Al-Jaida says investing in Qatar makes good sense within the overall Mena portfolio.

By Santhosh V Perumal
Business Reporter

Qatar Financial Centre (QFC), which recently celebrated its 10th anniversary, is looking at other non-financial entities, especially in sports and information technology (IT), as part of its efforts to help diversify the country’s economy.
“In another two years, we will have to look at other sectors that Qatar need further development and where we want to attract further FDI (foreign direct investment) and generate more jobs,” QFC chief executive Mohamed Yousuf al-Jaida told the Euromoney Conference Qatar 2015, which got underway here yesterday.
QFC has permitted regulated activities, under which financial institutions fall, and non-regulated activities, under which come other areas — professional services such as law offices, accounting and auditing, and media.
Stressing that prospecting other sectors is beneficial to the economy, he said: “We have to look at sports and IT sectors to attract the best in class companies and we want to give them friendly business environment.”
His statement comes at a time when Qatar is hosting the 2022 FIFA World Cup and the government is committed to upgrade the country’s infrastructure to support the mega event.
However, he did not elaborate on what type of sports companies the QFC is looking and also did not give the finer details regarding the capital needed and other legal formalities for setting up sports and IT companies within the QFC, which is an onshore financial centre.“We will continue to attract more foreign companies and help in diversification,” he said, adding once the country reaches the plateau in attracting banks, insurance and other financial institutions; the policies have to evolve.
On the attractiveness of Qatar, he said Doha still has a stable economy and so it has a market that would probably be attractive to a lot of businesses and many companies and “makes good sense within the overall Mena (Middle East and North Africa) portfolio.”
Highlighting that the private sector contribution to gross domestic product has risen from 47% to 66% in the last 10 years; al-Jaida said “going forward the focus (of Qatar) will be on developing the private sector.”
Terming QFC as an enabler of diversification in the country; he said the government views the financial centre as “laboratory for policy changes.”
There are several legislations currently being worked out and first it will be implemented in QFC and then rolled out elsewhere in the state, he said, in reference to emigration, FDI and attracting financial support solutions.
QFC legislation will soon undergo revision to reflect the amendments made in the state laws relating to tenders and government procurement, he said, adding all these will facilitate its companies’ access to domestic markets and credit bureau.
Terming that QFC has become more relevant now in view of the weak oil prices, which is at its seven-year low, he said: “We want to attract more foreign investments and develop an ecosystem around financial services system.”