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 QatarEnergy, 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 program 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.
This year witnessed a significant rise in our total procurement spending (+74%) attributable to increased production. While the spending on local suppliers experienced absolute growth (approximately 29%), it did not keep pace with the overall spending. This is primarily due to the limited availability of scrap within Qatar, causing Qatar Steel to substitute this raw material with others. As a consequence, our spending on local suppliers decreased from 35% in 2021 to 26% in 2022.
SPENDING ON SMEs
In our commitment to fostering inclusive growth within our national economy, Qatar Steel places special emphasis on supporting local small and medium sized enterprises (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 2022 the spending on local SMEs decreased mainly due to reduced availability of scrap in Qatar.