BY MOHAMMAD SHOEB
DOHA: The Qatar Financial Centre (QFC) witnessed a remarkable growth in the number of new firms registered in 2014 compared to the previous year.
According to a senior official of the QFC Authority, the total number of active QFC-licensed firms has increased to 177 as on February 28, 2015.
“We have witnessed an over 100 percent increase in the number of new licensed firms in 2014 compared to 2013,” said Sheikh Salman Al Thani (pictured), Chief Financial Officer and Director of Tax at QFC Authority. “In fact, our broadened approach, including tax reforms, has yielded considerable success with a 30 percent increase in non-regulated firms over the course of 2014.”
Sheikh Salman, in an interview with The Peninsula, said: “Out of the 177 active firms, 112 are non-regulated and 65 are regulated. These firms are from a wide range of regions and handle diverse businesses.”
The regulated firms are those which are permitted to conduct regulated activities defined in the QFC Financial Services Regulations (FSR), or in rules made under the FSR, such as banks and non-banking financial service providers.
He said that QFC has also responded to the international ambition and needs of the local industry by introducing new tax regulations that help Qatari-owned entities to opt for a zero-tax rate on their operations conducted from the QFC.
Established in 2005, the Qatar Financial Centre (QFC) is an onshore centre that provides a platform for domestic, regional and international growth.
Given the fact that tax is one of the most important issues for a company, QFC levies a low tax rate of 10 percent on locally sourced business profits, with an aim to nurture a competitive environment that allows businesses to thrive.
“Our tax amendments have also introduced beneficial changes to the taxation of structures, including holding companies and special purpose companies, established in the QFC,” he added.
“A point worth highlighting is that local corporates could previously only set up such structures overseas but with the latest developments to the QFC offering, such structures can now be formed in Qatar as well.”
Sheikh Salman said these initiatives have helped attract a significant and rising proportion of Qatari-owned companies that are benefiting from the QFC Authority’s business-friendly environment to operate outside as well as inside Qatar.
Currently, the Qatari-owned active firms in QFC accounts for around 30 percent of the total, which comes out to be over 53, and the number is expected to grow with the same pace.
“The strong pipeline of firms gives me reason to believe 2015 may be an equally good year, if not better than 2014,” he said.
Asked about the total amount of capital invested by these firms, he said: “This (capital) may not be the ideal metric to look at, because the value that QFC firms add to Qatar is in terms of skills, capacity and ‘knowhow’.”
“The QFC does not permit any kind of manufacturing or trading activities and thus our firms are largely either regulated financial sector firms such as banks, insurance and asset management companies or services sector firms such as lawyers, accountants, and consultants and other, which are critical to supporting local businesses in their ambitions.”
In line with the National Vision 2030, he noted that Qatar needs to attract the necessary skills and expertise to ensure that economic growth and diversification remain sustainable.The Peninsula
