Fact Sheet

Background

In March 2005 the State of Qatar enacted new legislation to establish the Qatar Financial Centre (QFC). The Centre was formally opened for business on 1 May 2005. Qatar is one of the world’s fastest growing economies, with real GDP growth of 8.8% in 2005 and 9.3% in 2006. Fiscal policy is prudent, with regular large surpluses on fiscal and on current account. Qatar’s risk rating leads the Middle East region, with Standard and Poor’s rating it AA- and Moody’s Aa3. Reliance upon income from crude oil exports in the past has been replaced by a more ambitious and progressive approach to the management and development of the nation’s economy. The Government aims to make Qatar the world’s leading producer of liquefied natural gas, and it launched the Qatar Financial Centre to attract world class international finance and financial expertise into the financial and energy sectors, as well as into other key sectors such as transport and tourism, health and education.

The Centre

The Centre is led by a commercial authority and a regulator – the QFC Authority and the QFC Regulatory Authority respectively - which are independent of each other. The QFC Authority is responsible for commercial strategy and for developing relationships with the global financial community and other key institutions both within and outside Qatar. The Regulatory Authority supervises financial services firms who operate in or from the QFC. It has a broad range of powers to authorise, supervise and, where necessary, discipline regulated firms and individuals. The QFC provides formal and informal mechanisms for resolving commercial disputes. It also provides for an appeals body so that firms affected by particular decisions of the Regulatory Authority and other QFC agencies can have those decisions reviewed.

The Authority

The QFC Authority is governed by the QFC Authority Board, which is chaired by the Minister of Economy and Commerce. Stuart Pearce is CEO and Director General of the QFC Authority. The principal objectives of the QFC Authority are:

• to develop and promote the Qatar Financial Centre as a leading location for international finance and business

• to promote and act in accordance with international best practice and eliminate bureaucracy to the maximum extent

• to participate in consultation with the QFC Regulatory Authority and other QFC agencies in the establishment and maintenance of the QFC legal and regulatory environment

 

The Regulatory Authority

The QFC Regulatory Authority is an independent statutory body. Its Board is appointed by the Council of Ministers. The Chairman of the QFC Regulatory Authority is Phillip Thorpe. The QFC Regulatory Authority authorises and supervises businesses that conduct particular financial services activities in, or from, the QFC. Businesses so authorised are subject to a legal and regulatory regime developed with a view to best international standards.

Among the principal objectives of the QFC Regulatory Authority are:

• the promotion and maintenance of efficiency, transparency and integrity of the QFC

• the promotion and maintenance of confidence in the QFC

• prevention, detection and restraint of conduct which may cause damage to the QFC's reputation

• provision of appropriate protection of those licensed to carry on business in the QFC and their clients and customers

• ensuring the Regulatory Authority is run with a view to operating at all times in accordance with best international standards applicable, and establishing the QFC as a leading financial and business centre in the Middle East.

 

The Independent Judiciary

The Centre also comprises a Civil and Commercial Court and a Regulatory Tribunal. The Court, whose President is Lord Woolf, is modelled on the internationally respected Commercial Court in London. In the event of disputes in matters of law, it will be the final arbiter. The Regulatory Tribunal has been established to hear and decide upon appeals from decisions of the QFC Regulatory Authority and other QFC agencies. Its Chairman is William Blair, QC.

Doing Business with the QFC

Activities which are permitted to be carried on in or from the QFC fall into two categories – ‘regulated activities’ (essentially financial services) and ‘non-regulated’ activities (activities in support of financial services). All QFC firms must apply to the QFC Authority for a licence which confirms that the firm is conducting a permitted activity in or from the QFC. Firms planning to conduct regulated activities also need to apply to the QFC Regulatory Authority for authorisation.

The Authorisation Process

The QFC operates a streamlined application process for those seeking to establish in the QFC and who therefore need to register with the QFC Companies Registration Office (CRO), obtain a licence from the QFC Authority and (in the case of financial services businesses) authorisation from the QFC Regulatory Authority. The process has been designed to allow the applicant firm to make a single application to the QFC Regulatory Authority for the issuance of the CRO registration, QFC Authority license and, if applicable, the QFC Regulatory Authority authorisation. Further details of the application process and authorisation process can be obtained from the website of the QFC Regulatory Authority (details below).

Contact Details

QFC Authority website –www.qfc.com.qa
QFC Regulatory Authority website –www.qfcra.com

Qatar Financial Centre Authority

PO Box 23245
Doha, Qatar

Tel: +974 496 7777
Fax: +974 483 0928
Email: info@qfc.com.qa

Qatar Financial Centre Regulatory Authority

PO Box 22989
Doha, Qatar

Tel: +974 494 5433
Fax: +974 483 5031
Email: info@qfcra.com