Chapter

QATAR

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2004
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(Position as of December 31, 2003)
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.
UnitaryYes.
Classification
Conventional pegged arrangementThe Qatar riyal is pegged to the dollar at QR 3.64 per $1. Exchange rates of commercial banks for transactions in dollars are based on the Qatar Central Bank’s (QCB’s) buying and selling rates. A spread of QR 0.0085 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 Israel are prohibited, as are all financial transactions with Serbia and Montenegro. No other prescription of currency requirements is in force.
Payments arrangements
Regional arrangementsEffective January 1, 2003, the GCC Customs Union came into effect.
Administration of controlThe QCB is the exchange control authority, but there is no exchange control legislation. Import licenses are issued by the Ministry of Economy and Commerce.
International security restrictionsFinancial transactions with Serbia and Montenegro are prohibited. On May 22, 2003, settlements and trade with Iraq were allowed. Previously, these were prohibited.
In accordance with IMF Executive Board Decision No. 144-(52/51)Measures have been taken to freeze the accounts and assets of listed individuals, groups, and organizations associated with terrorism. These measures were taken in accordance with the relevant UN Security Council resolutions.
In accordance with UN sanctionsYes.
Payments 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 with 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 held abroadn.a.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedNo distinction is made between accounts held by residents and those held by nonresidents.
Domestic currency accountsYes.
Convertible into foreign currencyThese accounts may be converted, but approval is required.
Approval requiredYes.
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 Israel are prohibited, as are imports of pork and its derivatives.
Import taxes and/or tariffsIn accordance with the GCC Customs Union, a maximum CET of 5% is applied on most dutiable goods. The customs tariff on steel is 20%, and on alcohol and tobacco, 100%.
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 transactionsYes.
Controls on capital and money market instrumentsNo.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentNoncitizens may engage in simple crafts as well as in commerce, industry, and agriculture. The foreign direct investment law of October 2000 allows up to 100% foreign ownership in the agriculture, industry, health, and tourism sectors.
Controls on liquidation of direct investmentNo.
Controls on real estate transactionsReal estate ownership is restricted to GCC nationals.
Purchase locally by nonresidentsNon-GCC nationals are not allowed to own real estate.
Controls on personal capital transactions
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 2003
Arrangements for payments and receiptsJanuary 1. The GCC Customs Union came into operation.



May 22. Settlements and trade with Iraq were allowed.

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