BERLIN: The Germans call it the “Mittelstand”- the unique structure of Germany’s strong sector of small and medium- sized companies that have become a synonym for technological strength, innovation and entrepreneurial spirit across the world.
As the high-profile Qatar-Germany Business and Investment Forum set to open here today, one of the high point of discussions will be how to bring in this innovative, highly successful German business model to Qatar, sources told The Peninsula.
The Mittelstand accounts for the overwhelming majority of all businesses in Germany, an estimated over 3 million. It also provides SMEs 60 percent of all the jobs and over 80 percent of all apprenticeships in Germany.
This German model will be ideal for Qatar, which has already embarked on an ambitious move to promote SMEs and private sector development and economic diversification.
Strategic discussions are already progressing on the sidelines of the Berlin Conference on how Qatar can adopt the Mittelstand model. Experts from both Qatar and Germany will shed light on this in the dedicated sessions today, sources said.
Qatar has already investments in some of the big German companies. The idea now is to focus more on these big hidden champions in Germany (Mittelstand).
With Qatar further opening up its market and restructuring its administration to make doing business easier, lot of German companies are looking for local partners. It’s an opportunity for Qatar as well, which is committed to increase the share of non-oil contributions to the country’s GDP.
“The Mittelstand Companies are the backbone of Germany’s economy. The idea is that Germany can share its expertise and further boost the mutually beneficial bilateral cooperation” Kathrin Lemke (pictured),
Spokesperson of German Industry and Commerce Office Qatar, told The Peninsula on the sidelines of the Qatar-Germany Business and Investment Forum.
The Mittelstand Companies are specialised in niche products, be it in service sector, engineering or technology. They can make wonders in Qatari market and economy with the support of strong local partners, she said.
“We have a system called dual vocational education training system, where young people would work in a company, while studying. This is quite unique in Germany and it’s what Mittelstand stands for. So I see there is lot of potential may be to bring this Model to Qatar, which has ambitious plans to bolster its private sector,” Kathrin said.
One Mittelstand model company is already working in Qatar as part of a big consortium, which is involved in the construction of a stadium. They are the one who provides materials and expertise for the membrane that covers the whole stadium. This company is very specialised in developing the product and technology. There are several small and medium companies in Germany who are world leaders in niche products. The idea is to bring this expertise to Qatar to make the country’s non-hydrocarbon sector economy stronger, in close cooperation and partnership with local companies.
“Germany is already active in Qatar in the traditional sectors like construction, infrastructure and engineering. Apart from this, Germany’s SMEs can offer a lot to support Qatar’s ongoing digitization strategy. We also see a lot of opportunities in Qatar’s agriculture and food processing sector. There are lot of SMEs in Germany that can make Qatar’s agriculture sector more efficient.”
