Qatar's Ministry of Commerce and Industry: Unified Definition of SMEs Allows Them to Benefit from National Programs and Initiatives

Doha, November 20 (QNA) - The Ministry of Commerce and Industry (MCI) highlighted the ministerial decision No. 250 of 2018 on the unified Definition of Small and Medium Enterprises (SMEs), which comes within the framework of the State's interest in the development of the private sector in general, and this type of project is in particular. In a statement today, the Ministry said that unified definition contributes to equal treatment of SMEs at the national level, establishing a common framework for determining the eligibility of existing and new enterprises to join the sector, making use of available programs and initiatives, and designing effective programs in the light of national development trends targeting specific groups of SMEs, according to their size or nature of activity, or any other criteria in the light of development trends. The Ministry also pointed out that this definition contributes to the mapping of the structure of business enterprises in the country, with its various categories, small, medium and large, which helps to analyze the reality of the activity and formulate future plans, in addition to facilitating access to capital through granting preferential treatment for small and medium projects, such as financing funds and venture capital firms, to be able to participate in financing those projects. The definition also assists in the formulation of a clear framework and guidelines for the collection, processing and dissemination of relevant data and information, which contributes to the production of high-quality statistics and monitors the evolution of the projects in terms of growth and sustainability, and classifies them from one category to the next. The decision defines SMEs according to the size of the labor force and the annual return. SMEs are defined as companies established in accordance with Qatari laws, and the size of the labor force does not exceed 250 workers, with annual revenues not exceeding QR 100 million. The statement pointed out that SMEs include three categories of microenterprises: companies whose labor force does not exceed 10 workers, whose annual turnover does not exceed QR one million, and small enterprises are companies with a workforce of at least 50 workers and not less than 11 workers, and does not exceed annual revenue of QR 20 million and not less than one QR million, and medium projects with no more than 250 workers and not less than 51 workers, and does not exceed annual revenue of 100 QR million and not less than 20 QR million. The ministry clarified that the unified definition of SMEs is limited to independent private enterprises. The definition excluded the ministries, public bodies and institutions, diplomatic bodies, private institutions of public interest, business establishments owned by public bodies and institutions and companies in which the state contributes. The Ministry added that according to the decision, private business enterprises are not considered a joint venture and will remain an independent entity within the scope of the definition set out in the preceding article, even if the percentage of shareholders' equity or voting is 50 percent by public investment companies, business enterprises, universities and non-profit research centers, and institutional investors including regional development funds. In a related context, the Ministry clarified that it excludes from this definition the market of start-up companies, when applying the rules of listing companies, with the possibility of considering the definition as indicative for them. The decision stipulates that the Ministry of Commerce and Industry shall coordinate and cooperate with all relevant authorities to make any amendments to this definition by reviewing the results of its implementation and evaluating its suitability to the needs of the SMEs in the country and its compatibility with the country's strategic plans. (QNA)