CHAIRMAN'S MESSAGE
After Greetings

QATAR DEVELOPMENT BANK has grown in strength and stature ever since the government of the State of Qatar acquired full ownership and control of the Bank during the previous year. This has enabled the Bank to encourage the development of small and medium scale industries with renewed vigor, and also initiate certain promotional measures to attract foreign investment into the country.

In line with the Government’s policy to attain a higher level of industrial development, the Bank reduced the interest rates on industrial loans from 7% to 5% during the current year. This policy had an immediate positive effect as the levels of credit off take and fund disbursement increased over the precious years. Also, the Bank developed collaborative partnership with foreign investors and technology suppliers under its “Joint Venture Industrial Proposals Program” (JVIPP). This led to the promotion, formation and establishment of Qatar Korean Knitting Company during 2002. This joint venture partnership with a Korean company, that holds the related technical and marketing expertise, is expected to provide suitable job opportunities for Qatari women. To further promote Qatar to foreign investors, the Bank prepared a “Joint Venture Profile” brochure that was distributed to all foreign embassies and consulates in Qatar, and Qatar Embassies outside Qatar. The Bank also aggressively marketed itself at a road show in London intended to promote Qatar as a preferred investment destination to foreign investors.

The construction work on the Bank’s new building is nearly complete and we expect to shift there during the first half of the Year 2003. The construction and completion of the new building would enable the Bank to provide better and more comfortable environment for its customers and employees, as well as maintaining its niche position amongst the financial and economic institutions the country. The Bank received several tenancy inquiries from prestigious government and private sector establishments as the building nears its completion. Approximately 90% of the commercially available leasing space has been leased out that demonstrates the faith reposed by tenants in the building’s strategic commercial location.

The Bank continued its efforts to appraise projects presented to it by the private sector and finance these in accordance with the Bank’s approved funding norms and criteria. During 2002, ten industrial projects, with a combined project cost of QR 93 mn, were financed to the tune of QR 32 mn by the Bank. In addition, the Bank also disbursed QR 5 mn to eleven industrial establishments to finance their raw material import requirements for their industrial projects.

On the external front, the Bank strengthened its relationship with international financial institutions and trained its employees on the SWIFT system to further enhance security over electronic fund transfers.

The Bank complied fully with the regulatory authority, Qatar Central Bank, requirements that require exchange of Bank’s data through the electronic QCB Connect system. The bank also benefited from the shared information available through this system.

In line with our role of assisting Qatari industrial investors with technical advisory services for their industrial projects, we have provided more than 32 industrial consultancies to a number of project promoters. We look forward to promote and expand the scope of this activity by offering various advisory and consultancy services covering a majority of the industrial sectors.

The effective use of information through technology saw the Bank upgrade its computer systems during the year to ensure future requirements are met and customer service enhanced. During 2002, the Bank’s staff participated in a number of conferences and symposia, both local and abroad, related to industrial issues. During these events, the Bank presented several working papers concerning the development of the industrial sector, addressing the requirements of industrialist and problems faced by them, and studying ways to strengthen this productive sector in the State of Qatar.

Realizing the importance of quality in all spheres of operations, the Bank initiated a program leading towards ISO certification. The Bank has contracted with a leading Qatari company that will provide support services to help achieve this prestigious certification. Several training sessions were held in-house earlier during the year while commendable progress has been achieved in reviewing and implementing the required performance and process improvement measures. The ISO certification is expected to be achieved during 2004.

The bank strove continuously in its efforts to develop its human resources and enhance their work performances and skills. The Bank’s staff attended 42 local and abroad training courses related to the Bank’s activities and covering all job functions. In addition, the Bank’s executives participated in 17 meetings and workshops related to industrial development.

The bank actively implemented its Qatarisation policy by attracting and encouraging Qatari professionals to work in its different departments. The percentage of Qatari staff rose to 41% during 2002, the fifth straight year of growth achieved in the share of Qatari employees in the banks total staff strength. It is expected that Qatari nationals would form minimum 50% of the banks work force by Year 2005.

Looking to the future, I am confident that the Bank would continue to play an increasingly active and important role in industrial, economic and social development in line with the governments stated policies and objectives. The Bank will continue its pioneering role to strengthen the industrial structure for further development and assist industries in elevating industrial standards through competitive benchmarks. The facilities and incentives offered by the State of Qatar provide numerous business opportunities to international investors who, in partnership with the bank, may benefit by setting up profitable and mutually beneficial industrial ventures in Qatar.

On this occasion, I wish to highlight the considerable and valuable role played by the Board of Directors in leading the Bank, planning its development and chartering its progress. I take this opportunity to praise the assistance of all the Ministries of the State without whose help and cooperation the Bank would not have been able to achieve its present performance. I would also like to express my sincere thanks to the Management and staff of the Bank for their dedication to their work and their important role towards the achievement of our goals.

To conclude, it is my honor to express our sincere thanks and appreciation to H.H. Sheikh Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar, for his continuous assistance and encouragement to the Bank’s activities. I also wish to extend our gratitude to H.H. Sheikh Tamim Bin Hamad Al-Thani, The Heir Apparent, and H.H. Sheikh Abdullah Bin Khalifa Al-Thani, The Prime Minister, for their continuous support to the private sector enabling it to play a prominent role in the sustained industrial development effort of the country.

In addition, I would also like to express my thanks to H.E. Abdullah Bin Hamad Al-Attiya, Minister of Energy, Electricity and Water, H.E. Yousef Hussain Kamal, Minister of Finance and H.E. Abdullah Bin Khalid Al-Attiya, Governor of the Qatar Central Bank for their continuous support and sound advice.