The new rules come into force on 1 January 2016.
“The changes to our Islamic finance and conduct rules provide a solid platform for future growth of financial services in the QFC,” said Michael Ryan, chief executive of the QFC Regulatory Authority.
“The changes follow extensive consultation with the financial sector and other stakeholders and reflect the important developments in international best practice over the last few years,” Ryan said.
Stock market boost
The Qatar Stock Exchange (QSE) is also due shortly to launch a series of new initiatives encompassing margin trading, exchange traded funds (ETFs) and early stage venture capital raising.
“We are currently working with a local asset manager to launch the largest Sharia-compliant ETF in the world,”
It is part of the push by Qatar to reinvigorate its financial sector in the face of growing competition, especially from the United Arab Emirates (UAE).
In a recent speech the chief executive of the QSE, Rashid Bin Ali Al Mansoori, said that among the new initiatives, the exchange was working on launching a number of ETFs which will provide access to emerging market debt and equities.
“We are also planning the introduction of ETFs that will allow investors to invest in all of the components of the QSE 20 index with a single trade,” he said.
Sharia products
Sharia-compliant products are a key part of the stock exchange’s product diversification plans.
“We are currently working with a local asset manager to launch the largest Sharia-compliant ETF in the world,” Mansoori said.
The QSE is also working with regulators to list real estate investment funds (REITs) and encourage regional and international initial public offerings.
“These initiatives combined with clearly defined regulation is intended to widen the appeal of Qatar to investors and fund raisers both regionally and internationally,” said Nick Wilson, chairman of Qatar Investment Fund.
The moves in Qatar come as a low oil prices put increasing pressure on the Gulf states to boost other sectors of their economy with many focusing on growth in financial services.
