DOHA: The Ministry of Commerce and Industry highlighted Ministerial Decision No (250) of 2018 on the unified definition of small and medium sized enterprises (SMEs), in line with the State’s interest in the development of the private sector in general and small enterprises in particular.
The Ministry said the decision on the unified definition of SMEs classified enterprises according to their headcount and annual revenues. SMEs are defined as companies established in accordance with Qatari laws and whose staff headcount is not more than 250 employees with annual revenues that do not exceed 100 million Qatari riyals. SMEs were classified into three categories: Micro-sized enterprises (companies whose staff headcount is not more than 10 employees and whose annual turnover does not exceed QR1m, Small sized enterprises (companies whose staff headcount is not more than 50 employees and is not less than 11 employees and whose annual turnover does not exceed QR20m and is more than QR1m) and Medium sized enterprises (companies whose staff headcount is not more than 250 employees and is not less than 51 employees and whose annual turnover does not exceed QR100mn and is more than QR20m).
The Ministry said the unified definition of SMEs is limited to Autonomous Private and Profit Seeking Enterprises and excludes ministries, public bodies and institutions, diplomatic bodies, public welfare institutions and establishments owned by public bodies and corporations and companies in which the State is a shareholder.
According to the Ministry’s decision, a Private Profit Seeking Enterprise shall not be considered a mixed enterprise, and shall maintain an independent status within the scope of the definition set out in the preceding article, even if the percentage of equities or voting powers of investors such as public investment companies, venture capital companies, business enterprise financiers, universities and nonprofit research centers, and institutional investors including regional development funds is up to 50 percent.
The Ministry explained that the Qatar Exchange Venture Market is excluded from the definition of SMEs when applying the rules of listing to companies. However, the QE Venture Market may decide to use it as a guiding definition. The decision also stipulates that the Ministry of Commerce and Industry shall coordinate and cooperate with all relevant authorities to introduce any amendments to this definition by reviewing the outcome of applying this definition and evaluating its suitability to the needs of SMEs in the country and its compatibility with the state strategic plans.
The Ministry of Commerce and Industry explained that the unified definition of SMEs will ensure equal treatment for SMEs on the national level and help establish a unified framework to determine the eligibility of both current and foreseen enterprises to join SMEs sector, and benefit from available programs and initiatives. The decision will also help design effective targeting programs, to serve specific categories of SMEs, based on their size, activity and any other eligibility criteria, in light of the national development perspectives.
The Ministry added that the unified definition will contribute to drawing a clear map for the structure of business institutions in Qatar (micro, small, medium and large), which will help in analysing the current situation of the sector, and formulating future plans.
The definition will also facilitate access to capital by providing preferential treatment to SMEs to enable investment entities such as investment funds and venture capital companies to participate in financing SMEs The unified definition will also help formulate a consolidated framework and guiding rules necessary for collecting, processing, and publishing data and information, which leads to producing high-quality statistics in addition to monitoring SMEs evolution through time, in terms of their growth, continuity, and capability to ensure their progression from one category to another.
