There has been a rebound in trade exports by Qatari small and medium-sized enterprises (SMEs) and with local and global economies recovering from the impact of COVID-19 pandemic, many more Qatar-based SMEs are now expanding and eyeing new foreign markets to fill global supply chain shortages, an official from the Qatar Development Bank (QDB) has said.
Talking to The Peninsula on the sidelines of a press conference to announce the upcoming Rowad Qatar 2021 recently, QDB’s Communication & Partnerships Manager Soud Al Boinin said more Qatari SMEs are now gearing up to start exporting their products to the global market.
“Production has increased, and more companies are applying for raw materials and new machineries for expanding their businesses. And they’re willing to export their products because there are supply shortages across different sectors around the world. Some of them are also willing to supply the local market. So there is a growing demand as economies recover from the economic impact of the pandemic. Qatari manufacturing companies are getting back to normal operations,” Al Boinin said.
He reiterated that many Qatar-based SMEs have already exported, highlighting a growing optimism among local manufacturers.
“We have just been to Russia for the St. Petersburg International Economic Forum (SPIEF) recently, and we brought with us around 18 exporters from Qatar.
And they were able to sign deals worth QR75m. They’re from different sectors ranging from medical to manufacturing, and aluminium industry among others.
It always goes back to the product. If your product is good, regardless of what sector it is, it will always have the potential for export. And this is what happened to us,” added Al Boinin.
According to figures previously released by the QDB, of the 25,000 private sector businesses currently registered in Qatar, more than 96 percent are classified as SMEs.
The Qatar Chamber, in its recent report said that Qatar’s private sector exports have significantly increased by 56 percent during the first half of 2021. Total value of the private sector’s exports stood at QR12.3bn during the first half of the year compared to QR7.9bn during the same period last year. Data also showed that Qatari non-oil exports have already exceeded pre-pandemic levels.
On helping local businesses stay afloat amidst the pandemic, Al Boinin said about 4,500 SMEs in Qatar have now benefited from the QDB’s financial stimulus package which was part of the government’s QR75bn National Guarantee Program. The program was launched in the middle of the pandemic last year to support private sector companies in paying for their rents and employees’ salaries. It may be noted that QDB’s stimulus package initially stood at QR3bn, and was later increased to QR5bn to cover more local businesses.
The upcoming Rowad Qatar 2021, which will be held during the Global Entrepreneurship Week from November 8-10, will highlight “Digital Transformation & Thriving in the New Economy”.
The conference aims to help entrepreneurs learn how to adapt to the new global economy post-pandemic and to integrate technological and digital solutions such as AI, robotics, and others in their businesses.
“During the pandemic, the appetite for entrepreneurs starting their own businesses, especially factories, was very low. But there was a rise in the technology-related companies. This is when fintechs also took off in Qatar,” said Al Boinin.
He reiterated that the Qatar FinTech Hub (QFTH), a QDB incubator, has received over 1,500 applicants from across the world during its first phases. “We have now graduated two cohorts, and we’re also opening applications for so many more to partake in our programmes. We had over 1,500 applicants for the first phases. It shows how competitive it is, and how it is attracting entrepreneurs from across the globe. There are Qataris, but we want to create this kind of a bubble, that will create competition to create great products that will support the local ecosystem. This is where we noticed a rise in applications in the fintechs, anything tech-based for the private sector locally and internationally,” said Al Boinin.
He added that the QDB has created several manuals aimed at encouraging the private sector to digitise.
