Stop working with them before it is late

djmike
By djmike

I fully understand the globalization laws and its impacts on developed economies; however, what I do not understand how markets open itself to globalization without preparation or raising barriers to protect itself from waves of regional or international companies’ desperately hunting for any opportunity at what so ever cost.

Such behavior has affected private sector in Qatar dramatically especially in year 2009 after the economic crises hit Dubai. What happened that when Dubai economy stopped many companies in Dubai Shutdown or reduced its staff to minimum, this has created massive number of unemployed professional workers looking for any opportunity to save them, yet businesses in Dubai did the same by looking for any opportunity regionally to exploit.

This had domino effect on Qatar, all these companies came to Qatar without any understanding of the local market, (Yes they have been vendors or suppliers since the 90’s) yet they never been interested in the Qatari market, the major effect came by applying Dubai standards to the Qatari market, especially in the way they bid and offer their products.

We are witnessing Dubai companies offering major solutions in Qatar for less than 1 – 2% profit margin, anyone who knows the Qatari market understand that you need at least 15 – 20% to breakeven, yet these companies are selling for less than 1 – 2%!!!

Such companies build their strategy to survive in Dubai until further notice and at any cost, yet most of these companies:

a. Do not have local presence in Qatar, and if they do it will not exceed 2 employees.
b. Not licensed to operate in Qatar
c. Do not have after sales support team in Qatar
d. They are not paying licenses fees for the Qatari government unlike the Qatari Companies.

Yet these companies are affecting the local market by:
1. Increasing unhealthy competition level.
2. Not benefiting the local market, as they do not pay rents, salaries, taxes, fees, etc…
3. Reducing quality of services in Qatar
4. Increasing of the number Qatari companies leaving the market
5. Affecting jobs
6. Affecting retail prices

The problem not the availability of competition, however the problem is mainly in unbalanced competition and adapting destructive business strategies on small and underdeveloped market.

I recommend stop working with such businesses at any cost, and focus on working with serious businesses that are looking to grow in Qatar, and not hunting opportunities.

By Victory_278692• 21 Nov 2012 15:06
Victory_278692

Name and shame them here.

I dont think anything wrong even from legal perspective, when you are so sure about such companies, there is no harm in disclosing those companies and alerting others.

By djmike• 21 Nov 2012 14:31
djmike

100% correct, well said.

By mdarif73• 21 Nov 2012 13:57
Rating: 5/5
mdarif73

I think coming to Qatar is little risky specialy coming to private sector its either doctor or executive class. Compare to other place in gulf Qatar is little uncertain place. Usually employee not getting salary on time and on leaving employers are not willing to give the gratuity and other end of service benefits. In my view before taking any risk of coming to Qatar better explore some alternative. and cost of living very high. So be carefull before joining any private sector and once you join, you will not be having much options.

By t_coffee_or_me• 21 Nov 2012 13:15
t_coffee_or_me

So will u hire?

By djmike• 21 Nov 2012 13:02
djmike

Again I'm not reffering to the healthy competition on corporate or personal levels, I'm referring to unhealthy and illegal competition flooding the market leading into destructive results on the short and long term.

By Victory_278692• 21 Nov 2012 11:51
Rating: 4/5
Victory_278692

I feel you find difficult to compete with companies from UAE. I could not compare vis a vis to the quality and standard of services they offered. The issue with UAE is they retrenched staff on High salaries and re recruit fresh graduates highly qualified at lower salary.

In fact these provides Companies with more options and better services from highly qualified, less experienced, fresh ideas at lower price.

By djmike• 21 Nov 2012 11:47
Rating: 3/5
djmike

This article talks about such behavior but on corporate level, personal level been brought to subject later.

However, although theatrically your concept is not harmful, yet when you apply it in Qatar is not practical.

Working in Qatar "LEGALLY" requires transfer of sponsorship, this makes you bound to your employer for a minimum of 1 year and maximum of 2 years.

If your income level is below the minimum income level you will not be able to survive in your Job for 1 year.

And why would the employer give you release later on? and lose his "VISA" especially if your salary is very low, maximum he will increase your salary for 1 - 3% if you are lucky...

We are not talking about 1 or 2 or maybe 100 of Jobless people currently using such method, i mentioned earlier i received 3000 applicants in less than 1 week, WHAT ARE YOUR CHANCES BETWEEN ALL THESE???? especially if they are willing to drop it all thinking tomorrow will be better!

I can bargain salaries with these people to drop it less than 1500 Qrs. PM, instead i decided to recruit someone who is confidence about his/her abilities and they know exactly how much they deserve

By t_coffee_or_me• 21 Nov 2012 11:27
t_coffee_or_me

Yes problem is solved Temporarily at least, gives time to look for better job. Better to work for something then sitting at home.

By djmike• 21 Nov 2012 11:00
djmike

Jobless Professionals should seek professional consultation about Where to work and how much they should earn per month.

Lowering your salary doesn't mean you solved your problems, or you jump to the other level, it simply means another quick failure in Qatar.

By t_coffee_or_me• 21 Nov 2012 10:52
t_coffee_or_me

Somebody who is jobless has no other option.

By djmike• 21 Nov 2012 10:46
Rating: 2/5
djmike

Thanks TheDarkKnightRises for your valuable comment

You said and i quote "A little bit of infiltration of goods & services from Dubai & Saudi..."

I'm not talking about little bit, i'm talking massive waves of businesses entering without Legal or actual presence and competing unethically in the market, creating massive competition (War) and dropping the private sector in Qatar.

I have been few days back in Tender meeting for Marketing & Events project, i was surprise that the number of participants in this project were around 50 companies, i have been in Qatar for 35 years, i didn't recognize any face nor any company...

Ok still i will sacrifice another year, however the size damage such companies are making to the market is irreversible.

There is no Undo Bottom in Economies, when you do something you will pay the price for it for years to come... what is the value of all this boom and lodes of work if you cannot even breakeven and i'm not talking about small private sector companies in Qatar, i'm talking about the Top and medium size, those who employ the majority of us...

By anonymous• 21 Nov 2012 09:54
Rating: 5/5
anonymous

This was more of a problem around 2 years back.. For 2012-2013, UAE's economy is expected to grow at almost the same rate as Qatar. Plenty of work in UAE to keep the companies busy there.

A little bit of infiltration of goods & services from Dubai & Saudi to Qatar is unavoidable and has been happening for a number of years. Same thing happens to smaller economies around regional powers everywhere.

By djmike• 21 Nov 2012 09:45
djmike

Check this Image for example :

Funny this company have Dream reader specialist, he can interpret your dreams and its impacts on your business... you think i'm joking check their facebook page http://www.facebook.com/MBTekEAd

By djmike• 21 Nov 2012 08:52
djmike

These workers are destroying the salary market unfortunately, i didn't want to highlight them in my article as it might look not right, however recruitment became impossible.

I advertised for Engineers last week i received around 3000 application in less than a week, what happen that i coudnt sort out the resumes and the HR department refused to go into such hassle.

It was funny to see an MBA graduated professional with over 10+ years of experience, married with 2 kids looking for Job in Qatar for less than 15,000 Qrs. knowing that the minimum monthly expense for such family will cost between 15,000 - 20,000 unless he doesn't want to educate and feed his kids.

I informed my HR to remove every resume coming from Dubai or worked in Dubai regardless...

I know they are in bad need for jobs, but that doesn't mean killing the market so they can survive for few months...

By britexpat• 21 Nov 2012 08:38
britexpat

So, what about the workers who have come from Dubai and accepted lower salries ?

By djmike• 21 Nov 2012 08:33
Rating: 5/5
djmike

I cannot name companies here for many legal and ethical reasons, however such information are not difficult to obtain from the market, for example:

Companies operating in :

1. Events Management & Marketing Services:

- Please check companies building exhibition stands in Qatar, such solutions used to start from 150,000 and reach up to 1 million right now, it starts from 20,000 Qrs. and reach maximum up to 50,000 Qrs.

- Companies offering complete marketing solutions or email marketing solutions for a 1 year for less than 4500 Qrs. per year, that includes a) building website, b) writing content, c) SEO, d) SEF, etc... This usually used to be between 50,000 Qrs. and above right now it’s offered in the Qatari market for less than 5,000 Qrs.

2. Technical services :

- MEP : UAE companies offering complete designs without having single employee on the ground, and they usually outsource implementation for labors leased by day, and i'm not talking about small projects, i also include medium size projects. (Contact any contracting company and ask about the competition level and profit margins in Qatar year 2012 and compare it with the last 3 years)

- Audio Visual & Security : This is a very important and selective industry, companies operating in this fields should have highly trained and experienced teams, today such solutions are managed by anonymous individuals and companies and profit margin does not exceed 3 - 5% while it used to be minimum around 35 - 50% as the operating cost is very high.

I can go on to reach every field, but this is not a secret, it is happening every day and every top decision maker can see that, the issue do you want this to continue, as if it does, what will happen to the market in the near future and what will happen to the companies and people working over here in Qatar...

By Victory_278692• 20 Nov 2012 17:54
Rating: 2/5
Victory_278692

Name a few companies you are referring

By djmike• 20 Nov 2012 15:55
djmike

Source of what? The article?

By djmike• 20 Nov 2012 15:54
djmike

Didnt understand what outsourcing you mean?

Kindly Make your comment more detailed so we can benefit from your input.

By NimbuPani• 20 Nov 2012 13:27
NimbuPani

Source pls...

By Shaaz786• 20 Nov 2012 12:34
Shaaz786

Well Said , .

By PoolsRUs• 20 Nov 2012 11:49
PoolsRUs

:-/ sad

By Victory_278692• 20 Nov 2012 11:33
Victory_278692

Outsourcing has its own merits and demerits depend upon how top Management perceives.

Log in or register to post comments

More from Qatar Living

Qatar’s top beaches for water sports thrills

Qatar’s top beaches for water sports thrills

Let's dive into the best beaches in Qatar, where you can have a blast with water activities, sports and all around fun times.
Most Useful Apps In Qatar - Part Two

Most Useful Apps In Qatar - Part Two

This guide brings you the top apps that will simplify the use of government services in Qatar.
Most Useful Apps In Qatar - Part One

Most Useful Apps In Qatar - Part One

this guide presents the top must-have Qatar-based apps to help you navigate, dine, explore, access government services, and more in the country.
Winter is coming – Qatar’s seasonal adventures await!

Winter is coming – Qatar’s seasonal adventures await!

Qatar's winter months are brimming with unmissable experiences, from the AFC Asian Cup 2023 to the World Aquatics Championships Doha 2024 and a variety of outdoor adventures and cultural delights.
7 Days of Fun: One-Week Activity Plan for Kids

7 Days of Fun: One-Week Activity Plan for Kids

Stuck with a week-long holiday and bored kids? We've got a one week activity plan for fun, learning, and lasting memories.
Wallet-friendly Mango Sticky Rice restaurants that are delightful on a budget

Wallet-friendly Mango Sticky Rice restaurants that are delightful on a budget

Fasten your seatbelts and get ready for a sweet escape into the world of budget-friendly Mango Sticky Rice that's sure to satisfy both your cravings and your budget!
Places to enjoy Mango Sticky Rice in  high-end elegance

Places to enjoy Mango Sticky Rice in high-end elegance

Delve into a world of culinary luxury as we explore the upmarket hotels and fine dining restaurants serving exquisite Mango Sticky Rice.
Where to celebrate World Vegan Day in Qatar

Where to celebrate World Vegan Day in Qatar

Celebrate World Vegan Day with our list of vegan food outlets offering an array of delectable options, spanning from colorful salads to savory shawarma and indulgent desserts.