Qatar beckons domestic financial players

Qatar is beckoning Indian commercial banks, insurance companies and other financial services firms to set up offices in the Qatar Financial Centre (QFC) and tap the country's potential.

QFC is primarily inviting financial services firms from across the globe to to support the government's $130 billion investments, planned over five years.

"Insurance companies and asset management companies (registered in the QFC) will be able to do retail business in the whole of Qatar. Commercial banks' would not be allowed to provide retail deposits and credit services, but can provide all their services to SMEs (corporates)," Stuart Pearce, CEO and director general of QFC, said.

Unlike other financial centres in Dubai and Bahrain, QFC allows banks and others to provide services in any currency, including the local currency.

"QFC is a completely onshore centre whose activities are fully integrated into those of the state as a whole and its legal and regulatory structures are based on best practices in centres such as New York and London, he said.

QFC offers a regulatory and legal framework that's modelled on the UK's Financial Services Authority (FSA) and an enticing proposition of being able to provide retail services across the country.

During his three-day stay in Mumbai last week, Pearce met officials of almost a dozen of the top Indian commercial banks to invite them to set up business in the QFC.

Senior officials from QFC are visiting India this week to market the QFC QFC is an onshore financial centre with regulations and laws governing it different from the ones that apply to local banks.

QFC regulations allow 100 per cent ownership, complete repatriation of profits and a tax holiday up to the end of April 2008 after which a tax rate of a maximum of 10 per cent will apply.

Pearce said a full suite of new commercial and civil laws modelled on western legal frameworks have been enacted for entities registered under the QFC. In cases where there is any conflict with local Qatari law, the laws, rules and regulations of the QFC will prevail.

Court proceedings will be in English. In addition, the legal structure provides for arbitrations and other forms of dispute resolution.