Qatar Adds Local Value System To Government Tendering
August 29, 2022
Recently, Cabinet Resolution No. 11 of 2022 was ratified amending some provisions of the Executive Regulations of the Law on Regulating Tenders and Auctions No. 24 for the year 2015 (“Tenders Law Regulations”). The new amendments to the Tenders Law Regulations incorporate an in-country value system (“ICV”) requiring bidding companies to include ICV in their financial bids.
Pursuant to the ICV, national products, high-value local companies, and companies submitting the least expensive bid after incorporating the ICV calculation will be given preference over other bidders. As such, the ICV aims to provide increased business opportunities for local businesses and to attract investors to set up businesses in the country.
The ICV is determined based on the total amount spent by a company, contractor, supplier or service provider within the country to increase productivity, develop national business and services, and generally advance the local economy.
Small and medium-sized enterprises (“SMEs”) will also be provided greater privileges and exemptions, as well as more opportunities to participate in tenders valued at less than QR 5 million. Furthermore, SMEs whose turnover is less than QR 1 million will be exempted from the requirement to provide bid and performance bonds, as well as payment of tender fees.
The amendments to the Tender Law Regulations also seek to accelerate the procurement process by introducing specific time periods in which to complete the tendering process and execute the project contract. A specific time period in which to implement the contract has also been added.