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Qatar
Treasury Management
Profile 2018
Together we thrive
2 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 3
Contents Introduction and
Purpose
Introduction and Purpose 3 Qatar
This is one of a series of Treasury Management Profiles designed for finance and treasury professionals worldwide. By providing a
Legal and Regulatory 6 snapshot of banking, payments and cash management in selected locations, these profiles can help treasury managers to make
informed decisions, manage risks effectively and take advantage of new opportunities. However, this information is not intended to
Taxation8 be comprehensive and does not constitute financial, legal, tax or other professional advice. Accordingly you should not act upon the
information contained in this document without obtaining your own independent professional advice. The materials contained in this
Banking11
document were assembled in June 2017 (unless otherwise dated) and were based on the law enforceable and information available
Payment Instruments 12 at that time.
Payment Systems 13
Facts and Figures
Cash Management 14
Capital/Other major cities: Doha/Rayyan Business hours: 07:00–13:00 and 15:30–18:00
Electronic Banking 17 (Sat–Thu)
Area: 11,586km2
Trade Finance 18 Banking hours: 07:30–13:00 (Sun–Thu)
Population: 2.34m
Stock exchange: Qatar Stock Exchange (QSE)
Useful Websites 20 Language: Arabic
Leading share indices: QE Index, QE Al Rayan Islamic
Currency: Qatari riyal (QAR)
Index, QE Total Return Index
Country telephone code: 974
Sectoral distribution Agriculture 0.2%,
Weekend: Friday and Saturday of GDP (% of GDP): Industry 50.3%,
Source: https://www.cia.gov/library/
Services 49.5%
National holidays: 2018 — 1 Jan, 13 Feb, 4 Mar, publications/resources/the-world-
factbook/index.html. (2017 estimate)
Source: www.goodbusinessday.com. 17–19 Jun*, 20–22 Aug*,
18 Dec * The date shown may vary by plus or minus one day. These dates are derived by
converting from a non‑Gregorian calendar (e.g., Muslim or Hindu) to the Gregorian
calendar. Some of these dates cannot be determined in advance with absolute
2019 — 1 Jan, 12 Feb, 3 Mar,
accuracy, even by the governing authorities. In the case of Muslim dates in
5–7 Jun*, 11–14 Aug*, 18 Dec particular, the feast days are determined by the sighting of a new/full moon.
Government Head of state
Legislature Emir Tamim bin Hamad Al Thani, since 25 June 2013.
Traditional monarchy with a unicameral council, the Advisory
Council (Majlis al-Shura). Political leader
Abdallah bin Nasir bin Khalifa Al Thani, prime minister since 26
®® Advisory Council: 45 members are elected to serve four-year June 2013.
terms.
®® Qatar’s first legislative elections, due to be held in 2013, have
been postponed until at least 2019.
4 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 5
Country credit rating
Fitch Ratings rates Qatar for issuer default as:
Term Issuer Default Rating
Short F1 +
Long AA –
Long-term rating outlook Negative
Source: www.fitchratings.com, April 2018.
Exchange rate & Interest rate (%) Consumer inflation & GDP volume growth (%)
Economy
2017
2011 2012 2013 2014 2015 2016 5.5 5.5 6.0 6.0
Q1 Q2 Q3 Q4
Exchange rate* (QAR/USD) 3.6400 3.6400 3.6400 3.6400 3.6400 3.6400 3.6400 3.6400 3.6400 3.6400
5.0 5.0 4.5 4.5
Interest rate (Lending rate) (%)
*
5.49 5.38 5.11 4.96 4.44 4.04 4.30 4.68 4.89 4.96
Unemployment (%) 0.6 0.6 0.3 0.2 0.2 0.2 0.1 NA NA NA 4.5 4.5 3.0 3.0
Consumer inflation** (%) + 1.9 + 1.9 + 3.1 + 3.1 + 1.9 + 2.9 + 1.0 + 0.5 - 0.2 + 0.3
4.0 4.0 1.5 1.5
GDP volume growth** (%) + 14.1 + 4.7 + 4.4 + 4.0 + 3.6 + 2.2 NA NA NA NA
GDP (QAR bn) 618 693 740 771 599 555 – – – – 3.5 3.5 0.0 0.0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
GDP (USD bn) 170 190 203 212 165 152 – – – –
Exchange rate (QAR/USD) Consumer inflation %
GDP per capita (USD) 87,179 90,047 90,222 89,451 66,532 59,144 – – – – Interest rate (lending rate) % GDP volume growth %
Current account as % GDP 30.7 32.6 29.8 23.3 8.3 – 5.5 – – – –
* Period average. ** Year on year. Sources: IMF, International Financial Statistics, April 2018 and 2017 Yearbook; and Qatar Central Bank. Sources: IMF, International Financial Statistics, April 2018 and 2017 Yearbook; and Qatar Central Bank.6 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 7
Legal and
Regulatory
Central bank
The Qatar Central Bank (QCB) is an autonomous institution
Exchange controls
Qatar is a member of the Gulf Cooperation Council (GCC),
Qatar is a member of the GCC, which is a member of the
Financial Action Task Force (FATF). It is also a member of It is possible, with
operating in accordance with Law No 13 of 2012 Regulating the alongside Bahrain, Kuwait, Oman, Saudi Arabia and the United the Middle East & North Africa Financial Action Task Force
Functioning of the Qatar Central Bank and Financial Institutions. Arab Emirates. (MENAFATF).
special Ministerial
Bank supervision The Qatari riyal (QAR) is Qatar’s official currency. The country’s Financial Information Unit (FIU), operates within the
The QCB’s Department of Banking Supervision supervises the
banking sector in Qatar. ®® The QAR is pegged to the USD at a rate of QAR 3.64 per USD 1.
QCB and is a member of the Egmont Group. approval, for non-
resident investors
Account opening procedures require formal identification of the
Resident/non-resident status Qatar does not apply exchange controls. account holder and beneficial owner.
A company is considered resident in Qatar if it is incorporated
to hold up to 100%
under Qatari law and/or is registered and has a commercial Commercial bank rates for transactions in USD are determined Financial institutions must identify customers carrying out a
registration issued by the Qatar Ministry of Economy and by the QCB’s buying and selling rates. A QAR 0.0085 spread is single transaction or a series of linked transactions of QAR 55,000
Commerce. A Qatari company must have a head office in Qatar. usually imposed on exchange transactions with the public. or more. Simplified customer due diligence measures may be
Bank accounts There is a forward exchange market in which importers from the
commercial banking sector are permitted to purchase foreign
applied for transactions below this threshold. Individuals making
domestic or external wire transfers exceeding QAR 4,000, or its of the issued share
Resident equivalent in foreign currency, must be identified.
Foreign exchange accounts can be held by residents both
domestically and abroad. Resident domestic currency (QAR)
exchange.
Financial institutions must adopt a risk-sensitive approach to
capital of a Qatari
As a general rule, non-resident investors are not permitted to hold
company in certain
accounts cannot be held abroad, but are freely convertible into ongoing due diligence.
more than a 49% stake in a Qatari company. There are however
foreign currency.
certain limited exceptions to this general rule, and it is possible, All financial institutions must record and report suspicious
with special Ministerial approval, for non-resident investors to
preferred sectors.
Non-resident transactions to the FIU.
Non-resident bank accounts are permitted in both foreign and hold up to 100% of the issued share capital of a Qatari company
domestic currency. Non-resident domestic currency accounts are in certain preferred sectors. All records must be kept for a minimum period of 15 years
freely convertible into foreign currency, although prior approval after the relationship has ended or the transaction has been
Investors from outside the GCC are not permitted to purchase real completed.
from the QCB is required.
estate in Qatar, except in limited circumstances.
Interest can be offered on savings accounts, time deposit Any traveller entering or leaving Qatar must, upon the request of
Anti-money laundering/counter-terrorist financing1 a customs officer, make a disclosure regarding the possession of
accounts and, with prior approval from the QCB, on current
Qatar has implemented anti-money laundering legislation. any currency, bearer negotiable instruments, or precious metals
accounts. Overdraft facilities are available to residents and
Notable legislation includes: or stones.
non‑residents.
®® The Qatar Financial Centre Regulatory Authority Anti-Money
Reporting
Laundering and Combating Terrorist Financing Rules 2010, as
All transactions between residents and non-residents must be
amended in 2017;
reported to the QCB on a monthly basis for balance of payments
®® The QCB Anti-Money Laundering and Combating Financing of
purposes.
Terrorism Regulations 2013; and
®® Law No 4 of 2010 on Combating Money Laundering and
Terrorism Financing. 1.
Data as at February 2017.8 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 9
Taxation
1
A wholly Qatari or Resident/non-resident
A body corporate is resident if it meets any of the following
Taxpayers are required to submit an annual income tax return
and pay tax by the end of the fourth month after the company’s
Wholly Qatar government-owned QFC entities are exempt (there
is no exemption for QFC entities that are wholly owned by Qatari
criteria: financial year-end. or GCC nationals). Only local-source profits are taxable. QFC
GCC-owned company ®® It is incorporated under Qatari laws; An online Tax Administration System (TAS) has been introduced
entities are not subject to withholding taxes.
®® It has its head office in Qatar; or with the aim of achieving complete automation of the tax The QSTP is the only free zone in Qatar. Capital of companies
in Qatar is not required ®® Its place of effective management is in Qatar. payment and management process. TAS enables online
registration and filing of tax returns and progress tracking.
registered in the QSTP can be wholly owned by foreign investors
and allowed to trade directly in Qatar without a local agent. QSTP
to pay tax. Tax is only
An entity that has a permanent establishment in Qatar will be entities with a standard licence are not taxed and companies can
treated as resident and subject to the local tax law in Qatar. Consolidated returns are not permitted and each company must import goods and services free from Qatari customs duties.
file a separate return.
levied on a foreign Tax authorities
®® Ministry of Finance – Public Revenues & Taxes Department. Corporate taxation
A company that is wholly Qatari or GCC owned and resident in
Losses may be carried forward for up to three years. The
carryback of losses is not permitted.
®® Qatar Financial Centre.
company’s income Tax year/filing
Qatar is not required to pay tax. Tax is only levied on a foreign
company’s income derived from activities carried out wholly or
Wealth tax
Religious wealth tax (zakat) is not levied in Qatar.
partly in Qatar.
derived from activities
The tax year is the Gregorian calendar year, although the tax
authorities may authorise a taxpayer to use a different tax year. Advance tax rulings
The accounting period might be less or more than 12 months in For joint ventures, the foreign shareholder’s portion of the profit Advance tax rulings are not available in Qatar.
is taxable. Nationals from GCC countries are treated as Qatari
carried out wholly or the following cases:
®® If the taxpayer starts activity after the beginning of the
nationals and consequently are not currently subject to income
tax, provided they are resident in Qatar.
Stamp duty
There is no stamp duty.
partly in Qatar. Gregorian calendar year, the accounting period cannot be less
than six months or more than 18 months. In either case, tax A flat rate of tax of 10% applies, except for oil and gas
companies, where a rate of 35% applies. Petroleum activities
Capital gains tax
In general, gains arising from the sale of business assets and
is computed on the basis of the actual period proportionate to
include: exploration operations; developing fields; drilling, business interests are treated as ordinary income.
the taxable year.
completing and repairing wells; producing and processing
®® In cases of liquidation, the accounting period is determined by Capital gains arising from the disposal of real estate and
petroleum; filtering of impurities; storing, transporting, loading
reference to the time until completion of the liquidation. securities derived by natural persons are exempt from tax, unless
and shipping; constructing or operating related energy and
®® In cases of cessation, assignment or sale, the accounting they are assets of a taxable activity.
water facilities or housing or other facilities, establishments
period shall run from the end of the previous accounting period
or equipment necessary for petroleum activities; and services
until the date of cessation, assignment or sale. Foreign companies selling shares in Qatar-based companies are
necessary to achieve any of the above activities, including all
subject to tax at 10% on the gain.
administrative and complementary activities. There is no surtax or
Where a taxpayer carries on a temporary activity, the period of
alternative minimum tax.
which does not exceed 18 months, the accounting period shall be Withholding tax (subject to tax treaties)
the period of activity. A final withholding tax is levied on payments made to non-
Incentives include tax holidays, foreign capital investment
residents (who do not have a permanent establishment in Qatar)
incentives and incentives related to the Qatar Financial Centre
for services provided wholly or partly in Qatar.
(QFC) and the Qatar Science and Technology Park (QSTP).
Withholding tax applies to royalties (5%), technical fees (5%),
Under the QFC regime, income is taxable at a flat rate of 10%.
All tax information supplied by Deloitte Touche Tohmatsu (www.deloitte.com) and
1.
Deloitte Highlight, 2017.10 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 11
Banking
Overview
Withholding tax (subject to tax treaties) Major banks
There are 18 banks operating in Qatar, of which seven are locally
Payments to: Interest Dividends Royalties Other fees Branch remittances incorporated, seven are branches of foreign banks and four are Total assets (USD billions)
Bank
Islamic banks. 31 December 2017
Resident companies None None None None NA
The Qatari banking sector is dominated by Qatar National Bank, Qatar National Bank 223.0
Non-resident companies 0%/7% None 5% 5-7% None
which controls over 50% of the banking sector’s total assets. Qatar Islamic Bank 41.3
Qatar National Bank is 50% state owned.
The Commercial Bank 38.0
commissions (7%), brokerage fees (7%), directors’ fees (7%), The anti‑avoidance provisions specifically state that the Islamic banks account for an estimated 26% of banking sector of Qatar
attendance fees (7%) and any other payments for services carried comparable unrelated price method should be used, unless assets. There are four full Islamic banks: Qatar Islamic Bank,
Masraf Al Rayan 28.3
out wholly or partly in Qatar (7%). approval is given by the tax authorities to apply an alternative Masraf Al Rayan, Qatar International Islamic Bank and Barwa
OECD-approved transfer pricing method. Bank. Qatar Islamic Bank controls 41% of the Islamic banking Doha Bank 25.7
The law states that the rate of withholding tax on interest is 7%. sector’s assets. Source: www.accuity.com, April 2018.
However, withholding tax is not payable on interest on bank loans Other business taxes
or to financial institutions. Interest paid by branches to their head A company must pay municipal taxes, although the amount of A proposed three-way merger of Masraf Al Rayan, Barwa Bank
office is not subject to withholding tax either. such taxes is negligible. and International Bank of Qatar is likely to complete in 2018,
if it receives approval from the central bank. If successful, the
Withholding tax is not levied on dividend payments. Cash pooling merger will create the Gulf state’s second-largest bank with
Qatar has no specific tax rules for cash pooling arrangements. approximately USD 44 billion in assets. The merged entity will
A retention tax of 3% of the contract value or the final payment operate under sharia-compliant banking principles.
(whichever is higher) applies to payments made to a branch Sales taxes/VAT (incl. financial services)
registered for a particular project (temporary branch). Qatar is part of the GCC VAT framework and plans to introduce Foreign banks, including BNP Paribas, HSBC and Standard
VAT at a rate of 5% in the near future. Basic food items, Chartered, play an active role in the country’s financial sector.
Tax treaties/tax information exchange agreements (TIEAs) healthcare and education will be exempt. They account for approximately 3.3% of banking sector assets.
Qatar has exchange of information relationships with 81 Foreign banks can hold no more than a 35% shareholding in a
jurisdictions through 74 DTCs and seven TIEAs. Customs duties are payable on certain imports. domestic bank.
Thin capitalisation Financial transactions/banking services tax The digital transformation of the country’s banking sector, and
There are no thin capitalisation rules in Qatar, but interest There are no specific financial transactions/banking services taxes the digitization of financial services, particularly to further enable
payments made by a permanent establishment to its head office in Qatar. mobile banking, is underway with the country’s leading banks
and related parties are not deductible for tax purposes. seeking increasingly innovative ways to deliver financial services.
Payroll and social security taxes
Transfer pricing Employers do not pay a payroll tax. The employer’s social security
Under local Qatar law, there is no specific transfer pricing payments for Qatari employees are 10% of basic salary each
legislation. However, anti-avoidance rules give the tax authorities month.
the power to apply an arm’s‑length value where an arrangement
or transaction has been undertaken with one of the main There are no social security payments for expatriates in Qatar.
purposes being to avoid the payment of tax.12 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 13
Payment Payment
Instruments Systems
Cash Card payments Type Electronic Cheque Clearing system
Cash remains an important payment medium in Qatar, particularly Payment cards are an increasingly popular method of payment in The QPS (Qatar Central Bank Payment System), Qatar’s national Cheques are truncated into electronic items before being
for low‑value retail transactions. Qatar. Visa and MasterCard are the principal credit card brands real-time gross settlement system, is operated by the QCB. processed by the Electronic Cheque Clearing system.
issued. Contactless credit and debit cards are issued. All cards
Credit transfers issued are EMV‑compliant. The Electronic Cheque Clearing system is managed by the ®® 14:30 AST: cut-off time for same-day settlement. Cheques
All credit transfers in Qatar are automated. Customer transfers QCB. received after this time are settled on a next-day basis.
can be initiated using banks’ e-banking systems, while interbank Each bank in Qatar establishes its own individual clearing and
credit transfers can be effected through the QCB. settlement arrangements with the card issuers. The QATCH deposit and direct debit system processes QAR Final settlement takes place across participants’ accounts held at
transfers through a secure electronic network. the QCB via the QPS on a same-day basis.
Credit transfers can be cleared and settled via the QPS, the There are approximately 1,107 ATMs in Qatar. All ATMs are
national RTGS system, on a real-time basis. There is no value interconnected via NAPS (National ATM & POS Switch). NAPS Participants
threshold. Low value credit transfers (below QAR 250,000) are also connects the country’s ATM network to the ATM networks All banks participate in the QPS, Electronic Cheque Clearing and
Currency centre holidays
routed through the QATCH system. of its fellow GCC member states (via the GCCNet ATM network). QATCH systems.
ATM users are also able to withdraw cash from ATMs in Lebanon, 2018 1 Jan, 13 Feb, 4 Mar, 17–19 Jun*,
The Wage Protection System mandates that the payment of Egypt and Iran. All EFTPOS are EMV‑compliant. Transaction types processed 20–22 Aug*, 18 Dec
all salaries in Qatar must be made directly into bank accounts. The QPS processes all QAR interbank transfers. There is no value
threshold. In addition, the QPS effects the final settlement of 2019 1 Jan, 12 Feb, 3 Mar, 5–7 Jun*,
According to the government, an estimated 1.8 million people Electronic wallets
participants’ net balances originating from Qatar’s other clearing 11–14 Aug*, 18 Dec
now receive their salaries electronically. Electronic money schemes are available in the form of reloadable
pre-paid cards. Mobile wallet payment apps, such as Ooredoo, houses. * The date shown may vary by plus or minus one day. These dates are derived
Direct debits by converting from a non‑Gregorian calendar (e.g., Muslim or Hindu) to the
are also available.
The Electronic Cheque Clearing system processes QAR- Gregorian calendar. Some of these dates cannot be determined in advance with
Direct debits are available in Qatar for low-value recurring absolute accuracy, even by the governing authorities. In the case of Muslim dates
payments such as utility bills. denominated cheques. in particular, the feast days are determined by the sighting of a new/full moon.
QATCH processes direct debit and deposit payment transactions Source: www.goodbusinessday.com.
Direct debits are processed via the QATCH system. Final
settlement is via the QPS on a next-day basis. below QAR 250,000.
Cheques Operating hours
The cheque is a common cashless payment instrument for both The Electronic Cheque Clearing system operates from 07:30
retail and commercial payments. to 17:00 AST, Sunday to Thursday. Banks’ operating hours for
clearing cheques are from 07:30 to 13:00 AST.
QAR-denominated cheques are truncated into electronic items
before being cleared via the Electronic Cheque Clearing system. Clearing cycle details
Final settlement is through the QPS with funds are available to The QPS
beneficiaries on a same-day basis if presented before 14:30 AST. The QPS settles transactions in real time and with immediate
finality. Payment instructions are submitted using QCB proprietary
In 2016, the Electronic Cheque Clearing system processed 4.86 format messages.
million cheques, with a total value of QAR 329,800 million. The
was a 1.5% increase in volume terms on 2015 figures, but a 9.5% Settlement takes place across the participant banks’
decline in value. correspondent accounts held at the QCB.14 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 15
Cash
Management
Domestic ®® Certificates of deposit are offered by commercial banks.
Notional pooling ®® Treasury bills and bonds are issued by the government, with
Notional pooling is permitted between resident and non-resident maturities up to one year. The minimum investment amount is
companies on a domestic and cross-border basis, but is not QAR 10,000.
widely offered.
Custody and securities settlement1
Cash concentration Depository
Cash concentration, particularly zero balancing, is permitted ®® Qatar Central Securities Depository (QCSD).
between residents and non-residents and is available on a
domestic and cross-border basis. The Doha Securities Market is one of the leading stock markets in
the GCC region.
Cash concentration services are offered by the country’s
international banks. In June 2009, Qatar Holding, the strategic and direct investment
arm of the Qatar Investment Authority, and NYSE Euronext,
Collections signed an agreement to establish Qatar Exchange as a world-
Several banks in Qatar offer cash and account receivables class market. Qatar Exchange operates the central securities
collection services to corporate clients. depository.
Cross-border The QCSD is responsible for carrying out the clearing, settlement
Cross-border payments are routed via SWIFT and settled through and depository of securities. All transactions traded are due for
accounts held with correspondent banks abroad. settlement (money and securities) on the trading day (T+3).
Lifting fees Settlement cycle
Banks apply different fees and value dates to resident and non- ®® T+3.
resident accounts. Fees are itemised and not per mille based.
Additional comments
Companies located in the Qatar Financial Centre are entitled to a
three‑year tax holiday and a subsequent low rate of tax on profits.
Short-term investments
®® Interest can be earned on resident and non-resident savings
accounts and time deposit accounts. QCB approval is required
for the payment of interest on current account balances.
®® Demand and time deposits are available in QAR or major
foreign currencies. Maturities range from one month to one
year. Interest is usually paid on the maturity date for time
deposits and on a periodic basis for other deposit accounts.
1.
Data as at February 2017.16 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 17
Electronic
Banking
Ooredoo Mobile Electronic banking is available in Qatar and offered by the
majority of the country’s banks. There is no bank-independent
electronic banking standard; each bank offers its own proprietary
Money allows users to system for corporate banking purposes.
Internet and mobile banking is offered by Qatar’s leading
deposit, withdraw, pay commercial banks for both corporate and retail purposes.
Adoption figures are high. Commercial Bank of Qatar, for
and send money via
example, in its 2016 Annual Report reports over 85% of
transactions are now processed digitally. Doha Bank saw a 66%
increase in mobile transactions and a 48% rise in the number of
mobile phone. Users users in 2016.
The Qatar national payment gateway, QPAY, enables domestic
are able to receive banks to provide secure online e-payment services to various
government and private institutions. Users are able to pay online
salary payments
via debit cards, credit cards and virtual cards.
The Ooredoo Mobile Money service is a popular mobile wallet
directly into their
service that allows users to deposit, withdraw, pay and send
money in both Qatar or abroad via mobile phone. It also enables
users to receive salary payments directly into their mobile wallet
mobile wallet account. account.
Qatar had an estimated 99% internet penetration rate at the end
of January 20181. Mobile penetration is in excess of 100%2.
Global Digital Report 2018, we are social.
1.
Digital Middle East: Transforming the region into a leading digital economy,
2.
Digital McKinsey.18 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 19
Trade
Finance
A customs duty of 5% Imports
Documents
Exports
Documents
Key import partners
In order to import goods into Qatar, a customs declaration, In order to export goods from Qatar, a customs declaration,
is generally applied to commercial invoice, certificate of origin, bill of lading and, in
certain cases, pro forma invoice are required.
commercial invoice, certificate of origin and, in certain cases, bill
of lading are required.
China 12.0%
imports from outside Licences
Licences are mandatory for importing armaments, ammunition,
Licences
Licences are not required for exports.
USA
UAE
11.0%
8.8%
the GCC. A higher
alcohol and certain drugs. Germany 7.5%
Taxes/tariffs and other fees Japan 6.6%
Import licences in Qatar are issued by the Ministry of Economy No taxes are charged on exports from Qatar.
UK 5.7%
customs tariff of and Commerce.
Taxes/tariffs and other fees
Prohibited exports
A negative list (of products that may not be exported) is in
Italy 4.5%
20% applies to steel Qatar is a member of the Gulf Cooperation Council (GCC). The
GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and
operation. Exporting subsidised food items from Qatar is
prohibited.
Key export partners
the UAE. A GCC Customs Union with a common external tariff
and a tariff of 100% came into effect in 2003. No import tariffs apply to imports from
within the GCC.
Exporting items to Israel is prohibited.
Financing imports and exports
applies to alcohol and As a member of the Greater Arab Free Trade Area (GAFTA), Qatar
has eliminated most trade tariffs with GAFTA’s 16 other member
Imports
There are no financing requirements for imports. Japan 22.0%
South Korea 18.0%
tobacco. states. GAFTA has established a bilateral free trade agreement
with the USA. Exports
There are no financing requirements for exports.
India
China
12.0%
7.0%
A customs duty of 5% is generally applied to imports from UAE 6.4%
outside the GCC. A higher customs tariff of 20% applies to steel Singapore 4.7%
and a tariff of 100% applies to alcohol and tobacco. UK 4.7%
Prohibited imports
Source: The World Factbook. Washington, DC: Central Intelligence Agency, 2017
A negative list (of products that may not be imported) is in (https://www.cia.gov/library/publications/resources/the-world-factbook/index.html).
operation. It is prohibited to import certain commodities into
Qatar, in order to protect fauna and flora, and for national security
and moral reasons.
Importing pork and its derivatives is prohibited. So too are
imports from Israel.20 HSBC Treasury Management Profile 2018 | Qatar HSBC Treasury Management Profile 2018 | Qatar 21
Useful
Websites
Qatar Central Bank www.qcb.gov.qa
Leading banks: Commercial Bank of Qatar www.cbq.qa
Doha Bank www.dohabank.com.qa
Masraf Al Rayan www.alrayan.com
Qatar Islamic Bank www.qib.com.qa Disclaimer
Qatar National Bank www.qnb.com This document has been produced by HSBC Bank plc and members of the HSBC Group (“HSBC”), together with their third-party contributor, WWCP Limited. We make no
representations, warranties or guarantees (express or implied) that the information in this document is complete, accurate or up to date. We will not be liable for any liabilities
Qatar Financial Centre www.qfc.com.qa arising under or in connection with the use of, or any reliance on, this document or the information contained within it. It is not intended as an offer or solicitation for business
to anyone in any jurisdiction. The information contained in this document is of a general nature only. It is not meant to be comprehensive and does not constitute financial,
Qatar Financial Centre Regulatory Authority www.qfcra.com legal, tax or other professional advice. You should not act upon the information contained in this document without obtaining your own independent professional advice. The
information contained in this document has not been independently verified by HSBC.
Ministry of Economy & Finance www.mof.gov.qa
This document contains information relating to third parties. The information does not constitute any form of endorsement by these third parties of the products and/or services
Qatar Chamber of Commerce and Industry www.qatarchamber.com provided by HSBC or any form of cooperation between HSBC and the respective third parties.
Under no circumstances will HSBC or the third-party contributor be liable for (i) the accuracy or sufficiency of this document or of any information, statement, assumption
Ministry of Development Planning and Statistics www.mdps.gov.qa/en/pages/default.aspx
or projection contained in this document or any other written or oral information provided in connection with the same, or (ii) any loss or damage (whether direct, indirect,
consequential or other) arising out of reliance upon this document and the information contained within it.
Qatar Stock Exchange www.qe.com.qa
HSBC and the third-party contributor do not undertake, and are under no obligation, to provide any additional information, to update this document, to correct any inaccuracies
or to remedy any errors or omissions.
HSBC website details No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or
otherwise, without the prior written permission of HSBC and the third-party contributor. Any products or services to be provided by HSBC in connection with the information
HSBC Commercial Banking www.business.hsbc.com.qa contained in this document shall be subject to the terms of separate legally binding documentation and nothing in this document constitutes an offer to provide any products
or services.
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