Qatar has taken a series of timely and effective measures to limit possible economic damage that would emerge from the impact of COVID-19 pandemic. Upon the directives of Amir H H Sheikh Tamim bin Hamad Al Thani to support the economic and financial sector within the framework of the precautionary measures to combat the spread of the coronavirus, the Prime Minister and Minister of Interior H E Sheikh Khalid bin Khalifa bin Abdulaziz Al Thani, directed to allocate guarantees to local banks at an amount of QR3bn.
Qatar Central Bank said that the amount comes within the support package for granting soft loans and without commissions or fees for the affected companies to support salaries and rents through guarantees issued by Qatar Development Bank to banks operating in the State. The QCB in cooperation with QDB, will set standards and mechanisms for implementation. The allocation of guarantees to local banks affirms the wise leadership’s keenness to support the economy. The measures will have positive effect on the stability of the economy, particularly the private and banking sectors.
Two weeks back, the Supreme Committee for Crisis Management (to combat COVID-19), presided by H H the Amir, had decided to provide a whopping QR75bn stimulus package to the private sector. The Supreme Committee directed Qatar Development Bank to postpone the installments of all borrowers for a period of six months. The Committee also exempted the food industry from customs duties for a period of six months in a major relief to the food industry. Medical goods will also be exempted from customs duties for a period of six months.
The Committee decided to exempt hospitality and tourism sector, retail sector, commercial complexes and logistics areas from electricity and water bills for a period of six months. Even Qatar’s emerging logistics zones and Small and Medium Enterprises (SMEs) were exempted from rents for a period of six months. All these measures work as a big support for private companies.
The QR75bn stimulus package, in addition to injecting QR10bn into the stock market, will support the financing needs of the private sector to continue its work efficiently and maximise its role in sustainable development projects. It will also reduce the pressure and financial burden on small and medium-sized companies. The measures will also help the small and medium enterprises and regain the confidence of businesses and investors on the Qatari economy. The incentives, benefits and support extended by the government will boost the growth of the economy.
