Posted on March 31, 2011

Qatar Development Bank (QDB) CEO Mansoor bin Ibrahim Al-Mahmoud has said that the loan portfolio of the QDB has increaed to more than 100 % in the past two years to reach 1.5. billion Qatari Riyals represented in financing the projects of all sectors either industrial , touristic and others. In a press statement he made Tuesday on the sidelines of a symposium the qdb held to introduce the services rendered by Qatar Export Development Agency (Tasdeer) , an offshoot of QDB , Al Mahmoud said the program guarantees up to 75 % of outstanding principal to a maximum value of QAR 8 million for existing SME’s; and 85% of outstanding principal to a maximum of QAR 10 million for new SME’s or start-up companies.

For existing eligible SMEs, the programme guarantees 75% of the principal with the maximum financing available capped at QR8mn. A tenor for funding both new and existing SMEs has been fixed at 5 years for long-term and 1 year for short-term funding. Mansour Ibrahim Al-Mahmoud, said: "We''re very happy to have IBQ as one of Al Dhameen''s partners. It certainly adds considerable value to our existing partnerships. The Al Dhameen SME 2011 Program is one of many QDB initiatives to help diversify the Qatari economy and enhance the productive and active role that SMEs play in a robust domestic business market. The program will encourage an increase in the number of new SMEs by making access to finance easier for entrepreneurs at affordable rates. Additionally, Al Dhameen will also helps existing SMEs grow into larger and more significant businesses by providing them with greater access to financing for investments and working capital." Al Dhameen - primarily targets small and medium enterprises with an annual revenue turnover of up to QR40mn.

The International Islamic (QIIB) has signed an agreement with Qatar Development Bank to provide financing to existing and new small and medium enterprises (SMEs) by guaranteeing bank lending under an innovative QDB scheme. IBQ and the Qatar Development Bank (QDB) have signed an agreement for QDB''s Al Dhameen SME Program which aims at growing the local Small and Medium Enterprises (SME) sector and enhancing Qatar''s economic fundamentals. The agreement was signed by QIIB Chief Executive Officer, Abdulbasit A.Al-Shaibei and Qatar Development Bank CEO Mansoor bin Ibrahim Al-Mahmoud. Al Dhameen is in line with the wise policies and guidance of HH the Emir Sheikh Hamad bin Khalifa al-Thani to achieve Qatar National Vision 2030, which aims to transform the country into an advanced nation that is able to achieve sustainable development and ensure a high standard of living for its people for generations to come. The Al Dhameen programme has been designed to develop high-priority sectors, such as manufacturing and knowledge-based systems in line with the Qatar National Vision 2030.

The programme is the result of extensive research and market studies conducted by Qatar Development Bank to assess obstacles and challenges being faced by the SME sector, taking into account the potential contribution of this segment to the overall economic growth and diversification. Al-Mahmoud said the agreement was of particular significance as it represented the implementation of QDB’s strategy to support SMEs, which is key to shaping up the Qatari economy. (QDB) CEO Mansoor bin Ibrahim Al-Mahmoud further said that QDB had conducted a comprehensive analysis of the constraints being faced by this sector. The research identified financing as the main barrier to sustainable growth for SMEs. Based on these, QDB developed ‘Al Dhameen’, which covers a portion of banking sector exposure in the event of borrower default.

The programme will also encourage banks in Qatar to expand their lending to the small and medium scale sector, especially to those SMEs that hold promise but are not in a position to leverage assets or furnish accounting records to secure these loans. SMEs on their part will be able to establish a credit history with banks and avail of credit facilities in future without significant guarantees. Qatar Export Development Agency (Tasdeer) will play a key role in helping private companies in the country increase their export activity by providing access to financial and advisory products and services, a meeting was told here yesterday. State-owned Qatar Development Bank (QDB) launched Tasdeer early this year and it currently offers two export credit guarantee products designed to protect Qatari exporters from the risk of non-payment.

Making a presentation at the Sharq Village last night, Tasdeer executive director Hassan Khalifa al-Mansouri said the agency’s role was to facilitate export of Qatar-made products and increase accessibility of foreign markets for local entrepreneurs and businesses. "This means international product reach of Qatari made products, and therefore growth and higher profitability for local Qatari businesses. Tasdeer products and services are a golden opportunity for business expansion," al-Mansouri said. Tasdeer has been set up in line with Qatar National Vision 2030 to achieve sustainable development with the active participation of the private sector. He said Tasdeer plans to offer a range of financial products and advisory services to support the export activity of Qatari companies.

Following its launch in January, Tasdeer brought to market two export credit guarantee products to meet the immediate needs of Qatari exporters. Over time it plans to extend these offerings, al-Mansouri said. QDB has partnered with Euler Hermes, a leading international provider of export insurance products, to launch two export credit guarantee products tailored to protect Qatari exporters from the risk of non-payment. They are pre-shipment risk cover and post-shipment risk cover, Tasdeer data indicate. Pre and post shipment risk covers are available to every Qatari exporter. These include entities licensed to undertake business in Qatar irrespective of whether they are 100% owned by Qatari nationals or not. Pre shipment risk cover protects the exporter against the loss of production costs incurred (direct and indirect) resulting from the cancellation of an order before goods are shipped. It gives the exporter confidence to accept orders, especially custom orders, while managing the risk of the contract not being honored.

A pre-shipment risk cover offers protection against the losses caused by discontinuation of production, particularly if the foreign buyer becomes insolvent, the contract is cancelled or other material violations occur, adverse measures are taken by foreign governments or warlike events arise, embargo measures are taken by the Government of Qatar or third countries participating in the export transaction, the cancellation fee is not paid and/or the claim to partial payment is not fulfilled following a justified cancellation of the contract by the buyer.

Post shipment risk cover protects against the risk of an overseas buyer defaulting on payment for goods received on credit. The cover is intended for transactions with repayment terms not exceeding 24 months and mainly for the supply of consumer goods, raw materials, semi-finished goods or spare parts.

Post shipment risk cover offers protection against payment default if the foreign buyer fails to make payment of the amount receivable within six months after due date (protracted default), the foreign buyer becomes insolvent, adverse measures are taken by foreign governments or warlike events arise, local currency amounts are not converted or transferred, goods are confiscated due to political circumstances and contract performance becomes impossible due to political circumstances. Tasdeer launched on jan.4th , 2010 by HH heir apparent Sheikh Tamim bin Hamad Al Thani to enhance the export growth and capabilities of the qatari companies and industries to the world markets through its developmental role and the support it provides through financial solutions and insurance coverage.

Tasdeer the first agency at the state's level , is expected to contribute to applying the economic diversification policy and supporting the private sector industries and the export industries in qatar and further ensure the competativeness capacity of these industries and step up the export base and supporting the qatari exporters and qatari companies to help them have an access to the world markets to achieve sustainable development to the country.

source: QNA