2019 was yet another year of remarkable success for us at QFC
Recording exceptional growth of 35% and reaching over 800 registered firms on the platform. We witnessed key milestones over the course of the year from the unveiling of our 2022 strategic roadmap that places a key focus on clusters poised for growth, to signing 11 landmark MoUs with world-renowned entities, to taking a more prominent role in key global conferences and continuing to connect with new markets around the world.
Chairman's Foreword
The Qatar Financial Centre (QFC) had yet another successful year as it continues to support Doha in its vision of becoming a leading global financial and commercial hub. 2019 saw a number of achievements that reaffirm the QFC's integral role in providing companies with a platform to expand to Qatar, enabling them to tap into the multi-billion-dollar opportunities our flourishing market has to offer.
Our nation's robust economic landscape is owed in large part to His Highness Sheikh Tamim Bin Hamad Al Thani, Amir of the State of Qatar, who has made significant progress in the economy through key legal and business reforms. Qatar's recent reforms include the cabinet's approval of Qatar's private-public-partnerships law as well as a single window e-portal to facilitate easier business set-up, which will jointly contribute to a favourable investment environment that's increasingly being recognised on the world stage.
It is no doubt that our reflection of 2019 is set against an impressive economic backdrop with real GDP growth calculated at 0.5%, according to estimates by The World Bank. Complementing Qatar's commitment to maximize resource-based revenue and to remain as one of the largest exporters of LNG and GTL, is the great emphasis on economic diversification and the development of the private sector.
In 2019, Qatar has taken major strides that are shaping the Nation's reputation as a business destination and gateway of choice to the larger MENA region. This includes a number of mega projects as part of a multi-billion-dollar infrastructural development, comprised of big-ticket transport projects coupled with the rapid expansion of tourism, education and real estate, which continue to bolster our economy and attract foreign direct investment.
I congratulate everyone at QFC on the achievements of 2019 under the leadership of Yousuf Mohamed Al-Jaida, Chief Executive Officer. I anticipate that in 2020, with the QFC's continued, exceptional delivery on its core mandate paired with the sustained growth and success of our economy, we will soar to even greater heights.
A Word From the Chief
Welcome to the Qatar Financial Centre's (QFC) 2019 Annual Review – a unique opportunity to reflect on our collective dedication, milestones, and achievements over the past year – though of course each year I find our successes far too numerous to name in their entirety.
Over the last year we have seen Qatar more proactive than ever in boosting activity to stimulate foreign direct investments in line with international best practices. Careful government planning and strategic investments paired with key legal and business reforms enacted by His Highness Sheikh Tamim Bin Hamad Al Thani, Amir of the State of Qatar, continue to shape and position Qatar as one of the fastest growing and dynamic economies in the world. The numbers across foreign direct investment point to impressive growth; at the end of the second quarter of 2019, FDI rose by 11.3%, stood at $209.6 billion, up from $188.3 billion in the same period in 2018.
Similarly, the QFC has seen tremendous development of its own in 2019 as we continue to deliver on our core mandate of promoting economic diversification and attracting FDI to Qatar. We witnessed exceptional growth of 35 percent with nearly 200 firms being registered on the platform in 2019 alone, strongly edging us nearer to our 1,000 firms target that we set on a couple of years ago. Mirroring the nation's commitment to sustaining healthy bilateral economic ties, the QFC connected with key markets around the world including Russia, Turkey, Hong Kong, Japan, Taiwan, France, Spain, London, Switzerland, South Africa, United States, and more.
We began the year with the unveiling of our 2022 strategy, where we announced our commitment to focusing on the highly-developed and growing digital, media, sports and financial services sectors. We can already count several key agreements signed across these sectors with local and international entities that will both support our growth in attracting these industry-specific firms, and also aim to leverage the knowledge and expertise of world-class institutions to contribute to Qatar's diversifying economic landscape. The QFC is already proudly home to leading Fintechs such as Goals 101, QPay, and Instimatch, media outlets such as Bloomberg, and key sports entities including Qatar SportsTech and FIFA World Cup Qatar 2022 LLC.
2019 also saw the launch of the Investment Promotion Agency of Qatar (IPAQ), which is registered on the QFC platform and aims to be a single and complete source for investment solutions in Qatar by attracting FDI in all of the country's priority sectors. IPAQ is testament to the nation's FDI strategy and will complement the efforts of the QFC and other FDI platforms in Qatar.
By joining two international bodies committed to establishing a sustainable global financial industry – namely the World Alliance of International Financial Centers and the Islamic Financial Services Board – and participating in over 40 local and international events as well as welcoming delegations from all over the world, I am proud that the QFC's growing reputation as a leading platform for firms to do business in Qatar and beyond continues to grow.
I am certain that with the many successes we witnessed in 2019, we had the same hopes for 2020. With the growing public health crisis of Coronavirus (COVID-19), however, we're seeing our local and global economy faced a set of critical pressures and challenges. We are fortunate for the speedy and proactive response of our government and our public and private sectors, each of which are taking extensive measures that highlight the resilience of our leadership and our economy.
Our Mission
- To transform Doha into a leading global financial and commercial capital, driving economic development and diversification by providing a world-class, commercial, legal and regulatory environment.
QNV 2030
- We have tirelessly worked since our inception to support and diversify Qatar's economy in line with the objectives set out in the Qatar National Vision 2030.
Explore QFC's Leadership & Foundations
Learn more about the vision guiding the QFC and the leadership steering its strategy.
Key Highlights, Major Achievements
- Successfully obtained the Council of Ministers' approval for QFC companies to participate in government tenders.
- Signed a strategic partnership with Bloomberg to open the first Bloomberg Television studio in Qatar for live reports out of our headquarters in Doha.
- Developed an Asset Management Sector focus with a strong network of Qatari investment managers and tax benefits to attract new asset managers and funds.
- Developed tax and legal groundwork to promote QFC as a platform for Aviation Finance with interest from international Aircraft lease companies to set up at QFC.
- Achieved a Net Promoter Score of 73, highlighting our clients' willingness to promote and recommend our business platform.
- Held our 2nd annual Qatar Business Awards under the patronage of the Ministry of Commerce and Industry and extended the event to the wider business community for the first time.
- Launched our multi-lingual QFC Call Centre, which is now fully operational 24/7 and services all our departments and clients.
- Amended our tax regime to allow investment managers in QFC to elect for the 0% concessionary rate for certain types of income.
- Issued a Concessionary Statement of Practice (CSOP), granting QFC entities involved in the organisation of the FIFA World Cup Qatar 2022 an exemption from tax.
- Made headway on Qatarisation efforts, with overall number of Qatari Nationals at QFC increasing by a further 13% in 2019.
We Broke Records, and Reached New Milestones
The Highest Growth-Rate to Date
We ended the year on a high note with an exceptional growth of 35% reaching 71% of our strategic 2022 target.
+323% Beyond Our Annual Target
To meet our 2022 target of 1,000 firms, a total of 91 strategic fits were needed in 2019. Instead, we completed 294 strategic fits.
If we project this growth rate till 2022, we will generate:
- 2x Revenues
- 4x FTEs (excluding 3,000 Host Broadcast Services (HBS), and 4,840 ITECO part-time employees)
- 1x Assets
A Warm Welcome to Our Newly Licensed Firms
In 2019, we had the highest number of yearly firms licensed since our inception in 2005. We also had an expansion of firms representing a variety of industries, both financial and non-financial services, including Fintech, IT, and tax and investment advisories.
International Key-Players, Active Thought-Leaders
We continued to cement our position as a thought-leader by participating in and organising key events to discuss FDI and Doha's growing reputation as a commercial and business hub.
SPIEF 2019
2019 saw our inaugural participation in St. Petersburg International Economic Forum (SPIEF), where we joined a high-level Qatari delegation and participated in key panel discussions and B2B meetings, paving the way for a more prominent role in 2021.
VIP Delegations
We also welcomed various high-profile delegations from around the world including Canada, Mexico, the United States, France, Holland, Turkey, Russia and Japan.
At the Front, on the Local Front
Partnership
Conference
Awards
Panel2019 also saw the launch of the Investment Promotion Agency of Qatar (IPAQ), which is registered on the QFC platform and aims to be a single and complete source for investment solutions in Qatar by attracting FDI in all of the country's priority sectors. The QFC works closely with IPAQ, flying one flag to attract business to Qatar.
Qatar Finance & Business Academy (QFBA)
Over the course of a decade, QFBA has established itself as a key enabler in Qatar's Financial Services and Government Sector by supporting capacity building in the professional market. 2019 was a hugely successful year for the QFBA marked with greater growth and visibility.
Islamic Finance+
In 2018, QFBA, with the support of Derasat, developed a bespoke training and certification framework for the Qatari Islamic Banking Sector, with qualifications aimed at entry and mid to advanced level Islamic Finance professionals. These qualifications are endorsed and supported by the Qatari Islamic Finance sector.
In 2019, QFBA further developed Qatar-specific customised training material based on the designed curriculum for various certifications in the framework and will launch the delivery of its training programmes in 2020.
AML / CFT+
QFBA in partnership with the National Anti-Money Laundering and Terrorism Financing Committee (NAMLC) and the Financial Integrity Network (FIN) delivered a comprehensive AML/CFT Training Programme (QAML) for various financial institutions, jurisdictional authorities, and other stakeholders throughout 2019.
The programme facilitated their understanding and provided insight into managing heightened and evolving risks related to anti-money laundering/counter-terrorist financing, sanctions compliance, anti-bribery/corruption, and counter-proliferation financing.
Who benefited from this programme? Several public sector companies benefited, including investigative, prosecutorial, and judicial authorities; CIF regulatory, supervisory, and examination authorities for financial institutions and DNFBPs (Designated Non-Financial Business and Professions); CIF analytic authorities; Sanctions authorities; and Charitable and Non-Profit Organisations ("NPOs") sector regulatory, oversight, and examination authorities. Private sector beneficiaries included all Qatar-based local and international financial institutions, DNFBPs, and charities.
Kawader+
Kawader is an exclusive and innovative learning initiative especially designed for potential business leaders and decision-makers in Qatar's dynamic financial services industry.
The programme provides a broad overview of the financial services landscape and supports building professionals to industry standards by training for internationally-recognised certifications (ILM, CFA Investment Foundation and IISI – CISI).
2019 Cohort: For the seventh cohort that was successfully delivered in 2019, participants were offered internships in Qatari entities as well as international internships held in London and Singapore.
Professional Training & Development+
During 2019, QFBA successfully delivered thousands of learning hours across a number of certifications (CPA, CFA, CMA, CIA, CISI – IISI and ACAMS) and customised, bespoke training programmes, training thousands of participants overall.
Custom training programmes were delivered across Business and Management, Communications and Soft skills, Compliance and Anti-money laundering, Finance and Accounting, and Information Technology.
Degree Programs+
Through a collaborative relationship with Northumbria University – UK since 2018, QFBA offers 3 degree programs: BA (Hons) Accounting, BA (Hons) Finance and Investment Management, and BA (Hons) International Banking and Finance. QFBA has full-time, part-time and fly-in faculty from Northumbria, UK to deliver these modules.
On the Digital Path to Full Automation
As an organisation, we pride ourselves on our digital presence. We are constantly striving to enhance our activities by utilising the latest digital tools to ensure that all our efforts are more efficient, more measurable, and more environment-friendly.
United for More Good
Since the launch of our social investment programme 'United for Good', several successful initiatives focused on Youth & Education and Community Development have been successfully implemented. In 2019, we've expanded our focus and mobilised our CSR initiatives under three focus areas: Financial Literacy and Youth Empowerment, Sustainability and Social Engagement.
We mean social engagement
- Our Busmah programme remained instrumental. We engaged Injaz volunteers during our series of client targeted events, Fast Forward, to give them visibility and access to a rich community of possible volunteers.
20-20 Vision for 2020
2020 is a special year for us at the QFC as we celebrate 15 years since our inception. We will continue to deliver on our 2022 strategic roadmap, seeking out key opportunities for expansion and growth across the media, digital, sports and financial services sectors.
