CHAIRMAN: DR. KHALID BIN THANI AL THANI
EDITOR-IN-CHIEF: DR. KHALID BIN MUBARAK AL-SHAFI

Views /Editorial

Growing private sector

Published: 28 May 2021 - 12:24 pm | Last Updated: 03 May 2025 - 03:05 am

QATAR’S private sector is playing important role in boosting exports that shows the strength of companies operating in the country. According to data released by Qatar Chamber, Qatar’s private sector exports exceeded QR1.64bn in February this year compared to QR1.499bn in January 2021, registering a rise of 10 percent.

The private sector has delivered a strong performance in the past several months despite challenges posed by the coronavirus pandemic. The private sector’s exports in January showed a significant month-on-month (m-o-m) increase of 12.5 percent from QR1.333bn in December 2020 to QR1.499bn in January 2021.

The surge in private sector’s exports emphasized the ability of private sector and the national economy in general to overcome the repercussions of the COVID-19 pandemic and rebound to its levels before the pandemic.

In 2020, the private sector exports had reached QR14.9bn, according to the data released by Qatar Chamber. 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 with the COVID-19, the Cabinet last month announced economic support package for private sector.

The steps announced by the Cabinet will be very effective in helping the businesses, especially the small and medium enterprises, in facing the challenges posed by the spread of coronavirus.

The measures include exemption from electricity and water fees for closed sectors until the end of September 2021 and extension of the National Guarantees Program at Qatar Development Bank until the end of September 2021.

It also includes extension of the period of the exemption from interest for an additional year for the National Guarantees Program to become two years without interest, in addition to two years of payment with interest that does not exceed the Qatar Central Bank rate +2 percent.

The support package also includes raising the limits of funding salaries and wages for closed sectors to QR15m for a single identity card, while retaining the rest of the relevant terms and conditions. The government had also introduced the PublicPrivate Parntership Law last year.

This law will enhance cooperation between public and private sector in the country. Qatar’s much-awaited Public-Private Partnership Law was enacted on May 31, 2020.

The new PPP Law is expected to accelerate Qatar’s massive infrastructure development and provide greater support to the private sector and foreign investors. With the support of conducive policy measures and support from government, Qatar’s private sector will play a crucial role in country’s economic growth.