up and implementation of the twenty
strategic initiatives to improve and uplift the A/E sector

USAID Jordan
Economic Development Program
Market Analysis
 Market Analysis

PEST (Political)
The ruling Al Thani family continued to hold power following the declaration of independence in 1971. The head of state is the Amir,
and the right to rule Qatar is passed on within the Al Thani family. Politically, Qatar is evolving from a traditional society to one based
on more formal and democratic institutions to meet the requirements of social and economic progress. The country's constitution
formalizes the hereditary rule of the Al Thani family, but it also establishes an elected legislative body and makes government
ministers accountable to the legislature. In current practice, the Amir's role is influenced by continuing traditions of consultation, rule
by consensus, and the citizen's right to appeal personally to the Amir. The Amir, while directly accountable to no one, cannot violate
the Shari'a (Islamic law) and, in practice, must consider the opinions of leading families and the religious establishment.

The opinions of the people are institutionalized in the Advisory Council, an appointed body that assists the Amir in formulating policy.
Elections in 1999, in which both men and women participated, resulted in the formation of a municipal council. One woman candidate
was elected to the municipal council in 2003. Municipal elections were held for the third time in April 2007.

There has been no serious challenge to Al Thani rule. As the most visible sign of the move toward openness, the Al Jazeera satellite
television station based in Qatar is considered the most free and unfettered broadcast source in the Arab world. In practice, however,
Al Jazeera rarely criticizes the ruling Al Thani family.

Qatar's defense expenditures are estimated to be in the range of 10% of GDP. Qatar maintains a modest military force of
about 12,000 men, including an army, navy, and air force. The country has a public security force of about 8,000 men,
including a coast guard, national firefighting force, air wing, marine police, and an internal security force. Qatar also has signed
defense pacts with the U.S., U.K., and France. Qatar plays an active role in the collective defense efforts of the Gulf
Cooperation Council (GCC--the regional organization of the Arab states in the Gulf; the other five members are Qatari Arabia,
Kuwait, Bahrain, the U.A.E., and Oman). Qatari forces played an important role in the first Gulf War, and Qatar has supported
U.S. military operations critical to the success of Operation Enduring Freedom and Operation Iraqi Freedom. Qatar hosts
CENTCOM Forward Headquarters.

USAID Jordan
Source: US Department of State
Economic Development Program
 Market Analysis

PEST (Economic)
Oil formed the cornerstone of Qatar's economy well into the 1990s and still accounts for about 62% of total government revenue. In
1973, oil production and revenues increased sizably, moving Qatar out of the rank of the world's poorest countries and providing it
with one of the highest per capita incomes. In 2007, Qatar's per capita income of nearly $67,000 was the fifth-highest in the world.

Qatar's economy suffered a downturn from in the mid-1990s. Lower Organization of Petroleum Exporting Countries (OPEC) oil
production quotas, a fall in oil prices, and the generally unpromising outlook on international markets reduced oil earnings. In turn, the
Qatari Government cut spending plans to match lower income. The resulting recessionary local business climate caused many firms
to lay off expatriate staff. With the economy recovering in the late 1990s, expatriate populations have grown again.

As of 2007, oil production was around 835,000 barrels a day (bpd), and was expected to reach 1.1 million bpd by 2009. At the current
production pace, oil reserves are expected to last more than 40 years. Moreover, Qatar's proven reserves of gas are the third-largest
in the world, exceeding 900 trillion cubic feet (14% of the world's total proven gas reserves). Qatar shares with Iran the largest single
non-associated gas field in the world, the North Field. Qatar is the world's largest producer of liquefied natural gas (LNG), with a
capacity of more than 31 million metric tons per annum (mmta) as of 2007. By 2010, it expected to reach 77.5 mmta of LNG exports
and to account for one-third of the world's LNG supply.
The 1991 completion of the $1.5-billion Phase I of the North Field gas development project strongly boosted the economy. In 1996,
Qatar began exporting liquefied natural gas to Japan. Further phases of North Field gas development costing billions of dollars are in
various stages of planning and development, and Qatar has concluded agreements with the U.A.E. to export gas via pipelines and to
Spain, Turkey, Italy, the U.S., France, South Korea, India, China, Taiwan, and the U.K. via ship. However, the government halted any
further expansion of gas production until 2010, as it assessed its plans for future exploitation of the field.

Qatar's natural gas liquefaction facilities and related industries are located in Ras Laffan Industrial City, site of the world's largest LNG
exports of more than 31 million metric tons per year. Qatar's heavy industrial base, located in Mesaieed, includes a refinery with a
140,000 bpd capacity, a fertilizer plant for urea and ammonia, a steel plant, and a petrochemical plant, and several new
petrochemical plants will be built in the coming years. All these industries use gas for fuel. Most are joint ventures between U.S.,
European, and Japanese firms and the state-owned Qatar Petroleum (QP). The U.S. is the major equipment supplier for Qatar's oil
and gas industry, and U.S. companies are playing a major role in the development of the oil and gas sector and petrochemicals.

Source: US Department of State USAID Jordan

Source: CIA World Factbook
Economic Development Program
 Market Analysis

PEST (Economic)
The country's economic growth has been stunning. Qatar's nominal GDP, estimated to be $128 billion for 2010, has recently
been growing at an average of 15%, and the 2010 growth rate is estimated to be 19%. Qatar's 2007 per capita GDP was
$67,000, and projected to soon be the highest in the world. The Qatari Government's strategy is to utilize its wealth to generate
more wealth by diversifying the economic base of the country beyond hydrocarbons.

Qatar pursues a vigorous program of "Qatarnization," under which all joint venture industries and government departments
strive to move Qatari nationals into positions of greater authority. Growing numbers of foreign-educated Qataris, including many
educated in the U.S., are returning home to assume key positions formerly occupied by expatriates. In order to control the influx
of expatriate workers, Qatar has tightened the administration of its foreign manpower programs over the past several years.
Security is the principal basis for Qatar's strict entry and immigration rules and regulations

-GDP $150.6 billion (2010 est.)

-GDP Country Ranking compared to world countries 59
-GDP Real Growth Rate16.3% (2010 est.)
-GDP Per Capita$179,000 (2010 est.)
-GDP Per Capita Country Ranking compared to world countries 1
-GDP Composition Per sectoragriculture: 0.1%
industry: 78.8%
services: 21.1% (2010 est.)
-Labour Force1.254 million (2010 est.)
-Country Ranking for Labour force 137
-Unemployment rate0.5% (2010 est.)
-Investment Gross fixed33% of GDP (2010 est.)
-Inflation Rate1.1% (2010 est.)
-Main Industries liquefied natural gas, crude oil production and refining, ammonia, fertilizers, petrochemicals, steel reinforcing
bars, cement, commercial ship repair
-Imports $23.38 billion (2010 est.)

Source: US Department of State USAID Jordan

Source: CIA World Factbook
Economic Development Program
 Market Analysis

PEST (Social)
Natives of the Arabian Peninsula, many Qataris are descended from a number of migratory tribes that came to Qatar in
the 18th century from the neighboring areas of Nejd and Al-Hasa. Some came from neighboring Gulf emirates and others
are descended from Persian merchants. Most of Qatar's 1.5 million inhabitants live in Doha, the capital. Foreigners with
temporary residence status make up about three-fourths of the population. Foreign workers comprise as much as 85% of
the total population and make up about 90% of the total labor force. Most are South and Southeast Asians, Egyptians,
Palestinians, Jordanians, Lebanese, Syrians, Yemenis, and Iranians. About 8,000 U.S. citizens reside in Qatar.

For centuries, the main sources of wealth were pearling, fishing, and trade. At one time, Qataris owned nearly one-third of
the Persian Gulf fishing fleet. With the Great Depression and the introduction of Japan's cultured-pearl industry, pearling
in Qatar declined drastically. The Qataris are mainly Sunni Muslims. Islam is the official religion, and Islamic jurisprudence
is the basis of Qatar's legal system, although civil courts have jurisdiction over commercial law. Arabic is the official
language, and English is widely spoken. Education is compulsory and free for all government employees' children from 6-
16 years old. Qatar has an increasingly high literacy rate.

-Population848,016 (July 2011 est.)

-Age Structure0-14 years: 21.8% (male 95,240/female 89,446)
15-64 years: 76.7% (male 460,673/female 189,914)
65 years and over: 1.5% (male 7,311/female 5,432) (2011 est.)
-Population growth rate 0.81% (2011 est.)
-Birth rate15.48 births/1,000 population (2011 est.)
-Death Rate 2.43 deaths/1,000 population (July 2011 est.)
-Urban population: 96% of total population (2010)
-Rate of urbanization: 1.6% annual rate of change (2010-15 est.)
-Fertility Rate2.43 children born/woman (2011 est.)
-Ethnic GroupsArab 40%, Indian 18%, Pakistani 18%, Iranian 10%, other 14%
-Religions Muslim 77.5%, Christian 8.5%, other 14% (2004 census)
-School Expenditure3.3% of GDP (2005)

Source: US Department of State USAID Jordan

Source :CIA World Fact Book
Economic Development Program
 Market Analysis

PEST (Technological)
Telephone System
general assessment: modern system centered in Doha
domestic: combined fixed and mobile-cellular telephone subscribership exceeds 300 telephones per 100 persons
international: country code - 974; landing point for the Fiber-Optic Link Around the Globe (FLAG) submarine cable network that
provides links to Asia, Middle East, Europe, and the US; tropospheric scatter to Bahrain; microwave radio relay to Qatari Arabia and
the UAE; satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean) and 1 Arabsat (2009)

Broadcast Media
television and radio broadcast media are state controlled; home of the satellite TV channel Al-Jazeera, which was originally owned
and financed by the Qatari Government; Al-Jazeera claims editorial independence in broadcasting; transmissions of several
international broadcasters are accessible on FM in Doha (2007)

Internet
-Internet Users563,800 (2009)
-Internet hosts 822 (2010)

Transportation System

-Airports6 (2010)
-Roadways total: 7,790 km (2006)
-Ports and Terminals Doha, Mesaieed (Umaieed), Ra's Laffan
-Pipelines condensate 145 km; condensate/gas 132 km; gas 980 km; liquid petroleum gas 90 km; oil 382 km (2010)

Source: US Department of State USAID Jordan

Source :CIA World Fact Book
Economic Development Program
 Market Analysis

Industry analysis (Market Overview)

Qatar's construction sector holds substantial potential over the medium term, catalysed by projects related to the country's hosting of
the 2022 FIFA World Cup. Over the short term however, Qatar's construction sector has been depressed, a trend that finally looks set
to abate going into 2011. Indeed, Qatar´s selection as the host of the FIFA 2022 World Cup in early-December 2010 put the emirate
on an entirely new trajectory in terms of its construction industry as well as its wider economy.

As a result of the news, the country expects to spend as much as US$80-100bn over the next five years as it prepares its
infrastructure for the huge influx of visitors. BMI expects the construction industry's 2009 21.8% contraction to narrow to a more
modest 5.2% in 2010 ahead of the construction frenzy, taking industry value down to QAR24.1bn (US$6.6bn) as of December 31
2010. However, beyond 2010 BMI sees growth rising sharply by 11.6% to QAR27.4bn (US$7.5bn) in 2011 and continuing in an
upwards trajectory to the end of our forecast period to 2015. For a construction industry the size of Qatar's, the country's hosting of
the FIFA 2022 World Cup will provide a huge boost for the sector over the coming years. While major international players
undoubtedly stand to win from big-ticket stadia and infrastructure projects, local contractors will also benefit substantially, both
through partnering with foreign firms or undertaking the myriad smaller projects required. Challenges lie ahead however, not least,
the country's ability to accommodate the vast visitor numbers expected for an event of this size.

The government has already allocated US$20bn to be invested in tourism between 2010 and 2013, which will go on stadia (the
country announced it would build the stadia regardless of the bid's success), as well as hotel capacity. The country expects to build
nine air-conditioned outdoor stadia, while redeveloping three additional stadia with a combined cost of about US$4bn. Lusail Stadium
has been selected as the venue for the opening match and the final; the stadium is expected to have a capacity of 86,000 and is to
be completed by 2019. However, further investment will be required if the tournament is to run smoothly, with huge investment
needed in accommodation and other recreational infrastructure. In particular BMI notes that Qatar's thriving luxury property market,
epitomised by landmark projects such as The Pearl-Qatar and Lusail City, will need to be complemented with more affordable
accommodation and services if the event is not to be labelled elitist. The key challenge will be in the country's ability to cope with the
huge influx of people during the event. For Qatar, this should be a key area of concern given its small geographical size and
population. The commercial construction sector therefore stands to be one of the main beneficiaries, with an array of local and
regional property developers standing in line to benefit. Furthermore, around US$25bn is expected to be spent on developing the
country´s rail lines, while US$20bn is to be earmarked for new road networks and US$11bn on a new airport - as well as US$1bn on
a crossing Qatar between the airport and northern Doha. Meanwhile, US$5.5bn is to be spent on a new port. The country´s selection
by FIFA will also be a boon for existing project timelines, which will likely accelerate on the back of the news.
USAID Jordan
Source: Business Monitor Report, Q2, 2011
Economic Development Program
 Market Analysis

Industry analysis (Market Overview)-Recent developments in Q1

2011
-In February 2011, it was announced that the initial phase of construction of the Musheireb development in Qatar would be completed
in 2012, with the Phases 1-B and 2 to be completed by 2016. The extensive development is to include residential units, a shopping
centre, a mosque, hotels, offices, a cinema and cultural centres. It is being managed by Qatari developer Dohaland.

-Qatari energy firm Qatar General Electricity and Water Corporation announced plans to invest QAR69bn (US$18.9bn) in the
expansion of the country's electricity and water networks over the next 10 years, according to Zawya. The projects will boost Qatar's
energy production and distribution capacity to meet growing demand. Two major projects will be the construction of 1,902 million
imperial gallon (MIG) capacity reservoirs and 183km of transmission pipelines.

-Qatar's public works authority, Ashghal, has awarded the contract to manage construction of the Doha Expressway to US-based
Kellogg Brown & Root Services (KBR). The expressway will connect the northern and southern sections of Qatar. The contract
involves design tendering, evaluation and review, construction tendering and evaluation services. The deal also includes a defect
liability period for roads, bridges and underpasses, according to Ashghal President Nasser Al Mawlawi. The QAR491.4mn
(US$134.96mn) project is anticipated to be completed in 2015.

The Qatari government has agreed to invest QAR3bn (US$824mn) in 13 large infrastructure projects across the country through the
public works authority. Planned road projects include a three-lane highway in Barwa City, the reconstruction of the Najma road and
the development of the Doha Expressway. The plans also include construction of a sewage network in Al Khor, seven schools in Al
Daain and Al Wakra, and street development in Daain.

-In January 2011, Chinese engineering contractor China Harbour Engineering Company (CHEC) began construction on port
foundations and a breakwater at the New Doha Port in Qatar. The project, valued at around US$880mn, entails building a container
wharf, general cargo wharf, naval forces wharf, and breakwater at the port. The project will be completed in about 4.5 years.

Source: Business Monitor Report, Q2, 2011

USAID Jordan
Economic Development Program
 Market Analysis

Industry analysis (Market Overview)

High Demand: The construction market in Qatar has been driven by
strong population growth, very high per capita GDP and abundant gas
resources driving rapid industrial expansion..

Hydrocarbon ventures: Qatar is planning to invest more than USD 60

billion into hydrocarbon ventures and the construction of related
infrastructure as part of it’s aim to become the world’s leading liquefied
natural gas (LNG) producer.

Electricity shortages: Due to electricity shortages, Qatar is planning to

increase investment in power generation. As part of this process,
nuclear power is being investigated in order to diversify the sources of
generating capacity in the country and improve CO2 emissions.

Transportation Infrastructure: Transport infrastructure is also

benefitting from recent investment. Most of Qatar’s current transport
infrastructure is operating close to capacity, calling for the need to
expand most modes. For example, Qatar is constructing the world’s
longest marine causeway, linking Qatar directly with Bahrain through a
suspension bridge that will consist of a four-lane highway and high-
speed passenger and freight rail lines.

Commercial Sector: The commercial sector is also experiencing

growth as the government attempts to develop the non-oil and gas
sector and adopts open business policies. These efforts are driving
demand for commercial property, hotels and other business related
infrastructure.

Source: GCC Powers of Construction, Deloitte Report

USAID Jordan
Source: GCC Powers of Construction 2010, Deloitte Report
Source: The Five competitive forces that shape strategy, Michael Porter Economic Development Program
 Market Analysis

Industry analysis (Market Overview)

Key factors driving the rapid growth of the construction industry:
• Revenues from rising production of LNG and other natural gas liquids.
• Rise of residential and commercial construction projects.
• Small relative industry size, meaning that even small projects made a substantial impact on growth.
• Large new infrastructure plans.

The government continues to invest in infrastructure projects in an attempt to diversify the oil and gas dependant economy:
• Boosted by rising LNG output and recovering oil prices, government revenues are projected to increase to almost USD 50bn a year.
• 37% of the 2010/2011 fiscal budget, or USD 11.9bn, has been allocated for major capital projects, especially infrastructure.

Qatar’s transport infrastructure is a key sector benefiting from recent investment:

• Qatar has plans to invest USD 20bn on road infrastructure projects between 2009 and 2014.
• The major transport infrastructure projects include the Qatar-Bahrain causeway, an east coast passenger and freight rail link and a
high-speed rail link between the airport and city center.

-Expected real GDP growth in 2010 18%

-Growth in non-oil and gas sector in 2009 14%
-Annual growth in construction industry value in 2010 17%
-2010/2011 fiscal project allocated to capital projects 37%
-Allocation of 2010/2011 to infrastructure $ 10bn
-Investment in tourism infrastructure in preparation for 2020 World Cup bid $ 20bn
-Target contribution of the non-hydrocarbon sectors towards the economy in 2015 80%

Source: GCC Powers of Construction, Deloitte Report

USAID Jordan
Source: GCC Powers of Construction 2010, Deloitte Report
Source: The Five competitive forces that shape strategy, Michael Porter Economic Development Program
Market Analysis

Industry analysis (Competition)

Concentration: Number of engineering firms in Qatar is huge, around 1,348 firms. As the number of firms supplying a market
increases, coordination of prices becomes more difficult, and the likelihood that one firm will initiate price-cutting increases. Qatar
is geographically small, and all competitors are competing within well known boundaries, therefore increasing the pressure on price
competition.

Diversity: The extent to which a group of firms can avoid price competition in favor of collusive pricing practices depends upon
how similar they are in terms of origins, objectives, costs, and strategies. This is not the case in Qatar as different firms compete
from different background and origins (Arabs, Americans, Europeans, and Asians), therefore the high level of diversity is a
contributor to price competition.

High Demand: The construction market in Qatar has been driven by strong population growth, very high per capita GDP and
abundant gas resources driving rapid industrial expansion. The average YoY (Year on Year) Growth is 12%

Product Differentiation: The more similar the offerings among rival firms, the more willing customers are to substitute and the
greater the incentive for firms to cut prices to increase sales. Where the products of rival firms are virtually indistinguishable, the
product is a commodity and price is the sole basis for competition. Commodity industries such as agriculture, mining, and
petrochemicals tend to be plagued by price wars and low profits. By contrast, in industries where products are highly differentiated
(perfumes, pharmaceuticals, restaurants, management consulting services), price competition tends to be weak, even though there
may be many firms competing. The engineering industry is a professional industry where product differentiation is crucial such as
design quality, project management, and company’s brand name. Therefore, this industry force/factor minimizes the intensity for
competing on price, and enables some firms with international and regional brand names to compete on quality rather than price.
Examples include Fosters, Parsons, CH2Hill, and others.

Source: Contemporary Strategy Analysis, Grant USAID Jordan

Source: Business directory, list of top engineering companies based in Qatar
Economic Development Program
 Market Analysis

Industry analysis (Competition)

Excess Capacity and Exit Barriers: industry profitability tend to fall drastically during periods of recession, due to imbalance
between demand and capacity. Unused capacity encourages firms to offer price cuts to attract new business in order to spread fixed
costs over a greater sales volume. Excess capacity may be cyclical (e.g. the boom–bust cycle in the semiconductor industry); it may
also be part of a structural problem resulting from overinvestment and declining demand. In these latter situations, the key issue is
whether excess capacity will leave the industry. Barriers to exit are costs associated with capacity leaving an industry. Where
resources are durable and specialized, and where employees are entitled to job protection, barriers to exit may be substantial.
Qatar's construction sector holds substantial potential over the medium term, catalysed by projects related to the country's hosting of
the 2022 FIFA World Cup. Over the short term however, Qatar's construction sector has been depressed, a trend that finally looks set
to abate going into 2011. Indeed, Qatar´s selection as the host of the FIFA 2022 World Cup in early-December 2010 put the emirate
on an entirely new trajectory in terms of its construction industry as well as its wider economy. As a result of the news, the country
expects to spend as much as US$80-100bn over the next five years as it prepares its infrastructure for the huge influx of visitors.

Cost Conditions: Scale Economies and the Ratio of Fixed to Variable Costs: When excess capacity causes price competition,
prices will go down based on a key factor: cost structure. Where fixed costs are high relative to variable costs, firms will take on
marginal business at any price that covers variable costs. The consequences for profitability can be disastrous. Engineering firms in
Qatar vary in size and scope. Large firms have a high fixed cost, mainly personnel and facilities, and therefore are always under the
pressure to compete on larger scale projects and to cover their overheads. Smaller firms, have a less overheads burden, allowing
them to maneuver easily and to compete on projects (small and medium sized) that could cover their overheads. Scale economies
may also encourage companies to compete aggressively on price in order to gain the cost benefits of greater volume.

Source: Business Report, Q2, 2011Monitor

Source: Contemporary Strategy Analysis, Grant USAID Jordan
Economic Development Program
 Market Analysis

Industry analysis (Suppliers)

The engineering industry’s supply side is mainly human capital (Engineers and Architects). Where as construction is depended on
heavy machinery and engineers, the engineering consulting industry is depended on the ingenuity, innovation and experience of
engineers. The following points are crucial to the analysis of engineers:

Barrier to entry: Jordanian engineers have a disadvantage due to the Qatari block on jordanian visas. Ways to overcome this
barrier is to send engineers with American or European passports.

Diversity: Engineers in Qatar come from different backgrounds: Arabs, Europeans, and Americans.

Compensation: compensation of engineers vary. It could start from 20K QR and up to 100K QR, depending on the seniority and
level of expertise.

Qatarnization: It is noticed that qatarnization is in the Gas and Oil Sector, mainly QP, RASGAS and QatarGas. The engineering and
construction sector is still dominated by expats.

USAID Jordan
Economic Development Program
Market Analysis

Industry analysis (Customers)

Size and concentration of buyers relative to suppliers: The smaller the number of buyers and the bigger their purchases, the
greater the cost of losing one. Qatar’s greater proportion of infrastructure and construction value comes from the government,
therefore the bargaining power of the government entities is strong due to size & value of projects.

Buyers’ information: The better informed buyers are about suppliers and their prices and costs, the better they are able to bargain.
Again since the government is involved in the bidding and tendering process, they are aware of competitive pricing in their markers
and therefore are able to drive prices down through stronger negotiation power.

Source: Contemporary Strategy Analysis, Grant USAID Jordan

Source: GCC Powers of Construction, Deloitte Report
Economic Development Program
 Market Analysis

Industry analysis (Barriers to Entry)

Government and Legal barriers: The main barrier, is the rejection of Jordanian visas to Qatar. This is preventing Jordanian firms
from entering and working in Qatar.
Economies of Scale: In industries that are capital or research or advertising intensive, efficiency requires large-scale
operation. The problem for new entrants is that they are faced with the choice of either entering on a small scale and accepting
high unit costs, or entering on a large scale and running the risk of underutilized capacity while they build up sales volume. We
believe that due to the nature of engineering consulting economies of scale is not an obstacle, as the designers and planners of
Jordanian firms are able to work on small, medium sized or large projects.
Absolute Cost Advantage: Apart from economies of scale, established firms may have a cost advantage over entrants simply
because they entered earlier. Absolute cost advantages often result from the acquisition of low-cost sources of raw materials.
Absolute cost advantages may also result from economies of learning. Engineering firm’s already operating in Qatar have a great
advantage over new possible Jordanian entrants due to their knowledge of the market, how to bid, how to price, and having
established their name and success stories in Qatar.
Product Differentiation: In an industry where products are differentiated, established firms possess the advantages of brand
recognition and customer loyalty. New entrants to such markets must spend disproportionately heavily on advertising and promotion
to gain levels of brand awareness and brand goodwill similar to that of established companies. Alternatively, the new entrant can
accept a niche position in the market or can seek to compete by cutting price. Big firms in Qatar have strong brand names such as
Arab Engineering Bureau and others. These firms are able to get work due to their superior brand name and reputation.

Access to the right partners and clients: Not knowing the market, whom to approach and whom to joint venture with could be
considered an entry barrier. On the other hand, established firms in Qatar are aware of main players and partners and therefore
having an advantage over new entrants.

Source: Contemporary Strategy Analysis, Grant USAID Jordan

Source: GCC Powers of Construction, Deloitte Report
Economic Development Program
Market Analysis

Industry analysis (Substitute Products)

Outsourcing of services: There are no real substitute products/services for the engineering profession in Qatar, except
one worth mentioning ,which is the outsourcing of services (AutoCAD/ detailing of structural and electro mechanical) to
smaller firms in Pakistan and India. These outsourced firms are very cheap in cost and efficient/fast in the work needed.

USAID Jordan
Economic Development Program
Go-To Market Strategy
Segmentation (Where to focus)

Country market size & growth rates segmentation

Based on the above chart , Qatar construction sector Based on the above chart , Qatar construction sector is
represents 14% of total value of the construction growing at an average of 12 % year after year.
industry in GCC countries in 2010.

USAID Jordan
Source: GCC Powers of Construction, Deloitte Report,2010
Economic Development Program
Segmentation (Where to focus)

Country top projects

Based on the above chart , 56% of projects value are transportation projects, while 35% of projects value are multi-district
projects

USAID Jordan
Source: GCC Powers of Construction, Deloitte Report
Economic Development Program
 Segmentation (Where to focus)

Country top projects

New Doha International Airport

Value: US $11 billion

Client: Civil Aviation Authority

Schedule: Scott Wilson Kirkpatrick and Company is the design consultant for airfield work, while San Francisco's HOK is providing
design, MEP engineering and other services for the passenger terminal complex, and associated sites. Bechtel is the engineering,
procurement and construction management contractor. The airport is expected to be completed in 2015.

Scope: The project calls for construction of New Doha International Airport. The airport covers a land area in excess of 22km² and
will handle around 50 million passengers, 2 million tonnes of cargo, and 320,000 aircraft landings and takeoffs each year. Over 100
hectares alongside the new airport have been reserved for commercial development, including a free trade zone, offices, hotels and
retail malls. Arinc and Thales were awarded a contract for the IT, telecommunication and security systems

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Education City

Value: US $8.25 billion

Client: Qatar Foundation for Education, Science and Community Development

Schedule: The project is under construction. Work started in the first quarter of 2003 and the initial phase is scheduled to be
completed next year. The campus will continue to expand as new institutions decide to open up there.

Scope: Education City covers 14km² and houses educational facilities from schools to research level and branch campuses of some
of the world’s leading universities.

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

New Doha Port

Value: US $7 billion

Client: Higher Committee for the Coordination and Pursuance Executive Council

Schedule: The project is in the design stage. Consult Maunsell is the project manager, Worley Parsons was selected as the detailed
design consultant, while Royal Haskoning is the master plan consultant and Scott Wilson Group is the conceptual design consultant.
The dredging and reclamation contract is expected to be awarded in the first quarter of 2010. Phase one is due to be completed in
2014 with the entire project deadline pencilled in for 2023.

Scope: The scope of work includes construction of New Doha Port located in Economic Zone 3, Al Wakra, and will be linked to the
mainland by an 8.5km long trestle bridge. The port will cover an area of 20km². The scope also includes construction of five general
cargo terminals and berths, four container terminals and berths, a roll-on/roll-off berth, an administration and customs complex as
well as a berthing area for tugs and pilot boats

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Lusail Development

Value: US $5.5 billion

Client: Lusail Real Estate Development Company

Schedule: The project is currently under construction and infrastructure works are scheduled to be completed in 2011. The entire
development is expected to be completed in 2018. Hyder Consulting Middle East, Halcrow and Cowi and Partners prepared the
detailed infrastructure plans. Parsons International is the project manager.

Scope: Lusail is a new coastal city under construction north of Doha and will cover 35km². The project will contain 18 different
districts and will include a lagoon with two marinas, 25,000 residential units, high and low-rise buildings, commercial districts and
mixed-use areas, retail areas, two golf courses, 22 schools, and a hospital

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

The Pearl Qatar

Value: US $5 billion

Client: United Development Company

Schedule: The project is currently under construction. Several contractors are working on the development of towers and villas on
the project. Construction started in 2006 with a duration of five years.

Scope: The Pearl Qatar is a mega project located on 4 million m² of reclaimed land. The development will accommodate more than
40,000 residents. The island is divided into various districts including Abraj Quartiers, Costa Malaz, Porto Arabia, Viva Bahriyah, The
Villas, Floresta Gardens, and Isola Dana. The project will include three 5-star luxury hotels with a total room capacity of 800, four
marinas and retail space. The master-plan of the Pearl shows buildings ranging from high-rise towers to four-storey buildings and
villas. The project has Mediterranean and Middle Eastern inspired themes.

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Ras Girtas Power and Water Plant

Value: US $3.9 billion

Client: Ras Girtas Company

Schedule: Mitsui Corporation of Japan was awarded the EPC contract, which in turn sub-contracted Hyundai Engineering and
Construction of Korea, Mitsubishi Heavy Industry of Japan and Sidem of France. The first phase of the project is expected to be
completed in 2010, while the entire project is scheduled for completion in April 2011.

Scope: The project calls for the construction of Ras Girtas power and water plant in Qatar. The plant capacity is 2730MW of
electricity and 63 million gallons per day of potable water. The plant is located in Ras Laffan. Ras Girtas Company for Power is a joint
venture between Qatar Petroleum (15%), Qatar Electricity and Water Company (45%), GDF Suez of France (20%), Mitsui
Corporation of Japan (10%), Chubu Corporation of Japan (5%) and Shikoku Corporation of Japan (5%).

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Al Wa’ab City Development

Value: US $3.2 billion

Client: Nasser Bin Khaled and Sons Holding Company

Schedule: Arabtec Construction was awarded the main construction contract in December 2006. The contract covers construction of
a central plaza, an 11-storey hotel, 639 villas, a seven-storey apartment building, 88,000m² of retail space and 291,000m² of parking.
The value of the contract is around $1.4 billion. Al Wa’ab City is expected to be completed in 2010. In October last year, it was
announced that financing for the multi-billion dollar project had been completed.

Scope: Al Wa’ab City Development in Doha covers an area of 1.25 million m². The city will include mixed-use residential and
apartment units housing around 8000 people, anchor, and low-rise office space. The heart of the city is Barahat Al Wa’ab – a
44,000m² yard, which will become a central urban gathering space for tourists, guests
and residents of the city. Barahat Al Wa’ab will be anchored by a 200-room 5-star hotel

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Qatar Entertainment City

Value: US $3 billion

Client: Abu Dhabi Investment House

Schedule: Forrec is the project design consultant, RTKL is the master planner, Keo International Consultants is the project manager
and Redco International was awarded the construction contract for the canal wall. Construction of the Downtown District is expected
to begin in 2009 and will be completed in 2012. The whole project is expected to be completed in 2015. Scope: Qatar Entertainment
City includes construction of a theme park, a 1.5km sea canal, a theater, hotels, retail space, a residential community with 4500
residential units and a snow dome.

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Doha Metro

Value: US $3 billion

Client: Ministry of Communications and Transport

Schedule: The project is still in the concept stage. Construction was earlier scheduled to begin next year and to be completed in
2015.

Scope: The railway will include an east coast link, a high-speed link, a freight link and a light rail system. The railway will serve
suburbs of Doha and developments such as Lusail, Education city and West Bay.

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects

Qatar-Bahrain Causeway

Value: US $3 billion

Client: Public Works Authority (Qatar), Ministry of Works (Bahrain)

Schedule: Cowi Consult was awarded a pre-studies contract, while KBR will provide design management, project management and
construction management services. A joint venture between Vinci Construction, Middle East Dredging Company - Medco, Hochtief
Construction, Consolidated Contractors Company and QDVC was awarded the main construction contract in May 2008. Construction
is expected to begin later this year and be completed in early 2013. Middle East Dredging Company will carry out the dredging works.

Scope: The Qatar - Bahrain causeway project calls for the design and construction of a 40km two-lane dual carriageway between
Qatar and Bahrain. The road will run over a total of 18km of embankments where the sea is shallow and 22km of viaducts and
bridges over deep water, including two 400m cable-stayed bridges over shipping channels.

USAID Jordan
Source: Qatar Living website
Economic Development Program
 Segmentation (Where to focus)

Country top projects (MEP Projects)

Project: Al Jassimya Tower Al-Wakra Hospital

Client: Sheikh Jassim Bin Khalifa Client: Public Works Authority
Consultant: EGEC Consultant: GHD Global
Main contractor: Commodore Qatar Construction Main contractor: Joannou & Paraskevaides Overseas
MEP contractor: In-house MEP contractor: Conspel
Value: US$100m Value: US$508m
Status: Under construction Status: Under construction
Type: commercial buildings Type: Hospital

New Arrival Terminal at DIA - Package 2 Al Majid Residential Tower

Client: Qatar Airways Client: Ahmad Mahdi Ali Al Majid
Consultant: GHD Global Consultant: Arab Engineering Bureau
Main contractor: Arabian McNamara Contracting Main contractor: Al Seal Contracting
MEP contractor: Arabian Airconditioning MEP contractor: In-house
Value: US$30m Value: US$57m
Staus: Under construction Status: Under construction
Type: Airport Type: Residential

Sidra Medical & Research Centre Library for Qatar UniversityClient: Qatar University
Client: Qatar Foundation (QFESCD) Consultant: Arab Architects Group
Consultant: OHL/Contrack International Main contractor: Tadmur Contracting & Trdg Est.
MEP contractor: Qatar Kentz/Voltas MEP contractor: In-house
Value: US$2.4bn Value: US$69m
Status: Under construction Status: Under construction
Type: Hospital Type: Educational facilities

USAID Jordan
Source: Construction week On Line
Economic Development Program
 Segmentation (Where to focus)

Country top projects (MEP Projects)

Palm Towers Business Park & Hotel Facilities in Najma

Client: Dar Investment & Development Co. Client: Sheikh Mohammed Bin Hamad Al Thani
Consultant: MZ & Partners Consultant: Arab Engineering Bureau
Main contractor: Al Seal Contracting Main contractor: Redco Construction
MEP consultant: In-house MEP contractor: Qatar Electro Mechanical Group
Value: US$218m Value: US$101-250m
Status: Under construction Status: Under construction
Type: Mixed-use Type: Mixed-use

Shmoukh Twin Towers in C-Ring Road Samiriya Towers

Client: Real Estate Services Group Client: Mr. Ali Mohammed Al-Khayareen
Consultant: EHAF Consulting & Engineers Consultant: MZ & Partners
Main contractor: SEG Qatar Main contractor: Gulf East Trading & Contracting
MEP contractor: Drake & Scull MEP contractor: Orbit Al Khaleej
Value: US$200m Value: US$124m
Status: Under construction Status: Under construction
Type: Commercial buildings Type: Commercial buildings

NDIA-passenger terminal complex Residential tower in viva bahriya - vb 02

Client: NDIA Steering Committee Client: Sheikh Mohammed Bin Hamad Al Thani/UDC
Consultant: Bechtel/HOK Consultant: Meinhardt
Main contractor: Sky Oryx JV/Taisei Corporation and TAV Main contractor: SEG Qatar
MEP consultant: Anel & Ekin MEP contractor: In-house
Value: US$807m Value: US$31-100m
Status: Under construction Status: Under construction
Type: Passenger terminal Type: Residential

USAID Jordan
Source: Construction week On Line
Economic Development Program
Segmentation (Where to focus)

Sub-sector segmentation

The above chart provides segmentation of projects according to sub-sector. As per the chart, 60% of the value of projects are
allocated to the construction and infrastructure sector.

USAID Jordan
Source: GCC Powers of Construction 2010 , Deloitte Report
Economic Development Program
Segmentation (Where to focus)

City/Area segmentation
2
The Analysis on Qatar suggested that key areas to focus on are:

•Doha : Capital city with major transportation and commercial

projects.

•Mesaieed: An industrial city with major industrial projects

covering fertilizer, chemicals and others.

•Ras Laffan: a major industrial city due to gas production. Major

gas players operating in Raslaffan are RasGas and Qatargas 5
1
•Dukhan: a petroleum production city where QP (Qatar
Petroleum) operates. 3

•Lussail City: Lusail City covers an area of 38 Km2 subdivided

into 19 different districts. Lussail’s master plan consists of 4
11.5 Km2 of developable land subdivided into a total of 4,929
plots. The residential components of the master plan offer 50,290
dwelling units in a mix of town houses, villas, and apartments.

1 Dukhan City
2 Ras Laffan City
3 Doha City
4 Mesaieed City
5 Lussail City

USAID Jordan
Source: www.lusail.com
Source: Business Intelligence work conducted through Consolidated Contractors Company Economic Development Program
Segmentation (where to focus)

Customer segmentation

Client A: Government Client B: Real Estate Client C: Private

Segment

Largest Segment in terms of Medium Segment in terms of Smallest Segment in terms of

value value value
size
penetrate
Ability to

Harder to penetrate/dominated
Easier to penetrate Easier to penetrate
by international companies
projects
Type of

Infrastructure, Cities, and other Towers, Buildings, and

Towers, Buildings, and Villas
industrial projects compounds

USAID Jordan
Economic Development Program
Segmentation (where to focus)

Customer segmentation/Sample clients

Building Sector Infrastructure Sector Marine Sector Power and Water Sector

•Public works authority •Public works authority •QP •Doha land

•International bank of qatar •Diar real estate company •Nakilat •Public works authority
•Damac holdings •Qatari government •Public works authority •Qatar general electricity and
•Al Futtaim Group •National leasing holdings •Lusail real estate development water corporation
•Qatar Foundation •Qatar general electricity and •New doha port project •Mesaieed power company
•Qatar Petroleum (QP) water steering committee •Ras Girtas co. for power
•Doha Land Hospitality •Lusail real estate development
•Barwa Real Estate •Barwa real estate
•New doha International airport •Civil aviation authority
•Qatar general and reinsurance
company
•Qatar museum authority
•Qatar national bank
•Energy city Qatar
•Resorts development company
•Sama Dubai
•Thani Bin Abdullah housing group
•Four seasons hotel
•Qatar airways
•Ministry of Municipality and
urban planning
USAID Jordan
Source: Construction week on line
Economic Development Program
Segmentation (where to focus)

Contractor segmentation
CCC (Consolidated Contractors Company)

Originating from Greece, the Consolidated Contractors Group (CCC) is a leading transnational construction contractor that
oversees the delivery of engineering and construction projects, predominantly in the petrochemicals industry. CCC offers
procurement, project management and construction expertise in the development and maintenance of civil and industrial
facilities, supply networks and transport links. CCC works throughout the Middle East and the entire Gulf region, Africa, Europe,
the Caribbean, Central America, USA, CIS and South East Asia.

Construction and engineering services

Covering all mechanical, electrical and instrumentation operations, CCC is committed to providing high quality heavy civil
engineering work and industrial plant construction services. CCC delivers EPC work for water, oil and gas pipelines and high
quality civil and industrial buildings. CCC is experienced in installing and fabricating whole piping networks, as well as erecting
related equipment and vessels, steel works for light and heavy mechanical works (refineries, petrochemical plants, gas oil
separation plants, etc).

CCC also specialize in infrastructure works and networks, including power and desalination plants, water and sewage treatment
plants, interchanges, harbours, docks, roads, highways, highway interchanges, bridges and airports. Other municipal works
include water and sewage treatment facilities, pumping stations and subsidiary installations. CCC’s projects comply with the
strictest safety and quality standards. This is reflected in CCC's ISO 9001 and ISO 9002 certificates

USAID Jordan
Source: www.hydrocarbons-technology.com
Economic Development Program
Segmentation (where to focus)

Contractor segmentation
Morganti

Morganti Group offers its clients a broad range of construction services from constructing your facility to maintaining it. National
and International Owners have repeatedly entrusted the Morganti team to build a variety of commercial, industrial, and
governmental projects.

From offices in Egypt, Jordan, Abu Dhabi, Dubai, Qatar, Italy and Greece Morganti maintains a focus on education, residential,
government, aviation, transportation, roads, healthcare, corrections, power and water treatment facilities. Employing the most
sophisticated construction techniques in scheduling, value engineering, estimating, cost management and on-site supervision;
our clients continually benefit from the years of experience of each of our qualified staff as they directly involve themselves in
the administration of all key components on each project. Morganti has been awarded over $10 Billion dollars in work over the
past 10 years.
Sample Projects with US Army Corp of Engineers (USACE)
oArmy Research Laboratory Aberdeen, Maryland $62,200,100
o Ft. Mead, MD Albert Hall Addition Brookmont, Maryland $21,800,000
oRelocatable Building Kuwait $45,000,000
oMillennium Village Facilities Al Udeid Airbase, Qatar $93,000,000
oWashington Hall, West Point Academy $27,000,000
oArvin Gymnasium, West Point Academy $13,700,000
Sample Projects with US Agency for Int’l Development (USAID)
oWell Station Rehabilitation Project (SAER BS & PWA1) West Bank, Palestine $9,700,000
oRehabilitation of Priority Springs and Wells Amman, Jordan $4,250,000
oSalt Water Treatment Plant Salt City, Jordan $7,500,000
oMansoura Water and Wastewater Facilities Mansoura, Egypt $35,000,000
oWater and Wastewater Facilities Nuweiba, Egypt $17,000,000
oAs Samra Wastewater Plant Amman, Jordan $153,000,000

USAID Jordan
Source: Morganti website
Economic Development Program
Segmentation (where to focus)

Contractor segmentation
HOCHTIEF

HOCHTIEF Aktiengesellschaft is the seventh-largest provider of construction-related services in the world and market leader in
Germany. With more than 70,000 employees and a sales volume of EUR 20.16 billion in FY 2010, the company is represented
in all the world's major markets. 92 percent of this output was generated abroad.

Construction is HOCHTIEF's core competence. HOCHTIEF cover traditional construction business and construction
management in the fields of building construction, civil engineering and infrastructure facilities. It includes services such as the
procurement of required materials and site installation which, from a strategic perspective, ideally complement the construction
business before, during and after the building works.

Sample Project

Barwa Commercial Avenue will be an 8-kilometer-long center for retail, office and residential units. It is being built along the
highway on the southern outskirts of Doha and will feature almost 900,000 square meters of gross floor space–equivalent to
approximately 110 soccer pitches.

USAID Jordan
Source: HOCHTIEF website
Economic Development Program
Segmentation (where to focus)

Contractor segmentation
MIDMAC
MIDMAC Contracting Company W.L.L. (MIDMAC) is one of the largest Qatari contracting organizations employing a total
workforce of over 6,000 employees. It has a proven track record for delivering large and challenging projects on schedule,
within budget, and according to required quality & specifications. Ranked by many clients in Qatar as one of the leading Qatari
contractors in the country, MIDMAC is known throughout the industry as an organization founded on professionalism, reliability
and integrity. Safety is a determining factor in every facet of the company's operations.

The organization has been operating in Qatar since mid 1960's, under different identities, until 1975 when MIDMAC was formed
and continues to carry on business until today. In 2002, Qatar Investment and Project Development Company W.L.L. (QIPCO)
acquired a majority stake in MIDMAC and by 2005 MIDMAC became a wholly owned subsidiary of QIPCO.

MIDMAC, under the umbrella of QIPCO, benefits and contributes to the activities of its sister companies that are active in real
estate, oil & gas, trading & services, financial services, education, health and specialized joint ventures.

Specializing in General Contracting, MIDMAC is a Class A certified contractor in Qatar. Its construction capabilities are
demonstrated by more than 40 years of successful business activities and project experiences. The types of projects executed
and in progress include residential and commercial buildings, high rise, hospitals, universities, stadiums, hotels, shopping
centres, road works and bridges, heavy infrastructure works, utilities projects, electromechanical installations, civil and military
airport facilities, civil works related to oil & gas and petrochemical projects.

All major components of a project are performed by MIDMAC personnel. Design package (in EPC contracts, Engineering,
Procurement and Construction) and Specialist Instrumentation & Controls are sublet to other reputable companies, under
MIDMAC's full supervision and control.

MIDMAC envisages several new ventures and improvement projects for continual development and profitability. With an
average annual turnover in excess of US$ 350 million, MIDMAC is poised for potential growth in line with the substantial
development plans in Qatar and other regional countries in the years to come.

USAID Jordan
Source: MIDMAC website
Economic Development Program
Segmentation (where to focus)

Contractor segmentation
Al Jaber Engineering

AlJaber Engineering (JEC) is a leading general contractor based in the State of Qatar. Established in 1995 as part of Al Jaber
Group- a major conglomerate with over 30 companies- JEC has successfully completed numerous large-scale turnkey projects
for many prestigious clients in different sectors including:

Highways, Roads and Infrastructure

Engineering, Procurement, Installation & Commissioning (EPIC)
Oil, Gas, Petrochemical and Industrial
Pipeline Construction
Power Generation, Substations & Desalination Plants
Sewage Treatment Plants and Pumping Stations
Maintenance of Oil & Gas and Petrochemical Installations
Landmark Buildings

USAID Jordan
Source: Al Jaber Engineering website
Economic Development Program
Segmentation (where to focus)

Contractor segmentation
Qatar Engineering and Construction Company

Qatar Engineering & Construction Company (Qcon) is the leading National EPC & Maintenance Contractor in the Oil & Gas,
Petrochemical, Fertilizer and Power industries. Formally known as MECON, the company was established in 1975. Since then,
Qcon has contributed immensely to the hydrocarbon infrastructural development in Qatar. Qcon employs over 5,000 skilled
personnel on permanent basis that are supplemented by short-term personnel as required to meet project needs. Qcon offers
the following services:

oEPC Projects (Engineering, Procurement & Construction).

oConstruction (Civil, Mechanical, Electrical & Instrumentation).
oPre-Commissioning, Commissioning and Start up Services.
oMaintenance (Asset Management, Shutdowns & Technical support)
oMedium and Heavy Steel Fabrication.
oFabrication offshore structures, including topside production facility

USAID Jordan
Source: Qcon website
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top Engineering Firms In Qatar)

NO. Firm Name Firm Classification Firm Contacts
1 IproPlan Planners Co. LTD Architectural Designers Tel: (00974) 44666124
2 Walid Shamoun Architects Architectural Designers Tel: (00974) 44568833
3 Classical Palace Abdullah Al Hamad Architectural Designers Tel: (00974) 44422413
4 ACG Architectural Consulting Group Architectural Designers Tel: (00974) 44369471
5 Al Attiyah Architectural Group Architectural Designers Tel: (00974) 44119117
6 AL Gazeerah Consulting Engineering Architectural Designers Tel: (00974) 44352126
7 Al Sahlawi group GMW Architects Architectural Designers Tel: (00974) 44517744
8 Al Mana Consulting Group Architectural Designers Tel: (00974) 44449886
9 Arab Consulting Engineers Architectural Designers Tel: (00974) 44355409
10 Arab Engineering Bureau Architectural Designers Tel: (00974) 44477969
11 Arab Group Architects Architectural Designers Tel: (00974) 44419276
12 Architects Consulting Engineering Office Architectural Designers Tel: (00974) 44328563
13 Leigh & Orange Architectural Designers Tel: (00974) 44558140
14 Manusell Consulting Services Architectural Designers Tel: (00974) 44435501
15 Mayan Design Architectural Designers Tel: (00974) 44581490
16 John R Harris Qatar Architects Architectural Designers Tel: (00974) 44441406
17 Horizons Engineering Architectural Designers Tel: (00974) 44479372
18 Purple Designs Architectural Designers Tel: (00974) 44417031
19 Qatar Design Consortium Architectural Designers Tel: (00974) 44439603
USAID Jordan
Source: www.Qatcom.com
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms operating in the Middle

East/By Revenue)
Rank Firm Country Income US $ Million

1 National Engineering Bureau UAE 140

2 KEO international consultants KUWAIT 111.9

3 Foster and partners UK 95

4 Dewan Architects & Engineers UAE 56

5 Dar Gulf Consult KUWAIT 38

6 HOK USA 37

7 Nikken Sekkei JAPAN 31.7

8 Perkins & Will USA 31.2

9 RTKL Associates USA 31

10 Dar SSH International KUWAIT 30.2

Engineering

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)
Competitor segmentation (Top 20 architects in the ME region/Staff)
Rank Firm Staff in Middle East Architects in Middle East
1 ATKINS 2000 213
2 KEO INTERNATIONAL 1821 504
3 RMJM 276 51
4 DEWAN ARCHITECTS & ENGINEERS 220 140
5 BURT HILL 213 -
6 GODWIN AUSTIN JOHNSON 175 -
7 AEDAS 168 -
8 WOODS BAGOT 120 -
9 P&T ARCHITECTS AND ENGINEERS 85 -
10 HOK 65 -
11 BROADWAY MALYAN 30 -
12 PRP/AI ARCHITECTS 22 -
13 GENSLER 16 -
14 BDP 15 -
15 BENOY 14 -
16 RTKL 13 -
17 FX FOWLE ARCXHITECTS 10 -
18 CALLISON 8 -
19 HKS INC 3 -
20 NIKKEN SEKKEI 3 -
USAID Jordan
Source: Middle East Architect/April 2010
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in master planning)

Rank Firm Country Income US $ Million

1 Nikken Sekkei JAPAN 48.4

2 KEO International Consultants KUWAIT 39

3 Gensler USA 35

4 Callison USA 32

5 National Engineering Bureau UAE 30

6 Heerim Architects SOUTH KOREA 15

7 Kohn Pederson Fox USA 12.4

8 Skidmore, Owings & Merril USA 11

9= Dewan Architects & Engineers UAE 10

9= RTKL Associates USA 10

9= Sasaki Associates USA 10

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in Infrastructure)

Rank Firm Country Income US $ Million

1 KEO International Consultants KUWAIT 13

2 Dar Gulf consult KUWAIT 11.7

3 Dar SSH International KUWAIT 10.1

Engineering
4 Leo A Daly USA 9.9

5= HBO+EMTB Australia 5

5= Stantec Canada 5

7 RPS Group Plc UK 4

8= Dewan Architects & Engineers UAE 3

8= Leigh & Orange china 3

10 Gansam Architects & Partners South Korea 2.8

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in leisure )

Rank Firm Country Income US $ Million

1 WATG USA 45

2 Aedas UK/CHINA/USA 41.3

3 Gensler USA 35

4 Leo A Daly USA 17

5 KEO International Consultants KUWAIT 14.5

6 Steelman Partners USA 14

7 Woods Bagot AUSTRALIA 12

8 Samoo Architects & Engineers SOUTH KOREA 9

9 Heerim Architects SOUTH KOREA 7

10 WHAT Architects UK 5

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in construction management)

Rank Firm Country Income US $ Million

1 KEO International Consultants KUWAIT 69.4

2 Nikken Sekkei JAPAN 40.5

3 Heerim Architects SOUTH KOREA 38

4 Samoo Architects & Engineers SOUTH KOREA 32

5 Kunwon Architects & SOUTH KOREA 16

Engineers
6= National Engineering Bureau UAE 15

6= Nihon Sekkei JAPAN 15

8 GMP GERMANY 11

9 Gansam Architects & Partners SOUTH KOREA 7.7

10 Henn Architekten GERMANY 3

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in urban design)

Rank Firm Country Income US $ Million

1 Gensler USA 25

2 Nihon Sekkei JAPAN 12

3 Sweco SWEDEN 10

4 KEO International Consultants KUWAIT 9.7

5 RTKL Associates USA 9

6= Dewan Architects & Engineers USE 7

6= HOK USA 7

6= National Engineering Bureau UAE 7

6= Sasaki Associates USA 7

6= Tabanlioglu Architects TURKEY 7

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in planning)

Rank Firm Country Income US $ Million

1 KEO International Consultants KUWAIT 39

2 Nikken Sekkei JAPAN 38.3

3= RTKL Associates USA 10

3= Sasaki Associates USA 10

5 Callison USA 9

6 Skidmore, Owings & Merril USA 7

7 HDR Architecture USA 6.6

8 HOK USA 6

9 Kohn Pedersen Fox USA 5.43

10 WATG USA 5.42

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Segmentation (where to focus)

Competitor segmentation (Top firms in project management)

Rank Firm Country Income US $ Million

1 HDR Architecture USA 49.5

2 KEO International Consultants KUWAITE 39

3= National Engineering Bureau UAE 15

3= BDP UK 10.5

5 ACXT-IDOM SPAIN 6

6 Gould Evans USA 5.1

7 Leigh & Orange CHINA 5

8 GMP GERMANY 3

9 Henning Larsen Architects DENMARK 2

10 PRP Architects UK 1.9

USAID Jordan
Source: The top 100 Building Design World Architecture Survey, January 2011
Economic Development Program
Value chain (Who are the high-level value chain partners)

Value chain

Client Engineering Consultant Contractor

Player Types

Government Clients International Firms International contractors

Real Estate Clients Qatari Firms Qatari contractors
Private Clients
Samples

•Al Futtaim Group •Leigh & Orange •CCIC

Player

•Qatar Foundation •Mayan Design •Morganti

•Qatar Petroleum (QP) •Architects Consulting Engineering Office •MIDMAC
•Doha Land Hospitality •John R Harris Qatar Architects •Al Jaber Engineering
•Barwa Real Estate •Horizons Engineering •HOCHTIEF
•New doha International airport •Arab Group Architects
•Qatar general and reinsurance •Arab Engineering Bureau
company
•Qatar museum authority
•Qatar national bank
•Energy city Qatar
•Resorts development company

USAID Jordan
Economic Development Program
Registration & investment procedures (How to register and invest)

Registration & investment procedures/starting a new company

Detailed Measures
• Submitting the Application of “New Company Registration”
• Selecting and approving the trade name by the Commercial Registry and Trademark Department
• Authenticating the Memorandum of Association of limited liability company and stamping the Articles of Association of sole
proprietor company by the Ministry of Justice
• Approving the commercial activity by the competent authority, if this is required
• Subscribing to Qatar Chamber of Commerce & Industry
• Issuing the commercial registration
• Issuing the commercial license

Measures of Establishing New Companies

•Submitting the completed standard memorandum of association or articles of association to the clerks of Companies Department
by the founding members to obtain the approval on the commercial name and trade mark
• Sending letter to the bank regarding the deposit of the specified capital of the company
• Stamping the application by the Companies Department at the Ministry of Business & Trade
• Finalizing measures with the Ministry of Justice, then the Commercial Registry Department. (Some activities require obtaining the
approval of the competent authority)

For shareholding Companies

The application for establishing the company shall be submitted to the Ministry annexed to it the company’s draft Memorandum
and Articles of Association. If the application is approved, the founding members shall sign the Memorandum and Articles of
Association and get it authenticated by the competent authority, then submit it to the Ministry. The Minister shall issue his resolution
approving or rejecting the application

USAID Jordan
Source: Qatari Ministry of Business and Trade
Source: http://export.gov/middleeast/country_information/qatar/ConsiderQatarGuide.pdf Economic Development Program
Registration & investment procedures (How to register and invest)

Registration & investment procedures/starting a new company

Local Partner: The law requires that foreign investors have a local partner who holds the majority interest and can therefore
control the business -as well as close it. The local partner, be it a company or an individual, doesn’t need to contribute to the start-
up investment or participate financially at all. As with self-employment, there are various ways that a partner can be remunerated.
The local partner requirement is currently under review in some states, however, in order to encourage foreign investment. W hen
the business is registered, Foreign investors must show the Ministry of Commerce that they have a substantial sum of money to
invest. The required sum varies between the states (it’s between $10,000/£6,500 and $50,000/£33,500 in most cases) and is
regarded as a guarantee against liabilities.

Seeking Advice: Corporate law in Qatar is similar to that in western countries, in that businesses can be run as limited liability
operations, private companies or other types of concern. Setting up a business or buying a going concern can be complex and
investors must obtain local legal advice and guidance about registration formalities. As a foreigner, investors are likely to use a
western/Arab joint venture law firm. When choosing, investors should seek the advice of the Arab-British Chamber of Commerce,
the DTI, and Middle East Association.

Tax: There is no personal income tax in Qatar ,nevertheless, foreign-owned firms must pay a tax on corporate income. The rate is
a sliding scale ranging from 0% on less than 100,000 QR to 35% on more than 5 million QR. Certain tax exemptions are allowed in
Qatar depending on whether the activities of the foreign firm are directly benefiting Qatar; incorporating modern technology; and/or
fulfilling a strategic goal of the government.

Documentation: Original copies of documentation on goods shipped into Qatar are required. Commercial invoices, shipping
document, packing lists, and certificates of origin must accompany goods entering Qatar. Firms must legalize commercial invoices
at the Qatari Embassy.

USAID Jordan
Source: Qatari Ministry of Business and Trade
Source: http://export.gov/middleeast/country_information/qatar/ConsiderQatarGuide.pdf Economic Development Program
Registration & investment procedures (How to register and invest)

Registration & investment procedures/starting a new company

Labor: Non-Qataris must possess a valid work permit issued by the Department of Labor to work in Qatar. The new Labor
Law of Qatar (Law 14 of 2004) aims to balance the rights of employer and employee, institutes hiring priority to Qatari
nationals, and specifies a number of obligations for firms vis-à-vis their employees. These obligations include the
requirement that the employment contract must be in writing, the recognition of the concept of end-of-service benefits, and
limitations on the maximum number of hours worked per week. More details are available in the Country Commercial
Guide. U.S. firms seeking to hire non-Qataris should note that Qatari visa regulations and procedures frequently change
without warning

Ways to do business: In Qatar, foreign companies are generally required to appoint a service agent/sponsor in order to
be able to do business. Experts believe that the requirement for a service agent/sponsor in Qatar is getting more and more
lenient, and may be abolished outright in the years to come.

Foreign companies wishing to do business with Qatar need to appoint a representative agent. It is very important to
distinguish between two types of agents:

(a) Commercial Agent: If foreign firms simply want to export its products to Qatar, they will need a commercial agent to act
as their distributor or sales representative – note that commercial agency agreements in Qatar are exclusive.
(b) Service Agent: If Foreign firms intend to execute a project for Qatari private entities and leave the country upon
completion, a service agent or sponsor is required to take care of all of your administrative paperwork with the Qatari
Government (visas, permits etc.). However, if the foreign firm intends to fulfill a government contract or provide a public
service or utility, the Qatari Government waives the service agent/sponsor requirement.

If firms want to do business in Qatar, the most common practice is to establish a Limited Liability Company. In this case
foreign ownership cannot exceed 49% of the capital with a Qatari partner owning 51%. New Qatari law allows foreigners to
earn up to 80% or more of the company’s profits if the foreign entity is the main player in the joint venture. The joint venture
company does not require a service agent/sponsor in order to conduct business.

USAID Jordan
Source: Qatari Ministry of Business and Trade
Source: http://export.gov/middleeast/country_information/qatar/ConsiderQatarGuide.pdf Economic Development Program
Registration & investment procedures (How to register and invest)

Registration & investment procedures/starting a new company

Tax Exempt Free Zones: Establishing a business entity in one of Qatar’s Free Zones can be an attractive option for
overseas investors. To date the free zones have been successful in attracting a large number of companies and foreign
direct investment, as well as expanding non-oil exports. The major advantage in setting up in a free zone is that foreign
firms are entitled to:
•Incorporate a local company, or operate as a branch of a foreign company
•100 percent foreign ownership
•Trade without local agent or sponsor
•Sponsor expatriate employees
•No taxes
•Duty-free import of goods and services
•Unrestricted repatriation of capital and profits.

QATAR FREE ZONE : Law 6 of 2006 established the first free zone in Qatar; a 10 square kilometre region in close
proximity to Doha International Airport authorized for the following activities: Small and medium clean industries, medical
industries, maritime industries and high-end industries, Electricity and desalination plants, telecommunication and data
technical industries Service providers, accounting, auditing, tax, legal and consulting, Financial and investment consulting,
Company head offices and business management offices, Media, entertainment and tourism businesses; and Cargo,
transit and storage businesses.

USAID Jordan
Source: Rise with Qatar, Ministry of business and traded investment promotion department
Economic Development Program
Registration & investment procedures (How to register and invest)

Registration & investment procedures/starting a new company

Table-Time and Cost for Starting A Business
No. Procedure Time to Complete Associated Costs QAR

Apply for approval of the proposed name at the Ministry of Economy and Commerce counter
1 1 day 500
located at the OSS

2 Open bank account and deposit minimum capital 1 day no charge

Sign the Articles of Association before a Notary Public at the Ministry of Justice counter
3 1 day 70-100
located at the OSS

Register the company with the Ministry of Economy & Commerce (MEC) counter located at 1 day (simultaneous with
*4 3000
the OSS previous procedure)

1 day (simultaneous with

* 5 Register with the Chamber of Industry & Commerce counter located at the OSS 570
previous procedure)

1 day (simultaneous with

* 6 Obtain trade license and signage license from the municipality counter located at the OSS 20095
previous procedure)

7 register for taxes and obtain tax ID 1 day no charge

8 Obtain a company seal 5 days 150

*: Takes place simultaneously with another procedure

USAID Jordan
Source: IFC/Doing Business in Qatar
Economic Development Program
Registration & investment procedures (How to register and invest)

Registration & investment procedures/starting a new company

Table-Time and Cost for Construction Permits
Time to Associated
No. Procedure
Complete Costs
1 Obtain Planning Permission from the Municipality 3 days QAR 100
2 Submit documents and obtain preliminary approval (opening of file) from the Municipality 10 days no charge
* 3 Obtain fire safety clearance from the Civil Defense Department at the Urban Planning and Development Authority 14 days no charge

* 4 Obtain clearance from Road Construction Department at the Urban Planning and Development Authority 7 days QAR 200
Obtain clearance from Kahramaa at(in the Urban Planning and Development Authority) for power and water service
*5 7 days no charge
delivery
* 6 Obtain clearance from QTEL (in the Urban Planning and Development Authority) for telecom service delivery 1 day no charge

7 Obtain clearance from the Building Permit Department of the Urban Planning and Development Authority 7 days no charge
8 Obtain final building permit approval from the Municipality 10 days QAR 1,351
9 Submit public announcement of construction project at the Municipality 1 day no charge
10 Receive electrical inspection from Kahramana and obtain proof of testing of electrical networks certificate 1 day no charge

11 Obtain final cadastral measurements of the warehouse at the Municipality of Industrial Area 1 day no charge
12 Submit final records of construction project to the Municipality 1 day no charge
13 Receive final inspection 1 day QAR 100
14 Receive fire safety approval from the Civil Defense Department 3 days no charge
15 Obtain certificate of completion from Municipality 3 days no charge
16 Register the building at the municipality 1 day no charge
* 17 Obtain electricity connection from Kahramaa 30 days QAR 20
* 18 Obtain water and sewage connection from Kahramaa 5 days QAR 20
* 19 Obtain telephone connection from QTEL 15 days QAR 220

*: Takes place simultaneously with another procedure

USAID Jordan
Source: IFC/Doing Business in Qatar
Economic Development Program
Expenses: capital and operational (How much investment is needed)

Expenses: capital and operational

Living Expenses
Monthly Costs ($/£)
Item Single Couple Couple with 2 Children
Housing (1) 900/600 1,050/700 1,200/800
Food (2) 450/300 750/500 1,050/700
Utilities (3) 225/150 300/200 450/300
Leisure (4) 450/300 450/300 600/400
Transport (5) 75/50 150/100 150/100
Insurance (6) 100/65 150/100 225/150
Clothing (7) 150/100 300/200 450/300
Totals 2,350/1,565 3,150/2,100 4,125/2,750

Employee costs
Employees costs vary based on position and level of seniority. Average Salaries range from 15,000 QAR to 100, 000 QAR.

Utilities costs
COSTS
Sector Electricity Potable Water
From KWH To KWH Electricity Tariff KWH in Water Tariff KWH in QAR
QAR
Commercial 1 4000 0.09
4001 15000 0.12 5.2
15001 Maximum 0.14

USAID Jordan
Source: Qatar General electricity and water corporation website
Source: www.justlanded,com Economic Development Program
Competitive analysis (which competitors to take care of)

Competitive analysis
Type A Firms
Many

HOK Atkins
Parsons
Type C Firms Type B Firms Fosters KEO
Dar Al Handasa
Services/Products

B1,B2,B3
C1,C2,C3

Type D Firms

D1,D2,D3

Few Number of Countries Many

Type A Firms: Operating in a huge number of countries; Providing all possible products and services
Type B Firms: Operating in a moderate number of countries; Providing many products and services
Type C Firms: Operating in 1-3 countries ; Providing many products and services
Type D Firms: Operating 1 country; Providing Design and Architectural work USAID Jordan
Economic Development Program
Competitive analysis (which competitors to take care of)

Competitive analysis
Type A Firms
Many

HOK Atkins
Parsons
Type C Firms Type B Firms Fosters KEO
collaborate Dar Al Handasa
Services/Products

collaborate B1,B2,B3
C1,C2,C3

Type D Firms
Expand and grow geographically
D1,D2,D3

Few Number of Countries Many

Type B Firms options: Cooperate with type A firm; Compete with Type A firms; Expand geographical coverage
Type C Firms options : Cooperate with Type A & B firms; expand geographically
Type D Firms options : Built reputation on design/architectural capability; maintain small office size; expand geographically
USAID Jordan
Economic Development Program
Competitive analysis (which competitors to take care of)

Competitive analysis- Jordanian Firms

ARCHITECTURAL SERVICES ENGINEERING SERVICES

Building
Utility projects & Geotechnica
projects and Other design services Building projects & services Transportation projects & services Other technical services
services l Services
services

Marine Facilities

sewage & waste

plumbing, & fire

other structures
master planning
Non-Residential

water supply &

Environmental
Interior design

green building
management
and drainage
Mass transit

storm water
architecture

Mechanical,
Urban/rural

assessment
distribution
Project site
Residential

site survey
Landscape

protection
Structural

Highways
Bridges &

Materials
Streets &
Electrical

Buildings
planning

Airports
tunnels

testing
water
ACEPO
ACES

ARABTECH JARDANEH
ARCHISYS
ACE
BAHA CONSULTANT
BITAR CONSULTANTS
CC
DAR AL OMARAN
DARB
ECO CONSULT
ENGICON
FARIS AND FARIS
FARIS BAGAEEN
MAISAM
S.M DUDIN ARCHTECT.
SIGMA
SPECTRUM
SOBH CONSULTING
SYMBIOSIS DESIGN
TIBAH CONSULTANTS

PRIMARY SERVICE TYPE D FIRM

SUPPORT SERVICE TYPE B OR C FIRM USAID Jordan
Source: A/E council Member directory Economic Development Program
Competitive analysis (which competitors to take care of)

Competitive analysis- A functional classification of organizational

capabilities
FUNCTIONAL AREA CAPABILITY EXAMPLARS KEY CAPABILITIES FOR A/E FIRMS
oFinancial control oExxonMobil oFinancial control 3
oStrategic management of multiple business units oPepsi Co oStrategic management of multiple
CORPORATE oStrategic innovation oP&G business units
FUNCTION oMultidivisional coordination oUnilever oMultidivisional coordination
oAcquisition management oShell oAcquisition management
oInternational management oInternational management

MANAGEMENT oComprehensive integrated MIS network linked to oWal-Mart

INFORMATION managerial decision making oDell Computer

oResearch oIBM
RESEARCH AND
oInnovative new product development oSony
DEVELOPMENT oFast cycle new product development oCannon

oEfficiency in manufacturing oToyota

Operations oContinuous improvement oZara
oFlexibility and speed of response oFour Seasons Hotel

2
PRODUCT
oDesign capability oApple oDesign capability
DESIGN
1
oBrand management oP&G oBrand management
MARKETING
oPromoting reputation for quality oJ&J oPromoting reputation for quality

oCoke
SALES AND oSales promotion oQuality and effectiveness of
oPepsi
DIASTRIBUTION oQuality and effectiveness of customer service customer service
oP&G
USAID Jordan
Source: Contemporary Strategy Analysis, Fifth Edition Economic Development Program
Pricing strategy (How to price competitively in the market)

Pricing strategy
Position Advantage Strategic Pricing Logic

Cost Leadership Architectural firms (Type B/C) have two pricing

A/E Firms capable of attaining options:
lower cost per unit relative to •Undercut rivals’ prices and sell more than they do
competitors. •Match rivals prices and attain higher price-cost
margins than they do.

Broad (Type B & C)

A/E Firms capable of

commanding price premium
relative to competitors
Scope Benefit Leadership Architectural firms (Type B/C) have two pricing
options:
•Match rivals prices and sell more than they do
•Charge price premium and attain higher price-
cost margins they do
Narrow (Type D)
Focus Architectural firms (Type D) configure their value chain so as
to create superior economic value within a narrow industry
segment (Design/Architecture). In this segment, Type D firm
are able to have a lower cost per unit than its broad-scope
competitors (Type A,B,C) or it may be capable of
commanding a price premium relative to others, or achieve
both.

USAID Jordan
Source: Economics of Strategy, Fourth Edition Economic Development Program
Pricing strategy (How to price competitively in the market)

Pricing strategy-Exploiting competitive advantage through pricing

Type of Advantage

Cost Advantage Benefit Advantage (Differentiation)

1 2
Weak Horizontal oModest price hikes lose lots of market share
oModest price cuts gain lots of market share
oExploit advantage through higher market
Differentiation oExploit advantage through higher market
share than competitors
Sectors share than competitors
oShare Strategy: Maintain price parity with
(High Price oShare Strategy: underprice competitors to
competitors (let benefit advantage drive share
Sensitivity) gain market share
increases)
Degree of sector
differentiation
and price
3 4
sensitivity
Strong Horizontal oBig price cuts gain little market share
oBig price hikes lose little share
oExploit advantage through higher profit
Differentiation oExploit advantage through higher profit
margins
Sectors margins
oMargin Strategy: Maintain price parity with
(Low Price oMargin Strategy: Charge price premium
competitors’ (Let lower costs drive higher
sensitivity) relative to competitors.
margins)

Note: How to use the above pricing strategy options:

oChoose the sector
oAssess competition
oAssess project importance to the portfolio
oDecide on firm strategy : Differentiation vs. Cost
oSelect pricing strategy accordingly USAID Jordan
Source: Economics of Strategy, Fourth Edition Economic Development Program
Pricing strategy (How to price competitively in the market)

Pricing strategy-Drivers of cost advantage

oSpecialization of engineers and architects

Economies of
oAbility to produce more output with less resources (performance and productivity)
scale

oIncreased engineers skills

Economies of
oImproved A/E organizational routines and systems (Processes/systems)
Learning

oDesign for large scale and repetitive work

Product Design oStandardization of design process and minimize time to output

oLocation
oLow cost inputs
Input costs
oBargaining power to reduce cost

oRatio of fixed to variable cost

Capacity
oFast and flexible capacity adjustment
utilization

oOrganizational structure
Residual
oManagerial effectiveness
Efficiency

USAID Jordan
Source: Contemporary Strategy Analysis, Fifth Edition Economic Development Program
Pricing strategy (How to price competitively in the market)

Pricing strategy-Drivers of differentiation

advantage

Product oSuperior product features and performance (exceptional design, high quality engineering)

oHigh intensity on marketing activities and advertising

oBranding is a key focus
Marketing
oHigh spending on marketing and branding

oHighly skilled and experienced employees

People

oBest/Prime location
Input costs oHigh quality inputs

USAID Jordan
Source: Contemporary Strategy Analysis, Fifth Edition Economic Development Program
Products and services (what products and services are most needed in the market)

Products and services

Some of the major opportunities to focus on in terms of product and services are:

oSports engineering and design : Qatar is expected to invest hundreds of billions of dollars in preparation for the 2022 FIFA
world Cup. Therefore, all projects related to the sports and leisure should be areas of focus for A/E Jordanian firms

o Transportation : Qatar’s investment and future investment in infrastructure transportation projects are huge. An example of a
high profile transportation project is the bridge connecting Bahrain and Qatar .A/E firm should focus on transportation
infrastructure projects in Qatar.

Therefore all products and services (i.e. Design, construction management, site supervision, etc…) related to these two areas are
lucrative enough to focus on.

USAID Jordan
Economic Development Program
Location (what are the best location to open an office at)

Location
Option 1 (Industrial City) : Mesaieed Industrial City

Mesaieed Industrial City provides competitive advantages for businesses and industries. These serve as incentives to
businesses and investors. Following are MIC's competitive advantages:

•Fully serviced 24 hour commercial port

•120.6 square kilometers of land
•Existing community area
•Proximity to Doha
•Energy sources at competitive prices
•Joint venture initiatives encouraged
•Open exchange regulations
•Excellent land and sea access
•Proximity to European and Asian markets
•Industrial land at a nominal rent.
•No custom duties on imports of machinery, equipment and spare parts.
•No export duties.
•No taxes on corporate profits for pre-determined periods.
•No quantitative quotas on benefits.
•No income tax on salaries of expatriates.
•Excellent medical facilities
•Low rates of inflation.
•Easy access to world markets through first class air and sea connections.
•Excellent telecommunications facilities.
•Liberal employment and immigration rules allow the import of skilled and unskilled labor.

USAID Jordan
Source: Mesaieed city Website
Economic Development Program
Location (what are the best location to open an office at)

Location
Option 2 (Capital City): Doha City

West Bay, Doha is situated in the heart of Doha’s Diplomatic Area, at the north end of the picturesque Corniche and close
by is the new world class international airport under construction and due to open early 2009. Having hosted the Asian
Games in 2006 and invested extensively in the tourism sector, Doha has established itself as a key player in the Middle
East with a high international profile.

PROPERTY FEATURE
. Name of Development :Palm Towers
Type of Property :Offices
Monthly Rent Amount : QAR 33,440
Area:152 Sqm
Floor : 36 Sample property cost description
Area: West Bay
Contact Number: (+974) 44 44 44 31
Integrated voice and data network
Access to satellite TV
Advanced office access and security system
15 High speed elevators and 2 Service elevators
Around the clock security and closed circuit TV monitoring
Shopping centre on the ground floor
Covered parking for visitors
Great sea and street views

Source: www.mirageproperty.com USAID Jordan

Economic Development Program
Promotion (How to promote company and services)

Promotion
2012 2013 2014 2015
Activities
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

PUBLIC RELATIONS
Periodic Press Releases               
Feature/ Cover Stories    

ADVERTISING
Annual Give-away Items               
Online Advertising               
Banner Placement               
Corporate Brochure & Flyer               
Packaging               

USAID Jordan
Economic Development Program
 Promotion (How to promote company and services)
Promotion-Continued
2012 2013 2014 2015
Activities
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
PERSONAL SELLING
Weekly Business Development Visits               
DIRECT & RELATIONS MARKETING
Install & Implement CRM Solution               
Distribute Monthly e-Newsletters               
Periodic e-mail Shots               
Distribute Press Releases               

WEB PLAN
Create Wikipedia entry 
Use URL in all Communications               
Search Engine Registration 
Search Engine Optimization 

EVENTS
Visiting Events    
Speaking at Events               

CORPORATE SOCIAL RESPONSIBILITY

PROGRAMS
Support Youth/Qataris Development Program        

USAID Jordan
Economic Development Program
Promotion (How to promote company and services)

Promotion (Public Relations)

Periodic press release: A/E Firms will issue a press release for any newsworthy event, such as signing a major contract,
concluding a landmark project, etc. Average of two press releases each quarter. The aim is to have Increased company visibility and
brand recall, in addition to Increased credibility of news published. A/E firms could hire external PR firms to help them. Quotations
and pricing should be obtained directly by the firm depending on the scope, quantity and location of press releases. A/E firms should
get quotations from at least three vendors.

Feature/Cover Story: Cover stories are multiple-page articles written about the company, with pictures and extensive focus on the
interviewee. Often, the picture, name, title of the interviewee – along with the article’s title – is displayed on the publication’s front
page. Cover stories provide the firm with tremendous opportunities to reveal information/ messages to the public through elaborate
copy text. It is recommended to aim for once a year.

Packaging: A/E firms will design creative and eye catching packaging boxes that are used to deliver documents, plans, and
any other form of services/ products the company dispatches. The company’s policy will dictate that no service/ product may
leave its premises without standard packaging.

USAID Jordan
Economic Development Program
Promotion (How to promote company and services)

Promotion (Advertising)

Give away items: A/E Firms will provide different type of gifts based on their philosophy, style and size:

•High-end gifts: Pens, Watches, Perfumes, desktop items, etc…

•Moderate gifts: For important visitors, the media, and prospects, the firm will maintain a selection of mid-range priced
gifts for distribution as needed.
•Day-to-day gifts: These gift items are inexpensive, maintained at high inventory levels, and used for casual give-away
occasions (e.g. Mouse pads, etc)

On-Line Advertising: A/E firms will run a continuous campaign on Google AdWords for its targeted markets. In addition, A/E firms
will choose certain social media websites such as LinkedIn ,FaceBook and Twitter to promote itself

Corporate Brochure & Flyer: A/E firms will continuously nurture its inventory of corporate brochure and
distribute copies as needed. Brochure and flyer must be initially updated to reflect the firm’s corporate identity.

USAID Jordan
Economic Development Program
Promotion (How to promote company and services)

Promotion (Personal Selling)

Weekly Business Development Visits: A/E firms will compile and maintain a database of all potential contractors,
investors, entrepreneurs, government entities, and developers and sort it out in order of importance whereby targets
with the highest potential are at the top of the list. The business Development Officer will arrange for introductory
meetings according to the list and all meetings are documented for further reference. The aim is to achieve long term
business relationships and potential joint ventures

USAID Jordan
Economic Development Program
Promotion (How to promote company and services)

Promotion (Direct & Relations Marketing)

Install & Implement CRM Solution: A/E firms will install a network-based CRM and require all senior staff members
to use the system, replacing Outlook. The CRM will contain all contact details and correspondences with clients,
prospects, stakeholders, vendors, and other company contacts.

Distribute Quarterly e-Newsletters: A/E firms will design and distribute a monthly newsletter to its CRM contacts database

Periodic e-mail Shots : One e-mail shot per month is sent to the CRM contacts, with important or newsworthy announcements,
such as new staff members, company events, etc

Distribute Press Releases : A/E firms will, upon issuing press releases, e-mail links of the published press releases to its
contacts database

USAID Jordan
Economic Development Program
Promotion (How to promote company and services)

Promotion (Web Plan)

Create Wikipedia entry: Wikipedia is a prominent and highly credible source of information with extremely high hit-
rates during searches. A/E firms will establish its own Wikipedia entry, and thereby enjoy high rankings during web
searches. Furthermore, information published about the firm on Wikipedia is deemed highly credible.

Use URL in all Communications: As a corporate policy, A/E firms’ URL will be stated on every single piece of communication
issued by the company (e.g. stationary, gift items, e-mail signatures, etc …)

Search Engine Registration: A/E firms’ corporate website will be registered with prominent search engines to result in higher
rankings during web searches

Search Engine Optimization: Search Engine Optimization (SEO) is the process of optimizing the company’s web pages with
proper key-words that are frequently used by web searches, and contribute to rankings during searches. Each web-page’s
description, title, meta-tags will include relevant key-words for search engine indexing and ranking, and thus increase A/E
firms’ ranking when a user applies one or more of these key words during web searches.

USAID Jordan
Economic Development Program
 Promotion (How to promote company and services)

Promotion (Events)
Visiting Events : A/E firms will attend at least two major industry related expositions (e.g. real estate development),
and two related conferences. A/E firms will additionally participate in two major events in the form of an active
exhibitor. The Impacts are the following:

•Networking opportunities
•Meeting new contacts and prospects
•Enrich CRM database with business cards collected for future direct marketing programs
•Live demonstration of projects and company credentials during expositions

Speaking at Events: A/e firms will lobby with event organizers to secure speaking slots to present white papers, case
studies, and recent industry trends

USAID Jordan
Economic Development Program
 Promotion (How to promote company and services)

Promotion (Corporate Social Responsibility)

Support Youth/Qataris Development Program: A/E firms will do CSR efforts through supporting the Qatari youth. Areas
under the CSR program could include:

•Soft Skills
•Technical skills
•CV writing
•Interview preparation
•Negotiation skills

The CSR program will provide an opportunity for exposure and press release.

USAID Jordan
Economic Development Program
Business intelligence (How to gather information from the market)

Business intelligence

Market Visits

Help of a 3ed party:

research firm or
consulting firms

Networking and client

relationship building

Business development meeting

and company presentations

Attending cityscapes and Exhibitions

Registering in website that provide industry &

contract/tender information: Business Monitor,
Construction weekly on line, Engineering News record.

USAID Jordan
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option1: Partnering
A/E firms can and should consider “Partnering” as a strategic option for entering new markets such as Qatar. In doing so
A/E firms should consider the following:
A good partner not only has the desired expertise and capabilities but also shares the company’s vision about
Picking a good partner the purpose of the alliance. Experience indicates that it is wise to avoid a partnership in which there is strong
potential of direct competition because of overlapping product rarely work lines or other conflicting interests.

Be sensitive to cultural Unless the outsider exhibits respect for the local cultural and local business practice, productive working
differences relationships are unlikely to emerge.

The Alliance must Information must be shared as well as gained, and the relationship must remain forthright and trustful. Many
benefit both sides alliances fail because one or both partners grow unhappy with what they are learning.

Both parties live up to Both parties have to deliver on their commitments for the alliance to produce the intended benefits. The division
their commitments of work has to be perceived a fairly apportioned.

Structuring the In many instances, the fast pace of technological and competitive changes dictates an equally fast decision-
decision making making process. If the parties get bogged in discussion or gaining internal approvals, the alliance can turn into an
process anchor of delay and inaction.

Managing the learning Wise alliances recognize the merit of an evolving collaborative arrangement, where adjustments are made to
process and adjusting accommodate changing market conditions and to overcome whatever problems arise in establishing an
accordingly effective working relationship.

USAID Jordan
Source: crafting and executing strategy, 16th edition
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option1: Partnering Pros and Cons

•Reduce Risk
Pros •complement lack of expertise and experience through partnership
•Greater chances of winning projects

•Partner might differ

Cons •Partnership might not be fair (division of work, profits)
•Less of a financial return than if alone

USAID Jordan
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 2: Outsourcing
A/E firms can and should consider “Outsourcing” their services as a strategic option for entering new markets such as
Qatar. In doing so A/E firms should consider the following:

The activity outsourced to Jordanian A/e firms should be performed better or more cheaply by them. This way it
Cost of service
creates an incentive for Qatari or International firms in Qatar to outsource more services to Jordanian firms.

The activity should not

The activity outsourced to Jordanian A/e firms should be not be considered critical for Qatari or International
be considered critical
firms’ competitiveness. In other words it could be detailing of drawings such as electro- mechancial drawings.
for competitiveness

A/E firms should develop the skill to convince Qatari and international firms for the case of outsourcing some
Presentation Skill
activities

USAID Jordan
Source: crafting and executing strategy, 16th edition
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 2: Outsourcing Pros and Cons

•Strong financial revenue potential

Pros •Easy to sell
•Replicable on a wide scale

•Company brand name does not appear to client

Cons •Might be considered non-added value work
•Clients are price competitive and sensitive

USAID Jordan
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 3: Acquisition
A/E firms can and should consider “Acquisition” of smaller A/E firms in the targeted market (Qatar). Acquisition stems from
the company’s growth and M&A strategy. Basically, each company with an objective of growth has to consider organic and
in-organic growth (Acquisition). Nevertheless, very few executives conduct acquisition in the correct way, resulting often in
weak investments. Therefore, A/E firms should consider the following

Screening Phase Screening of targets based on a structured criteria to come up with a list of acquisition targets.

Investment thesis Define the investment thesis and testing these acquisition targets against the investment thesis.

Valuation Developing a valuation & detailed profile for top acquisition targets that stand the test of the investment thesis.

Selection of
Select the top acquisition targets based on the investment thesis and the valuation of the companies
Acquisition Targets

Develop an Developing a plan that explains the "HOW" & "WHEN". How to approach these targets & when to approach
Implementation Plan them

Source: crafting and executing strategy, 16th edition USAID Jordan

Source: Acquisition steps/Bain and Company
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 3: Acquisition Pros and Cons

•An effective strategy for entering a market, since the acquirer can buy market share, expertise, and knowledge
Pros
of the market.

•Screening phase is lengthy

•Valuation phase is lengthy
Cons
•Risk of acquiring the wrong firm
•An expensive strategy option

USAID Jordan
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 4: Export
A/E firms can and should consider “Export” as a strategic option. Basically operating from Amman/Jordan and conducting
business development and networking to get work and contracts in Qatar. This option is the least risky, yet its results are
not guaranteed as the other strategic options.

Maintain and
Strengthen Home Maintain and strengthen Home Office to better serve the needs of other markets.
Office

Create a business development strategy that details number of business trips per year, frequency of business
Business Development
trips and the budget needed to conduct sufficient business development in the targeted market.

Maintain Low cost The main privilege of operating from Jordan is the ability to minimize costs and compete on price. This also
Model allows the reduction of overheads per unit, and thus provides the firm with a greater competitive advantage.

Selection of
Select the top acquisition targets based on the investment thesis and the valuation of the companies
Acquisition Targets

Develop an Developing a plan that explains the "HOW" & "WHEN". How to approach these targets & when to approach
Implementation Plan them

Source: crafting and executing strategy, 16th edition USAID Jordan

Source: Acquisition steps/Bain and Company
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 4: Export Pros and Cons

•The least risky strategy as it involves exporting services without the need for market penetration (i.e. opening
Pros an office in the targeted country)
•Allows the firm to explore a greater number of countries and clients

•Might be a competitive disadvantage against players in the targeted market. Since competitors are interacting
day-to-day with clients.
Cons
• Limits the Exporting firms to certain type of projects and clients.
•Knowledge of the market is not built effectively

USAID Jordan
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 5: Green Field

A/E firms can and should consider “Green Field” as a strategic option. Green Field is basically entering Qatar and
opening a physical office. It is riskier in terms of committing financial resources, nevertheless better in terms of securing
work and building up of contacts and networks.

Market Penetration Planning Phase which includes building a market penetration plan that includes budget, resources, and other
Plan actions.

On the ground Start implementation of the plan: Registering, finding an office, business development, hiring of employees, etc…

USAID Jordan
Economic Development Program
Strategic actions: Partnering ,Outsourcing ,Acquisition, Export,& Green Field

Option 5: Green Field Pros and Cons

•An effective strategy for entering a market, since the acquirer can understand the market hands on, meet
Pros clients and competition, and learn how the market operates as fast as possible
•Higher chances of building effective partnerships and securing work.

•More expensive as it involves capital and operational expenses

Cons •Lengthy in terms of finding the right office, registration, and finding employees
•Could be a financial burden if work is not secured quickly

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement
STRATEGIC INITIATIVES
1 Accreditation and certifying professional engineers and architects
2 Upgrading and revamping the university education curriculum
3 Creating a solid linkage between Academia and Industry
4 Development of accurate and holistic trade statistics in comparison with best practice
5 Development of a program that cater for “Soft Skills” of new graduate engineers/arch.
6 Improving the quality/performance of teaching at university
7 Improve representation in international trade fairs and exhibitions
8 Start building a “Design Culture” in Jordan
9 Revamp company classification system, to differentiate between quality at A/E firms
10 Develop and enforce strict systems in quality control and construction supervision
11 Assist family owned firms in their transition to corporate through proper counseling
12 Lobbying program for the case of A/E in Jordan
13 Build capacity in A/E council to better support A/E member firms
14 Development and improvement of “Marketing” capabilities of A/E Firms
15 Support the completion of an “Executive MBA” by engineers and architects
16 Build an effective teaming/alliance with the government to improve A/E performance
17 Advocate the need for alliance and collaboration rather than competition
18 Develop a master communication and branding plan for the A/E cluster
19 Advocate the establishment of a national insurance for export risk
20 Develop A/E cluster code of ethics and standard of excellence

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
1
Code
Initiative
Accreditation and certifying professional engineers and architects
Name
Initiative
Improving the quality of engineers and architects
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring.
Timeframe
Initiative
To be set by A/E Council
Budget
Initiative
Main: A/E Council. Secondary: Association of Engineers
Responsibility
Initiative
Number of accredited/certified engineers
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
2
Code
Initiative
Upgrading and revamping the university education curriculum
Name
Initiative
Producing better quality and more professional engineers and architects
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring.
Timeframe
Initiative
To be set by A/E Council
Budget
Initiative
Main Driver: A/E Council; Secondary: Ministry of Education and University Heads
Responsibility
Initiative
Number of graduates after improving and revamping Engineering schools education system and curriculum
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
3
Code
Initiative
Creating a solid linkage between Academia and Industry
Name
Initiative Contribution of Academia to the improvement of the sector, in addition to enhancing the theoretical knowledge of
Benefits practitioners, and the practical knowledge of academics
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council and school of engineering heads
Budget
Initiative
Main: A/E Council; Secondary: Heads of School of Engineering
Responsibility
Initiative
Number of joint projects between Academia and the industry
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
4
Code
Initiative
Development of accurate and holistic trade statistics in comparison with best practice
Name
Initiative
Having accurate statistics to support decision making and future sector improvements
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set between department of statistics and A/E Council
Budget
Initiative
Main: A/E Council; Secondary: Department of Statistics
Responsibility
Initiative
Sector specific reports by 2013
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
5
Code
Initiative
Development of a program that cater for “Soft Skills” of new graduate engineers/arch.
Name
Initiative Providing engineers and architects with key business skills: team work, communication skills, presentation skills,
Benefits negotiation skills, and conflict management.
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
A/E Council to get quotations from at least 3 vendors.
Budget
Initiative
Main: A/E Council; Secondary: A/E Firms
Responsibility
Initiative
Number of engineers with soft skills certification and training.
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
6
Code
Initiative
Improving the quality/performance of teaching at university
Name
Initiative
Having more reliable and experienced tutors to educate and teach future engineers & architects
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set between School of engineering and A/E Council
Budget
Initiative
Main: A/E Council; Secondary: Heads of School of Engineering
Responsibility
Initiative
Number of practitioners teaching at university; Questionnaire results by student
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
7
Code
Initiative
Improve representation in international trade fairs and exhibitions
Name
Initiative
Have better chances of securing projects; align efforts; save costs
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set between A/E Council and member firms
Budget
Initiative
Main: A/E Council; Secondary: Member Firms
Responsibility
Initiative
Number of joint collaboration at exhibitions and cityscapes
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
8
Code
Initiative
Start building a “Design Culture” in Jordan
Name
Initiative
Better Reputation for Jordanian firms abroad; ability to ask for premium fees
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council and Member Firms
Budget
Initiative
Main: A/E Council; Secondary: Member Firms
Responsibility
Initiative
Questionnaire designed to measure the “Design Culture” in Jordan
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
9
Code
Initiative
Revamp company classification system, to differentiate between quality at A/E firms
Name
Initiative Create an incentive between firms to compete effectively; Differentiate quality and engineering capabilities between
Benefits firms
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set between A/E Council and Association of Engineers
Budget
Initiative
Main: A/E Council; Secondary: Association of Engineers
Responsibility
Initiative
Revamped system by 2013
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
10
Code
Initiative
Develop and enforce strict systems in quality control and construction supervision
Name
Initiative Raise the standard of construction in Jordan; raise perception of engineering and construction quality abroad; set a
Benefits high standard of reliability and quality
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council and Association of Engineers
Budget
Initiative
Main: A/E Council; Secondary: Association of Engineers
Responsibility
Initiative
New standards and regulations; enforcement system for new standards by 2013
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
11
Code
Initiative
Assist family owned firms in their transition to corporate through proper counseling
Name
Initiative Ensure sustainable growth; provide experience related to corporate management; enable firms to compete
Benefits internationally and abroad
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council
Budget
Initiative
Main: A/E Council; Secondary: A/E member firms
Responsibility
Initiative
Number of corporate courses given to A/E firms covering Strategy and governance
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
12
Code
Initiative
Lobbying program for the case of A/E in Jordan
Name
Initiative Create the case for supporting the A/E sector; have better chances of getting work abroad; get the support of
Benefits government
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set between A/E Council, A/E members and government
Budget
Initiative
Main: A/E Council; Secondary: Association of Engineers and Government
Responsibility
Initiative
Questionnaire among member firms designed to measure the level of government support to the sector
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
13
Code
Initiative
Build capacity in A/E council to better support A/E member firms
Name
Initiative
Strengthen the work of A/E Council; enable A/E Council to drive strategy implementation
Benefits
Initiative
Must start by 2012. 1 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council and A/e member firms
Budget
Initiative
A/E council, A/E Board, and member firms
Responsibility
Initiative
New resources and budget by 2013
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
14
Code
Initiative
Development and improvement of “Marketing” capabilities of A/E Firms
Name
Initiative
Equip A/E with marketing and selling skills; support growth and expansion
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council and A/E Firms
Budget
Initiative
Main: A/E Council; Secondary: A/E Firms
Responsibility
Initiative
Number of marketing hours or courses given to engineers and archietcts
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
15
Code
Initiative
Support the completion of an “Executive MBA” by engineers and architects
Name
Initiative Having well-rounded and business minded engineers and architects; differentiate Jordanian engineers from the
Benefits masses; support growth and expansion
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set between A/E council, A/E member firms and university business schools
Budget
Initiative
Main: A/E Council; Secondary: A/E Firms
Responsibility
Initiative
Number of MBA graduates that bare engineers or architects
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
16
Code
Initiative
Build an effective teaming/alliance with the government to improve A/E performance
Name
Initiative
Gain government support; work on securing work from abroad; better representation in international markets
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council
Budget
Initiative
Main: A/E Council; Secondary: Government
Responsibility
Initiative
Questionnaire to measure the level of satisfaction by A/E firms from government support to the sector
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
17
Code
Initiative
Advocate the need for alliance and collaboration rather than competition
Name
Initiative
Have better chances of winning huge infrastructure projects; align efforts and achieve complementarities of services
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E council
Budget
Initiative
Main: A/E Council
Responsibility
Initiative
Number of mergers; Number of JV, Number of Acquisitions, Number of educational seminars to A/E firms
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
18
Code
Initiative
Develop a master communication and branding plan for the A/E cluster
Name
Initiative Differentiate Jordanian firms from the masses; better chances of partnership and securing work abroad; a better
Benefits chance of competing against larger international firms.
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council
Budget
Initiative
Main: A/E Council
Responsibility
Initiative
Master communication and branding plan out by 2013; Number of branded firms
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
19
Code
Initiative
Advocate the establishment of a national insurance for export risk
Name
Initiative
Minimize financial risks; support growth and expansion
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E council, A/E firms, and Government
Budget
Initiative
Main: A/E Council; Secondary: Government
Responsibility
Initiative
Having a national insurance for export risk by 2013; export revenue from the A/E sector
KPIs

USAID Jordan
Economic Development Program
Sector improvement (what internal initiatives needed to improve sector chances of expansion)

Sector improvement

Initiative
20
Code
Initiative
Develop A/E cluster code of ethics and standard of excellence
Name
Initiative
Raise the standards of the profession; better reputation abroad; support growth efforts
Benefits
Initiative
Must start by 2012. 5 year timeframe and monitoring
Timeframe
Initiative
To be set by A/E Council
Budget
Initiative
Main: A/E Council; Secondary: Association of Engineers
Responsibility
Initiative
Code of Ethics and standard of excellence out by 2013; number of deviations from the code
KPIs

USAID Jordan
Economic Development Program
PMO-Program Management Organization

PMO-Program Management Organization

A/E Council

A/E Members Government Entities Association of Engineers

Representatives from
A/E members should
include:
oFinancial Manager
oMarketing Manager
A/E Council Responsibilities:
oTechnical Engineer oDrive/Lead go-to market strategy implementation
oArchitect/Designer oDrive the implementation of the 25 strategic initiatives
oHR Manager oAlign between A/E member firms
oLobbying efforts with government

Main KPIs for A/E firms Meeting Frequency:

oRevenue from export markets oWeekly Progress Meetings
oMarket Share at export market oQuarterly Strategy Meetings
oEBIT from export markets
USAID Jordan
Economic Development Program
Appendix
Market Selection
Appendix 1
Market Selection

Methodology
Methodology used for selecting regional markets is twofold:

•Quantitative/Objective, through comparison of key indicators across markets.

•Qualitative/Subjective, through interviewing A/E member firms

Quantitative/Objective method utilizes the BMI methodology to analyze the infrastructure business environment.
The infrastructure BE rating is the principle rating. It is comprised of two sub-ratings “Rewards” and “Risks”,
which have a 70% and 30% weighting respectively. In turn, the “Rewards” Rating is comprised of Industry
Rewards and Country Rewards, which have a 65% and 35% weighting respectively and are based upon
growth/size of the infrastructure industry (Industry) and the broader economic/socio-demographic environment
(Country). The “Risks "rating is comprised of Industry Risks and Country Risks which have a 40% and 60%
weighting respectively and are based on a subjective evaluation of industry regulatory and competitive issues
(Industry) and the industry’s broader Country Risk exposure (Country), which is based on BMI’s proprietary
Country Risk Ratings. BMI utilizes 14 indicators in their analysis and comparison of markets, such as sector
growth rates, construction sector size, sector capital investment as a % of GDP, access to electricity, policy
continuity, transparency of tendering, and corruption among others.

Qualitative/Subjective method utilizes a set of meetings and interviews with key A/E member firms. Member
firms are chosen from different segments to ensure that different firms (small and large) are represented in the
discussion. Member firms interviewed are asked to suggest their preferred markets.

Source: BMI Methodology USAID Jordan

Economic Development Program
Market Selection

Methodology (KPIs used by Business Monitor)

Rewards Indicators
•Construction expenditures US$ Billions
•Sector Growth, % YoY
•Capital Investment, % of GDP
•Government Spending, % of GDP
•Labour market infrastructure
•Financial Infrastructure
•Access to electricity

Risk Indicators
•Number of companies
•Transparency of tendering process
•Structure of economy
•External risk
•Policy continuity
•Legal framework
•corruption

Source: BMI Methodology USAID Jordan

Economic Development Program
Market Selection

Comparison and Analytics

Industry Country Rewards1 Industry Country Risks1 Infrastruct Regional
Rewards Rewards Risks Risks ure BE Ranking
Rating
Oman 70 60.7 66.7 82.5 68.2 73.9 68.9 1

Qatar 60 74.2 65 75 67.7 70.6 66.7 2

KSA 62.5 58.3 61 75 61.2 66.7 62.7 3

UAE 57.5 57.3 57.4 80 65.4 71.2 61.6 4

Israel 37.5 84.2 53.8 75 71.6 72.9 59.6 5

Bahrain 45 65.8 52.3 77.5 69.1 72.5 58.3 6

Iraq 77.5 39.7 64.3 32.5 39.7 36.8 56 7

Egypt 47.5 54.8 50.1 70 53.7 60.2 53.1 8

Kuwait 25 71.3 41.2 57.5 61.1 59.7 46.8 9

Iran 35 42.7 37.7 35 50.2 44.1 39.6 10

Yemen 30 57 25.9 37.5 43.3 41 30.4 11

BMI scoring. 100 is the highest/Best.

1: Refer to Methodology for list of KPIs under Risk and Rewards USAID Jordan
Economic Development Program
Market Selection

Feedback from A/E Members

Sample A/E Firms Interviewed Preferred Regional Markets

CC Qatar and KSA

Engicon Qatar and KSA

Symbiosis Qatar and KSA

Yaghmour Architecture Qatar and KSA

ACE Qatar and KSA

USAID Jordan
Economic Development Program
Market Selection

Recommendation

Based on the twofold methodology:

•Quantitative/Objective, through comparison of key indicators across markets.

•Qualitative/Subjective, through interviewing A/E member firms.

We recommend the selection of Qatar and Qatar as the two regional markets to focus on.

The reasons for this recommendation are the following:

1. BMI analysis and rating indicates that the top three countries-Oman, Qatar & KSA-are nearly similar in terms
of Risks & Rewards. Nevertheless, the Qatari and Saudi market are larger than Oman in terms of market
size. In fact, KSA is considered the largest and fastest growing market in the gulf region. 1
2. Qatar’s 2022 world cup, represents a clear and defined opportunity over the next 10 years.
3. KSA's recent announcements for capital investment in infrastructure, housing, and employment in order to
stabilize its political and social environment represents a clear and defined opportunity over the next years.
4. Member firms feedback and preference clearly indicates Saudi Arabia and Qatar as the preferred two
regional markets.

With that in mind, we would recommend that Oman stays on A/E member firm’s radar for future development.

USAID Jordan
1:Deloitte’s Report: GCC powers of construction 2010
Economic Development Program
Check List
Appendix 2
A/E Firm Checklist

A/E Firm Checklist

Customize strategy
Choose one or more of strategic options
Choose from segmentation
Choose from pricing strategy options
Choose from business intelligence options
Choose office location , if “Green Field” is the strategy option
Review Qatar’s investment and registration procedures
Assess possible partnership and collaboration opportunities
Identify acquisition targets
Review and understand the competitive landscape at Qatar
Review and understand the customer base at Qatar
Develop promotional plan based on size, financial ability, and appetite for growth
Develop strategy budget
Develop strategy implementation team
Commit resources: People, Money and Time.
Follow up and support A/E Council on the twenty strategic initiatives to support the sector

USAID Jordan
Economic Development Program
Balanced Scorecard
Appendix 3
Balanced Scorecard

Balanced Scorecard
Key performance Indicators FY01 FY02 FY03

oRevenue from New Market oX oX oX

Financial
oProfit from new market oX oX oX
Perspective oGrowth % from new market ox ox ox

oSatisfaction survey/Questionnaire
oX oX oX
Customer oNumber of Government clients
oX oX oX
Perspective oNumber of Private clients
ox ox ox
oNumber of real estate clients

oNumber of business development meetings

Internal oX oX oX
oNumber of technical presentations
Processes oX oX oX
oNumber of awarded projects
Perspective ox ox ox
oNumber of Bids and proposals

Learning and oX oX oX
oNumber of new architects and engineers
Growth oX oX oX
oNumber of supporting staff
Perspective ox ox ox

This BSC is for guidance. Each A/E firm should develop their own BSC based USAID Jordan
on their own specific KPIs, objectives and targets.
Economic Development Program
 Balanced Scorecard

Balanced Scorecard
Why do budgets often bear little direct relation to a company’s long-term strategic objectives? Because they don’t take enough into
consideration. A balanced scorecard augments traditional financial measures with benchmarks for performance in three key nonfinancial areas:
• a company’s relationship with its customers
• its key internal processes
• its learning and growth.

When performance measures for these areas are added to the financial metrics, the result is not only a broader perspective on the company’s
health and activities, it’s also a powerful organizing framework. A sophisticated instrument panel for coordinating and fine-tuning a company’s
operations and businesses so that all activities are aligned with its strategy.

The balanced scorecard relies on four processes to bind short-term activities to long-term objectives:
1. Translating the Vision: By relying on measurement, the scorecard forces managers to come to agreement on the metrics they will use to
operationalize their lofty visions.
2. Communicating and Linking : When a scorecard is disseminated up and down the organizational chart, strategy becomes a tool available to
everyone. As the high-level scorecard cascades down to individual business units, overarching strategic objectives and measures are translated
into objectives and measures appropriate to each particular group. Tying these targets to individual performance and compensation systems
yields “personal scorecards.” Thus, individual employees understand how their own productivity supports the overall strategy.
3. Business Planning : Most companies have separate procedures (and sometimes units) for strategic planning and budgeting. Little wonder,
then, that typical long-term planning is, in the words of one executive, where “the rubber meets the sky.” The discipline of creating a balanced
scorecard forces companies to integrate the two functions, thereby ensuring that financial budgets do indeed support strategic goals. After
agreeing on performance measures for the four scorecard perspectives, companies identify the most influential “drivers” of the desired
outcomes and then set milestones for gauging the progress they make with these drivers.
4. Feedback and Learning : By supplying a mechanism for strategic feedback and review, the balanced scorecard helps an organization
foster a kind of learning often missing in companies: the ability to reflect on inferences and adjust theories about cause-and effect relationships.
Feedback about products and services. New learning about key internal processes. Technological discoveries. All this information can be fed into
the scorecard, enabling strategic refinements to be made continually. Thus, at any point in the implementation, managers can know whether the
strategy is working—and if not, why.

USAID Jordan
Source: Using the Balanced Scorecard as a strategic management system, Norton and Kaplan
Economic Development Program
References

Appendix 4
References

References
I. Contemporary Strategy Analysis, Fifth Edition
II. Economics of Strategy, Fourth Edition
III. Crafting and Executing Strategy,16th Edition
IV. The Five competitive forces that shape strategy, Michael Porter
V. Using the Balanced Scorecard as a strategic management system , Norton and Kaplan
VI. Business Monitor Report, Quarter 2, 2011
VII. NCB 2010 Report
VIII. NCB 2011 Report
IX. SAGIA website (Qatar General Investment Authority)
X. US Department of State
XI. GCC Powers of Construction, Deloitte Report 2011
XII. GCC Powers of Construction, Deloitte Report 2010
XIII. CIA World Fact Book
XIV. IFC / Doing Business in Qatar
XV. Rise with Qatar, Ministry of business and traded investment promotion department
XVI. Middle East Architect, April 2010
XVII. Qatar yellow Pages
XVIII. Mesaieed City Website
XIX. Qatar General Electricity and Water Corporation
XX. Construction week On-line
XXI. Top 100 Building Design world Architecture Survey, Jan 2011
XXII. Value chain Study
XXIII. Minutes of Meeting/ Interviews with A/E Firms

USAID Jordan
Economic Development Program