QFC aims to triple FDI flows from registered firms to more than QR200bn by 2022

The hybrid onshore centre embarks on drive to lure more FDI into country

The Qatar Financial Center (QFC) has embarked on a multi-pronged approach to attract more foreign direct investment (FDI) into the country and expects more of its firms to seek listing on the local bourse, according to its top official.
“We are very much interested in FDI. At QFC, we have a free market view,” QFC Authority chief executive Yousuf Mohamed al-Jaida told Carnegie Mellon University Qatar (CMUQ) students.
Highlighting that the QFC, a hybrid onshore centre, has already put in place a five-year strategy; he said through this it aims tripling of FDI flows from its registered firms to more than QR200bn by 2022.
Moreover, it has also diversified the geographical profile of the authorised and non-regulated entities. More than 22% of the newly registered firms in the QFC during 2016 were from the Asia Pacific region.
“Diversification has become all the more relevant now than it was in 2005 when the QFC was incorporated,” al-Jaida said.
Notwithstanding the Gulf crisis, the QFC continues in its efforts to diversify the economy and position Doha as the region’s leading financial and commercial capital. Throughout the year, the QFC has made valiant efforts to attract global firms to its platform. This includes a roadshow that visited a host of major cities across Europe and Asia,” al-Jaida said.
“There are credible evidences to show that QFC is an ideal platform, not only for international companies, who want to expand their business activities to Qatar, the Middle East, Africa and South Asia; but also for local businesses looking to expand regionally and internationally, the QFC official said.
The QFC firms enjoy competitive benefits, such as operating within a legal environment based on English Common Law, the right to trade in any currency, 100% foreign ownership, 100% repatriation of profits, 10% corporate tax on locally sourced profits, and an extensive double tax treaty agreement network with more than 60 countries.
The QFC is expecting 160% expansion year-on-year in firms that are expected to be registered under it in 2017 since the country has turned its challenges (from the present Gulf crisis) into opportunities.
Given the robust demand, especially from the non-financial companies; the QFCA had recently allowed sectors such as engineering firms, healthcare, events management and information technology to establish their base.
On the issue of QFC firms’ listings on the Qatar Stock Exchange with more than $100bn market-capitalisation; al-Jaida said he expects more to seek listing.
At present, there is only one QFC-authorised firm, Qatar First Bank, which is listed on the domestic bourse. The QFC, in its five-year roadmap, is aiming to account for at least 5% of the market capitalisation of the local bourse.
Al-Jaida also highlighted that the QFC has been able to effectively address job creation in the market. “The QFC aims to enhance white collar jobs in the economy through its constituents,” he added.
The QFC aims to attract more than 1,000 companies and create more than 10,000 jobs in the financial and non-financial sectors in the country by 2022.