Boosting Qatar’s private sector – The Peninsula

Boosting Qatar’s private sector – The Peninsula

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