JEDDAH, 2 May 2005 — Qatar opened registration yesterday for global companies to join a new international financial center in the gas-rich Gulf state.
The Qatar Financial Center (QFC), which formally opened yesterday for business at a ceremony presided by Qatar Prime Minister Abdullah ibn Khalifa Al-Thani, aims to make the state a regional finance hub on the lines of similar projects in nearby Dubai, part of the UAE, and Bahrain, according to information received here yesterday.
The prime minister underlined the commitment of the Qatar Council of Ministers to the new regional financial center. The building, which is to house the QFC,
will open later this year. Legislation establishing the QFC was passed in March, but took effect yesterday.
Qatar Minister of Economy & Commerce Mohammed ibn Ahmed ibn Jassim Al-Thani, who has ministerial responsibility for the center, welcomed the establishment of the QFC. He also expressed his pleasure that the independent QFC Regulatory Authority had confirmed that it was ready to receive applications for license from international financial institutions and multinational corporates that wish to participate.
Project finance, private wealth management, insurance of all categories, Islamic finance and a wide range of investment, corporate and private banking opportunities are permitted under the QFC law. From discussions with interested institutions, the QFC expects to receive interest across a broad range of financial service activities and associated support services.
Mohammed ibn Ahmed ibn Jassim Al-Thani later told a media conference that the QFC’s vision was to become a vibrant hub for conducting financial and professional services in a low-cost, low-risk environment. The QFC Regulatory Authority and its regulations have been designed to meet the world’s best practices and deliver high standards with minimal bureaucracy. The regulatory framework and commercial intent will provide opportunities for incoming institutions to conduct international, regional and local business. There is an extensive breadth of business that may be undertaken in the center, but the strategic and commercial focus will be to encourage institutions that can help develop new and genuine revenue streams, thereby creating value for themselves and bringing complementary assets and skills to Qatar and the region.
“The QFC is actively encouraging applications from firms who share our long-term view and aspirations. We therefore welcome applicants who have both the passion and commitment to realize the benefits of a long-term investment in a spirit of partnership with a forward-looking Qatar, which is developing and diversifying its economy from a position of strength,” he said.
Qatar has moved swiftly to establish the QFC. On March 9, new legislation was ratified enabling the QFC to have an internationally recognizable, best-in-class business and legal infrastructure run by a commercial authority and an independent regulatory body, the QFC Authority and the QFC Regulatory Authority respectively.
The QFC Authority is the commercial and administrative body responsible for driving the commercial strategy and for developing relationships with the international corporate community and other key institutions both within and outside Qatar.
A fully independent Regulatory Authority will oversee business conduct and grant licenses to operate in the QFC. It has a broad range of regulatory powers to authorize, supervise, and where necessary, discipline regulated firms and individuals. The Chairman and Chief Executive of the Regulatory Authority is Phillip Thorpe who reports directly to the Council of Ministers.
Qatar has earmarked over $100 billion for investment in the next five years and the GDP is growing at 10 percent annually.
Businesses participating in the QFC will be entitled to 100 percent ownership and full repatriation of profits. Businesses are entitled to a three-year tax holiday, after which a corporate tax rate of 10 percent will apply.
