Qatar Development Bank (QDB) aims to promote a culture of entrepreneurship within the private sector in Qatar and seeks to localize opportunities for small and medium enterprises (SMEs). In an interview with The Peninsula, Abdulaziz bin Nasser Al Khalifa, CEO of Qatar Development Bank said that food security projects gained momentum after the blockade. QDB is offering specialized programs and services amid pandemic outbreak.
Abdulaziz bin Nasser Al Khalifa (pictured), CEO of Qatar Development Bank, said that the bank, which provides support to small and medium-sized businesses, aims to promote a culture of entrepreneurship within the private sector. It also aims to provide services that promote development, growth, and economic diversification by offering access to information, embracing Qatari entrepreneurs and bolstering their skills, and facilitating access to funding through direct and indirect financing, and investments.
QDB also seeks to localize opportunities for small and medium-sized companies to tap into, and to offer Qatari exporters access to global markets, in addition to insuring and financing exports, Abdulaziz said.
He further stressed that the bank plays an essential role in Qatar’s renaissance on the industrial, food, health, and educational fronts. The QDB CEO also highlighted the many ways that the bank assists SMEs and provides support for projects that add value to the national economy through a variety of financial and advisory products and services that advance Qatar’s economic diversification.
In the wake of the unjust blockade on Qatar, the national economy witnessed an industrial renaissance and a boost in self-sufficiency, as Qatari products not only fulfilled local demand but also proved competitive in global markets.
The bank’s CEO emphasised that QDB aims to identify commercial and investment opportunities offered by both governmental and semi-governmental agencies, as well as private entities, and enables SMEs to tap into these opportunities.
In 2019, by linking local companies with domestic buyers, QDB enabled SMEs to secure local contracts that amounted to nearly 2.4 billion Qatari Riyals. QDB also seeks to empower SMEs to overcome obstacles by increasing the prospects for cooperation between local companies and buyers.
In this context, QDB has been the strategic partner of the “Made in Qatar” exhibition, which has achieved great success over eight editions, including five exhibitions held in Qatar and three abroad. The “Buy Local Products” exhibition, on the other hand, aims to encourage SMEs to expand their operations and seek local procurement opportunities. This aligns with QDB’s mission to bolster the development of the private sector and the diversification of the economy by assisting Qatari manufacturers in expanding their industries.
The first edition of the exhibition attracted 70 local companies across various sectors, while the second edition witnessed the participation of more than 150 local companies.
Building on the success of the first two editions, QDB organized the third edition of the exhibition in cooperation with the Qatar General Electricity and Water Corporation, Kahramaa. The latest edition attracted more than 60 companies currently operating in the domain.
Abdulaziz bin Nasser Al Khalifa also noted that following the embargo on Qatar, QDB developed a Situation Room dedicated to support SMEs in finding alternative export markets, which contributed to the continuity of these companies and strengthening of the national economy.
Through the Qatar Export Development Agency “Tasdeer”, QDB played a key role in the renaissance of Qatar, Abdulaziz added, noting that the bank has established a strategy for developing and promoting Qatari products in global markets after holding 35 bilateral meetings in several countries, in addition to participating in 52 international trade shows through the Export Development Program. This resulted in securing deals worth over QR1bn in the first quarter of the year.
The bank’s CEO highlighted that following the blockade, QDB was predominantly being approached with business projects within the food security sector, indicating a positive trend among entrepreneurs that developed as a direct result of the embargo.
In 2019, food security projects grew by 65 percent compared to 2018, while seven new food factories were established as part of the Jahiz 2 program, a reflection of the determination of Qatari business leaders to enable Qatar to achieve self-sufficiency.
Al Khalifa said that Qatar has succeeded, even with the unjust blockade in place, in continuing to build a strong entrepreneurial sector and a competitive business climate capable of developing local SMEs on one hand, and attracting foreign SMEs on the other. He pointed out that Qatar has advanced 18 spots in the national level of entrepreneurial activity, as the country secured the 15th rank globally and 2nd in the MENA region for the Total Early-Stage Entrepreneurial Activity (TEA) index, according to the Global Entrepreneurship Monitor (GEM) Report 2019/2020. This is in comparison to its previous rank of 33rd globally, as listed in the 2018/2019 edition of the report.
He added that Qatar ranks 3rd globally and 1st in the MENA region in the National Entrepreneurship Context Index (NECI).
The GEM report, considered to be the most accurate and comprehensive global comparative on entrepreneurship activity, has praised the economic reforms implemented by the government since 2017. The report highlighted their positive impact on the country’s entrepreneurship climate, as the reforms contributed significantly to the development of SMEs, as well as to the progress of the State of Qatar in a number of important international rankings pertaining to the business climate.
Such remarkable rankings positively reflect the many efforts made by the State of Qatar through its various institutions, including QDB.
Al Khalifa highlighted the strategy of Qatar in dealing with the economic impact of the epidemic on SMEs, noting the full cooperation among various government agencies to provide integrated support packages to private sector companies in response to the pandemic.
“QDB has played a significant role in this regard since the onset of the crisis by supporting the private sector and entrepreneurs in facing the challenges spawned by COVID-19, in implementation of our wise leadership’s directives to support this sector during these challenging times,” he said.
“Our first initiative was the delay of loan repayments for SMEs without any interest fees or charges for a period of six months, and the exemption of tenants in Al Furjan Markets, Jahiz 1, and Jahiz 2 factories, plus the six-month exemption of rental fees for spaces allocated at Qatar Business Incubation Center (QBIC),” he added.
Since then, and in line with the directives of Amir H H Sheikh Tamim bin Hamad Al Thani, and under the guidance of H E the Prime Minister and Minister of Interior to support and provide financial and economic incentives that amount to QR75bn to the private sector, the National Guarantee Program was launched.
The program now plays a pivotal role in reducing the burdens of private sector companies with regards to overcoming the challenges they face during this period.
“At QDB, we have also launched several other initiatives within the framework of our endeavor to minimize the impact of the pandemic on the business community in Qatar,” he said. These initiatives include issuing a special guide for SMEs on how to deal with the crisis, launching our digital consulting services for SMEs and entrepreneurs, all the way to launching the Covid-19 Hackathon to help develop innovative solutions to address the pandemic.
“One of the main initiatives undertaken by QDB, which we actually consider to be the backbone of our COVID-19 response, is the relaunch of our Situation Room, which we initially launched during the first few days of the unjust blockade on Qatar”.
The Situation Room deals with various aspects of the crisis, such as managing supply chain disruptions for SMEs, as well as providing the necessary technical support through instant consultation services and any other measures needed to deal with all developments of the crisis to ensure business continuity and corporate productivity.
