The Governor of Qatar's Central Bank believes that the framework will bring opportunities to the country's financial industry.
The Qatar Financial Centre (QFC), a commercial hub in Doha, Qatar, has released a comprehensive set of digital asset regulatory and creation regulations.
The regulators of the Qatar Financial Centre – the Qatar Financial Centre Authority (QFCA) and the Qatar Financial Centre Regulatory Authority (QFCRA) – have announced a framework laying the foundation for digital assets in the Qatar Financial Centre.
The rules include the tokenization process and the legal recognition of the property rights, custody arrangements, transfers and exchanges of tokens and underlying assets. In addition, the framework also provides for the legal recognition of smart contracts.
Like the United Arab Emirates’ free economic zones, which operate independently from the mainland, the Qatar Financial Centre has a separate legal, regulatory, tax and business framework from the rest of Qatar.
The Qatar Financial Center allows foreign ownership of up to 100% and repatriation of 100% of profits. It also "imposes a competitive corporate tax of 10% on local profits."
Supporting Qatar’s digital transformation
According to the announcement, the framework will ensure that the digital asset ecosystem within the Qatar Financial Center is secure, transparent and in compliance with international standards. The Qatar Financial Center said that the framework sets standards for asset tokenization. In addition, it also aims to ensure trust and confidence among consumers, service providers and stakeholders.
His Excellency Sheikh Bandar bin Mohammed bin Saud Al Thani, Governor of the Qatar Central Bank, said the new regulations are a milestone in achieving Qatar's "Third Financial Sector Strategy". He believes that the framework will bring significant opportunities to Qatar's financial industry.
In November 2023, Qatar launched its Third Financial Sector Strategy, which aims to create capital markets to help the country unlock its economic potential. The plan includes “embracing emerging technologies” to accelerate digital transformation.
The digital asset framework is also the result of collaboration and consultation with industry stakeholders. According to the Qatar Financial Commission, the framework was developed with the help of an advisory group organized by 37 domestic and foreign financial, technology and legal sectors.
The Qatar Financial Center added that since the launch of the Digital Asset Lab in October 2023, more than 10 startups have been accepted to develop, test and commercialize their products and services.