Qatar SMEs facing hurdles in tenders for big projects

EQ seeks to promote new business and diversify Qatar’s economy by encouraging entrepreneurship, says its chief operating officer Nasser al-Mohannadi.By Santhosh V Perumal/Business ReporterQatar’s small and medium enterprises (SMEs) are in a disadvantageous position as they face multitude of “hindrances” when competing in tenders for big projects, according to a top official of Enterprise Qatar (EQ).“Having surveyed the needs and challenges of over 200 SMEs in Qatar, we can say with great authority and certainty that competing in tenders represents one of the biggest barriers to growth,” EQ chief operating officer Nasser al-Mohannadi said, while announcing the Government Procurement and Contracting Conference (GPCC) to be held in April.The conference comes as part of EQ’s Government Procurement and Contracting Programme (GPCP), which has three pillars – policy advocacy, matchmaking and access to information tools for SMEs and an SME development plan featuring several services including contract-based finance.The GPCP has been designed specifically to fit the needs of the Qatari SMEs and entrepreneurial ecosystem, making use of findings from EQ’s SME Think Tank seminar, which was held for the first time in 2012. As part of its “policy advocacy pillar”, EQ examined existing laws and regulations on government tenders and initiated a process of reviewing the enabling clauses for SMEs in several jurisdictions such as the European and the American SME Acts.“EQ will present policy options based on international best practices to strategic stakeholders for potential adoption of enabling clauses that facilitate more business to be won by SMEs,” al-Mohannadi said.The GPCP comprised 11 projects that are classified into four main areas: enabling SMEs business environment; business linkage facilitation; business development services and facilitate access to finance.Through its surety bond programme, EQ aims at not only minimising the opportunity cost for SMEs as it will lessen the burden on them to set aside huge amounts towards tenders, but also to ward off negative impacts of cash freezing for tender bonds, performance bonds and late payments.Highlighting that SMEs are the backbone of the country’s economy, he said EQ seeks to promote new business and diversify Qatar’s economy by encouraging entrepreneurship.“We hope to achieve that by helping entrepreneurs and SMEs develop the tools and expertise and by offering access to the funding and opportunities necessary for them to launch, grow and maintain their business,” al-Mohannadi said.Highlighting that EQ’s mission is to support SMEs by optimising their performance and minimising risks wherever possible; he said the GPCC has been designed in such a way that SMEs get a firm understanding of best practices in the area of procurement, enhance knowledge on the major buyers in the market and develop new contact with buyers.“Armed with these contacts and knowledge, we expect SMEs to win more business and be more productive,” al-Mohannadi said.The five-day GPCC, which will be held at the Doha Exhibition Centre, will feature informative workshop by suppliers, facilitate business-to-business meetings and provide an opportunity for SMEs to exhibit their services and products.Major buyers like government ministries, semi government organisations and large private entities are expected to participate in the GPCC. Qatar Petroleum, RasGas, Msheirib, Qatar Foundation, Shell Qatar, Total, Qatar Rail, Kahramaa, Ashghal, Central Tenders Committee, Qatari Diar and Gulf Organisation for Industrial Consulting are slated to partake.The ‘SME Development’ pillar will address the capacity building of the supply side to ensure that EQ-registered businesses are capable of delivering the work provisioned in tenders.“EQ will administer an accreditation model and introduce advanced technologies required to compete successfully in a knowledge economy,” al-Mohannadi said, adding additionally, finance and cash saving assistance would be provided through financial mechanism based on international best practices.EQ’s services include preparing feasibility studies, advisory services on bookkeeping and accounting, auditing, business process improvement and reengineering and legal services.