QFC has already met its 2022 objective, says Sheikh Fahad

QNA Doha With more than 1,200 companies joining its platform, the Qatar Financial Centre (QFC) has already succeeded in achieving its 2022 objective of hav...

QNADohaWith more than 1,200 companies joining its platform, the Qatar Financial Centre (QFC) has already succeeded in achieving its 2022 objective of having 1,000 firms under its fold, its Vice President of Financial Services Industry Sheikh Fahad bin Jassim Al Thani has said.In an interview with Al-Watan newspaper, Sheikh Fahad pointed out that QFC saw a 78 percent jump in the number of new firms joining its QFC platform in 2020 over the previous year. As many as 364 firms obtained QFC licence in 2020, compared to 200 registered in 2019, he said, noting that this reflects the record growth witnessed by the centre despite the repercussions of the COVID-19 pandemic.Sheikh Fahad said the passport service for financial institutions represents one of the most prominent new services provided by QFC, and it is “simply like the dual-listing of a company in two exchanges simultaneously”.HE pointed out that Turkey was the first destination to include a travel passport service for financial institutions. If a company is registered in QFC, it would be registered in the Istanbul Financial Centre (IFC) and would have all the advantages in each of the two centres, he said. QFC, he added, is currently studying mechanisms to achieve this vital goal by expanding the implementation of this passport with a number of other financial centres.COVID-19 pandemic has negatively impacted economies around the world, but Qatar managed the crisis in a “professional manner”, he said.Following the outbreak, the country allocated an economic incentives package amounting to QR75 billion to support private sector institutions, including micro, small and medium enterprises (MSMEs), which increased confidence of the business sector and investors, and reflected positively on all companies in the local market, he said.Sheikh Fahad indicated that 2020 saw the QFC’s implementation of support measures in the face of the COVID-19 outbreak, to alleviate financial burdens on companies under its umbrella. The centre has announced support measures to its companies, as it extended deadline to file tax, reduced the rate of the charge due on the late payment of tax (late payment charge) for a specified period, and cancelled the fee imposed on eligible entities in the QFC that choose to be subject to the zero percent Concessionary Rate under Part 15 of the Tax Regulations.He stressed that despite the challenges posed by the COVID-19 pandemic on many sectors, investment opportunities in the digital and technological sector have increased, as QFC platform attracted about 91 new digital firms from diverse countries including the US, the UK, France, Russia, India, Pakistan and others.QFC also continued to leverage its support to other firms in various sectors, namely sports, media and financial services, registering 68 newcomers from these sectors during the past year.He pointed out that the QFC companies’ assets amounted to more than QR61 billion at the end of last year, noting that these companies enjoy many competitive advantages, the first of which is their benefit from the distinctive location of the Qatar Financial Centre, which represents an important link between East and West and is a distinctive platform for these companies to expand their business in a competitive tax environment in the local market.Sheikh Fahad told Al Watan that the centre is a prominent platform that allows registered companies to enjoy competitive benefits, such as up to 100 percent foreign ownership, 100 percent repatriation of profits, 10 percent corporate tax on locally sourced profits, an extensive double taxation treaty network with over 80 countries, a legal environment based on English common law and the right to trade in any currency, in addition to many other advantages of the work environment in the local market, adding that that Qatar Financial Centre contributes 1 percent of Qatar’s GDP, and its contribution to non-oil sector increased to about 1.5 percent, which indicates its important role in diversifying the economy.With a 78% jump in firm under its fold in 2020, QFC sails past its 2020 target of 1,000 firms and stands at 1,200