Contribution of SMEs to economy touches 16pc

29/03/2015 07:43 AST

The government’s decision to merge Enterprise Qatar (EQ) with Qatar Development Bank (QDB) to further strengthen the private sector business activities has brought positive results. The contribution of small and medium enterprises (SMEs) to the national economy has reached 16 percent, according to some prominent Qatari businessmen.

“The merger will further enhance business activities in the country which will eventually be contributing more to the gross domestic product (GDP) of the economy. The Government is taking all the necessary steps to increase the role of the private sector in the country’s development across all sectors, including energy, industry, real estate and manufacturing businesses,” Khalifa Al Musalmani, a Qatari businessman was quoted by Al Sharq as saying.

Al Musalmani said that SMEs sector has played a significant role in the development of almost all the advanced economies in the world. “All the support extended by QDB, which include providing easy financing at affordable rates and other benefits, are boosting the Qatar’s growing SMEs sector, which accounts for about 80 percent of the total number of companies,” he said.

He also said that SMEs sector provides the maximum number of employment. However, he noted that to provide further boost to the sector, government needs to extend and continue its support focusing on three important areas, namely: easy access to affordable finance; consultancy on making businesses more innovative making them more competitive in the longer run, and also helping them to market their products and services in Qatar and overseas markets.

He also suggested that start-up entrepreneurs should conduct a feasibility study and thorough market research on their own instead of completely relying on others to make businesses successful as well as sustainable.

Another businessman, Mohammed Kazim Al Ansari, added that the decision of merging EQ with QDB was a step in the right direction.

The Peninsula