KCT achieves 90-day supply credit in Qatar

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KCT achieves 90-day supply credit in Qatar

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Clean projects and prompt payments make all the difference in building up market confidence

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Khayyat Contracting & Trading (KCT) has achieved, in a very short period of time, an exceptional level of credit in Qatar in a reflection of its significant reputation in the market and the reliability of its payment for the services of both suppliers and subcontractors.

Mohamed Moataz AlKhayat, CEO of KCT, says: “Al Khayyat as you know is a big company – more than thirty years old in fact – and it has managed during to grow up very fast in Qatar also, and in particular we have been able to prove that we are one of the best paymasters in the country.”

Osama Altawil, senior finance director at KCT, notes: “As a newcomer to a market, regardless of your size, the subcontractors and suppliers are always worried about what will happen if they work with you, so in the beginning this is a big challenge for any company.”

The first step for any contractor is to demonstrate its abilities to the market in order to build up trust with supplier and subcontractors, which, once they confident that his payment is coming, and coming without delay, will improve their prices and eventually also their credits.

Noting KCT’s accomplishment, Altawil  details: “We get 90 days’ credit from most suppliers, and 45-60 days from most subcontractors – a substantial achievement in the market given that when we first began carrying out work in Qatar everybody was asking us to pay in advance.”

The challenges in Qatar, are especially notable when you consider that while in the UAE there is the Jebel Ali free zone, which promotes ample supply competition, while Qatar has no equivalent.

Khayyat sums: “We have built a reputation on both sides: through our operations teams and the work that they have done, such as on Lekhwiya Stadium, which was completed very quickly, and also in our subsequent relationship with suppliers and subcontractors and their confidence in us.”

Osama adds: “In the UAE a handful of clients will get 120 days, but I have never seen this in Qatar, so getting to 90 days in Qatar has been an excellent achievement for our company.”