Chief executive officer of the Qatar Financial Centre (QFC) Yousuf Mohamed al-Jaida has revealed that assets managed by QFC amounted to $28.3bn and its platform today has over 1,500 local and global enterprises operating in the financial and non-financial sectors.In an exclusive interview with Qatar News Agency (QNA), al-Jaida said that QFC has accelerated the growth of its works in alignment with the evolution of the Qatari economy, which became diverse and dynamic more than ever, after it had provided a high-level platform that helps the companies establish their businesses in Qatar, in addition to managing and expanding them to other markets within and outside the region.He added that in 2018, QFC announced its objectives for growth by 2022, including the registration of more than 1,000 companies on its platform and investments with the total amount of $25bn, adding that QFC managed to achieve this goal prior to the specified time frame, as the total number of the registered companies on the platform reached 1,284 firms by the end of 2021.He pointed out that the platform of QFC includes over 1,500 companies whose total manageable assets are amounted to $28.3bn, in addition to a professional business community that includes over 9,000 persons via various companies registered in QFC, indicating that after launching its 2018 growth agenda, QFC specifically focused on developing the financial, sports and digital sectors in the State of Qatar. Since that time, QFC has been witnessing a steadfast growth in the number of companies operating in these sectors, and its current platform has over 180 financial sector registered companies, including 80 fintech companies, over 300 digital companies, including media companies and over 40 sports companies.He pointed out that the new digital companies registered by QFC during the first half of 2022 constitute 25% of all companies, while the percentage of the companies operating in the financial sector is amounted to 16%, including fintech companies.Al-Jaida stated that QFC’s qualitative economic contribution is represented in the direct and indirect effects of its activities carried out in employment and gross value added in Qatar, which is contributed by companies registered on its platform and through the job opportunities offered by the centre along with the earned income, indicating that QFC's contribution to the gross value added in the country has increased by 47%, and by approximately 25% in job opportunities since 2018, according to the latest report issued by QFC on the economic impact.He noted that Qatar witnessed an upward trend in investment flows in general during the past years, with foreign direct investments increasing from about $1.8bn in 2021, to $3bn during the first half of 2022, according to data issued during the latest Qatar Economic Forum, thanks to its economic and political stability, its modern infrastructure, and its business-friendly economic and regulatory policies.With regard to the countries that are considered the largest source of direct investments in the State of Qatar, al-Jaida said that the United States of America is the largest foreign investor in Qatar, adding that QFC has witnessed an investment flow from 48 countries in the Middle East, Asia and Europe during the first half of 2022.On the Center's expectations for the growth of foreign investments after the successful organisation of the FIFA World Cup Qatar 2022, al-Jaida stressed that hosting a huge international sporting event such as the World Cup contributes to creating abundant investment opportunities that enhance the country's economy and accelerate the pace of social and economic development, rapid development in infrastructure, important regulatory and legislative reforms, and great economic growth despite the slowdown in the global economy. All of this took place within a short period since Qatar won the honour of hosting the FIFA World Cup in 2010.Certainly, preparations for organising the World Cup have contributed to the development of many important economic activities, such as increasing foreign direct investment, job opportunities, and growth in many sectors, specifically in the construction and financial services sectors, the QFC CEO said.The State of Qatar expects that the FIFA Qatar 2022 will bring financial gain to its economy amounting to $17bn, al-Jaida said, adding that the hospitality, tourism and retail sectors will mainly benefit from this event in the short and long term.Regarding the position of the State of Qatar within the most attractive countries for investments, he noted that the State of Qatar's efforts are currently focused on building a sustainable, modern and responsive economic system that contributes to enhancing economic diversification and achieving more growth.It has developed a set of incentives to support investors, starting from the stage of establishing a business to expanding and achieving sustainable growth, he said, adding the current regulatory framework in Qatar is closely aligned with the country's strategy and its continuous efforts to create an attractive business environment for foreign investments that helps companies thrive and succeed in their expansion plans.For example, companies established in certain economic zones may carry out commercial operations in any currency, and can repatriate 100% of their profit.These economic zones also allow foreign ownership of up to 100%, and offer competitive tax rates for companies.Companies established in Qatar can also benefit from the network of double taxation avoidance agreements, which include more than 80 countries, and the State of Qatar allows foreigners to own real estate in certain areas, and grants residence permits to owners of property that are worth no less than QR730,000.Through these incentives along with flexible economy, strategic geographical location, the advanced infrastructure of transportation and communications, information technology and digital services, and modern logistics services, the State of Qatar offers investors a competitive advantage that makes it an ideal investment destination, al-Jaida said.He pointed out that the State of Qatar has one of the world's strongest and fastest-growing economies, and occupies an advanced position in global competitiveness, according to the IMD World Competitiveness Yearbook 2022.Through long-term investments worth billions of dollars, the country has maintained business opportunities to flow into the Qatari market, especially in communications and information technology infrastructure and innovation.In addition to the expected growth in the sport and tourism sectors, which offer abundant investment opportunities, the digital and financial technology sectors are among the areas that are not yet saturated with business, and can attract more investors to Qatar, especially with the growth in the GCC region to become a major hub for financial and digital technology.Investors in these sectors can benefit from spending in the ICT sector, which is expected to reach $9bn by 2024, he said.The State of Qatar also enjoys favourable conditions to become a major global centre for Islamic finance, which is one of the growing sectors with high investment potential, with a global value exceeding $2tn.In parallel with the massive digital transformation process, this sector will work to promote other sectors such as Islamic financial technology.In this context, he referred to the World Bank's forecast indicating that the Qatari economy will be one of the fastest-growing economies in the GCC region.It is estimated that the GDP will grow by 4.5% and 4.4%, respectively, in 2023 and 2024.This indicates an upward trend and countless investment opportunities in various sectors, under which the flow of foreign investments in the State of Qatar will witness a significant increase in the future.Al-Jaida stressed that the Centre's contribution to the State of Qatar as a commercial and financial hub extends far beyond its quantitative economic impact by providing a world-class commercial platform for business management, acting as a major gateway for companies and investors from all over the world to the Qatari market.Over the past years, the Centre developed and strengthened a global strategic network by launching bilateral initiatives of mutual benefit with local and international partners to promote the State of Qatar, in general, and the QFC platform, in particular, and create opportunities for shareholders to conclude business partnerships, exchange experiences, and knowledge, he added.In this context, the Qatar Financial Center sought membership in the World Alliance of International Financial Centers to facilitate strategic cooperation, adopt the best practices, and hold constructive dialogues with financial centers and public authorities around the world.Additionally, it sought membership with the Islamic Financial Services Board (IFSB) to strengthen the Islamic finance sector locally and internationally and worked to establish strategic partnerships with institutions that have similar goals.The Qatar Financial Center was established for several purposes, most importantly promoting growth, supporting economic diversification plans in the country, providing a platform conducive to business, offering various facilities and services, and helping local and international companies wishing to work in the State of Qatar and the region to start their business in Qatar easily once registration process is completed, benefiting from access to the centre's vibrant business community and its growing business network.
January 01, 2023 | 09:46 PM