Qatar Holds Firm In GEM Top 10 As Smes Power Non-Oil Growth

(MENAFN- Gulf Times) Qatar's small and medium enterprises (SMEs) have emerged as a powerhouse of the country's economic diversification drive, accounting for between 15% and 17% of non-oil GDP and posting annual growth of around 6% - a performance that has placed Qatar consistently among the top 10 economies in the Global Entrepreneurship Monitor (GEM) rankings over the past five years.

According to a Qatar TV report, the sector's strong showing has been buoyed by accelerating digital transformation and an expansion of government financing channels directed at smaller firms.

SMEs now represent some 97% of all private sector companies and establishments in Qatar, with their numbers estimated at around 71,000, spanning information technology, real estate, tourism, commerce and a host of other economic activities.

To preserve this momentum, Qatar is rolling out a fresh raft of plans, initiatives and measures aimed at sustaining the high tempo recorded by the sector under the GEM report.

Central to this push is the Third National Development Strategy (NDS3) for 2024-2030, launched in January 2024, which sets ambitious targets to deepen and sustain the country's entrepreneurship ecosystem.

The strategy seeks to lift SMEs' share of total GDP, channel some 7% of credit to these firms, and ensure that 70% of venture capital is supplied through the private sector. It also aims to allocate around 0.1% of total GDP to financing SMEs.

The initiatives set to be rolled out by the government include programmes to accelerate the digital transformation of SMEs, fresh regulations governing alternative finance, a review of public-private partnership frameworks, improved access to capital markets, and an expansion of bank credit - alongside other practical measures designed to sustain growth in this vital sector. To Page 6

Qatar Development Bank, meanwhile, has notched several key milestones in supporting and encouraging SMEs through its distinctive and innovative financing solutions and the specialised advisory services it has extended to stakeholders over the years.

Qatar's National Entrepreneurial Context Index, which gauges the strength of entrepreneurial framework conditions, registered a score of 6.0 in 2023, up from 5.5 in 2021.

The country's private sector is poised for robust expansion across multiple economic fields, in line with national plans to deepen its engagement across industries including food and beverage, pharmaceuticals and consumer goods, alongside services and retail.

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