(MENAFN- Arab Times) Cabinet decides to form board for Fund for SMEs
KUWAIT CITY, May 20: Officials from the National Fund for SME and Development are studying the inclusion of SMEs in the list of investors in government procurement and tenders program, reports Al-Rai daily quoting sources familiar with the issue.
The same sources said the Fund and the Central Tenders Committee and the government agencies involved in this file are currently discussing ways about allocating a percentage of government purchases, contracts for supply, services and some large projects to the SMEs in an effort to support them provided the quality of the product and services are guaranteed.
The sources pointed out the mechanisms are being looked into to include the investors of this sector on the list of contractors of government contracts and the manner of dealing with them, identification of appropriate standards, both in terms of the size of possible investments or conditions. The sources added: 'Within the framework of government integration, other government agencies involved in this sector have been involved in preparing mechanisms to facilitate and overcome all obstacles that young entrepreneurs can face in the event of investment in government procurement.' The sources pointed out, after the recent amendments to the SMEs law investors can expand this sector to an unusual extent as it will open the door for them to invest in government projects in various activities. The sources said that once the executive regulations of the law are approved, the Central Tenders Committee will entertain the owners of these projects. This will be gradual in terms of investment in the projects according to their size.
The initiative is expected to be based on the government procurement list. The sources pointed out that the current debate centers on the mechanisms of the contribution of SMEs in each sector, indicating ideas are being floated in this regard, to allow this segment of investors competing for government procurement under a specific ceiling, to allocate them part of government purchases of less than 75 thousand dinars which it called 'one of the scenarios', to be established by direct order system, after the provision of appropriate guarantees, which are currently being identified.
Meanwhile, the Cabinet has issued a decision to form the board of National Fund for SME Development for a period of four years, reports Al-Seyassah daily. The board will be headed by Minister of Commerce and Industry. The board members will include Dr Saad Al-Barack as Deputy Chairman, Shalash Mubarak Al-Hajraf, Mohammad Qasem Abul and Abdulkarim Taqi as representative of Public Authority for Industry, Dr Khalid Mahdi as representative of Supreme Planning Council, and Eng. Ahmad Abdullah Al-Manfouhi as representative of Kuwait Municipality.
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