QCB Governor Praises QFMA's Role in Developing the Qatari Capital Market

Doha, August 04 (QNA) - HE Governor of Qatar Central Bank and Chairman of Qatar Financial Markets Authority (QFMA) Sheikh Abdullah bin Saud Al-Thani praised the role played by the Authority in promoting the march of the financial market in Qatar under the unjust siege imposed on it. "The procedures and decisions issued by the QFMA have played an active role not only in strengthening the functioning of the Qatari capital market under the blockade, but also in delivering more achievements and development of such market as well as making it more resilient to face any sudden fluctuations or Subversive plans may be managed to undermine the development of the Qatari financial markets," HE QCB Governor said. He stressed that "The efforts of the QFMA and financial sector regulators during the second half of 2017 particularly resulted in achieving a record success and addressing the attempts of the unjust blockade imposed on the State to harm the Qatari financial sector". In his message in the annual report of QFMA, HE Sheikh Abdullah bin Saud Al-Thani stressed that the "QFMA plays a significant role and has a great responsibility to contribute in developing the Qatari capital market in line with Qatar National Vision 2030, which is a clear road map for Qatar's future, and aims at balancing the achievements of economic growth with the natural and human resources of the State. This vision is a beacon that guides all official and private bodies for the State's renaissance and development". He pointed that the QFMA, in cooperation and coordination with the financial sector regulators in the State, exerted great efforts during the last period in order to continue in maintaining the Qatari capital market to its leading position in the region and the world, as per stated by several international classifications issued by major specialized agencies and international financial institutions. His Excellency pointed that the results of such classifications is clearly shown in the continued growth of the Qatari market on the emerging market status, after the upgrade from a frontier market on more than one index, to be one of the best and largest financial markets in the region, as well as maintaining an advanced ranking in Financial Market Development Index based on the World Economic Forum's (WEF) Global Competitiveness Report. In addition, the legislations regulating the Qatari capital market issued by the QFMA is considered the best Arab legislations, and within the first and advanced ranks at the international level. He said that the QFMA is exerting great continues efforts to ensure maintaining the achievements and gains of the Qatari capital markets. Moreover, the QFMA still believes that it needs more effort and steps to achieve further progress and prosperity for these markets and for the development of the State of Qatar. He emphasized that Qatar's economy has for several years achieved more successes and achievements that clearly contribute to establish a strong and developed economic structure for the greater achievement of hosting the 2022 FIFA World Cup. Since its inception in 2005, the QFMA has undertaken the task of maintaining the stability of the Qatari financial markets in light of the successive crises facing the global economy in various sectors, especially the energy and industrial sectors. Chief Executive Officer of Qatar Financial Markets Authority (QFMA) Nasser Ahmed Al Shaibi said that The QFMA is working hard to maintain the last period achievements, related to the development of the Qatari capital market. "Despite of a lot of regional and international challenges have been facing the financial markets in the region, the QFMA's efforts in cooperation with all financial sector regulators in the State made the Qatari capital market succeed in overcoming any side effects might affect the market. Such efforts also helped in upgrading the Qatari capital market rankings to advanced positions according to the classifications of international institutions specialized in tracking the performance of capital markets around the world," Al Shaibi pointed. He stressed that the QFMA has achieved a typical success in facing the unjust siege imposed on the State of Qatar with adopting effective measures and policies that have supported the market during the past year. The QFMA's intensive efforts to maintain the capital market gains play an active role towards maximizing such gains and achievements of the capital market in the State. "The QFMA launched its strategic plan until 2022, adopting the best results to serve Qatar's national vision and the financial sector strategy in the State and to achieve the required development in the capital market sector,' he said. Al Shaibi pointed out that QFMA's role is not only limited to issuing procedures and legislation, but also it is continuously pursuing the evaluation of those procedures and legislation to determine their impact on all concerned parties in the market in order to take the appropriate decisions to be developed and updated in a timely manner to achieve the key objective which is to ensure the stability and protection of the market and protect people dealing in the market. He went on saying that "QFMA is moving forward with steady and deliberate steps towards continuing efforts to develop the capital market in the State. Regardless of all the circumstances in the region and all the global economic challenges, the QFMA will continue its efforts for institutional development and capacity building. Such efforts will ensure maintaining the highest levels of regulatory efficiency, thus contributing to enhancing the QFMA's independency and ensuring its strong competitiveness as an active member of the International Organization of Securities Commissions (IOSCO)". The Qatar Financial Markets 2017 Annual Report highlighted Qatar's economy and international classifications, as the State of Qatar used to have high sovereign credit ratings due to the strength of the national economy and financial efficiency, where classified within the high grade list of classifications (AA). Thus, Qatar's sovereign rating is the strongest in the GCC region and among the strongest in the world. Immediately following the unjust siege, the international classification institutions downgraded the credit rating of the State of Qatar, as a precautionary measure by those institutions for any possible effect of such siege. Despite of such action, this decision is currently subject to review by these institutions due to the continuous positive performance of the Qatari economy without being effectively affected by the siege imposed since 5 June, 2017. Accordingly, the State of Qatar was classified at (AA-) according to Standard & Poor's (S&P), and at (AA3) according to Moody's. According to these ratings, Qatar's sovereign rating reflects a high level of creditworthiness and very limited risk. With regards to Global Competitiveness, in 2017/2018, Qatar's economy received the 2nd rank at Arab level and the 25th rank at the international level out of 137 countries, according to the report issued by the World Economic Forum. Moreover, Qatar's economy has been classified among the mostly free category (second category) which included the United States of America and the United Kingdome according to 2017 Index of Economic Freedom issued by The Heritage Foundation. Qatar's economy freedom is ranked the 2nd rank at Arab level and it is ranked the 29th freest at the international level among 180 countries covered by the classification. Qatar's economy has also achieved the 2nd rank at the Arab level and the 29th at the international level in the efforts exerted for anti-corruption, according to Corruption Perceptions Index 2017 of Transparency International, the global coalition against corruption level which covered 180 countries. The QFMA 2017 Annual Report said that the Qatari market still maintain its 2nd rank at the Arab level and the 17th at the level of European countries, Africa and the Middle East, in terms of market capitalization of listed shares according to the World Federation of Exchanges (WFE) statistics. The market capitalization reached USD 129.32 billion as on Dec. 31, 2017. The Global Competitiveness Report 2017 2018 issued by the World Economic Forum's (WEF) shows that Qatari financial markets in general and the Qatari capital market in particular have a top ranking among all Arab markets in the overall ranking of the main index of financial markets development at the 2nd rank at Arab level. In the sub-index relating to efficiency of financial markets development; it ranked the 1st. and came in the 2nd rank among Arab countries in the sub-index of trustworthiness and confidence in financial markets. The index of financial markets development measures to what extent can the financial markets (banks and capital market) collect savings and redistribute and allocate for productive projects with high profitability leading to higher growth rates of the economy and rising welfare levels of the residents. It also measures to what extent can financial regulators provide stability of the financial markets and protection of people dealing in it. The financial markets development are measured according to two basic pillars; these are the efficiency of financial markets in collecting and redistributing savings and the confidence degree of people dealing in financial market in terms of stability of the market and protection of such people. The QFMA's Annual Report also touched on the Second Strategic Plan (SSP) for Financial Sector Regulation 2017-2022, which has been prepared by the QCB, QFMA and Qatar Financial Centre Regulatory Authority (QFCRA) within the overarching framework of the QNV 2030 and the QNDS 2017-2022. The SSP is the key roadmap to guide the State of Qatar in its future endeavors in building a sound and resilient financial sector towards fostering sustainable economic growth. According to the report, the SSP is based on five pillars; - Qatar National Vision 2030, Qatar National Development Strategy, the Strategic Goals for the Financial Sector's Regulation, QFMA's Law and the IOSCO's Objectives. QFMA's strategic plan 2017-2022 is the comprehensive and extensive completion of the QFMA's efforts since its inception which is reflected in the strategic planning process adopted by the QFMA and crowned by its membership in the most important international organizations specialized in the field of financial markets such as IOSCO, and the establishment of Qatar Central Securities Depository (QCSD) as well as the upgrade of Qatar Stock Exchange (QSE) from a frontier market to an emerging market alongside major international markets. According to the report, QFMA's implementation of its strategic plan has helped the international institutions to assess and publish information on the performance of the Qatari market. One of such institutions is the World Economic Forum, which, states in its Global Competitiveness Report 2017-2018 the indicators of the capital markets performance. These indicators confirm that the Qatari capital market is the best and most important financial market in the Arab region and is one of the top ten financial markets in the world in many indicators related to measuring the capital market performance. In addition, the results of indicators of the capital market performance in the Global Competitiveness Report 2017-2018 show that QFMA is moving ahead towards achieving its strategic objectives through an institutional approach based on strategic planning. International reports, including the Global Competitiveness Report, indicates that the QFMA could make the Qatari capital market a competitive market with the largest and oldest financial markets, and to be the best Arab financial markets attracting internal and external investments. This is supported and confirmed by the results of efficiency of financial markets development, in which the Qatari market ranked the first among the Arab and ranked the 10th at the international level and in the regulations of securities markets index in the same report, the Qatari market came at the first rank at Arab level and the ninth at the international level among 137 financial markets. (QNA)