Qatar Economic Outlook Issue Number 13

 
National Response Guarantee 
Program for SMEs
Many economic activities have been 
impacted by the measures taken to contain 
the outbreak of the Covid-19 pandemic. 
However, the most affected activities are 
those of SMEs with high labor intensity. Thus, 
the government established a National 
Response Guarantee Program (NRGP) of 
QR 5 billion that aims to pay staff payroll as 
per the Wage Protection System (WPS) as 
well as subsidizing rental fees for privately 
owned companies (factories, business 
outlets, 
warehouses, 
and 
labor 
accommodations) even if the Qatari partner 
owns only 10% of them.
As shown in Table (2-3), the tenure of Covid-
19 NRGP is four years, of which two years 
are a grace period with zero interest on the 
beneficiary companies. The government will 
bear the cost of interests and profits during 
the grace period. As for the remaining period; 
i.e. 2022 and 2023, it will be a repayment 
period with interest rate that does not exceed 
QCB's rate plus 2%. This indicates that the 
holder of the guarantee will benefit from a 
zero-interest loan for two years, and a low 
interest for another two years, which it will be 
2% plus Qatari Money Market interest rate 
(QMR), which is 2.5%, as shown in Figure (2-
12, above). 
The program is implemented by local banks 
registered in the WPS under the supervision 
of QDB with zero bank fees during the 
application period (March 2020 - September 
2021), for a maximum of QR 15 million, 
where the financing for closed sectors does 
not exceed QR 2.5 million per month, 
provided that the guarantee is disbursed as 
wages and salaries or as rents that should be 
deposited to the property owner's banking 
account. 
According to the statement of QDB as of April 
2021, more than four thousand private sector 
companies and establishments, employing 
more than 320,000 employees, have 
benefited from the program.