FAQ

1. What are the benefits of being licenced by the QFC?

QFC operates to international and transparent laws based on standards found in the UK, the USA and other leading financial jurisdictions around the world. It provides access to local and regional investment opportunities. Business can be transacted inside or outside Qatar, in local or foreign currency. Uniquely, this allows businesses to operate both locally and internationally. Furthermore, QFC allows 100% ownership by foreign companies, and all profits can be remitted outside of Qatar. QFC licensed firms benefit from a transparent and competitive tax regime. They can operate from premises anywhere in Doha, paying competitive market rents, and to date some 27 sites have been approved for QFC licensed firms.

2. Who is eligible to apply for a QFC licence?

QFC welcomes firms providing financial services, as well as legal, accountancy, consultancy and other specialised services for the financial sector. The QFC Law, Number 7 of 2005 (Schedule 3), prescribes a range of activities that may be conducted in or from the QFC. These are called ‘Permitted Activities’. Such activities are those most commonly recognised as financial services, as well as a number of related and corporate management or headquarters activities.

3. What types of activities are permitted?

Within the range of ‘Permitted Activities’ are two sub-classifications: Regulated Activities and Non-Regulated Activities. The former are activities which include financial services (such as banking, insurance or securities businesses) that require close and continuing scrutiny to ensure prudential soundness and the proper conduct of such businesses. Non-Regulated businesses require less supervision and may include such activities as ship broking and shipping agents, classification and investment grading, company headquarters, management offices and treasury operations, professional services such as audit, accounting, tax, consulting and legal services, and holding companies.

4. Does the QFC welcome firms providing Islamic Finance?

Islamic Finance continues to grow in demand, popularity and diversity. It is a regulated activity within the QFC. The QFC Regulatory Authority has produced a rulebook governing the activities of licensed companies providing Islamic financial services. These rules allow for either wholly Islamic institutions or Islamic windows for conventional financial institutions to be licensed. Firms so licensed can conduct the full range of regulated Islamic activities such as commercial Islamic banking, Islamic funds management and Islamic Investment banking. The QFC Regulatory Authority is a member of the Accounting and Auditing Organisation for Islamic Financial Instutions, based in Bahrain, and the Islamic Financial Services Board, based in Kuala Lumpur.

5. Can a company licensed to provide conventional financial services from the QFC also provide Islamic financial services?

An authorised firm must not purport to conduct Islamic financial business unless it is specifically authorized to do so by the QFC Regulatory Authority. An firm authorised to provide conventional financial services may apply to the Regulatory Authority for an endorsement to conduct Islamic financial business or to vary the scope of its authorisation.

6. Does the QFC have a Shariah Board?

No. An authorized firm must have a Shariah Supervisory Board, consisting of at least 3 members, who should be competent to perform their functions taking into account their qualifications and previous experience. It must also have systems and controls in place to ensure that its operations comply with Shariah principles at all times.

7. Will international or regional banks or other businesses who do not locate in the QFC be excluded from participating in the energy and other expansion projects?

No, but over and above the advantages that the QFC offers for new participants in Qatar's economy, there will be an obvious advantage afforded to those who operate 'on the ground' in Qatar.

8. How do firms apply?

The QFC operates a streamlined application process for those seeking to establish in the Centre. The process has been designed so that the applicant firm simply needs to make one submission. The QFC Authority business development teams will advise interested firms on the business opportunities available in Qatar. Depending upon whether the applicant wishes to conduct regulated or non-regulated activities, the application process should take about 90 days subject to the nature of business for which the license is sought. All applications are currently processed by the QFC Regulatory Authority, though their authorization is required by firms wishing to provide regulated services.

9. What is the management structure of the QFC?

QFC consists primarily of a commercial arm, the QFC Authority (QFCA) and an independent financial regulator, the QFC Regulatory Authority. It also has an independent judiciary which comprises a civil and commercial court and a regulatory tribunal.

QFCA is chaired by Qatar’s Minister of Finance and Economy, and its operations are overseen by a Board of Directors. Shashank Srivastava is the Acting CEO and Chief Strategic Development Officer of the QFC Authority

The Qatar Financial Centre Regulatory Authority is a fully independent body which is chaired by Phillip Thorpe, and which reports to Qatar's Council of Ministers.

The Qatar Financial Centre Regulatory Authority's primary mission is ensuring the integrity, transparency and efficiency of transactions subject to the QFC Law. It does this by ensuring that entities that conduct regulated activities are fit and proper, that they maintain appropriate financial resources and do not create undue risks to the safety and soundness of the financial system in Qatar or to their clients and their assets, and that customers are provided appropriate disclosures. It maintains a risk based supervisory model and conducts investigations and brings enforcement actions when the QFC's financial services regulations have been violated.

The Qatar Financial Centre Authority is responsible for Business Development, Operations, and Corporate Communications and Marketing of the QFC. Its Legal Department is responsible for developing, administering and enforcing QFC legislation that is not administered by the Regulatory Authority, such as the QFC Employment and Immigration Regulations.

10. What legal reforms are put in place by QFC?

The QFC has created an entirely new legal environment with laws that best serve financial institutions and their customers doing business in Qatar. In consequence, a full suite of new commercial and civil laws has been enacted, with these laws being modelled on those currently in use in leading international financial jurisdictions. In cases where there is any conflict with local Qatari law, the laws, rules and regulations of the QFC will prevail.

To give effect to these laws, the QFC Civil and Commercial Court has jurisdiction over disputes arising within the QFC.

Court proceedings will be in English, following common law precedent, and will have clear and readily understood procedures. In addition the legal structure provides for arbitrations and other forms of dispute resolution; a specific Arbitration Regulation has been enacted for this purpose. Appeals on the decisions of the QFC Civil and Commercial Court can be taken to the QFC Tribunal.

11. Does the region need another financial centre?

There is no limit to the number of centres the region can support. But the QFC is based on a very different model to counterparts in either Dubai or Bahrain. The QFC's primary goal is to attract leading international banks and predominantly financial companies to participate in the growth of Qatar. It is a vital catalyst for the future of Qatar, and therefore the future of the wider region. Three principal factors set the QFC apart:

1. The QFC is a completely onshore centre whose activities are fully integrated into those of the State as a whole and its legal and regulatory structures are based on best practices in centres such as New York and London.
2. The QFC Regulatory Authority is an independent regulatory body which regulates firms that conduct financial services in or from the QFC. It has a broad range of regulatory powers to authorise, supervise and, when necessary, discipline firms and individuals. The QFC Regulatory Authority regulates firms using principle-based legislation of international standard.
3. The fact that there is real business to be done based on substantial natural resources and a huge investment programme, ranging from infrastructure and energy-based project finance to a programme of diversification and international trade.

12. Will the QFC support or compete with Qatar’s local banking sector?

The QFC's principal objective is to help grow the capacity of Qatar's financial sector. In so doing it will help to introduce higher standards, but will also help to introduce potential new business and partnership opportunities for local banks.

13. If my company had to engage in litigation over a dispute arising in the QFC, how could I be sure my case would be dealt with impartially?

The QFC Civil and Commercial Court is completely independent of the existing legal system, with the head of the Court appointed by the Qatar Council of Ministers. The proceedings and procedures will be equivalent to those in any leading financial centre.

The legal environment provides for the enforcement of judgments from the QFC Civil and Commercial Court in Qatar and through Qatar's relationships in other jurisdictions with reciprocal agreements. This is expected to give not only certainty but reliable enforceability to firms who have the need to litigate or arbitrate with their customers or counterparties.