Purchase OBG Publications

As one of the fastest-growing economies in the world, according to the Federal Ministry of Finance (FMF), Nigeria is certainly appealing to foreign investors. Growth has averaged 6.7% since 2006 and has been relatively uninterrupted by the global financial crisis. An emerging middle class is beginning to fuel growth in domestic consumption. Income per capita has increased almost four-fold since 2001, from $357 to $1541 in 2011. Foreign investment surged in 2011, with the country attracting $8.7bn in FDI, up from $6.1bn in 2010. Investment broadened beyond the oil and gas sector, with deals in industry, agro-processing, retail and telecommunications. To achieve its vision of becoming a top 20-economy with a GDP of $900bn by 2020, the country must sustain annual growth rates of around 13.5%. This chapter contains interviews with Ngozi Okonjo-Iweala, Coordinating Minister for the Economy and Minister of Finance; Frank Nweke Jr, Director-General, Nigerian Economic Summit Group; and Mustafa Bello, Executive Secretary and CEO, Nigerian Investment Promotion Commission (NIPC). It also includes a viewpoint from Elizabeth Littlefield, President and CEO, Overseas Private Investment Corporation (OPIC).

Nigeria had seven banks with total assets in excess of N1trn ($6.4bn) as of end-2011, with the top four accounting for 55.62% of the sector’s net profits. Yet although the continent’s most populous nation boasts some of its largest banks by assets, just 21% of Nigeria’s population of about 165m people is banked, according to a 2011 study by the Central Bank of Nigeria (CBN). Bank credit remains skewed towards corporate borrowers, with about 80% of the top 14 banks’ income coming from corporate banking in 2011. The mortgage market remains small, with total lending in this segment equivalent to less than 1% of GDP. While the sector fell short of expectations of a full turnaround in 2011, first-half results for 2012 marked a turnaround in the industry’s profitability. This chapter contains interviews with Lamido Sanusi, Governor, Central Bank of Nigeria; and Razia Khan, Head of Research for Africa, Standard Chartered.

The stock market is the continent’s third largest by capitalisation after Johannesburg and Cairo. The Nigerian Stock Exchange (NSE) includes a main board with 186 equities, a board dedicated to SMEs with 12 listings, and a single exchange-traded fund. While investors welcomed what they saw in 2010 as a fleeting recovery in markets, 2011 was more challenging, as it came on the back of sustained volatility in global markets and fallout from the 2008 margin lending crisis. However, regulators have seized on the crisis as an opportunity to restructure exchange fundamentals by improving transparency and governance, while a pipeline of new issues and instruments is being built. These could translate to significant opportunities for value investors. This chapter contains interviews with Oscar Onyema, CEO, Nigeria Stock Exchange; and Wale Agbeyangi, Managing Director, Cordros Capital. It also includes share analyses on six local firms, with information provided by Cordos Capital.

With assistance from Clyde & Co, this chapter looks at how Qatar’s emphasis on its infrastructure has yielded several interesting legal developments, including a new focus on occupational health, safety and environment (HSE), and a risk-centric consideration of the way in which business is conducted in the construction sector. This chapter also explains the options for foreign business operations and outlines recently passed laws and regulatory changes in Qatar. It also includes a viewpoint with David Salt, Partner at Clyde & Co, on standardising safety regulations.

In conjunction with The Advisors RSM, this chapter outlines the new rules and regulations for foreign firms operating in Qatar. It also looks at key sections of Law No. 21, a new tax code that came into effect in January 2010, as well as the executive regulations released in support of the law. This chapter includes an interview with Jaber Al Hedfa, Partner, The Advisors RSM.

Promoting development by nurturing a healthy population is enshrined in Qatar’s constitution and is a cornerstone of the government’s long-term development strategy. The state’s population has increased rapidly over the last decade, but so too has expenditure on health care services, climbing from $339 per capita in 2000 to $1560 per capita by 2010. Investments in health care are expected to help diversify the economy away from oil and gas, and the government is actively supporting private sector participation. While Qatar faces the challenge of sourcing skilled professionals to fill new posts, the government is trying to address these gaps through several initiatives aimed at encouraging more students to take up medical professions, particularly nursing. This chapter includes interviews with Dr Hanan Al Kuwari, Managing Director, Hamad Medical Corporation.