Qatar has announced to implement local value system in the government tendering process. This step would increase the participation of non-oil sectors and the private sector in the Qatari economy.
The resilience and vibrancy of Qatar’s private sector stem from the support and proactive measures taken by the concerned authorities in Qatar. Last week, the Ministry of Finance announced that the procurement processes in Qatar would now have the in-country value (ICV or local value) system wherein companies will now be required to add ICV or local value certificates to their financial bids.
The ICV system was earlier in place for some government tenders related to oil and gas sector. National products, companies with high local value, as well as those submitting the least expensive monetary bids after ICV calculation will be given preference during the procurement processes. Also, micro, small and medium-sized enterprises (MSMEs) will now be given greater privileges and exemptions with more tenders available to them.
The MoF said MSMEs, which are defined by the Ministry of Commerce and Industry (MoCI), are now permitted to have limited participation in tenders valued at less than QR5m. National micro companies as well as SMEs are also waived from bid and performance bonds as well as tender fees if their turnover is less than QR1m. Also, micro and small-sized companies will be exempted from half the value of the fee prescribed for classification.
Helped by the initiatives taken by the government and concerned departments, the private sector has grown stronger with a number of private companies rising significantly over the past few years.
Government’s role has been crucial in helping the private sector as it took several measures to encourage the private sector. In order to support businesses affected by COVID-19, the government announced additional economic support package for the private sector last year.
The MoF in 2021 launched TAHFEEZ programme, which includes three main pillars, the Qatar In-Country Value (QICV) programme, promoting the development of SMEs, and environmental, social and general governance (ESG) for the financial sector for the development of the private sector in the country.
The government had also introduced the Public Private Partnership Law in 2020. This law aims to enhance cooperation between public and private sector in the country. Qatar’s much-awaited Public-Private Partnership Law was enacted on May 31, 2020.
With the support of supportive policy measures and help from the government, Qatar’s private sector will play a crucial role in the country’s economic growth.
