WORKING HOURS

9:00am to 06:30pm

CALL US

+91 11 29945946

MAIL US

info@icif.in

QATAR PLANS TO SET UP THREE GLOBAL FINANCIAL CENTERS

Doha: Qatar is working on an ambitious initiative with Malaysia and Turkey to serve the $2 trillion global Islamic finance market by establishing hubs in the three countries using common platforms and technology.

“We have a vision to cover the entire globe’s Islamic financial transactions between three financial centers: Doha, Istanbul and Malaysia,” said Yousef Mohamed Al Jaida, CEO of the Qatar Financial Centre (QFC) Authority in a group interview on the sidelines of the recently-concluded annual Doha Forum. 

“This requires international platforms and technology which we believe Qatar Financial Centre has”, Nikkei Asian Review quoted Al Jaida as saying in its report.

The story, tweeted by Qatar’s Ministry of Finance yesterday said, under the proposed plan, Qatar would serve the greater Middle East, Turkey would cover Islamic finance needs in Europe and Malaysia would sell to Asia.

“That’s a big vision, we’re working on it and this is a new project,” Al Jaida said. Relations between Qatar, Turkey and Malaysia had “intensified recently and become a lot closer,” he added. “We share similar visions, we share similar progressive outlooks... so there’s a lot to be achieved between these three countries.” He did not give time scales for the project.

The London Stock Exchange is currently a global venue for the issuance of sukuk, while Hong Kong and Luxembourg have also made inroads but Qatar believes the market should be led by Muslim countries, Al Jaida said. 

According to Nikkei Asian Review, Malaysia is already one of the world’s biggest issuers of sukuk, or shariah-compliant bonds, with 34 percent of the global market last year. The Malaysian central bank signed a memorandum of understanding with the regulatory authorities of Qatar in 2007 to promote mutual cooperation. A confident Qatar is pushing its financial centre aggressively as an alternative to the longer-established and larger Dubai International Financial Centre.

Al Jaida said the UAE had undermined the business model of Dubai as a regional hub during the blockade by forcing international companies operating in the region to set up an alternative base to serve Qatar. As a result, the number of foreign companies operating in the Qatar Financial Center had grown by 100 percent since the blockade and Qatar now had the opportunity to challenge Dubai as a hub in the Gulf region.

Qatar has attracted foreign businesses by offering guarantees that Doha will be a cheaper base to operate from than Dubai, in return for a commitment to a minimum 10-year presence.

The Qatar Financial Centre offers 100 percent foreign ownership, a legal and judicial framework based on English law, 100 percent repatriation of profits and other regulatory advantages to attract businesses. It compares itself to Hong Kong in offering companies an access point to a wider market under internationally friendly terms.

Islamic banks in Qatar today account for over 25 percent of total financing in Qatar. As per data available on public domain, the growth rate of Islamic banks in Qatar in the first half of 2016 was 7.2 percent, outperforming their conventional counterparts.

www.thepeninsulaqatar.com/article/07/01/2019/Qatar-plans-to-set-up-three-global-financial-centers

Posted Date : 08 January 2019

News Updates

  • QATAR PLANS TO SET UP THREE GLOBAL FINANCIAL CENTERS

    Doha: Qatar is working on an ambitious initiative with Malaysia and Turkey to serve the $2 trillion global Islamic finance market by establishing hubs in the three countries using common platforms and technology. “We have a vision to cover the entire globe’s Islamic financial trans...

    Read More
  • QGIRC honours Acting CFO for earning doctorate in Islamic Finance

    Doha: Qatar General Insurance and Reinsurance Company (QGIRC), one of the leading insurance service providers in the country, held a ceremony honouring the Acting CFO, Deepa Chandrashekar, after receiving a doctorate degree in Islamic Finance, as part of the company’s plan to boost employee mo...

    Read More
  • QATAR PARTNERS MALAYSIA, TURKEY TO CONQUER ISLAMIC FINANCE MARKET

      Gas-rich Gulf state aims to escape blockade by diversifying economy MICHAEL STOTT, Nikkei Asian Review managing editor DOHA -- Qatar is planning an ambitious new initiative with Malaysia and Turkey to serve the $2 trillion global Islamic finance market from hubs in the three countries us...

    Read More
  • 12 SAUDI BANKS TO PAY 17.9BN RIYALS TO SETTLE ZAKAT PAYMENTS

    Twelve listed Saudi banks reached a 17.86 billion riyal (Dh17.5bn) settlement with the kingdom’s tax authority over the payment of religious tax called Zakat. Al Rajhi Bank, Saudi Arabia’s second-largest bank by assets, will pay the highest amount of 5.4bn riyals, followed by Riyad Bank...

    Read More
  • ISLAMIC FINANCE FOR FINANCIAL INCLUSION AND INFRASTRUCTURE DEVELOPMENT IN INDIA

    India is on track to overtake the UK to become the world’s fifth-largest economy in 2018, according to data and forecasts from the IMF. Soon it will trail only Germany and the ‘big three’ – the US, China and Japan. However, the Indian banking system is gasping for breath with...

    Read More
  • Islamic Development Bank seeks tie-ups for infrastructure investments

    Islamic Development Bank exploring joint opportunities with other multilateral development banks to invest in India’s infrastructure sector Tue, Jun 26 2018 Utpal Bhaskar Mumbai: Islamic Development Bank Group, one of the largest lenders to Muslim countries, is interested in exploring joint...

    Read More
  • BRINGING ISLAMIC BANKING TO INDIA

          Trying to bring Islamic banking to India   Though Muslims are a minority in India and are generally less affluent than Hindus, in sheer numbers they make India the second largest Muslim nation in the world. Cumulatively, their investment power is tremendous and rep...

    Read More