Government stimulus will help Qatar private sector to beat virus challenges

Doha: Businessmen and entrepreneurs in Qatar have praised the stimulus package announced by the government. They said the financial support will help the private sector of Qatar to come out victorious from this difficult situation created by COVID-19 outbreak.

Acting proactively to tackle the crisis, the Supreme Committee for Crisis Management, presided by Amir H H Sheikh Tamim bin Hamad Al Thani, had announced in March to provide a QR75bn stimulus package to the private sector.

“This is one of the best packages of the world in terms of size and the way it targets to solve the cash flow problems in the market. For sure, it will help the companies to withstand the impact of the outbreak of COVID-19,” Althaf told The Peninsula.

Following the directives of H H the Amir, Qatar Development Bank (QDB) has launched the National Guarantee Program to provide guarantees for local banks to grant interest-free loans to affected companies, in cooperation with the Ministry of Finance and Qatar Central Bank (QCB) and all banks operating in the country, in response to the implications of the spread of the Covid-19. The National Guarantee Program aims to support salaries and rents of companies in the private sector.

Mohamad Althaf said that one of the major benefits of the stimulus package is that it is supporting the payroll of the companies. “I know personally a lot of small and medium scale companies, which are supplying goods to Lulu Hypermarkets, are beneficiaries of the stimulus package,” said Althaf.

He added that many companies with cash flow issues have received approval of their requests regarding the payroll.

“Lulu is working with a number of small and medium companies like small producers, farmers, suppliers, service providers, cleaning companies and transport companies, delivery services. The stimulus package is great relief for these companies as it protects their payroll, and the salary payment is very important for the survival of the companies,” said Althaf.

He said that the term of loan repayment which is being disbursed under the package is very generous, upto three years giving enough time to companies to payback.

Speaking about the government’s move on exemption of excise duty on food import, the Director of Lulu Hypermarkets said that the initiative helped in covering the extra cost of food items caused by the impact of coronavirus, contributing largely in curbing the price hike. Indian Business and Professional Council Qatar (IBPC Qatar) has also hailed the timely support given by the government to the private sector. IBPC Qatar is the apex body of Indian Businessmen and Professionals, functioning under the aegis of Embassy of India.

“The approach of government of Qatar in dealing with the exceptional situation created by COVID-19 is one of the best in the region. Qatar was first in the region to announce a financial package to support the private sector. The financial package announced by the government will help in businesses in sustaining their businesses and steer out of this difficult situation. Indian Business and Professional Council Qatar has taken many steps to make its members aware about how to avail the financial support from banks,” Azim Abbas, President of IBPC Qatar, told The Peninsula.

A prominent businessman, Qazi Niyaz, has lauded the stimulus package from government of Qatar to private sector for focusing especially on workers who are considered among the weaker section of the community.

Niyaz who is running a business of school supplies said that he planned to apply for the loan which is announced to disburse under the stimulus package.

“The loan will help in paying the salaries of workers which is a great relief in the current situation. One of my friends has applied for loan. The bank has asked him to upgrade the documents as per the loan disbursal policy. I hope that his workers will soon start getting salaries from the bank,” Niyaz told The Peninsula.

He said that stimulus package also helps companies in paying the rent of offices and labor camp which is also very important for the survival of the companies during the outbreak of COVID-19.