The Qatar Financial Centre (QFC), which is focusing on building successful partnerships with profitable companies, is described explicitly as neither a property play nor an offshore centre. Qatar believes in a taxed environment and firms will have a three-year tax holiday, after which a relatively low tax rate on profits will apply. The QFC is also not built upon large real estate projects as other centres are.
Qatar, which had 35% GDP growth in 2004 and owns the world’s third-largest gas reserves, is committed to spending $108bn on infrastructure and hydrocarbon projects over the next five years. The new centre is designed to complement the country’s dynamic economy.
Mohammed Althani, minister of economy & commerce, wants international financial institutions and multinational corporates to set up in the new QFC. With GDP per capita at $37,000 and rising, the economy presents significant opportunities in project finance, bond issuance, insurance, reinsurance, asset management, private banking and general business support services.
“We’ll leave it to firms to assess whether there is an advantage in being close to the decision-makers here,” the minister said.
The QFC will be run by the Qatar Financial Centre Authority and an independent Qatar Financial Centre Regulatory Authority will oversee business conduct and licences.
Both authorities will report to the country’s Council of Ministers. Applications by interested firms are expected by May.
The QFC is the third designated financial centre in the Gulf after Bahrain, with 362 financial institutions regulated by the Bahrain Monetary Agency, and the recently launched Dubai International Financial Centre (DIFC), which has six licensed institutions at present.
