NO BUSINESS TOO SMALL
Supported by the state and the banking sector, SMEs continue to drive Qatar's industry forward.
Much has been said about the negative regional repercussions of the 2017 blockade on Qatar, but some of the economic consequences of the embargo have been surprisingly positive in nature. Using the blockade as a wake-up call, Qatar has accelerated its pace toward economic diversification and industrial self-sufficiency since 2017.
Overseen by the Ministry of Energy and Industry, a number of government entities have contributed to the efforts in one way or another by redirecting the country's notable hydrocarbon revenue to the expansion of industrial infrastructure. Qatar Development Bank (QDB) is one such entity that, since its launch in 1997 by an Amiri decree, has empowered many Qatari businesses, especially SMEs in areas such as manufacturing, agrifood, and even healthcare and education. Indeed, the bank takes pride in adopting a sector-blind approach.
Since the coming into effect of the blockade in 2017, QDB has ramped up its activities, contributing to the stability of the economy by investing in local industries that can satisfy the country's needs in times of hardship. To accomplish this, QDB is using a mix of strategies: offering finance and funding on easy terms, facilitating the access of Qatari SMEs to preeminent know-how, and setting the right tone in the country's SME ecosystem. To further this end, QDB launched the Qatar Business Incubation Center (QBIC) in 2014 to lend a helping hand to rising Qatari SMEs and even turn a few of them into “Qatar's next QAR100-million (USD27.2 million) companies.” QBIC is now regarded as “the best business incubator in the Middle East,” says its general manager, Hamad Al-Qahtani, adding that they offer grants of up to QAR100,000 (USD27,000) as well as office space, coaching, and other exposure opportunities to qualified start-ups.
And the focus on SMEs is not without good reason. Records show that small- and medium-sized companies perform well in the Qatari economy. Well over 90% of all private businesses in Qatar are technically SMEs, according to Abdulaziz bin Nasser al-Khalifa, CEO of QDB.
The Ministry of Finance, meanwhile, believes that the nation's SMEs can meet as much as 90% of the country's needs and keep the country's ambitious construction projects alive. Given the importance of SMEs for the future of the economy, their supporters are not limited to the QDB. Fortunately, the country's larger banking sector is currently well-positioned to finance most enterprises, whereas some can even rely on international capital markets for funding.
In the meantime, QDB, Qatar National Bank (QNB), several government ministries, and Qatar Chamber (QC), along with other stakeholders, have formed partnerships to coordinate their efforts. The Ma'an initiative, which was a joint effort between QC, QDB, and Qatar University, is a successful instance of such initiatives, enabling the Qatari youth and students to put their entrepreneurial ideas into practice.
A similar scheme was launched by the Commercial Bank in 2018 to draw attention to the capabilities of Qatari start-ups by offering them workspaces and other forms of support. Some start-ups have already gone beyond their initial goal of meeting local requirements and ventured into international markets, exporting construction materials, plastics, agrifood products, and IT solutions. The activities are not limited to these categories, however, and niche businesses have also been addressed; in 2019, for instance, QDB supported the launching of a group of perfume brands, in addition to their bottling factory.
Hamad Salem Mejegheer, QDB's acting executive director of export, stated on the sidelines of a business forum in 2018 that some 300 non-oil companies had exported their products in that year, fetching over USD2 billion in revenue. With its SME-focused approach, Qatar is only looking to grow these numbers, thus providing itself a path through the blockade.
NO BUSINESS TOO SMALL
TABLE OF CONTENTS
Interview
Yousuf Mohamed Al-Jaida, CEO, Qatar Financial Centre (QFC) Authority
Given its successful performance in the last few years, QFC is optimistic it will be able to capitalize on Qatar's ongoing efforts to create a world-class business environment and attract more global companies.
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Lolwah R M Al-Khater, Spokesperson, Ministry of Foreign Affairs
The Ministry of Foreign Affairs is focused on pushing forward Qatar's foreign policy, sharing information and perspectives that could be useful for regional security and advancing the Qatari narratives on many issues facing the world today.
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Richard O’Kennedy, Vice President, Research, Development, and Innovation, Qatar Foundation
The first country in the world to track its citizens' genomes, Qatar is on track to make one of modern science's biggest breakthroughs by personalizing medical treatment and precision care.
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Jassim Saif Ahmed Al Sulaiti, Minister, Transport and Communications (MoTC)
With plans for a fully electric bus system and an impressive set of interconnected transportation options including metro, rail, and tram, the Ministry of Transport and Communication is shifting mobility into the next gear in Qatar.
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Sheikh Abdulla Bin Saoud Al Thani, Governor, Qatar Central Bank (QCB)
Encouraging local manufacturing, initiating self-sufficiency in dairy and farm products, expanding into new air and sea routes, offering select visa-free entry, and enacting fiscal reforms are but several of the successful reforms undertaken since 2017.
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Sean Kelly, Project Director, Place Vendôme
Place Vendôme is no ordinary mall: with 650 hotel rooms, a 6,000-sqm cinema with 18 screens, six slides, three toboggan runs, and an ice river opening in September 2020, it is looking to slide into Qatar's tourism infrastructure in time for the World Cup.
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Mehmed Zingal, General Manager, Turkish Airlines - Qatar
With its 30th year celebration of its Miles&Smiles club launch in Qatar, Turkish Airlines is acknowledging its continued diligence to provide the best customer service, with targets to increase customer happiness through innovative technologies and increasing tourism to Qatar for the future.
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Hassan Rashid Al-Derham, President, Qatar University (QU)
Ranked in the top-500 universities by the Times Higher Education, Qatar University improves students' academic success by supporting students throughout their academic lifecycle, from the pre-university stage to beyond graduation.
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A lesson learned
The international attention set to fall on Qatar over the coming years is significant only to the extent that it generates advances in human capital required by Qatar's blueprint, National Vision 2020, where local know-how and innovation advance the nation and promote wellbeing.
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Dr. Hanan Mohamed Al Kuwari, Minister of Public Health & Managing Director,, Hamad Medical Corporation (HMC)
The health minister is committed to continuing the growth of Qatar's healthcare system, with plans for more than 20 new facilities specializing in pediatrics, geriatrics, and mental health.
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