QDB identifies ways to enhance the indirect lending initiative for Small and Medium Enterprises

Doha, Qatar; 27 April 2014: Qatar Development Bank (QDB) held its ninth Al Dhameen dialogue session with partner banks, to identify ways to enhance the indirect lending initiative for Small and Medium Enterprises (SMEs) that have a limited credit history or sufficient guarantees to acquire finances.

The session was chaired by Mr. Hamad Al-Kubaisi, Executive Director of Strategy and Business Development at QDB. Attending the event were representatives from 14 partner banks and financial institutions in Qatar as well Al Dhameen partners - Enterprise Qatar, Bedaya Centre, Qatar Business Incubation Centre etc.

The session comprised of presentations and discussions, during which representatives of QDB and its partners Enterprise Qatar and Qatar Shell briefed participating banks on governmental programs available for SMEs, and the steps taken to enhance Al Dhameen, highlighting the efforts towards further developing the program and overcoming the challenges facing SMEs in acquiring the finances needed for their projects.

Representatives from participating banks took part in closed discussions; where they were able identify the current challenges and customers' feedback to include in future implementations.

Al Dhameen team members also demonstrated their achievements throughout the past few years, and showcased the program's future strategy and the efforts conducted to develop the program.

Mr. Hamad Al-Kubaisi, Executive Director of Strategy and Business Development at QDB, said: "This workshop underscores QDB's commitment to enhancing Al Dhameen's performance; and to solidify the capabilities of participating banks to enable it to deal with SMEs in an exceptional form. We look forward to maximizing the banks' role from just financing project to providing consultation services as well. QDB is constantly working to develop Al Dhameen to support the growth and prosperity of Small and Medium Enterprises in Qatar."

"We are pleased with the status of Al Dhameen and the trust our partner banks have put into the program has played a vital role in Al Dhameen's success in a relatively short period of time," Al-Kubaisi added.

Al Dhameen was established by QDB to encourage banks to finance promising SMEs held back by a limited credit history and insufficient collateral. Qatar-based private sector companies are eligible for guarantees of up to 85% of the loan amount.

Through Al Dhameen, QDB aims at supporting private and SME sectors in line of its efforts to achieve economic diversification in Qatar and lower dependency on hydrocarbons sector as a major source of income.

In line with the program, the bank held many workshops for enterprises' owners to get them familiar with available investment opportunities in the SME sector. The bank also organized training programs targeting customer relationship managers in partner banks in order to enhance their skills in credit and project evaluation. 

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About Qatar Development Bank (QDB)
Qatar Development Bank (QDB) was established in 1997 as the Qatar Industrial Development Bank, a 100% government-owned developmental organisation. Its primary aim was to develop investments within local industries, thereby accelerating growth and economic diversification in Qatar through support for private sector. Between 1997 and 2005, the bank expanded its portfolio, diversifying from its industrial base to include support and guidance for a range of non-industrial sectors identified as key to the development of Qatar. Shortly afterwards, the bank revisited its mission statement to reflect the successful completion of its new strategic objective and changed its name to Qatar Development Bank. The State of Qatar, QDB's sole shareholder, increased the bank's capital from 200 million to 10 billion riyals in 2008. Since that time, and reflecting the expansion of its mission and financial assets, QDB has launched a considerable number of strategic initiatives and programs, all designed to directly contribute to the economic growth and development of Qatar.

QDB's strategy is entirely in line with Qatar National Vision 2030. It is focused on promoting and facilitating the growth of the private sector in Qatar within key economic channels. In turn, this support will enable the development of long term, sustainable social and economic benefits across the economy.

Aside from offering financial support, Qatar Development Bank is tasked with promoting entrepreneurship in the private sector, facilitating the development of key economic sectors through the provision of capital and advisory services. QDB has also launched several initiatives, including Al Dhameen program, an indirect loan facility to guarantee commercial bank loans to private sector companies, in collaboration with other banks and financial institutions.

QDB's export arm "Tasdeer" program was created to develop and promote exports from Qatar, providing export credit guarantees in addition to financial products and solutions designed to mitigate the risks imposed on local exporters. The bank also provides consulting services in business development to help entrepreneurs to prepare for business. This will include feasibility studies, the conduct of market research and the selection of appropriate techniques; fundamentally helping to develop the capabilities of SME owners to enhance and refine their skills in the market and establish strong ties with financial and non-financial support entities.

For more information please contact:
Rami Yashruti
Grayling
E: rami.yashruti@grayling.com
M: +974 55 389 036

Samer Bsaiso
Grayling
E: samer.bsaiso@grayling.com
M: +974 66 647 185

© Press Release 2014