Market Profiles

FII Market Entry Requirements for Qatar

RBC IS operates a segregated account structure in this market.

Please refer to 'Market Account Opening Requirements' for information on the market requirements. Clients are requested to refer to the requirements for information purposes only.

For further information or support around accessing this market, please contact your RBC IS representative.

Client Notice

Please note not all financial instruments and exchanges listed below are available as an RBCIS product offering. Please consult our Terms & Conditions or reach out to your RBCIS representative for further details.

Qatar Stock Exchange (QSE) 
The Qatar Stock Exchange (QSE) was chartered by Emiri Decree No.14 in 1995 as a state funded independent public institution. It was formally inaugurated on May 26, 1997 and began trading the next day. As per Emiri Decree No. 14, all securities trading must be executed through the QSE, which is regulated by the Qatar Financial Markets Authority (QFMA). The QSE was a juristically independent legal entity and has the capacity to dispose of and manage its property. The Qatar Financial Markets Authority (QFMA) was established under Law 33 of 2005 and amended by decree law 14 of 2007 to separate the regulatory function from the QSE and to regulate the capital market.

On October 1, 2013 Qatar Holding, the investment arm of Qatar Investment Authority (QIA), has signed an agreement with NYSE Euronext, whereby it has purchased the balance of NYSE Euronext's 12 per cent stake in Qatar Stock Exchange and has now become the sole owner of Qatar Stock Exchange.

The trading system of the Qatar Stock Exchange () uses an automatic matching system. Both buying and selling brokers input their order through their terminals. The system automatically matches and executes orders with the current bid /ask prices. A combination of security identification code and price is used as the matching criteria. Unmatched orders are deleted from the system at the close of business on their specified expiration date and the brokers receive a confirmation of all matched orders for the day.

Qatar Stock Exchange migrated from its old trading platform Horizon to the NYSE UTP (Universal Trading Platform), which includes enhancements and differences in trading timetable, matching algorithm, order types, validity parameters & conditions, trading safeguards and special trades. This new platform will support trading for Equities and other future planned products.

NB the restriction on market orders being placed during the pre-open and pre-closing sessions has been removed.

ISIN (International Securities Identification Numbering): Yes

Other: ISIN available but only local codes are used for trading in the market.

The Qatar Stock Exchange (QSE) Board of Directors - has replaced the formal QSE market committee and it consists of Board members distributed as follows. QSE Market Committee which is chaired by the Minister of Economy and Commerce (MEC), Government of Qatar. The committee comprises of 11 board members who include the two representatives of the Ministry of Economy and Commerce, the General Manager of QSE, one representative of the Qatar Central Bank, two representatives of the brokers, two representatives of the listed companies, two experts and one representative of the Qatar Chamber of Commerce.

The Qatar Financial Market Authority - was formed in 2005 as the independent regulator of the capital market and to separate the regulatory function from the Exchange. Functions include:

• Market Surveillance
• Market Activity Regulation
• Pre-and post-listing regulations
• Licensing for brokerage firms, custodians &other market participants.

In Qatar, the market is completely scripless and Equities and T-bills and Government Bonds are the only type of security available.

For equities :
Static price range of 10% on each side of the previous day closing auction price (or last traded price if no trade during the closing auction) (this already existed with Horizon).

In addition, there is a dynamic price range of 5% (for the time being, but configurable on as per stock basis based on market conditions) around the last traded price. If an order reaches the dynamic threshold, the API will send an alert back to the customer asking to confirm the order. If the order is confirmed within the next 30 seconds (configurable, too), it keeps trading and a new dynamic reference price is established at the former threshold price, otherwise, the remainder of the order is cancelled. At no time is trading suspended during the 30-second confirmation period.

Government bonds:
The price threshold (Up and Down limits) of government bonds traded on the QSE is 10% within the same day.

QAR

There is no OTC market in Qatar.

Delivery versus payment (DvP)
DvP was implemented in the market in May, 2011. The DvP settlement process is the process through which the transaction is completed by final unconditional transfer of securities from the seller to the buyer (delivery) if and when the final transfer of funds from the buyer to the seller (payment) occurs i.e. in the end of the settlement process (T+3).

Model

• Cash and securities both move on T+3.
• Cash settlement is with the settlement bank directly by the local custodian for accepted trades.
• All trades are accepted or rejected by T+3, 08:00 (local time) which is the Qatar Central Securities Depository (QCSD) deadline.
• Clients have control over the assets in their trading account due to the affirmation process.
• Any error trade can be rejected by the local custodian upon receipt of client instruction.
• The custodian receives all sale proceeds irrespective of trade acceptance or rejection.
• Clear buy-in mechanism as one of the options to correct erroneous sales.
• If matching instructions along with funding instructions (for buy trades) are not received by the custodian by the settlement instruction deadline of T+2, 12:30 pm (Qatar local time) the trade will not be confirmed to the QCSD and will settle under the local broker. If the respective local broker agrees for late settlement the custodian will arrange settlement with local broker directly upon receipt of client’s instructions and funding.
• Investors need to pre-advise their local custodian to move shares from the custody account to the trading account by 07:30 on T+0 morning(if shares are held in the Custody account only) to be able to place sell orders in the market.

For trades confirmed by T+3, 09:00 the movement of stock / cash takes place by T+3, 13:30 as per the following steps:

• By 09:30 local time on T+3, QCSD issues final cash settlement obligation reports to all cash clearing members (custodians and brokers).
• Between 11:15 and 13:00 on T+3, QCB runs cash settlement cycle by processing cash transfers between cash clearing members accounts and sends MT199 to Custodians confirming movement by 13:00 on T+3.
• QCSD at 13:30 will run the daily batch settlement cycle during which legal title will be transferred to the competent parties.

Book-Entry: If the subcustodian has signed a depository agreement with the QCSD and become a depository agent, they can establish an electronic linkage with the depository system which allows them to monitor and control the movement of securities.

Once the Market Identification number (NIN) is allotted then QCSD would open two accounts for each investor (custody and a trading account) for clients who are under a Custodian. The custody account would be under the complete control of the subcustodian and only the subcustodian can move securities from the custody to trading account or vice versa. With the implementation of the DVP model clients have the option of having a single account structure where by only a Trading account can be held under the NIN.

Through the trading system, brokers are only able to access the shares available in the subcustodian trading account of the investor. Each investor would continue to maintain a trading account with each broker which would also be linked to the NIN number of the investor however all transactions in this account would be reflected in the subcustodian's trading account. 

For purchase trades, clients have the option of either leaving the securities in their trading account with the subcustodian or moving them to their custody account. If shares are moved to the custody account, then a pre-advice would be required for sale trades. Therefore, for sale trades clients can give a trade by trade pre-advice or provide us with standing instructions to act based on the pre-advice from their brokers in the market.

If no custodian is appointed, under the investor's NIN there will be one registry account maintained in the depository in the name of the investor and a trading account is opened by the broker. The securities lie in the broker's trading account and the broker has complete control over the clients' securities. 

QSE has appointed the Qatar Central Bank (QCB) as the settlement bank (replacing the Doha Bank) to carry out all cash settlement services between local brokerage firms, custodians and QSE, for trades executed through the electronic trading systems.

QCSD fees

QCSD charges to be levied on trades failing affirmation/confirmation and trades that have failed affirmation/confirmation but settled directly with a local broker on settlement date (T+3) and thereafter. Details advised below:

- For trades that have failed affirmation/confirmation but settled directly with local broker on settlement date T+3, no charge will be levied.

- For trades that have failed affirmation/confirmation but settled directly with local broker on T+4 onwards, QAR100 per trade.

In September 2022, the QFMA have issued new regulations on covered short selling and securities lending and borrowing in the market. 

Authorized persons (market makers / liquidity providers / qualified persons) will be able to sell securities which are either borrowed, or have entered into a borrowing agreement, in order to close out an open short position on the settlement date, in accordance with the rules.

The lender must temporarily transfer the ownership of the securities, or sell them to the borrower, in accordance with the procedures approved, with a commitment from the borrow to return or resell the securities to the lender upon his request, at any time during the timeframe agreed upon.

Turnaround trading is possible in Qatar if both the buy and the sell are executed with the same local broker, this for doing trade directly in the QSE before the trade is settled.

The brokers and custodians take part in the cash settlement process and are responsible for the trades confirmed to the QSE through them.

The Qatar Central Securities Depository

The QCSD – commenced its operations on the 2nd of January 2014. The QCSD has been established as a Qatari private shareholding company and is owned by both Qatar Central Bank (QCB) and the QSE. It has obtained all necessary licenses from the competent authorities in Qatar, including Qatar Financial Markets Authority (QFMA). The QCSD is registered with the Ministry of Business and Trade to carry out the depository, registration, clearing and settlement activities for securities listed on the Qatar Stock Exchange.

The QCSD's functions include:
1. Safekeeping, management, ownership, clearing and settlement of securities and other financial instruments
2. Providing related financial services, including registration, acceptance and transfer of government bonds and Treasury bills (T-bills).
3. Delivery versus payment (DVP) implementation, securities lending and borrowing settlement, management and follow-up of the non-Qatari shareholders' equity, registration and authorisation of exchange-traded funds (ETF)
4. Participation in initial public offerings (IPO)
5. Processing of all off-market transfers (i.e. exempt transfers, free of payment etc), either by inheritance or by court order
6. Pledging and unpledging of shares besides other operations that are currently undertaken by the CRD at the QSE
7. All corporate action events currently available on the QSE website will be announced through the QCSD website that will be announced shortly.

BIS is an international organisation which fosters cooperation among central banks and other agencies in pursuit of monetary and financial stability. The Committee on Payments and Market Infrastructures (CPMI) uses three common structural approaches, or models, to categorise the links between delivery and payment in a securities settlement system.

In Qatar, Model II - Systems that settle securities transfer instructions on a gross basis, with final transfer of securities from the seller to the buyer (delivery) occurring throughout the processing cycle, but settle funds transfer on a net basis, with final transfer of funds from the buyer to the seller (payment) occurring at the end of the processing cycle.

Book-Entry: As all securities are registered under the name of the beneficial owner, ownership is transferred only upon the completion of the settlement process by the QCSD by 13:30 on SD.

Physical: Not applicable.

There is no central registrar. Registration occurs automatically via book-entry at the depository.

The Qatar securities market is 100% scripless where registration takes place automatically via book-entry at the depository on T+3 around 14:00 local time after their batch run is completed.

The trading system of the QSE automatically checks for ownership limits at the point of execution of the trade on the trading system. As such there are no disclosure requirements advised by the exchange in the Qatar Stock Exchange Rule Book.

QSE discloses on its website the shareholders who own 5% or more in any of the listed companies. 

Furthermore, QSE discloses on its website the shareholders who have purchased net intraday 1% or more of a listed company's capital. This disclosure is based on instructions received by the QSE from the regulator, the Qatar Financial Markets Authority (QFMA).

For more on the limits for each company, please refer to the Qatar Stock Exchange website. Daily reports are published by the exchange.

QCSD has issued two disclosure forms to be used by investors for the disclosure of shares owned indirectly or directly in QSE listed companies, shares in excess of the percentage stipulated in the Articles of Association of the QSE listed company should be disclosed. 

The two disclosure forms to be completed by the investors are as follows:

• Disclosure to be made by the investor who indirectly own shares in the listed companies (applicable form to be used).
• Disclosure to be made by the investor who breaches the ownership percentage and conditions in listed companies directly or indirectly (applicable form to be used).

The deadline for disclosure to the QCSD is March 21, 2017. Breaches which are committed prior to the effective date, i.e. prior to March 21, 2016, the excess shares should be disposed by the transfer of Ownership Right.

Buy-in processing is a feature available in QSE's Post -trade system for the purpose of attempting to correct sell trades that are in a state of Apparent Failure. This process enables registered investors to participate in the Buy-in market by submitting bids on the failing trades. 

Any investor with a NIN can place a bid/offer in the Buy-in market subject to being pre-authorised by QSE. Investors need to pre-advise their custodian of interest in participating in the Buy-in market to ensure pre-authorisation status is obtained (the authorisation process is still subject to QSE confirmation). Once the authorisation process is complete clients need to instruct their broker for the execution of trades. 

On T+3, 09:00 if the Custodian rejects a sell trade, QCSD will reverse the settlement obligation of such trades from the customer to the broker's own account. In case there are no enough shares to cover, the trade will be moved to the broker's SPA creating a negative entry and flagging it as Apparent Failure. Negative trades appearing in the SPA may be placed by the broker from T+4 in the Buy-in market on the Equator system between 08:00 – 08:30 (local time). 

All flagged trades for Buy-ins will be displayed on a special screen on the Equator system. The Members use this special screen to view and maintain any bids for open Buy-ins. Members can pick up the trade(s), the price, the account and quantity they want to bid at. They will need to enter an account with sufficient inventory to replace the failing trade account. At this point, the original failing trade(s) record will be deleted and new record(s) will be added to the trade of the bidding account. The buy-in trade will have a settlement cycle of T+0. 

The Buy-in market trading procedures can be summarised by the following:

1. Conducted daily for 30 minutes prior to market open from T+4 to T+6.
2. Minimum and maximum of the Buy-in price shall amount to 10% of the previous day's closing price (following the same rule for regular and special market).
3. Sellers in the buy-in board will be matched on the lowest price to the highest price (price priority only).
4. Securities settlement shall be immediate (T+0).
5. Cash settlement shall be carried out between Members on the same day based on the payment instructions issued by QSE.
6. Trade is invalid on T+7. Trade therefore, needs to be cancelled or cancelled and rebooked with a new TD and SD if agreed to proceed with the transaction.

A sale trade rejection is categorized by the exchange as either
Real rejections that lead to a potential cash compensation (cash-close-out with the buyer/s) and
Rejections due to late confirmations at client's end.

Real rejections that lead to a potential cash compensation (cash-close-out with the buyer/s) received from clients by confirmation deadline (T+2, 11.00)

For error sale done by the local broker, the client has the option of rejecting this sale trade by T+2, 11.00 am (confirmation deadline of the subcustodian) the rejection should be explicitly provided by the client stating that they do not recognize the trade and the sub-custodian should reject the trade. This will be considered as a real rejection.

• Rejections on T+1 & T+2 can be entered any time during the day up to max 1 pm, (which means rejections entered before trading opens or after trading starts & up to 1:00 pm), in both cases shares of the original seller will be available for trading the next morning. However any rejection received after 1 pm on T+1, shall only be processed on T+2, Hence shares will be available on T+3 and rejection received after 1 pm on T+2, will be processed on T+3, Hence shares will be available on T+4
• If the rejection is received from the client on T+3 before the trade confirmation deadline of the Exchange, on a best effort basis the local subcustodian will communicate the same to the Stock Exchange and the shares of the client will be credited in their account on the next working day i.e. T+4, these shares will be available to the client for trading on T+4 and the obligation of settling this sale trade will move to the selling local broker

In the above cases of real rejections, QCSD shall execute the rejection on the post-trade system; accordingly the securities will be available in the client's (sellers) account (not sold or restricted) and not to be delivered to the selling broker for settlement. The shares will be available to the sellers as of the following business day after executing the rejection on QCSD's Post– trade System. QCSD would place a hold or block in the account of the buyer/ s of these shares. As turnaround trades are permitted in the event the first purchaser has sold the shares, the Exchange / QCSD has the capability of tracking the ultimate buyer/ s of the shares and will accordingly place a hold or block in the account of the buyer/s. The buy leg will be failing till resolved by the selling broker.

The selling broker, in this case, shall have the settlement obligation to provide the securities to be available in his account before T+6 through any of the following:

• Own portfolio, if sufficient balance exists;
• Buy from the market on T+3.
• Buy-in market on the Exchange (T+4 to T+6)
• Securities Lending and Borrowing.

In the unlikely event that the selling broker cannot provide the securities through any of the above, then the selling broker is required to compensate the buyer / buyers through a cash close-out mechanism. 

Compensation as per the cash close-out section of the Exchange manual
The selling broker will pay the buyer / buyers an amount equal to the value of the original transaction plus 5% of the value of the original transaction with a minimum of QR 10,000 (ten thousands Qatari riyals) and a maximum 1,000,000 

OR

The value calculated on the basis of the last closing price of the securities (T+6) whichever is higher. Without prejudice to the right of the buying customer to resort to Qatar Financial Markets Authority (QFMA) for further legal procedures and financial compensations, if any.

Rejections due to late confirmations at client's end

If no instructions are received from the client or there is a mismatch in trade instructions received, whereby the trade has been rejected or not confirmed by the local subcustodian to the QCSD by the confirmation deadline on T+3, the existing process will continue i.e. QCSD shall execute the rejection on the post-trade system; accordingly the securities will be flagged / blocked in the sellers account and tagged as not to be delivered to the selling broker for settlement on T+3.

In cases where clients send matching instructions, QCSD will reverse the rejection upon the receipt of the late confirmation from the subcustodian and the broker and arrange to settle the trade.

Real rejections received from clients post confirmation deadline (T+3, 9.00) or No instruction received from client or mismatches not resolved.

In cases of real rejections of sell trade post confirmation deadline or in cases where we do not receive trade instruction or mismatch in instructions. QCSD shall execute the rejection on the post-trade system; accordingly the securities will be flagged / blocked in the sellers account and tagged as not to be delivered to the selling broker for settlement on T+3. The broker, in this case, shall have the settlement obligation to provide the securities to be available in his account before T+6 through any of the following:

• Own portfolio, if sufficient balance exists;
• Buy from the market on T+3
• Buy-in market on the Exchange (T+4 to T+6)
• Securities Lending and Borrowing.

In the unlikely event that the broker cannot provide the securities through any of the above, then the clients (sellers) shares are withdrawn from their account and the selling broker will compensate the seller through a cash close-out mechanism. There is no impact to the buyer/s of these securities as they have been credited with the securities on normal trade settlement date i.e. T+3.

Compensation as per the cash close-out section of the Exchange manual
The selling broker will pay the client (seller) an amount equal to the value of the original transaction plus 5% of the value of the original transaction with a minimum of QR 10,000 (ten thousands Qatari riyals) and a maximum 1,000,000 

OR

The value calculated on the basis of the last closing price of the securities (T+6) whichever is higher. Without prejudice to the right of the selling customer to resort to Qatar Financial Markets
Authority (QFMA) for further legal procedures, if any.

In September 2022, the QFMA have issued regulations on covered short selling and securities lending and borrowing in the market. 

All broker members of the QSE are allocated a net cash-trading limit equal to the value of their guarantee. A broker cannot execute a buy order if its amount will result in a net position that exceeds the broker settlement cap, which is derived from the total guarantees and insurance policies provided by the broker. In the event of a default, the QSE has the right to call upon the guarantee. A broker is not permitted to trade above their trading limit but can apply to have the guarantee increased.

In Qatar, market participants maintain several guarantees with the QCSD  as follows:

• Initial guarantee: A valid unconditional bank guarantee issued by a bank operating in the state of Qatar in favour of QCSD, for QAR20 million.
• Reserve guarantee: A valid unconditional bank guarantee issued by a bank operating in the state of Qatar in favour of QCSD, for QAR5 million.

Supplemental guarantee: A broker wishing to enter into transactions giving rise to a net settlement obligation in excess of the settlement limit (QAR25 million) must provide the QCSD with a valid, unconditional bank guarantee issued by a bank operating in the state of Qatar in favour of QCSD for an amount equal to 100 per cent of any proposed net settlement obligation in excess of the broker's settlement limit.

The local subcustodian's KYC due diligence process is designed to comply with regulatory requirements and to minimise client use of their services for money laundering and/or illegal or manipulative practices. The KYC policy includes procedures for customer identification and verification at account opening which are in line with FATF standards; establishing the source of the client's funds at account opening as well as methods for ongoing monitoring of transactions; and a process for reporting suspicious activity to the Financial Crimes Enforcement Network (FinCEN) in accordance with U.S. regulations 31 CFR Part 103.21. They comply with the Office of Foreign Assets Control (OFAC) Regulations and also undertake training of relevant staff in anti money laundering procedures and maintain records in accordance with New York State and federal law.

This is an FII market. Please contact your RBC Investor Services' Client Manager before making portfolio investments.

The Qatar securities market is a beneficial owner market. Hence, all securities and cash accounts are opened and maintained in the name of the beneficial owner. In the depository system at the QCSD, custody accounts are opened in the name of the beneficial owner. 

A new investor is issued with a unique identification number at QCSD known as the NIN, which acts as their account number at the depository. Existing investors simply quote their client number at the time of placing their order with the broker. The shares held in this account represent the identification ownership of the investor.

The main documents to be submitted to the QCSD along with the account opening request in order to obtain a NIN account for Non-residents are as follows:

For Companies/Funds

1. The Certificate of Incorporation or equivalent document issued by the competent authority in the country of origin. For funds that don't normally get incorporated, a registration document from the local regulator can replace the Certificate of Incorporation. Funds should also provide a copy of their prospectus.
2. Companies/Funds should also provide a copy of their Memorandum or Articles of Association.
3. The authorized signatory list of the client on their official letter head.
4. Power of Attorney. The POA is required to be signed by the authorized signatory, whose name is appearing in the authorized signatory list.
5. UBO Letter
6. Identify at least one director of the fund from the prospectus or supporting documents provided. If the director is a corporate, they should identify at least one director (natural person) of this corporate.

For Partnerships Firms and Associations

1. Same documents as stated under Company above.
2. Certified true copy of the Partnership Agreement or Deed of Association, which will advise on the directors and partners of the company.
3. UBO Letter
4. Identify the name of the general partner. If the general partner is a corporate, they should identify at least one director (natural person) of the corporate.
5. "

For Trusts

1. The Certificate of registration and Deed of Trust or Trust Agreement that clearly shows who the Trust and Trustee(s) are and the powers assigned to each. If the Deed does not have that information, then any other document that has it must be provided.
2. Name of the Financial Advisor and Custodian of the Trust. This information should be in the supporting documents or provided separately.
3. If the account is opened in the name of a series (fund) of the Trust, then QCSD will need to see the Prospectus of the Fund.
4. Employer Identification Number (if applicable).
5. The authorized signatory list of the client on their official letter head.
6. Power of Attorney. The POA is required to be signed by the authorized signatory, whose name is appearing in the authorized signatory list.
7. UBO Letter
8. Identify the settlor (name of the trust) and the name of the trustee/s. If the trustee is a corporate, they should identify at least one director (natural person) of the corporate.

Government entities

1. Power of Attorney under the name of the end-beneficiary.
2. Authorized signatory list.
3. "Any one of the following:
4. Formation through Constitution
5. Formation through Federal law/Resolution
6. Formation through Royal Decree
7. Letter from the Ministry of Economy or the Central Bank of the country stating that this company is a formed body/entity
8. UBO Letter

For Individuals

1. Copy of the passport, ID and/or residential address proof
2. Power of Attorney

The above documents should be notarised or certified by Global Custodians/Prime Brokers' authorised persons within their entity. Certification should happen by Global Custodian or Prime Brokers in the country of origin where underlying client is domiciled.

Note:

UBO refers to Ultimate Beneficial Owner

The above documents pertain to the final beneficial owner in whose name the account is opened with QCSD.

Non-Qataris are now permitted to purchase 49% of the total company shares. IPOs which involve dis-investment of government holdings are restricted to Qatari investors only while IPOs of private companies may, after necessary approvals, be allowed to foreigners. Further, companies have individual ownership limits which are applicable to all classes of investors.

The Qatari riyal is freely convertible and sales proceeds/dividends can be remitted overseas based on clients instructions in most of the major currencies.

There are no FX restrictions in Qatar and the Qatari Riyal can be freely converted to most major currencies and repatriated.

There is only one cash clearing system, which is operated and controlled by the Qatar Central Bank. All banks operating in Qatar are linked to the cash clearing system. Currently, there are 17 commercial banks operating in Qatar. All these banks maintain local currency accounts with the Qatar Central Bank. 

Effective July 1, 2010, Qatar Central Bank implemented the new payment system called QATCH in Qatar. The new payment system was introduced with the aim of automating the clearing of local currency electronic payments to facilitate efficient processing of transactions for payments meeting the following criteria:

• local currency (QAR) transfers within Qatar
• value per instruction is equal to or less than QAR 250,000.

Inter bank payments are settled by the Qatar Central Bank by debiting/crediting the corresponding bank's account. In February 2003, the Qatar Central Bank introduced the Electronic Cheque Clearing system, by which cheques were cleared on the basis of a scanned image. This system has resulted in funds being made available to the depositor on the same working day, rather than the previous three days under the manual clearing system. Payments are processed in an automated environment. SWIFT is used to settle inter-bank payments.

The Central Bank of Qatar introduced the mandatory use of the International Bank Account Number (IBAN), for all inward and outward remittances, effective January 1, 2014.

Overdraft facility is not permitted in Qatar for securities transaction.

In Qatar, entitlements are calculated based on the traded positions on the record date.

The dividend entitlement is based on the record date, which is normally one day prior to the date of the AGM (Starting 1 January 2018, the AGM date will be considered as the record date). There is no concept of ex-date in the market. All trades are settled at the depository on record date and no trade is left in pending status. The cash settles independently on T+3 at the settlement bank between the direct participants. This ensures that there are no market claims.

The length of time between record date and pay date can be two weeks. Please note that there is no fixed pay date in Qatar, it depends on the company and is generally made within two weeks after the Annual General Meeting (AGM) date.

No frequency can be identified, as recently some companies have been seen giving interim and half yearly dividends and it varies from company to company. Peak payment season for dividends is between February to May. Cash dividends are paid directly by the issuer via cheque or direct dividend mechanism. Cheques are issued in favour of client and upon receipt the subcustodian deposits into the client account.

A direct dividend mechanism was introduced by the exchange with effect from October 2011. Accordingly the subcustodian provided the bank account details to the exchange to enable them receive the dividend credit directly from the company instead of cheques payments. Majority of the cash dividends are now received through Bank transfer.

Interest on Government Bonds is paid bi-annually.

Not applicable

The QSE website is considered as the official source of Corporate Actions information.

Entitlement is based on the traded position as of record date. Record Date is one day prior to the date of the Annual General Meeting (AGM) / Extraordinary General Meeting (EGM) however starting 1 January 2018, the AGM date will be considered as the record date. Ex-date is not applicable and not defined by companies and there is no fixed pay date. 

Entitlements arising from corporate events are paid according to the traded position as on record date. Trading is suspended on the day of the AGM and resumed on AGM+1 day for dividends and for bonus issues on AGM+ 2.

In Qatar, the company decides on the dates and the information is passed through the QSE within two to three weeks prior to the record date. This will give time to the company and subcustodian to process any corporate action issue.

In Qatar, to vote as a proxy, the person has to be a shareholder of the company to attend the AGM / EGM. Also the proxy cannot represent more than 5% of the company share capital and 25% of the shares represented at the AGM / EGM.

All trading in the shares is suspended on the meeting day and trading resumes on the next day. Starting 01 January 2018 this trade suspension on AGM/EGM date will be removed. Trading to continue unaffected.

Agendas are required to be provided in a meeting announcement and are available in Arabic and English.

The meeting results are required to be published at the QSE, and sent to the Ministry of Commerce.

These are available and are sent to the registered address of the shareholder as maintained at the QSE.

A POA is required from the beneficial owner to vote. The POA must be notarised or certified by the Global Custodian/Prime broker in the investor's resident country.

Article 164 of the Commercial Companies Act states that an attorney may attend the general assembly meeting under the condition that they themselves are a shareholder. No shareholder except for a legal entity, whether on their own behalf, or in their capacity as proxy for other shareholders, may cast votes representing more than 25% of the shares represented at the general assembly in person or by proxy.

Currently, there is no withholding tax related to securities trading or holding enforced in Qatar. Under the Qatar Income Tax Law, No 21 of 2009, Dividends and other income received from listed companies at the exchange is tax exempt.

On 15 September 2014, Law No. 17 of 2014 (the Law) was signed by the Emir of the State of Qatar, extending tax exemptions that apply to entities and investment funds that are listed on the Qatar Stock Exchange, and to non-Qatari investors who invest on the Qatar Stock Exchange.

The Law extends the tax exemptions that were previously provided for under Law No. 20 of 2008. As a result of the Law   becoming effective, Law No. 20 of 2008 is now revoked.

Under the provision of the Law, the following shall be exempt from tax:

• Profit of entities that have their shares listed on the Qatar Stock Exchange that is attributable to foreign (i.e., non-Qatari) investors
• Profit of investment funds that have their units listed on the Qatar Stock Exchange that is attributable to foreign (i.e., non-Qatari) investors
• Any gains arising from the sale, transfer or exchange of securities or units in investment funds that are listed on the Qatar Stock Exchange

Effective date
The Law is effective from the date of publication in the Official Gazette. Accordingly, Law No. 17 of 2014 was published in the October edition of the Official Gazette and is now effective.

On December 13, 2018, a new Income Tax Law No. (24) Of 2018 came into effect replacing Law No. (21) Of 2009.

The law has retained most features and provisions of the previous law. Qatar will retain a territorial tax system with a corporate tax rate of 10%.

The key changes which impact non-resident investors are provided for your information:

-  The 7% withholding tax rate has been removed and a single withholding tax rate of five per cent would apply to payments made to non-residents for royalties and services that are rendered in Qatar.

- The exemption from tax for profits attributable to non-resident investors in securities listed in the Qatar Stock Exchange, as well as gains arising from trading the shares or units of such companies or funds, has been moved from a special law into the Income Tax Law. 

Clients are requested to seek guidance from a professional tax consultant on all tax related matters.

Please refer to the above.

Currently, there is no capital gains tax on sale of securities enforced in Qatar.

There is a territorial tax system with a corporate tax rate of 10% in Qatar.

A single withholding tax rate of 5% applies to payments made to non-residents for royalties and services that are rendered in Qatar.

Not applicable

None

Qatar Holiday Calendar

• Qatar Stock Exchange www.qe.com.qa
• Ministry of Business and Trade www.mec.gov.qa