QCB Enables Financing for MSMEs Against POS Revenues

Introduction

The Qatar Central Bank (“QCB”) issued Circular No. 10/2026 on 9 November 2026 to all banks operating in Qatar enabling micro, small and medium enterprises (“MSMEs”) to obtain financing against their point-of-sale (POS) and verified electronic payment revenues, without traditional collateral.

Relevance of these Instructions

The Circular supports financial inclusion and aims to reduce collateral requirements, speed up credit decisions and use the enterprise’s own revenues as the source of repayment. Banks may lend against revenues from their own POS devices or those of other banks, and against other licensed, provable electronic payment revenues in Qatar. Under the Circular, “POS revenues” means total customer card transactions via POS, plus other verified and licensed electronic payment revenues in Qatar that can be substantiated.

Application of these Instructions

The Circular is directed to all banks in Qatar and applies to enterprises within the unified SME definition in QCB’s Instructions to Banks.

In general terms, an SME is a private company established under Qatari law with no more than 250 workers and annual revenue of no more than QAR 100 million. Creative industries are the exception, with a lower cap of 100 workers. It should be noted that this definition does not apply to government departments and diplomatic bodies, public works enterprises, government institutions, enterprises partly owned by government, and non-profit enterprises.

What Banks Must Ensure

Banks must assess the applicant’s annual point-of-sale and electronic payment revenue over a period of one to three years before the application, taking into account the type of activity and the customer’s financial position. Financing may not exceed 30% of that annual revenue (sales) or QAR 10 million, whichever is less.

Each facility may run for a maximum of two years from the date of grant, and the bank may extend it for similar periods where the client is performing. A grace period of up to six months may be granted within that repayment period.

Before granting financing, banks must obtain a Qatar Credit Bureau report which must confirm that the customer has no unpaid POS financing with another bank.

What MSMEs Need to Do

MSMEs seeking this financing should first confirm that they fall within QCB’s unified SME definition and be able to evidence their point-of-sale and electronic payment revenues in Qatar over a period of one to three years. Any existing POS financing with another bank must be repaid before an application can proceed.

The enterprise’s partners must provide personal guarantees and, where revenues are held with other banks or entities, the MSME must also sign the assignment of receivables and transfer order described below. Once a complete application is submitted, the bank must respond within five working days.

Permitted Security and Collateral

The financing is exempt from the collateral requirements set out in the QCB Instructions on Credit Risk Management. It must instead be backed by the personal guarantees issued by the enterprise’s partners.

Where revenues are held with other banks or entities, the bank must also obtain an assignment of receivables and an irrevocable periodic transfer order through QCB’s Electronic Mandates System (TERMS).

Importantly, if a bank takes any other guarantee, the Circular no longer applies and QCB’s general rules govern the facility.

How We Can Help

Al Tamimi & Company can help banks review and update credit policies and prepare specific financing and security documents. We can offer assistance to MSMEs to assess eligibility and negotiate facility and guarantee terms.