Financial and Banking System

The Qatari economy has witnessed a huge progress in various economic and social fields in recent years supported by the government policy based on free market principle. This is evident in the structure of the national economy which is designed to cater for the global economic changes in such a way as to protect the best interests of the country, and in the improvement made by the financial and banking system which is characterized by responsiveness to the achievements made by the Qatari economy in terms of overall economic variables.

Central Bank of Qatar

www.qcb.gov.qa

Established in 1993, Qatar Central Bank is authorized by law to issue the national currency and act as the bank of the government and the bank of banks, in addition to its main task of managing the monetary policy of the country. Its paid capital has been raised in line with the development witnessed by the national financial and banking sector.

Qatar Exchange

www.qe.com.qa

Qatar Exchange (former Doha Securities Market) was established by law No 14 for 1995 and started operation on the 26th of May1997. On 14th September 2005, Law No 33 for 2005 amended by law #14 for 2007 establishing Qatar Financial Markets Authority and Doha Securities Market was issued. According to this law, the legislative and organizational task is assigned to the Authority, whereas the executive functions in regards to stocks and their ownership and transfer and financial settlements between brokers is given to Doha Securities Market.

The market entered a new phase since the issuance of law No 33 for 2009, which led to the transformation of Doha Securities Markets into a joint stock company under the name of (Qatar Exchange). This was intended to make a new structural shift so as to turn it into an international stock market operating in accordance to the most advanced systems. To achieve this goal a decision was taken to establish a partnership with Euronext holding with 20% shareholding, after which Qatar Exchange started operating under its new name on 21.6.2009.

Investment System in Qatar Exchange

GCC citizens are allowed to invest in industry and services sector at no more than 25%. On May 29th, 2002, the council of ministers approved investment funds draft which allow the non-Qatari investors to invest in Qatari shareholding Companies traded in Qatar Exchange (QE). Examples of these mutual funds include; Al Waseela Fund, Al Watani Fund II (WATANI2), and Qatar Gate Fund (QGF)

Qatar Exchange has opened investment in the stocks listed in Qatar Exchange for non-Qatari investors in execution of the law No 2 for 2005 by amending some of the provisions of law No 13 for 2000 on the organization of foreign capitals.

Qatar Financial Markets Authority

www.qfma.org.qa

Qatar Financial Markets Authority (QFMA) is an independent Qatari governmental body that acts as Qatar’s securities markets regulator. QFMA seeks to set a strong groundwork for creating a world-class capital market in the State of Qatar enabling it to top a leading position in the region.

Commercial Banks

There are (20) commercial banks operating in the Qatar. Among them there are (12) national banks, (4) of which are Islamic banks; and they all operate through 223 local branches.

Exchange Companies

Exchange companies play an important role to meet the local needs for foreign currencies and precious metals for various purposes, especially those purposes related to meeting the non-visible economic transactions, there are about 20 exchange companies in Qatar

Insurance Companies

Insurance sector is considered one of the most important components of the financial and banking system. Demand for insurance has been increasing along with the increasing daily life complexity, especially economic activities in which risk and loss rates have hit high levels.

Insurance services have varied to cover other types of risks like insurance against accidents, fire, sea insurance, land insurance, health insurance …etc. Insurance companies are (10) companies, (5) of which are national and the other(5) are agencies or branches of Arab or foreign insurance companies.

Ministry Of Foreign Affairs

QATAR