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MIRA INFORM REPORT
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Report No. : |
492165 |
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Report Date : |
20.02.2018 |
IDENTIFICATION DETAILS
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Name : |
AL SULAIMAN
JEWELLERY & WATCHES |
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Registered Office : |
Bank Street, P O Box:
4687, Doha |
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Country : |
Qatar |
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Financials (as on) : |
31.12.2017 |
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Date of Incorporation : |
06.06.1993 |
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Com. Reg. No.: |
29673 |
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Legal Form : |
With Limited
Liability - WLL |
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Line of Business : |
Wholesale and
Retail of Jewellery, Watches and Luxury Accessories. |
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No. of Employees : |
75 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A |
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Credit Rating |
Explanation |
Rating Comments |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Qatar |
A2 |
A2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
QATAR - ECONOMIC OVERVIEW
Qatar’s oil and natural gas resources are the country’s main economic engine and government revenue source, driving Qatar’s high economic growth and per capita income levels, robust state spending on public entitlements, and booming construction spending, particularly as Qatar prepares to host the World Cup in 2022. Although the government has maintained high capital spending levels for ongoing infrastructure projects, low oil and natural gas prices in recent years have led the Qatari Government to tighten some spending to help stem its budget deficit.
Qatar’s reliance on oil and natural gas is likely to persist for the foreseeable future. Proved natural gas reserves exceed 25 trillion cubic meters - 13% of the world total and, among countries, third largest in the world. Proved oil reserves exceed 25 billion barrels, allowing production to continue at current levels for about 56 years. Despite the dominance of oil and natural gas, Qatar has made significant gains in strengthening non-oil sectors, such as manufacturing, construction, and financial services, leading non-oil GDP to steadily rise in recent years to just over half the total.
Following trade restriction imposed by Saudi Arabia, the UAE, Bahrain, and Egypt in 2017, Qatar established new trade routes with other countries to maintain access to imports.
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Source
: CIA |
SUMMARY
Company Name : AL
SULAIMAN JEWELLERY & WATCHES
Country of Origin : Qatar
Legal Form :
With Limited Liability - WLL
Registration Date : 6th
June 1993
Commercial
Registration Number : 29673
Chamber Membership
Number : 9390
Issued Capital : QR
200,000
Paid up Capital : QR
200,000
Total Workforce :
75
Activities :
Wholesale and retail of jewellery, watches and luxury accessories.
Financial Condition : Fair
Payments :
No Complaints
Person Interviewed : Shiraz Abbass,
Financial Controller
COMPANY
NAME
AL SULAIMAN
JEWELLERY & WATCHES
ADDRESS
Registered & Physical
Address
Location : Bank Street
PO Box : 4687
Town : Doha
Country : Qatar
Telephone : (974) 44442556 / 44426826 / 44930077
Facsimile : (974) 44442557 / 44442357 / 44426766
Email : info@alsulaimanjewellery.com / asj@qatar.net.qa
Premises
Subject operates
from a medium sized suite of offices and a showroom that are rented and located
in the Central Business Area of Doha.
Branch Office
(s)
Location Description
·
Hayat Palaza Rented
showroom premises
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Conference
Center Street, Al Dafna Rented
showroom premises
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Al Majid Mall Rented
showroom premises
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Lulul Al Gharafa Centre Rented
showroom premises
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Gold
Souq Rented showroom
premises
Tel: (974) 44442556
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Gold
Souq (Br) Rented showroom
premises
Tel: (974)
44361122
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City
Center Rented showroom
premises
Tel: (974)
44930077
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The
Center Rented showroom
premises
Tel: (974)
44415893
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Hyatt
Plaza Rented showroom
premises
Tel: (974) 44601430
KEY
PRINCIPALS
Name Position
·
Nassar Haider Al Sulaiman Managing
Director
·
Azim
Abbass General
Manager
·
Shiraz
Abbass Financial
Controller
LEGAL
FORM & OWNERS
Date of Establishment : 6th
June 1993
Legal Form :
With Limited Liability -
WLL
Commercial Reg. No. : 29673
Chamber Member No. : 9390
Issued Capital : QR 200,000
Paid up Capital : QR 200,000
Name of Shareholder (s)
·
Nassar Haider Al Sulaiman
·
Al Sulaiman Holding
Doha
Notes
to the legal Form
Under
the Qatari Commercial Companies Law a WLL may be formed by a minimum of 2 and a
maximum of 50 natural or legal
persons, whose liability is limited to their shares in the company’s capital.
It can be established in almost all
sectors of the economy (excluding banking, insurance and financial investment
on behalf of others), has no minimum capital requirement, and is one of the
easiest ways for a foreign shareholder to establish a legal presence in Qatar. However, there are foreign
investment restrictions. Law No. (13) of 2000, Regulating Non-Qatari Capital
Investment in Economic Activity (Foreign Investment Law) requires a Qatari
citizen to hold at least 51% of the share capital of an WLL. Shareholders'
profit shares do not have to be proportionate to the equity shareholding. It
cannot issue shares to the
public.
AFFILIATED
COMPANIES
·
Qatar
Energy Co
Doha
·
Al
Sulaiman Travel Agency
Doha
OPERATIONS
Activities: Engaged in the wholesale and retail of
jewellery, watches and luxury accessories.
Import Countries: Italy, France and India
Brand Names: GERMANI & EROS
Subject has a
workforce of 75 employees.
FINANCIAL
DATA
Financial
highlights provided by local sources are given below:
Currency: Qatari
Riyals (QR)
Year Sales
Year Ending 31/12/17: QR 21,000,000
Local sources
consider subject’s financial condition to be Fair.
Note:
According
to Qatari Commercial Law, only Public Shareholding Companies (Listed on the
Qatar Stock Market) are required to publish
their financial information. Financial information on other legal forms can
only be obtained from the companies / businesses directly
BANKERS
·
Doha
Bank Ltd
Al Jasrah Street
PO Box: 3818
Doha
Tel: (974) 44435444
Fax: (974) 44416631 / 44410625
PAYMENT
HISTORY
No complaints
regarding subject’s payments have been reported.
GENERAL
COMMENTS
During the course
of this investigation the following sources were consulted:
- Internal database
- Journals, directories, media & web
searches
- Local Registry office
- Interview with Shiraz Abbass, Financial
Controller
Please note that
the correct name of the subject is “Al Sulaiman Jewellery & Watches” and
not “Al Sulaiman Jewellers”.
The subject and its
shareholders/owners have been searched in the following databases; Office of
Foreign Assets Control (OFAC), United Nations Security Council Sanctions,
Australian Sanctions List, US Consolidated Sanctions List, EU Financial
Sanctions List and UK Financial Sanctions List and nothing adverse could be
found on the exact names listed within the report.
During the course
of this investigation nothing detrimental was uncovered regarding subject’s
operating history or the manner in which payments are fulfilled. As such the
company is considered to be a fair trade risk.
COUNTRY
OUTLOOK
Recent
Developments
Like its GCC neighbours, Qatar appears to be entering a period of slower
growth. GDP growth eased to 3.6 percent in 2015 (from 4.2 percent in 2014),
with output in the hydrocarbon sector broadly flat.
Growth in the latter has fallen sharply since 2012 in line with
stagnating production, in large measure due to a self-imposed moratorium on
additional output from the North Field. More recently, the oil price slump has
also taken a toll. Nominal GDP fell 20 percent in 2015, due to deteriorating
terms of trade, while non-hydrocarbon sector growth slowed to 7.6 percent (vs.
11 percent in 2014) on weaker
consumer confidence, fiscal adjustment and tighter banking sector
liquidity.
Large fiscal and current account surpluses have vanished. Hydrocarbon
revenues account for some 90 percent of fiscal receipts and the bulk of export
earnings. With low oil prices persisting, the current account surplus has
narrowed sharply, from over 30 percent of GDP in 2011-12 to 8 percent in 2015.
With fiscal revenues falling sharply amid continued fiscal outlays
related to the staging of the 2022 World Cup, the general government fiscal
balance has shifted into deficit and is projected to reach 12.1 percent in
2016. Policy shifts to prioritize capital spending on projects deemed critical
to economic diversification and the World Cup were reflected in the shelving of
major “non-essential” projects (notably the US$6.4 billion Al Karaana
petrochemicals complex in 2015). It is estimated that
government spending on new construction and transport contracts fell by
92 percent (y/y) in Q1 2016.
The government has begun to rationalize subsidies, allowing fuel prices
to more closely track global prices. It is also developing new revenue sources,
including through planning for a value added tax.
Large buffers are anchoring confidence amid rising debt issuance.
Qatar’s SWF is estimated to hold US$256 billion in assets. Instead of drawing
upon the SWF to fund the fiscal deficit, the government
has issued QR 4.6 billion and US$9 billion in debt markets thus far in
2016. Indications are that no new money has been allocated to the SWF this
year, with new investments to be funded through asset sales or dividend income.
By and large, though, fiscal policy tends to be pro-cyclical in Qatar
with the country needing fiscal frameworks to insulate the budget from
commodity price volatility. The country could benefit from
cross governmental planning, coordination, and public investment
management of non-hydrocarbon projects.
Monetary policy remains accommodative but banking liquidity is tight.
The central bank chose not to mirror the US Fed’s policy rate hike in December
2015. But with further tightening by the Fed likely,
it will eventually need to follow suit given the currency peg. Banking
sector solvency indicators and capital buffers remain healthy; however both
deposit and credit growth have slowed.
Living standard monitoring and analysis should contribute to better
design of social policies, including their targeting, especially in light of
the recent rise in utility tariffs and the elimination of subsidies.
Outlook
Qatar is projected to continue growing at a moderate pace. Qatar is in
the second year of a US$200 billion infrastructure upgrade ahead of hosting the
World Cup, which should support activity, particularly in construction,
transport and services. GDP growth is projected at 2.1 percent in 2016, and
should gradually rise 3.7 percent in 2018. Natural gas production has plateaued, and is expected
to decline. However, the 1.4 billion cubic feet per day Barzan gas project –
the last project approved before the North Field moratorium – is set for start
in 2016 with full output expected in 2017. This should offset some of the
anticipated production decline.
Fiscal and CA balances should gradually improve. As gas production
increases and oil prices recover, export earnings should recover. The CA
deficit will stay elevated during the forecast period, reflecting FIFA related
capital imports before gradually narrowing to 3.2 percent of GDP in 2018. The
fiscal deficit will narrow, also helped by savings in current expenditures and
subsidy reforms, but is expected to remain large at close to 9 percent in 2018
(general government basis).
Risks and Challenges
Key downside risks include depressed global oil and gas prices, which
lead to a slower than expected improvement in fiscal balances at a time when
the GCC region as a whole is tapping international investors for funds to finance fiscal short
falls. Room to cut capital spending is limited given contractual obligations
regarding FIFA.
Other risks include volatility in global financial markets, or regional
instability that disrupts oil and gas production and/or capital inflows. Over
the medium term,
growing competition and the emergence of a global spot market in gas
prices could pose a challenge to Qatar’s dominance in global LNG markets.
In light of the uncertain medium term outlook for the gas sector later
this decade and beyond, the development of the non-hydrocarbon sector is of
even greater importance. Qatar’s investment driven
growth strategy over the past decade has yet to deliver benefits in
terms of greater productivity growth, even as bottlenecks have been visible in
the form of overheating pressures, congestion and pollution, and demographic
imbalances. To diversify Qatar will have to raise the productivity of its
investment, in both human and physical capital, and undertake structural
reforms to improve the business environment.
Key Economic
Indicators 2014 2015 2016* 2017* 2018*
Real GDP Growth (%) 4.0 3.6 2.1 3.6 3.7
Inflation Rate (%) 3.1 1.9 0.0 0.0 0.0
Current Account
Balance (% of GDP) 24.0 8.4 -1.1 -5.6
-3.2
Financial &
Capital Account (% of GDP) -19.7 17.1 30.0 26.8 17.1
Fiscal Balance (%
of GDP) 35.9 10.3 -12.1 -11.7
-8.9
Primary Balance (%
of GDP) 38.0 11.9 -10.1 -9.2 -6.3
*
forecast
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 63.91 |
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1 |
INR 90.31 |
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Euro |
1 |
INR 80.71 |
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QAR |
1 |
INR 17.80 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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DIV |
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Report Prepared
by : |
NIT |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low risk
of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably on
secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the business
is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.