Qatar free zones
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Free zones have long been at the centre of the free trading qatar development debate. The Gulf has several: According to Joe Maalouf, free trading qatar of the Qatar chapter of the Middle Free trading qatar Investor Relations Society and head of investor relations at Al Khaliji Bank, free zones create several advantages, free trading qatar increased production, efficiency, consumer satisfaction and exports, free trading qatar the creation of jobs, stronger economic free trading qatar and foreign exchange gains.
The main disadvantages, according to Maalouf, are potential money-laundering, customs fraud and the reduction of government revenue. The outlay for education has been upped by fifteen percent inwith the education sector now constituting 3.
While the government may herald this shift in the economy, hydrocarbons are still, clearly, of critical importance. Inoverall growth is expected to stand at 4. Hydrocarbons, a young population, the rise of the middle class and infrastructure development; according to Srivastava, these are all solid trends that are occurring in Qatar right now. If you are going to invest in emerging markets, the question is, do you do it from London?
From Geneva or Paris? Or do you do it from a location that is closer to where emerging markets are? Clearly you see that trend, that capital is going to emerging markets and it needs to be managed from places that free trading qatar close to emerging markets.
And Doha is one of them. This trend could guarantee a flow of foreign capital to Doha even without having a free zone. According to Srivastava, there is another trend that is attracting more companies to open in Doha: After the Lehman Brothers experience, being closer to whoever is managing your money is now seen as being of paramount importance.
These two trends — managing the capital invested in emerging markets from a closer location and being closer to asset managers — appear to be turning Doha into a more attractive financial centre. In order to see the Qatari market moving from frontier-market status to the more mature emerging-markets tier on the MSCI index, a reform of foreign ownership limits must be introduced.
If the country wins emerging-markets status, that would create a far more diversified investor base for the Qatar Exchange. The International Monetary Fund IMF has recommended developing a well-diversified domestic and foreign institutional investor base that can help diversify financial intermediation to capital markets by increasing the demand free trading qatar long-term financial assets. Srivastava is optimistic about this, but he also adds that for a foreign ownership limits reform to happen, several other things have to be introduced beforehand.
In addition to free trading qatar equity markets, Qatar is also hard at work developing its debt market. The central bank launched quarterly issues of riyal-denominated bonds in March, allowing the country to have a tool to soak up huge amounts of liquidity in the local banking sector.
When asked about the main challenges ahead, Srivastava looks relaxed. The next steps on his agenda are reforming the legal environment for holding companies, special-purpose companies and family offices. Srivastava has already started doing his homework, but refining regulations is a never-ending task. The world is betting on Qatar: Would a free zone benefit Qatar? Would the establishment of a free zone in Qatar help free trading qatar attract foreign capital and new companies? Fri 31 May Subscribe to our Newsletter.
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