Please browse our list of frequently asked questions for answers to common queries. If you cannot find the answer to your question here, kindly use the email contact form.
1. General Overview
1.1 When was IQ established?
The company was established on 19 April 2003. However, all of the individual operating companies were established before. For more details, kindly refer to IQ History
1.2 What are the principal activities of IQ?
Kindly refer to The IQ Group Companies
1.3 What are IQ’s main markets?
Kindly refer to The IQ Group Companies
1.4 How many employees does IQ have?
The consolidated group staff number is 3,764 (as of 31/12/2007).
1.5 What are the IQ group contact details?
Kindly refer to Useful Links (About IQ)
1.6 Shareholder analysis
As of 30th September, 2008 the ownership of IQ was as follows:
Share capital of QR 5 billion divided into 500 million shares (@QR10 per share)
1.7 Who are the legal and audit representatives of IQ?
As of December 31, 2007 the group representatives were:
Auditor: Deloitte - Middle East
Banks: Al-Ahli Bank, Commercial Bank, Doha Bank, International Bank of Qatar, Qatar International Islamic Bank, Qatar Islamic Bank
and Qatar National Bank
Law Firm: Legal Department, Qatar Petroleum
2. Corporate & Management Structure
2.1 What is the current group structure of IQ?
Kindly refer to Group Structure
2.2 Brief about the companies, their establishment dates and latest financial position
Kindly refer to The IQ Group Companies and Financial Performance
2.3 Who are IQ’s main partners?
Kindly refer to The IQ Group Companies
2.4 Who are the Directors of IQ?
Kindly refer to Board Of Directors
2.5 Who are the Senior Managers of IQ?
Kindly refer to Senior Management
2.6 An explanation of the organisational structure of IQ and the plan for maintaining a competitive advantage.
Kindly refer to Group Structure
3. Strategy, Mission & Future Plans
3.1 What are the future goals / vision of IQ?
Kindly refer to IQ Mission Statement and IQ Vision 2010
3.2 What is the philosophy behind the IQ expansions?
Kindly refer to IQ Vision 2010
3.3 What are the biggest challenges for IQ as the company and companies it holds continue to grow?
The group companies face many challenges and obstacles in operating and pursuing IQ’s strategies. Key factors affecting the results of operations of the Principal Subsidiaries include market conditions, production costs and efficiency, environmental matters, exchange rates etc.
One of the major challenges is that all the group companies are expanding their capacities and facilities. These expansions require additional funds and this will put pressure on IQ’s cash flows. The expansion strategies of the group companies are in the best interests of the Company and will eventually result in better value to the IQ shareholders in the medium and long term.
Other challenges include, for example, the increasing competitive pressures in anticipation of and following Qatar’s entry into the World Trade Organisation and operating in a domestic market, which is increasingly subject to the volatility of oil and gas and petrochemical prices in the international markets.
3.4 What have been the significant landmarks in IQ’s development?
IQ’s success is dependent on the performance of its group of companies.
The growth of IQ can clearly be seen through its share price, total assets, revenue, net profit, earnings per share and cash flow. All these key performance indicators emphasize the continuing strength of the company during the short period since inception and the successful strategic direction taken by the subsidiary joint venture management teams.
A recent report by the Doha Securities Market (DSM) highlighted that IQ was one of the most traded stocks on the DSM (by trading value), showing its continuing popularity.
3.5 What new opportunities is IQ seeking?
IQ has a strategy to strengthen year on year, through the future expansion plans and initiatives being laid out by the individual subsidiaries.The consolidated strength of IQ should be apparent year on year through increase in revenue/sales, profit, net worth and accordingly the share value.
It is the intention of the company to make dividend payments with a view to maximizing shareholder value commensurate with the on-going capital expenditures and investment requirements of the Principal Subsidiaries.
The company’s strategy is to maximize shareholders’ value by capitalizing on the principal subsidiaries competitive advantages, location and position in global markets in relation to the downstream petrochemical industry and in the regional markets for steel manufacturing, while pursuing opportunities for organic growth through an expansion in capacity, market reach and quality and variety of products.
3.6 What are the plans for 2008 to further develop IQ?
The focus for 2008 is to continue to build on the good financial and operational results of 2007 and to make good progress on the capital expansion projects.
3.7 Are there plans to include more companies / start new companies?
One of the continuing objectives of IQ is to evaluate other affiliated entities of QP or other organizations and decide whether to combine / merge such businesses within the corporate structure of the Company, hence providing shareholders with the benefits of added diversification and enhancing their overall revenue stream.
3.8 What is the major factor behind the company’s success?
IQ has put up an impressive performance in a very short period of time. The current market prices are good indicators of the Company’s popularity in the eyes of the investors. The fact that the share value rose by nearly three times in its first year speaks for itself.
The phenomenal rise in the value of our Company’s share price bears testimony to the high level of confidence in the economic philosophy of the government and in its privatization strategy under the wise and dynamic leadership of HH the Emir as well as in the excellent performance of the subsidiary and the three joint ventures (group companies) of the Company.
The subsidiary and all the joint ventures of IQ have performed, and managed their businesses, very well in terms of revenue generation and cost control and the effect of these is well demonstrated in the overall results of IQ.
We are proud of the performance of all the group companies and are confident that they shall do even better in the coming years. All the group companies have ambitious expansion programs with regard to their capacities and facilities that are mainly designed to take advantage of the demand, price and other market conditions relating to their products.
The group companies are all performing very well and this fact is well demonstrated in IQ’s financial statements as well as in IQ’s share prices at the Doha Securities Market. IQ and all its group companies enjoy a sound and stable financial position and are planning for greater success in the coming years.
3.9 In a climate of liberalisation, is consolidation the best option?
There are obvious benefits from consolidation, as can be seen from the growth of multi-nationals, but it does not necessarily mean that all companies can benefit from consolidation. It is a matter of having the right climate, resources and timing. Most importantly, it requires the right strategy and an efficient management team capable of implementing that strategy.
3.10 How do you maintain productivity, whilst maintaining a decentralised administration?
Our strategy is that of decentralized administration. The operations of the subsidiary / joint ventures remain independently managed by their respective management teams. All the group companies of IQ have good management teams in place and perform very well in maintaining maximum productivity.
3.11 Are there plans to move beyond Qatar to seek opportunities?
IQ has a strategy to strengthen year on year, through the future expansion plans and initiatives being laid out by the individual subsidiaries.The consolidated strength of IQ should be apparent year on year through increase in revenue/sales, profit, net worth and accordingly the share value.
It is the intention of the company to make dividend payments with a view to maximizing shareholder value commensurate with the on-going capital expenditures and investment requirements of the Principal Subsidiaries.
The company’s strategy is to maximize shareholders’ value by capitalizing on the principal subsidiaries competitive advantages, location and position in global markets in relation to the downstream petrochemical industry and in the regional markets for steel manufacturing, while pursuing opportunities for organic growth through an expansion in capacity, market reach and quality and variety of products.
3.12 How do you see the future of IQ in 3 years?
By the end of 2008, IQ expects to have completed more than half of the major expansion projects and to be well on the way to completing the remainder by the end of 2010. Projects like Qatofin, Qatar Steel plant expansion and QAFAC’s de-bottlenecking should be operational.
For more information, kindly refer to IQ Vision 2010 [2.8].
4. Financial & Operational Results
4.1 Important / recent developments
For the latest group financial results, kindly refer to Financial Performance [4.1].
4.2 Questions concerning revenues, margins, quantities sold etc. of subsidiaries
For the latest as well as historical group financial and operational results, kindly refer to Financial Performance [4.1].
4.3 Current production capacities for each of the four companies
For current production capacities for each of the four companies, kindly refer to IQ Vision 2010.
5. Qatar, the Economy and the GCC
5.1 What is the added value of IQ to the welfare of the economy and Qataris?
IQ is one of the largest integrated industrial holding companies in Qatar and the GCC markets. Recent reports by the Doha Securities Market (DSM) highlighted that IQ was one of the most traded stocks on the DSM (by trading value), reflecting its continuing popularity.
As at 31st December 2007, IQ had a share capitalization of QR 5,000,000,000 distributed between its 500,000,000 shareholders. IQ’s main shareholder is still QP, which holds a 70% stake in the business, whilst other shareholders include the Public , Private Companies & Charities and the Government .
It is clear that the performance of IQ has a direct impact on the Qatar economy and the wealth of its people. IQ and its group companies are well aware of this, and are therefore continually looking to develop ventures for the mutual benefit of its stakeholders, who are inevitably the State of Qatar and its people.
5.2 How do you think the labor needs of the industrial sector will be addressed as new industries start and existing ones grows?
Qatar already has an abundance of skilled employees in its current labor market of both national and expatriate origin. Qatar has few difficulties in attracting skilled labor to the country. In addition, Qatar has an employment policy, which allows expatriates to enter the country for work. With the current policy of Qatarisation, the national work-force is estimated to further increase in industry over the coming years.
5.3 What makes Qatar an attractive place for industry?
Qatar is enriched with oil and natural gas reserves. Entrepreneurs and businesses are highly supported by the Government. A working atmosphere is available all over the country. The increased number of major projects being initiated in Qatar along with the large number of joint ventures being initiated with foreign partners bears testimony to the high level of confidence in the economic philosophy of the government and its strategy under the leadership of HH the Emir.
These are some of the points which currently make Qatar an attractive place for industry.
5.4 What opportunities are there for Overseas companies in the Qatari industrial sector?
Some leading and successful overseas companies are already operating in Qatar’s oil and gas sector. They also have significant expansion plans due to the robust current and future outlook for Qatar’s economic growth. The philosophy of economic diversification into other sectors encouraged by Qatar’s political leadership, the stability as well as investor-friendly attitude of Qatar and Qatar’s excellent international relationships, together offer an excellent platform that overseas companies can capitalize on.
5.5 Why should Overseas companies invest in Qatar?
The government of Qatar is dedicated to providing a safe, business-friendly environment for investors. Numerous measures have been taken to modernise not only the physical infrastructure of Qatar, but also the legislative framework.
A good example of the modernisation drive currently underway in Qatar is the recent launch of the Middle East’s first energy business hub – Energy City Qatar (ECQ). ECQ is poised to be a full-service energy business centre catering to the commercial, technical and human resource needs of the oil and gas industry. It will include a dedicated energy trading platform known locally as the International Mercantile Exchange.
5.6 What are the challenges from liberalisation?
Considering the nature of the predominantly oil and natural gas-based economy, Qatar is not expected to be significantly affected by trade liberalisation. Other, smaller areas of the economy where state-sanctioned monopolies exist, for example in telecommunications, postal services and steel production / import, as well as SME’s, as found in the manufacturing sector, may be affected by the opening of the local market, lowering of protectionist barriers and removal of preferential bidding systems.
5.7 How will Qatar develop through its diversification programs?
Having focused on the development of oil and gas sectors during the last ten years, the State is seeking to diversify the economy by investing in the non-energy sector. For example, Qatar recently entered into a multi-billion dollar joint venture agreement with a European major to develop an aluminum smelter project. Significant investments are also being made in the tourism sector as it is expected to be one of the most promising future non-energy contributors to the economy. Through the Qatar Tourism Authority, the country is actively hosting numerous business, cultural, education, sports and tourism events. The most significant upcoming event is the hosting of the 2006 Asian Games, in December, 2006.
5.8 Final comments on the Emir’s vision for the future of Qatar
The significant growth in Qatar’s economy, political and economic stability of the state, cordial relations with neighbouring countries, and international recognition for Qatar have all taken place under the able rule of H.H. The Emir of the State of Qatar. In addition, various infrastructural and other developments have taken place and are continually taking place as a result of the guidance and directives from His Highness.
6. DSM, Share Price & IQ as an Investment
6.1 What makes IQ a good investment?
Industries Qatar was set up with the aim of privatizing some of the very successful and prosperous companies in Qatar. It is a holding company, and therefore, investing in IQ should not be viewed as a single company investment but similar to a portfolio investment. Its portfolio is diversified across several industries , it is good investment in regard to performance and financial return due to the diversity of operations of its group companies.
IQ is considered a long-term investment. Through the future expansion plans and initiatives being laid out by the group companies, the consolidated strength of IQ will become apparent year on year through key performance indicators such as profitability, earnings and return to shareholders.
6.2 How do you foresee the market’s liberalisation affecting your business?
It is very desirable to see an increased participation from the private sector in all segments of Qatar’s economy and particularly in the various intermediate and final petrochemical products.
The Market’s liberalization will attract foreign investors and create more demand in the market to invest in IQ, thereby hopefully increasing share prices further.
IQ is one of the most traded shares on the DSM .
6.3 Comments on the strong performance of IQ
IQ has put up an impressive performance in a very short period of time. The phenomenal rise in the value of our Company’s share price bears testimony to the high level of confidence in the economic philosophy of the government and in its privatization strategy under the wise and dynamic leadership of HH the Emir as well as in the excellent performance of the subsidiary and the three joint ventures (group companies) of the Company.
All the group companies of IQ have good management teams in place and have performed very well in terms of revenue generation and cost control. The higher volumes and prices that most of the products of these group companies enjoyed during 2004 also played a major role towards the successful performance of the group companies.
It is worth noting that IQ’s share value has gone up tremendously, indicating its high level of popularity amongst the investors. The significant rise in the value of IQ’s share prices shows the positive response to the economic philosophy and the privatization strategy of the Government of Qatar under the wise and dynamic leadership of HH the Emir.
The subsidiary and all the joint ventures of IQ (group companies) have performed, and managed their businesses, very well in terms of revenue generation and cost control and the effect of these is well demonstrated in the overall results of IQ.
We are proud of the performance of all the group companies and are confident that they shall do even better in the coming years. All the group companies have ambitious expansion programs with regard to their capacities and facilities that are mainly designed to take advantage of the demand, price and other market conditions relating to their products. For all these expansion strategies to be successful, it is very important that they retain a reasonable amount of financial resources at their disposal. To the extent possible it is advantageous for the group companies to use their own funds, than to borrow from the market, given the alternative investment opportunities that are currently available. We believe that, conserving sufficient funds in the business and deploying them towards attractive expansion projects, is in the better interest of IQ and will eventually result in better value to IQ’s shareholders in the medium and long term.
Overall, the performance of IQ is solely dependent on the performance of its group companies. The group companies are all performing very well and this fact is well demonstrated in IQ’s financial statements as well as in IQ’s share prices at the Doha Securities Market. IQ and all its group companies enjoy a sound and stable financial position and are planning for greater success in the coming years.
