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Risk Management imperative to property development in Qatar.
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| 10 May 2010 |
Property Developers in Qatar were explicitly told today to take the issue of risk management seriously and to look upon challenges faced as opportunities to raise positive awareness of sustainable practices within the industry.
In a conference hosted by the nation’s leading developer, DOHALAND, and the Institute of Risk Management (IRM), the importance of ‘Risk Management in Property Development’ within the regional sector was raised by local and international speakers and senior business managers. Held at DOHALAND’s Knowledge Enrichment Centre, moored off Doha Corniche, this event was the first of its kind, specifically looking at this topic, in Qatar.
After opening remarks from Rahat Latif, Chairman of IRM Qatar and Risk Management Specialist for Qatargas, Eng. Issa M. Al Mohannadi CEO of DOHALAND spoke about ‘Sustainability from a DOHALAND Perspective’. The speech outlined the DOHALAND flagship project ‘Musheireb’ and spelled out the importance of considering sustainability in developments within Qatar to the assembled audience of senior construction managers.
Eng. Issa M. Al Mohannadi also pointed out that the idea of ‘Risk Management’ within the local property development sector was still very much in its infancy, and summarized DOHALAND’s Risk Management practices. The conference was chaired by James Dalziel, DOHALAND Risk Management Specialist, who also delivered the closing address.
The conference agenda continued with insight from several senior and respected managers and experts across all related disciplines including: Neil Broadhead, Partner in Capital Projects for PricewaterhouseCoopers - Dubai, who spoke about project controls, control objectives and maturity assessment, and advised on creating a risk resilient project and adapting controls throughout the project lifecycle.
Mr Broadhead was followed by Dr. Harold Dorbin, Senior VP- Construction Consulting Practice from Marsh Houston, USA, on ‘Project Governance and Providing Executive Leadership with the Tools to Lead’. The afternoon’s agenda featured James Portelli, IRM UAE Coordinator and Executive VP/Head of Risk at the Oman Insurance Company speaking on project insurance from a buyer’s perspective, which covered potential liabilities under a construction contract, construction insurance policy, cover and exclusions as well as professional indemnity and latent defect cover.
Julian Pope, Partner in Construction Practice from Denton Wilde Sapte & Co, Doha, continued with his perspective on ‘Contracts, Arbitration and Dispute Resolution’, which covered best practice contract preparation through FIDIC and Qatari law and the process of arbitration.
Marc Strenger, Senior Manager, Real Estate Advisory, KPMG Doha, continued the afternoon agenda with a speech on ‘Understanding Market Risk... Protecting Future Revenues’ while Andrew Stevens, CEO, Commercial Bank - Doha, ended the day’s conference with his take on ‘Considering Risk in Project Financing’.
Following his speech, Eng. Issa M. Al Mohannadi said, “Despite the intricacies of risk management and it being a fairly new notion to many associated with development in Qatar, it is essential, especially in 2010, as we face a more economically challenged market. Globally, developers have faced difficulties during a tightening of credit and able buyers. Any developers operating in the market then and now face huge risks. The seminar today was much needed in order to show how essential the implementation of sustainable practices is within the planning and the execution of developments and construction.”
A lively panel debate also took place on the subject of ‘What Not to do... Lessons Learned where Risk is Not Considered’.
As part of its overall corporate governance strategy, DOHALAND has created a risk management function that is currently the benchmark for other Qatari developers. With a clear mandate for ‘best practice’ in this field DOHALAND’s Risk Management strategy is managed on a Corporate, Divisional and Project basis. DOHALAND has set a process to brief the management of the risks involved in each significant area of activity. This unique approach utilizes he economies of scale that an enterprise-wide approach to risk allows.
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