Facilitating the establishment of micro, small and medium enterprises in Qatar

Micro, small, and medium enterprises are well-recognized as the drivers of economic growth and diversity, and are at the center of promoting equitable development. According to the World Bank, they constitute more than 90 percent of companies worldwide and contribute more than 50% of the global GDP. In Qatar, they play a vital role in the overall growth of the industrial economy while also helping the nation move away from a reliance on fossil-fuel-centered industries and sectors. This is the sector to rely on when seeking innovation and adaptability, and the one to help move past the recent economic challenge and move towards growth in the future, in line with the Qatar National Vision 2030.

Part of our efforts focus on Al Wukair Logistics Park, which plays a vital role in uplifting and diversifying the economy. This 1.5km² facility caters for a whole range of industries that require light industrial workshops, storage units and open yards; offering ideal platform for established companies and new market entrants. Al Wukair is one of several facilities attracting businesses to the country, along with Qatar’s commitment to offering a simple company formation process – in which GWC is able to support. 

We provide a one-stop-shop for leasing, company formation, including applications for necessary permits, and operations. Start-ups who work with GWC will benefit from our years of local, regional and international experience, along with our global, integrated network. Our deep, hard-earned knowledge of the local market makes Al Wukair Logistics Park the ideal location for businesses to avail of and enjoy the best logistics infrastructure that will allow them to focus on their core businesses and reap the benefits of a flourishing economy. 

Figure 1 Master Plan of Al Wukair Logistics Park

We know that businesses prefer locations – such as Al Wukair Logistics Park – that provide quick, efficient, high-quality and hassle-free access to different industries. One major benefit of Al Wukair is its strategic location between the airport and seaport, which allows businesses of any size to operate as efficiently as possible. Al Wukair supports start-ups, helps to develop adjacent industries and boost entrepreneurship – all key, strategic goals of the State of Qatar. 

Benefits for micro, small and medium enterprises 

Apart from finding seed capital, one of the key challenges for new businesses is managing the supply chain and accompanying logistics. Without a fully-fledged logistics or industrial park, businesses are often faced with inefficient infrastructure to operate effectively and profitably. This inevitably raises the cost of running a business as the owner needs to pay numerous middlemen in order to get their product to market. In addition, start-ups may be unable to deliver their product to the consumer or face other operational challenges which make it hard to operate or conduct business. It’s a quick way to kill a promising start-up. 

Efficient Ecosystem 

Support industries often establish their bases at industrial parks to benefit from proximity to their clients and low operating costs. For example, the furniture industry depends on the supply of various types of wood in order to manufacture goods according to the needs of their customers. This simple example highlights the importance of industries that provide ancillary support to enterprises located at light industrial parks in creating an efficient ecosystem that benefits all tenants. 

Logistics parks create clustering of industries

While the internet makes it seem as if physical locations are unnecessary, creating and maintaining a competitive advantage is dependent on clusters – either upstream or downstream – in many industries in countries around the world. As localised clusters grow, they will attract similar or adjacent industries. This will eventually create more opportunities and consequently grow the economy.

Entrepreneurship

The government of Qatar has taken many steps to promote entrepreneurship. Just one example of its commitment is the establishment of incubation centres. The mandate for incubation centres remains narrow, while the role of light industrial parks is potentially much larger. Facilities such as Al Wukair provide a strong environment for entrepreneurs who can easily access necessary resources. 

Supporting Qatar’s diversification strategy

A logistics park keenly supports Qatar’s commitment to diversifying the economy and reducing the country’s reliance on hydrocarbons income, in line with the Qatar National Vision 2030. Qatar is already in the midst of a huge infrastructure boom. Doha Metro is now up and running, and there are new roads, expressways and free zones, in addition to a new port and massive investment in Hamad International Airport. All of these capital projects are yielding positive results and drawing investors from all over the world. Developing industrial and logistics parks and operating a smooth business set-up process are the next logical steps in this strategy.

Figure 2 Qatar National Vision Pillars

Well-formed infrastructure contributions 

A well-formed infrastructure is characterised by accessibility, affordability and reliability. This powers businesses of all sizes by enabling them to make sustainable profits, which results in economic development. Additionally, robust infrastructure makes market access easy. It boosts manufacturing and trade, which subsequently leads to economic growth. 

Figure 3 Porter’s Value Chain Model

GWC is proud to support the diversification of Qatar’s economy as the country gears up to host the FIFA World Cup and achieve the goals of the Qatar National Vision 2030. In close collaboration with the Ministry of Commerce and Industry, we are committed to helping micro, small and medium-sized enterprises launch their businesses in Qatar.

Find out more by visiting our website, www.gwclogistics.com