Doha, October 26 (QNA) - The Qatari Businessmen Association (QBA) participated in a session titled "The Role of the Private Sector in Financing Development in Developing Countries," held as part of the ninth World Investment Forum (WIF 2026) in Doha.

The association was represented by QBA member and Middle East and North Africa Head and Deutsche Bank Qatar CEO Salah Mohammed Al Jaidah.

In his remarks, he stressed that mobilizing private capital for development should not be limited to financing infrastructure and major development projects, but should also benefit small and medium-sized enterprises (SMEs), which contribute directly to their implementation.

He noted that a key challenge is ensuring SMEs benefit from major investments, whether through opportunities to participate in project execution or access to the financing needed to sustain and grow their businesses.

In this regard, Al Jaidah called on governments to consider contractual mechanisms requiring main contractors on major projects to allocate a reasonable share of eligible work to qualified local SMEs that meet technical and commercial requirements.

He explained that major projects are typically awarded to companies with extensive financial and technical capabilities. These companies, however, rely on networks of subcontractors and SMEs to provide specialized services, materials and equipment, and carry out many essential tasks.

He stressed that increasing local companies' participation in such projects would enable them to gain experience, strengthen their technical and financial capabilities, and expand their businesses, ensuring that the economic benefits of development projects reach a wider segment of the private sector.

Addressing a second proposal, Al Jaidah discussed the financing challenges facing SMEs, particularly subcontractors. He noted that the problem does not always lie in a lack of business opportunities, but often in difficulties managing cash flow due to delayed payments.

He explained that large companies may be able to absorb payment delays, whereas such delays could threaten the continuity of smaller firms, which must meet their obligations to employees, suppliers and lenders.

He therefore called on commercial banks financing main contractors to develop financing mechanisms that also cover approved subcontractors involved in project execution, rather than restricting credit facilities to main contractors.

He pointed to options such as working capital financing against approved invoices for completed work, as well as dedicated project accounts and direct payment arrangements, where appropriate, to ensure contractors receive their dues on time.

He stressed that these mechanisms would not only support SMEs' liquidity but also protect supply chains and reduce the risk of subcontractor defaults and delays to major projects.

Al Jaidah emphasized the importance of cooperation among governments, commercial banks and development finance institutions to make these proposals successful.

He said the aim was not to eliminate commercial risks or create permanent dependence on government guarantees, but to distribute risks more efficiently and enable private financing to reach businesses that struggle to access it.

Concluding his remarks, Al Jaidah said supporting SMEs was essential to maximizing the impact of development investment, particularly in developing countries, given their role in creating jobs, diversifying economic activity and achieving sustainable growth.

He concluded that the success of development financing should be measured not only by the scale of projects funded, but also by the number of sustainable businesses those projects help develop, saying that the goal should not be merely to finance major projects, but also to finance and strengthen the companies that build them.(QNA)