Can I register a business in Qatar without a local partner?
In accordance to the Qatar Investment Law No. 13 of 2000, any natural or juristic non-Qatari persons are allowed to directly invest in the sectors of agriculture, industry, healthcare, education, tourism, exploitation and development of natural resources, energy or mining, provided that these projects are compatible with the development scheme of the State.
How can I get a house?
- Make an application to the Housing Department at the Ministry of Social Affairs to get a house, in line with their instructions.
-The application is then discussed to consider the availability of benefit conditions in coordination with Land Department Services of Ministry of Municipality and Urban Planning.
- The transaction is transferred to Qatar Development Bank for loan disbursement after making sure that all requirements are met.
What Direct Loan products does QDB offer?
We offer two types of direct loan:
1. Long-term loans designed for executing projects. Financing can cover up to 80% of core business related equipment/machinery, or up to 60% of total project fixed asset costs. New projects have a maximum tenor of 8 years, within which a maximum grace period of up to 2 years. Existing projects have a maximum tenor of 5 years within which a maximum grace period of up to 1 year. Interest rate is 5.0% p.a., plus an up-front fee of 1.0% flat
2. Short-term loans to cover the purchase of raw materials used in production. The amount available is subject to analysis of the trade cycle of the business. Maximum tenor is 12 months (options as to grace period and repayment period subject to the trade cycle of the business). Interest rate of 5.0% p.a.
What is IBAN and how does it help?
The International Bank Account Number (IBAN) has been introduced to standardize the identification of bank accounts. It is essential to understand the following points regarding IBAN:
The IBAN is not a new account number. Existing account numbers will be replaced with additional prefix and calculated checksum characters will appear in front of existing bank account numbers. The original bank account number, plus the additional characters, will be known as the IBAN. Implementing the IBAN system will help improve the quality of information exchanged between banks both within in Qatar and internationally. Its reliability and accuracy will reduce error and delays.
The main benefit is that IBAN should provide you with quicker processing of your funds transfer. Since banks are required to check the accuracy of the IBAN at the point of initiating a fund transfer, it can only make the funds transfer which carry the correct IBAN.
Who is eligible to benefit from Al Dhameen?
Al Dhameen is primarily aimed at new companies (start-ups), but it is also available for existing companies.
For the purposes of this program, start-ups are differentiated from existing businesses based on two criteria: 1) years in operation and, 2) annual turnover.
Years in operation: 3 yrs or more
Annual Turnover: less than QR30 million
Max. loan amount under Al Dhameen: QR15 million
Start up Companies:
Years in operation: Less than 3 yrs
Max. loan amount under Al Dhameen: QR15 million
Are there any companies/sectors that are not eligible for the Al Dhameen program?
Yes, all non-profit seeking companies are NOT eligible.
In addition, the following sectors are ineligible:
• Agriculture, livestock and fisheries all of which are financed directly by QDB with an intrest not exceeding 1 %
• Non-oil mining and quarrying.
• Wholesale and retail trade.
• Financial and insurance activities.
• Real estate activities (both commercial and residential)
• Contracting activities
What are the steps to be followed when applying for a loan?
The following steps have to be followed when applying for a loan:
- A loan application form should be completely filled.
- A feasibility study for the concerned project must be appended to the application.
- Any relevant licenses must have been obtained.
- Existing businesses applying for a loan must provide copies of their audited accounts for the preceding three years.
For more information please contact us by calling our Call Center or visiting our offices.
6) What happens if I don't quote the IBAN of the beneficiary while initiating a payment?
In case the IBAN is not used from 1st January 2014 onwards, payments will be processed without any delays or additional charges until 1st April 2014 as per Central Bank's grace period of 4 months following which the processing of both inward and outward payments in your account will be rejected or may be delayed with additional processing charges as may be prescribed by Central Bank from time to time.
When and how is a claim paid?
Before a claim can be filed, a covered event of loss must have occurred under the legally valid and enforceable export contract. The exporter must also provide evidence as to the level of the production costs eligible for indemnification. From these production costs, the TASDEER will regularly deduct any assets received by the exporter (e.g. Payments by the debtor and/or guarantor, or remarketing proceeds).
When all the necessary documents have been submitted to TASDEER, the claim will be processed and claims payment will be effected within two months’ time.
The policyholder participates in the loss up to the level of the uninsured portion, which normally is 10%.
Which partner banks is QDB cooperating with?
QDB is cooperating with the following banks and financial institutions: QNB, QIB, Al Khaliji bank, Ahli bank, QIIB, Mashreq bank, Masraf Al Rayan, Commercial bank, Barwa bank, Doha bank, IBQ, Al-Jazeera Finance, Qatar Finance House, and First Finance.
What are the key features of the Healthcare Sector Long Term loan products?
For new Healthcare sector Construction Loans: Maximum borrowing would be up to 70% of the total construction costs maximum tenor of up to 15 years and maximum grace period of up to 3 years – profit rate between 2.5% and 4%.
For existing Healthcare sector companies seeking Construction Loans: Maximum borrowing would be up to 75% - 80% of the total construction costs maximum tenor of up to 10 years and maximum grace period of up to 2 years – profit rate between 2.5% and 4%.
For Healthcare sector Movable Asset Loans: Maximum borrowing would be up to 80% of the total asset costs (subject to an overall cap of 70% of total construction and fixed asset costs on projects where Construction loans are also taken), maximum tenor of up to 7 years and maximum grace period of up to 2 years – profit rate between 2.5% and 4%.
What documentation do I need to provide in order to receive the loan?
The bank you are applying to will inform you of the specific documents required to get a loan. Generally, the minimum level of required documents to be provided to apply for a loan is:
• Copies of the ID card of every owner of the company.
• A copy of the company CR.
• Articles of Association of the company.
• The company’s audited financial data for the last 3 years, if available.
• A personal guarantee from the company owners to cover the loan.
• Evidence of insurance of company assets.
• A written letter (on the company’s letterhead) requesting a loan from the bank and explaining the purposes of using this loan.
Limit of applications
Limited to one application per Commercial Registration as well as one application per owner (Qatari ID)
What is the loan repayment period?
For term loans geared toward capital expenditure for manufacturing, the maximum tenor is 8 years including a 2 year grace period. Financing for services will have a maximum tenor of 5 years, including 1 year grace period.
Revolving lines are also available for your working
What are the functions of Qatar Investment Promotion Department?
Qatar Investment Promotion Department (IPD) operates under the supervision of the Ministry of Business and Trade (MBT). The IPD provides extensive information related to the business environment in Qatar including current investment projects, procedures related to setting up businesses, and government incentives.
Can I open and account at QDB?
No. Qatar Development Bank is a fully-fledged development bank that provides financing solutions and value-added services to private sector companies. For more information, visit our Contact Us section.
What types of projects that QDB execute and manage?
Through its Engineering Projects Department (EPD), QDB manages and executes residential, health, educational and tourist projects owned by the state, as well as private sector residential, housing, health, education and tourism projects.
What are the required procedures for getting a loan?
- By mobile services
- By internet
Visiting our bank and proving the requirements below:
- Preparation of all required documents
- Bank Guarantee
- Going to Customer Service at Qatar Development Bank
- Signing the contracts.
- Loan disbursement same day
Further criteria for eligibility
The company should be based in Qatar, with its
head office and main operation located in this country.
The company application should be in agreement
with the foreign capital investment criteria for the
State of Qatar
What conditions must be met to obtain a loan?
The following conditions must be fulfilled by any company applying for a loan from QDB:
- The company must be based in Qatar.
- It must conform to Qatari law governing commercial companies.
- All necessary licenses must be obtained.
- The technical and economic feasibility of a given project must be supported by an ad hoc study.
- The owner or owners of the project must have good reputation.
- The company’s projects must not be labor-intensive.
Where do I get my IBAN for my QDB accounts?
QDB will communicate information related to IBAN via multiple channels, through SMS and on your current account statement
Further information is also provided through our website www.qdb.qa You can also obtain information by contacting your Relationship Manager or contacting QDB customer service team (email@example.com).
What are the loan’s terms and conditions?
- The loan amount may reach 80% of the value of main equipment, provided that it does not exceed 60% of the project total value and 10 % of the paid up capital and bank reserve, whichever is less.
- Maturity: it may vary according to the investment nature. Maturity may reach 8 years in case of new projects, and 5 years in case of existing projects.
- Interest payment: it is done quarterly and calculated on the basis of loan remaining amount.
- Interest rate of 5.0% p.a. (per annum).
- Commissions and fees: annual lending commission of 0.5% and annual administrative fees of 0.5%.
How can I apply?
Visit QDB website, complete the online application form and attach all necessary documents (pre-feasibility study, commercial registration, industrial license).
Which banks has QDB partnered with for the Al Dhameen program?
So far, QDB is cooperating with the following banks
and financial institutions:
Ahli Bank, Al-Jazeera Finance, Al Khaliji Bank, Barwa Bank, CBQ, Doha Bank, First Finance, IBQ, Mashreq Bank, Masraf Al Rayan, Qatar Finance House, QIB, QIIB, QNB
What are the minimum requirements to apply?
The minimum requirements and conditions to apply are:
- Pre-Feasibility study (according to standards) -Commercial registration – Industrial License http://www.mei.gov.qa/images/MOEI_docs/afestablish01.pdf/
- Ready to provide proof of required equity (13% of the project’s value according to financing requirements )
- Business is within approved sectors of (SMSIA) as per Ministry of Industry’s standards
- Industry segment / product category within the preferred list of prioritized sectors and product categories in the study
What are the key features of the Agriculture Sector Long Term loan products?
Up to QAR1 million and no need for feasibility study, maximum tenor of up to 8 years including grace period of 6 months – profit rate 1% .
Above QAR1 million Agriculture industry projects we ask for feasibility study, maximum financing would be up to 80% of the total fixed asset costs, maximum tenor of up to 8 years including grace period of up to 1 year – profit rate 1% .
What are the key features of the Livestock sector Long Term loan products?
Up to 1 million QR and we doesn’t ask for feasibility study, maximum tenor of up to 8 years including grace period of to 1 year – profit rate 1%.
Above 1 million QR livestock projects we ask for feasibility study, Maximum financing would be up to 80% of the total fixed asset, maximum tenor of up to 8 years including grace period of up to 1 year – profit rate 1%.
What determines a Risk pricing grade?
Risk Pricing Grade is derived from a matrix that includes client risk as well as facility and economic value adding parameters. Though risk and facility parameters do play a part, economic value parameters have a larger influence on the pricing.
How does QDB define a value adding sector?
QDB has developed an internal “Economic value adding” model which looks at parameters such as export potential, introduction of new technology, use of available raw materials, impact on environment, amongst others. The model is well documented, transparent and will be used consistently for all loan applications.
What is Al-Dhameen Program?
Al Dhameen is an indirect lending initiative launched
by Qatar Development Bank to assist Small and Medium
Enterprises that are unable to independently borrow
money due to lack of collateral or financial statements.
What risks are covered?
Pre-shipment risk cover offers protection against losses caused by discontinuation of production, particularly if:
1. Foreign buyer becomes insolvent.
2. The contract is cancelled or other material violations occur.
3. Adverse measures are taken by foreign Governments or warlike events arise.
4. Embargo measures are taken by the Government of Qatar or third countries participating in the export transaction.
5. The cancellation fee is not paid and/or the claim to partial payment is not fulfilled following a justified cancellation of the contract by the buyer.
It is particularly advisable to take out cover for production costs of custom-made products which cannot be re-marketed if production is discontinued. On the 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 can be remarketed as separate units (partial cover).
The calculatory profit, the cover premium and illegal expenses are not eligible for cover.
What is QDB?
QDB is 100% owned by the Government of the State of Qatar and located in the capital Doha. The main objective of the Bank is to contribute to the development and diversification of the economic and industrial investments of the country in the State of Qatar. Our facilities include providing financing for new and established SMEs, exporting solutions, consultancy services, and housing loans.
Who can apply for pre-shipment risk cover?
Pre-shipment risk cover is available to every Qatari exporter. This includes entities licensed to undertake business in the State of Qatar irrespective of whether they are 100% owned by Qatari nationals or not.
Is IBAN being implemented by all Banks in the Qatar?
The Qatar Central Bank (QCB) has ruled to introduce IBAN, and have instructed all banks in Qatar to implement IBAN. You can start using IBAN for your funds transfers from 01 January 2014, as per QCB directives.
IBAN have to be used for the below payments:
• Fund transfer within Qatar, i.e. domestic transfer, book transfer within QDB accounts in Qatar
• Fund transfer to an account in a country that has adopted IBAN
• Receiving a fund transfer from an account in Qatar
• Receiving a fund transfer from an account in a country that has adopted IBAN
• Receiving a fund transfer from an account in a country that has NOT adopted IBAN
What are the procedures for bidding?
- Valuation of the project.
- Collecting and processing documents.
- Call contractors and consultants.
- Recommending the best technical offers.
How much does pre-shipment risk cover cost?
The premium is determined by the risk horizon, the buyer risk category (SC1-2, RC1-5) and the country risk categories (0 - 7), production cost and on the length of the manufacturing period
What are the key features of the Education Sector Long Term loan products?
For Education sector Construction Loans: Maximum borrowing would be up to 70% of the total construction costs, maximum tenor of up to 15 years and maximum grace period of up to 3 years – profit rate between 2.5% and 4%.
For Education sector Movable Asset Loans: Maximum borrowing would be up to 80% of the total asset costs (subject to an overall cap of 70% of total construction and fixed asset costs on projects where Construction loans are also taken), maximum tenor of up to 7 years and maximum grace period of up to 2 years – profit rate between 2.5% and 4%.
How much does post-shipment risk cover cost?
The premium is determined by the risk horizon, the buyer risk category (SC1-2, RC1-5) and the country risk categories (0 - 7), transaction value and on the length of the repayment period.
• Premium rate is 0.2 to 1% of transaction value/ production cost
• Issuing fee equals to 0.0025 % of the covered amount (Minimum QR. 250)
• Payable against issuing a cover policy
Documents required to be accompany the insurance cover application:
• Know your customer (KYC) form signed and stamped by authorized signatories (please put a link to the customer)
• Company Registration Active
• Authorized signatories
• Export cover application form signed and stamped by authorized signatories (please put a link to the customer - editable pdf)
• A copy of the purchase / invoice request if available
What are the key features of the Fisheries sector Long Term loan products?
Fisheries financing is exclusive for the boat owner where we are financing this sector with QAR 250,000 per boat maximum 3 boats for the same client and we finance for two purposes:
- Fishing Equipment’s QAR 100,000
- Boat Engine maximum QAR 150,000
- Tenor of up to 5 years including grace period of up to 2 months – profit rate 1%.
Who is eligible for 3 % profit rate?
All the private sector enterprise businesses in the manufacturing and select services sector of the economy will be considered for the 3 % ROI.
What are the evaluation criteria?
Business Evaluation Criteria is as follows: (Please make sure you include them clearly in the pre-feasibility study)
- Relevant and appropriate management and industry experience
- Innovative and environmentally friendly products and production processes
- Aftersales Service potential
- Product portfolio in line with local industries supply chain
- Available local materials and short lead time
Product substitutes imports
- Processes are not labor intensive
Which industries are allowed?
For more information, find non-exhaustive list of industries and products: http://www.qdb.qa/English/Documents/ISIC%20codes.pdf
What industries are prohibited?
The following industries are not permissible in the Small and Medium industries area:
- Ready mix concrete factories
- Concrete block factories
- Asphalt factories
- Printing workshops
- Environment polluting industries
The site is next to the chemicals zone in the SMSIA. Because of the location of the project, the following industries cannot be shortlisted:
- Food & Beverage industries
- Corrosive metals industries
What is the selection process?
The selection process is divided into three stages as follows:
Stage 1: Initial assessment to identify if application meets minimum requirements (online and manual verification)
Stage 2: Comprehensive assessments to identify if applications meet technical requirements via a specialized committee
Stage 3: Shortlisted candidates to meet with final selection committee