DOHA: The Qatar Export Development Agency (Tasdeer), a business unit of Qatar Development Bank (QDB), is all set to support Qatari companies to increase their export activities by providing access to financial and advisory products.
The Agency currently offers two export credit guarantee products - pre-shipment and post-shipment risk covers - designed to protect Qatari exporters from the risk of non-payment. But, in time it plans to expand its offerings over time to include other financial products and advisory services.
These were among the topics discussed at an edutainment meeting here yesterday hosted by Tasdeer for local enterprises on the services and products the Agency has to offer and their significance.
Tasdeer, a development finance institution supported by the government, was established to help the growth and international reach of Qatari companies by offering export focused financial solutions.
Through the initiative, Qatari enterprises are being provided with the opportunity to export their products and services to many untapped international markets in a more secure way.
In his presentation Tasdeer Executive Manager Hassan Al Mansoori explained that the pre-shipment risk cover is vital to protect the exporter against the loss of production costs incurred (direct and indirect) resulting from the cancellation of an order before goods are shipped.
He said it gives the exporter confidence to accept orders, especially custom orders, while managing the risk of the contract not being honoured. On request of the exporter, pre-shipment risk cover can be limited to the production costs accruing for clearly definable elements of the supplies/services to be delivered under the export contract, which function and can be re-marketed as separate units.
As for the cost of post-shipment risk cover, a ceratin percentage of the production costs is charged as premium for cover. The level of this premium depends on the buyer's rating, the country of export and the length of the manufacturing period for each specific case.
Al Mansoori also highlighted the importance of post-shipment risk cover that offers protection 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, mainly for cover of the supply of consumer goods, raw materials, semi-finished goods or spare parts.
For the cost of post-shipment risk cover, a ceratin percentage of the transaction value is charged as premium for cover. The level of this premium depends on the buyer's rating, the country of export and the terms of the export contract for each specific case.
Both the pre- shipment and post-shipment risk covers are available to every Qatari exporter, which includes entities licensed to undertake business in Qatar irrespective whether they are 100 percent owned by Qatari nationals or not.
© The Peninsula 2011
