DOHA: After initial hitches, Qatar’s ambitious start-ups and small and medium enterprises (SMEs) sector is gathering momentum. The Qatar Development Bank (QDB) yesterday said the combined export value of Qatari SMEs stood at QR2.4bn last year. This figure is all likely to exceed this year, given the available numbers for the current year.
“We don’t have an updated numbers for 2015. But as per the available figures, the combined export value in 2015 is estimated at QR1.7bn”, Abdulaziz bin Nasser Al Khalifa, the Chief Executive Officer of QDB said yesterday.
The QDB plays critical role in introducing SME products in the international markets. The bank support them to find new markets as well. The country’s SMEs sector is the key agent of Qatar’s economic diversification story. Qatar’s non-hydrocarbon sector is fast growing and SMEs contribution to this sector is key, he said. Qatar’s growth story will ride on the success of SMEs. The idea is to increase the size of Qatari SMEs’ contribution to the overall GDP. SMEs role in the local economy has to improve, Abdulaziz Zeid Rashid Al Taleb, Director of Government Procurement Regulation at the Ministry of Finance said.
The QDB CEO said the upcoming World Export Development Forum in Doha will be an ideal platform for Qatari SMEs to exchange ideas and technical know-how. Over 50 local SMEs will be participating in the events scheduled to be held on the sidelines of the two-day event, starting October 20.
As part of Qatar’s ambitious economic diversification plans, the state-owned QDB has been providing direct project finance and raw material loans to start-ups and existing businesses at competitive interest rates. The financial institutions and banks in Qatar have a key role to play in promoting SMEs and private sector growth
QDB’s indirect lending programme, Al Dhameen has become an instant hit. The indirect lending initiative was launched by QDB to assist smaller firms that were unable to obtain funding from banks due to a lack of collateral or financial history, but rather than directly lending to them credit facilities are offered through a number of partner institutions in the banking sector.
The financial institutions and banks in Qatar have a key role to play in promoting SMEs and private sector growth. As of 2015, 14 of Qatar’s conventional and shariah-compliant banks and finance houses operate the scheme, according to Oxford Business Group.
According to Oxford Business Group report, in 2014 Al Dhameen guaranteed credit facilities valued at about QR174.6m for 62 SMEs.
