Doha: Qatar Development Bank (QDB) has announced the launch of the Working Capital Stabilization Guarantee Program for private sector companies operating in the services sector, and the Working Capital Stabilization Program to support Qatar-based factories amid current regional developments.
According to Qatar News Agency, the two programs are designed to bolster working capital and liquidity, enabling beneficiaries to sustain their operations and navigate challenges effectively and efficiently. This initiative is part of QDB's strategic role through its Situation Room, which was activated in early March as a proactive support hub. The hub aims to strengthen private sector stability by identifying urgent needs and delivering specialized financing and advisory programs to address them.
The Working Capital Stabilization Guarantee Program provides financing facilities through national partner banks, backed by a comprehensive 100% guarantee provided by QDB. This ensures that Qatar-based companies in the services sector have the liquidity needed to address urgent needs and ease pressure on their operations. QDB offers these guarantees without applying any guaranteed fees to partner banks, targeting sectors including Accommodation, Housing, Food and Hospitality Services, Arts and Entertainment, Professional, Scientific and Technical Services, and Administrative and Support Services.
Financing under this program covers salaries, rent, and other operating expenses for up to three months. The guarantee covers the full principal amount of the outstanding financing, with a repayment tenor of up to four years, including a grace period of up to two years.
The Working Capital Stabilization Program focuses on providing the liquidity and working capital needed to sustain factory operations and meet essential obligations. This enhances operational readiness and supports local production. Direct financing by QDB covers employee and worker salaries, rent, and other operating expenses for up to three months, with a repayment tenor of up to four years, including a grace period of up to two years, and a maximum profit rate of 3%.
QDB has recently launched several products, including support and financing programs, to enable the private sector to respond to current implications. The bank continues to work in coordination with relevant entities in Qatar to design targeted responses to the challenges facing the private sector, contributing to the resilience of the national economy.