Al Watan, 3 April 2025: The Qatari Ministry of Finance has announced the end of supplier classification fee exemptions, with effect from 6 April 2025.

After this date, the prescribed fees will apply, and companies classified under the old system with valid classification certificates and approved profiles will have to switch to the new classification system by then.

The new classification system, which was launched on 3 October 2024, is based on Article 101 of Qatar Cabinet Decision No. 16/2019 the Executive Regulations of the Tenders and Auctions Law No. 16/2019 and its amendments in Qatar Cabinet Decision No. 11/2022. The system requires companies which are participating in government tenders to create a mandatory profile via the national authentication system. An audited balance sheet is now mandatory for company classification, and company performance evaluations in government entities are linked as a criterion for classification. The system also focuses on the financial suitability of companies and ties company revenues to classification categories, adding quality, health, safety, and environmental standards.

The Ministry has urged companies to create their profiles (which can be done free of charge) on the unified state procurement website and to register in the classification lists for suppliers, service providers, and contractors. Profile creation is the first step for classifying companies in sectors such as contracting, suppliers, and service providers for all local and foreign companies. Required documents include a commercial register, trade license, establishment card, audited financial statement for the last fiscal year, and a professional activity license.

The classification criteria include previous experience and performance, quality, health, safety, and environmental standards, legal standards, and financial criteria. Companies are evaluated based on government project contracts, private project contracts, experience in Qatar, and average performance ratings from government entities over the last three years. Quality standards are assessed from company guidelines to ISO certifications, while legal standards consider fines and violations in government contracts. Financial criteria require audited financial statements for the last two years and assess operating profit margin, operating cash flow ratio, and coverage ratio. The Ministry of Finance also plans to develop business localisation programmes, which will include all government companies and subsidiaries of the Qatar Investment Authority, to support private sector companies, increase local content, and ensure small and medium enterprises (SMEs) have a share in local procurement.

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