Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

QATAR

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: June 4, 1973.
Exchange Measures
Restrictions and/or multiple currency practicesInformation is not publicly available.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)In accordance with the relevant UN Security Council resolutions, measures have been taken to freeze the accounts and assets of listed individuals, groups, and organizations associated with terrorism.
Other security restrictionsYes.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Qatar is the Qatar riyal.
Exchange rate structureUnitary.
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 buying and selling rates of the Qatar Central Bank (QCB). 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.
References to legal instruments and hyperlinksn.a.
Arrangements for Payments and Receipts
Prescription of currency requirementsAll settlements with Israel are prohibited. No other prescriptions of currency requirements are in force.
Controls on the use of domestic currencyn.a.
Use of foreign exchange among residentsn.a.
Payments arrangements
Bilateral payments arrangementsn.a.
Regional arrangementsQatar is a member of the GCC Customs Union.
Clearing agreementsn.a.
Barter agreements and open accountsn.a.
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.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
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.
References to legal instruments and hyperlinksn.a.
Resident Accounts
Foreign exchange accounts permittedNo distinction is made between accounts held by residents and nonresidents.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadn.a.
Accounts in domestic currency convertible into foreign currencyYes.
References to legal instruments and hyperlinksn.a.
Nonresident Accounts
Foreign exchange accounts permittedNo distinction is made between accounts held by residents and nonresidents.
Domestic currency accountsYes.
Convertible into foreign currencyThese accounts may be converted, but approval is required.
Approval requiredYes.
Blocked accountsNo.
References to legal instruments and hyperlinksn.a.
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.
References to legal instruments and hyperlinksn.a.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licensesNo.
Export taxesNo.
References to legal instruments and hyperlinksn.a.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
References to legal instruments and hyperlinksn.a.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksn.a.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsNo.
Controls on capital and money market instruments
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsA limit of 25% on ownership applies to nationals of other countries.
Sale or issue locally by nonresidentsThe issuance is subject to approval.
Bonds or other debt securities
Sale or issue locally by nonresidentsThe issuance is subject to approval.
Controls on derivatives and other instruments
Sale or issue locally by nonresidentsThe issuance is subject to approval.
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 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, with limited exceptions. Effective January 1, 2006, a new law went into effect giving nationals of other countries (including the GCC) the right to own real estate in specific areas. This right is subject to renewal.
Purchase locally by nonresidentsYes.
Controls on personal capital transactions
Transfer of assetsControls apply to all these transactions.
References to legal instruments and hyperlinksn.a.
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutionsNo.
Provisions specific to institutional investors
Pension funds
Limits (max.) on securities issued by nonresidentsn.a.
Limits (max.) on investment portfolio held abroadYes.
Limits (min.) on investment portfolio held locallyYes.
Currency-matching regulations on assets/liabilities compositionYes.
Investment firms and collective investment funds
Limits (max.) on securities issued by nonresidentsYes.
Limits (max.) on investment portfolio held abroadYes.
References to legal instruments and hyperlinksn.a.
Changes during 2006
Capital transactions
Controls on real estate transactionsJanuary 1. A new law went into effect giving nationals of other countries (including the GCC) a renewable right to own real estate in specific areas.

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