One of the drivers of Qatar’s economic diversification is the evolving financial sector. Though Qatar’s well-known energy industry dominates the economy, approximately 8% of the country’s GDP in 2022 came from the financial industry. This reflects the sector’s prominence in shaping Qatar’s economy as one of the world’s most stable, resilient, and competitive economies.
With continuous economic growth and conscious government efforts towards diversification, the demand for financial services grows accordingly, supporting Qatar’s position as a financial hub in the GCC and the broader Middle East and North Africa region. To propel these successes in the financial sector and ensure the country’s future is safe and driven by sustainable policies, Qatar has implemented regulations under strategic policies in the last decade. Yesterday, authorities launched the third Strategic Plan for Financial Sector Regulation, which provides a clear roadmap to identifying opportunities and overcoming challenges in the coming years.
The strategy is characterised by a comprehensive approach to strengthening the financial sector, enhancing national economic growth, and achieving financial stability by establishing a robust and efficient regulatory framework. For context, the First Strategic Plan for Financial Sector Regulation 2013-2016 provided a framework for the government to navigate challenges, especially after the global financial crisis of 2007 to 2009. The Second Strategic Plan for Financial Sector Regulation 2017-2022 provided Qatar’s financial community and policymakers with a clear roadmap to navigate the opportunities and challenges ahead of 2022. The legacy of 2022 is fully enshrined in the country’s hosting of the FIFA World Cup Qatar 2022 and the mega infrastructural development aligned with the tournament and the QNV 2030.
The latest plan, on the other hand (third Strategic Plan for Financial Sector Regulation), is based on four fundamental pillars, including the banking and insurance sectors, the digital financial services system, and capital markets. According to authorities, these pillars support five common factors -- governance and regulatory oversight of financial sectors; enhancing the role of Islamic finance; digital innovations and advanced technology; environmental, social, institutional governance, and sustainability; and talent and capabilities. This plan shows the government remains committed to the country’s sustainable development and keeps its promise of diversifying the economy and making Qatar a regional powerhouse in the financial sector. Building a competitive and diversified economy is essential; these strategic plans are designed to steer the country on the right path.
