Qatar Development Bank (QDB) has launched a new programme that exempts small and medium-sized enterprises (SMEs) from tender bond fees, and provides local companies access to government projects and contracts.
QDB’s new “SME Rating & Accreditation Programme” (SRA), which was launched yesterday, is “a holistic analysis” that aims to help entrepreneurs and SMEs “capitalise on contracting opportunities and improve business processes,” according to executive director of advisory services Hamad Khamis al-Kubaisi.
The SRA, al-Kubaisi said, “reinforces the performance” of SMEs through evaluation and analysis “to give companies an edge when availing an SME Tender Bond Exemption Service.”
He explained that the exemption service offers three benefits to SMEs: Tender bid bond exemption, performance bond exemption, and advance payment guarantee exemption.
“As per new tender law, SMEs can be waived-off from producing these three types of bonds and guarantee documents. To avail of this benefit, it is mandatory for all SMEs to pass through the rating and accreditation programme,” al-Kubaisi further said.
Citing Law No 24 of 2015 (a law regulating tenders and auctions), al-Kubaisi said QDB “has taken the initiative to localise the supply chain to support local SMEs through the SRA and Tender Bond Exemption Service to reduce Qatar’s ‘value leakage’ and progress towards sustainable industrial development approach, which will enable SMEs to enhance their capabilities and assist in building a knowledge-based economy to achieve the Qatar National Vision 2030.”
The SRA, which will be valid for only one year, will be conducted by an independent third party certification issued by QDB, and is open to approximately 600 SMEs registered in the QDB database, al-Kubaisi said. “Through the rating process, SMEs will also be able to understand internal gaps and challenges related to their business and institute required improvements and interventions to enhance their business performance, which is supported by QDB through a suite of programmes,” he said.
Other benefits of the SRA, according to al-Kubaisi, include probability of higher tolerance advantage for pricing bids, automatic pre-qualification registration within buyer’s vendor lists, significant weight attached (20% to 25%) within the buyer’s bidding evaluation framework to the rating/accreditation score, and reduce processing time of loan approvals, among others.
“Using our ‘One-Stop Shop’ or through the QDB website, SMEs applying for the SRA will undergo a comprehensive assessment on all aspects of the business, including financial performance, quality of management, business model efficiency, and market potential. The rating process would include submission of data by the applicant followed by the site visit and detailed interaction with management. The cost of ratings will be subsidised for active Qatari-managed businesses.
“We look forward to enhancing local SMEs business capabilities to secure more contracts with local procurers. These services will assist industries to fill business and financial gaps, and increase ability to compete with key market players in the long run. To avail these benefits SMEs can contact Business Localisation Department of QDB,” al-Kubaisi said.
Business / Business
New rating, accreditation programme to benefit Qatar SMEs: QDB official
Al-Kubaisi (right) and QDB business localisation support manager Badar Shaheen al-Kuwari addressing a press conference yesterday. PICTURE: Jayan Orma
