D. Hashem Al-Sayed: It supports economic growth and enhances Qatar’s position as an ideal investment destination
Naif Al-Ibrahim: It positively affects the local business environment and expands corporate participation
D. Abdul Rahim Al-Hawar: A strategic step that reflects the state’s orientation towards empowering the private sector
A number of economic experts and entrepreneurs praised the Council of Ministers’ decision to approve the Minister of Finance’s draft decision to amend the limits of exemptions granted to micro, small and medium-sized companies, stressing that it comes within the framework of the government’s endeavor to expand the base of participation in public tenders and motivate entrepreneurs. They indicated in statements to Al-Arab that the decision represents a strong push to support the business environment and enhance competitiveness, which contributes to consolidating Qatar’s position as an attractive destination for regional and international investment, and enhances the diversification and sustainability of the national economy.
They said that amending the limits of exemptions for small and medium-sized companies constitutes a strategic tool to encourage the participation of this vital category of companies in government projects, creating new opportunities for growth and increasing the flexibility of the national economy in the face of global challenges.
Economic diversification
Economist Dr. said: Hashem Al-Sayed: The State of Qatar attaches great importance to small, medium and micro-enterprises, realizing that they represent the backbone of any economy, and they are important engines for economic diversification and GDP growth, as the contribution of small and medium-sized companies in the State of Qatar amounts to 15-17% of the non-oil GDP, and the third national development strategy targets a compound annual growth rate of 6% in the contribution of small companies. and average non-carbon GDP.
He added: “From this standpoint, many initiatives have been launched to support these companies, including financing programs, as well as many support programs and project incubators that target this sector of companies through consultations, training, and studies in order to qualify it to perform its role in serving the national economy, supporting economic growth, achieving economic diversification, localizing industries and services, providing more job opportunities, and supporting Qatar’s position as an ideal investment destination.”
Motivating entrepreneurs
Dr. confirmed. Hashem Al-Sayed said that the Council of Ministers’ approval of the Ministry of Finance’s proposal to exempt small, medium and micro companies from the value of purchasing government tender documents that is less than 5 million riyals, in addition to the exemption from providing temporary and final insurance for micro companies, comes within the framework of motivating entrepreneurs to participate in government tenders and thus expanding the base of competition and encouraging the national product. He also called on banks to work on providing more solutions to entrepreneurs who seek to expand their businesses or create new projects, in addition to providing more services to facilitate the establishment of businesses and providing training, consulting and guidance services to entrepreneurs.
Dr. explained. Hashem Al-Sayed said that such decisions are in the interest of the national economy by maximizing the use of the potential possessed by the private sector, in addition to strengthening the principle of competition in the market, increasing and improving the quality of production and services, increasing job opportunities, and improving the country’s position in international economic indicators, the most important of which is the ease of doing business report, which contributes to attracting more investments.
Small business participation
For his part, Engineer Nayef Al-Ibrahim, CEO of Ibtikar Company, said that the decision to amend the limits of exemptions provided to micro, small and medium companies falls within a group of decisions taken by the government to improve the business environment and enable small companies to participate in economic activity on a broader scale.
Al-Ibrahim explained that amending the limits of exemptions will certainly affect the business environment in the country, and in theory it could contribute to wider participation of small companies that were unable to participate in government tenders due to previously established laws.
Raising the level of competitiveness
Regarding the impact of the decision on the competitiveness of the local market, the CEO of Ibtikar said that the decision will contribute to stimulating the interest of a new segment in the available opportunities, thus raising the level of competitiveness, diversifying the contractor base, and reducing risks, which in turn is in line with the state’s directions and strategic plans towards empowering the private sector and increasing its contribution to the economy.
Regarding the expected impact on indicators of ease of doing business and local and foreign investment, Al-Ibrahim said that the decision will enhance the ease of doing business by simplifying procedures, automating registration, and providing a clear regulatory and legislative environment. These incentives contribute to attracting investment and enhancing economic growth by reducing the time and cost required to register companies and obtain permits, and they also enhance the country’s competitiveness on the international scene.
Establishing incentives for companies
Regarding the size of the new exemptions and whether it is sufficient to motivate micro-small companies to enter tenders, Al-Ibrahim pointed out the need to look into the classification system for companies that enter government tenders and not to conflict with the decision. The classification system requires a certain readiness and maturity of companies before submitting to tenders. The integration and compatibility of the decision with the maturity of companies and securing tender needs must be considered from a financial perspective. The other matter may be to allocate a specific path for small companies to enter bids of less than 5 million riyals and not accept large companies. This is to ensure that small companies benefit from opportunities and to open room for small companies to grow by working on projects that do not have to compete with large companies. Another order set incentives for large companies to enter into sub-partnerships with small companies to stimulate and develop them by working on large contracts through major companies.
Strategic move
In turn, academic and economic expert Dr. Abdul Rahim Al-Hoor said that the decision to amend the limits of exemptions granted to micro, small and medium companies is an economic step with a strategic dimension, reflecting the state’s orientation towards empowering the private sector and enhancing its contribution to national economic activity.
He added that the decision, in essence, is not limited to an administrative or financial amendment, but rather represents a motivational tool aimed at integrating a broader segment of entrepreneurs into the government contracts and tenders system, in a way that raises the level of competitiveness, expands the contractor base, and reduces the risks resulting from relying on a limited number of contractors or suppliers.
Operational efficiency and discipline
As pointed out by Dr. Al-Hur noted that achieving the positive, sustainable impact of this decision requires a careful balance between supporting this category of companies and imposing real control over their performance and efficiency, to ensure that support does not turn into a door to slackness or poor quality. What is required is to empower small companies without violating the standards of efficiency and operational discipline, by verifying their institutional readiness, the efficiency of their human resources, their level of training, and their ability to manage their operational, administrative and financial operations effectively. The competent authorities should also take into account these companies’ commitment to quality, governance and transparency standards, ensuring that their participation in tenders is a qualitative addition and not a burden on the implementation system or suppliers.
Reducing dependence on traditional sectors
Dr. confirmed. Abdul Rahim Al-Hoor said that from a broader economic perspective, the decision enhances the path of diversifying sources of growth and reducing dependence on traditional sectors by supporting local projects capable of innovation and generating added value within the national market. It also contributes to improving indicators of ease of doing business, by expanding opportunities to participate in government procurement and facilitating access to financing, which makes the investment environment more attractive to local and foreign investors, provided that the incentives are accompanied by institutional reforms that maintain discipline and transparency at the same time.
He also explained that amending the limits of exemptions does not represent an end in itself, but rather an entry into a new phase of restructuring the relationship between the state and the private sector, built on the integration between support and oversight, and between motivation and accountability. Only with this budget can we create a balanced, competitive market that is efficient and sustainable, and supports the state’s goals in building a diversified economy led by innovation, institutional efficiency, and individual entrepreneurship.