Chapter

QATAR

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2000
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Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: June 4, 1973.
Exchange Arrangement
CurrencyThe currency of Qatar is the Qatar riyal.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementThe official exchange rate for the Qatar riyal is pegged to the SDR at QR 4.7619 per SDR 1, within margins of ±7.25% around this rate. The Qatar Central Bank (QCB) sets daily rates for the dollar, the intervention currency. Exchange rates of commercial banks for transactions in dollars are based on the QCB’s buying and selling rates. A spread of QR 0.0087 is applied to exchange transactions with the public. The buying and selling rates of commercial banks for other currencies are based on the QCB’s rates for the dollar and on market rates for the currency concerned against the dollar.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketIn the commercial banking sector, importers may purchase foreign exchange in the forward market.
Arrangements for Payments and Receipts
Prescription of currency requirementsAll settlements with Iraq and Israel are prohibited, as are all financial transactions with the Federal Republic of Yugoslavia (Serbia/Montenegro). No other prescription of currency requirements are in force.
Payment arrangementsNo.
Administration of controlThe QCB is the exchange control authority, but there is no exchange control legislation. Import licenses are issued by the Ministry of Finance, Economy, and Commerce.
International security restrictionsFinancial transactions with the Federal Republic of Yugoslavia (Serbia/Montenegro) are prohibited.
In accordance with Executive Board Decision No. 144-(52/51)Yes.
In accordance with UN sanctionsYes.
Payment arrearsNo.
Controls on trade in gold (coins and/or bullion)
Controls on external tradeFor trading purposes, the buying and selling of gold and precious metals require import licenses and are subject to customs duty. Transactions involving Iraq and Israel are prohibited.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedNo distinction is made between accounts held by residents and those held by nonresidents.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsYes.
Convertible into foreign currencyThese accounts may be converted, but approval is required.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresImports of alcoholic beverages, firearms, ammunition, and certain drugs are subject to licensing for reasons of health or public policy.
Negative listAll imports from Iraq and Israel are prohibited, as are imports of pork and its derivatives.
Import taxes and/or tariffsImports are generally subject to a customs tariff of 4%, which is the minimum rate applied by members of the GCC. The customs tariff on steel is 20%; on tobacco, 50%; and on alcohol, 100%. Imports from GCC member countries are exempt from tariffs.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesNo.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentNon citizens may engage in simple crafts as well as in commerce, industry, agriculture, and services jointly with Qatar partners, who must hold at least 51% of the capital. Non citizens may also establish companies specializing in contracting business with Qatar partners, subject to the above conditions, if it is determined that there is a need to establish such companies, or if there is a need for the experience and technology they provide.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsNo.
Controls on personal capital movements
Transfer of assets
Transfer abroad by emigrantsYes.
Transfer into the country by immigrantsYes.
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investorsNo.
Other controls imposed by securities lawsNo.
Changes During 1999
Exchange arrangementMarch 31. The exchange rate arrangement was reclassified to conventional pegged arrangement from pegged exchange rate within horizontal bands.

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