Qatar: Local Value System to be Adopted in Government Tendering

Qatar News developments

Qatar: Local Value System to be Adopted in Government Tendering

The Peninsula, 10 August 2022: Qatar will adopt the local Value System in Government tenders under amendments to the Implementing Regulations (Qatar Cabinet Decision No. 16/2019) to the Law on Regulating Tenders and Auctions (Qatar Law No. 24/2015).

The amendments by Qatar Cabinet Decision No. 11/2022 mean companies will have to add the in-country value or local value certificates to their financial bids.

The system has already been in place for some Government tenders in the oil and gas sector.

National products, companies with high local value and those submitting the least expensive monetary bids after In-country value calculation will be given preference in the procurement process.

Micro, small and medium-sized enterprises will now be given greater privileges and exemptions with more tenders available.

They will be able to participate to a degree in tenders valued at less than five million Riyals.

National micro companies and SMEs will also be exempt from paying bid and performance bonds and tender fees if their turnover is less than one million Riyals.

In addition, they will be exempt from up to 50% of the value of the prescribed classification fees.

Procurement in Government agencies will also be developed and accelerated by introducing specific timeframes to organise the offering procedures, and a decision will be made within 60 working days.

The contract will also be signed within 20 working days from the date of the contractor submitting the final insurance.

The implementation of the contract will start within 90 working days from the date it is signed.

The amendments aim to increase the participation of non-oil sectors and the private sector in the economy.

Also reported in Al-Sharq on 9 August 2022. For full story, click here.

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Benjamin Filaferro