Local Procurement

Qatar Steel plays a vital role in fostering the economic progress of Qatar through its active support of local businesses via a supply chain localisation program known as ‘Tawteen’. Spearheaded by Qatar Energy, Tawteen is a strategic endeavour that effectively bolsters the domestic economy by creating fresh prospects and enhancing the capabilities of Qatari-based companies, specifically small and medium
enterprises (SMEs).

This comprehensive programme encompasses three fundamental pillars: the facilitation of new investment opportunities, the implementation of supplier development initiatives, and the introduction of a pioneering In-Country Value (ICV) Policy.

In 2023, we witnessed a rise in our local procurement spending by 9% which meant that 34% of our procurement spending was on local suppliers.

In 2023, the total procurement spending experienced an 18% decrease, primarily attributed to the reduced quantity of iron oxide pellets purchased. This reduction was influenced by the surplus from the previous year. Additionally, the average price of iron oxide pellets in 2023 was lower compared to the prices recorded in 2022.

SPENDING ON SMEs

In our commitment to fostering inclusive growth within our national economy, Qatar Steel places special emphasis on supporting local SMEs, defined as enterprises with less than 250 employees, and particularly those from which we procure scrap. We have defined a strategic target aiming at increasing spending on local SMEs. As part of this initiative, we closely monitor the annual expenditure dedicated to these organisations. In 2023 the spending on local SMEs decreased by 40% mainly due to the reduced availability of scrap in Qatar.