Doha, December 12 (QNA) - HE the Governor of the Qatar Central Bank (QNB) Sheikh Abdullah bin Saud Al-Thani launched the Second Strategic Plan for Financial Sector in Qatar (2017-2022). The Second Strategic Plan for financial sector reflects Qatar's future steps towards building a sound and resilient financial sector that will promote sustainable economic growth.

HE Sheikh Abdullah bin Saud Al-Thani, who is also Chairman of the Qatar Financial Markets Authority (QFMA) and Chairman of the Qatar Financial Center Regulatory Authority (QFCRA), launched the Second Strategic Plan at a ceremony held on Tuesday and attended by HE the Minister of Finance Ali Shareef Al Emadi and a number of officials of the financial sector in the country.

The Second Strategic Plan for financial sector, prepared by QCB, QFMA and QFCRA, has five key objectives: strengthening financial sector supervision and regulatory cooperation, developing financial markets and enhancing financial innovation, maintaining integrity of and confidence in the financial system, enhancing financial inclusion and education, and developing human capital. 

In remarks, HE the Governor said that the second strategic plan for financial sector is an extension of the first strategic plan 2011-2016, which was prepared and implemented with the cooperation and coordination of the monitoring and supervision bodies of the financial sector in the country represented by QCB, QFMA and QFCRA. 

The employees of these entities have made significant efforts to prepare and implement the strategic plan, His Excellency said, adding that this has reflected positively on the financial and banking sector in the country and contributed to the creation of many investment opportunities and attracted foreign capital. He added that markets rebounded and saw noticeable improve over the past years, thanks to th

His Excellency pointed out that the First Strategic Plan for financial sector has been prepared based on the general objectives of the Qatar National Vision 2030 and the National Development Strategy 2011-2016 in order to develop a financial and banking regulatory structure in accordance with the best international standards and practices. That plan was developed in light of the macroeconomic attempt at the time to find a way out of one of the biggest financial crises in the world, and at a time when most of the world's central banks were not sure about the direction that should be taken to get out of that crisis. These banks pursued soft monetary policies to boost the economy and put it back on the right track, as policy-makers has taken proactive and more flexible steps including new measures on liquidity and capital and a range of all the precautionary measures. 

At the regional level, the economic environment has been affected by the global situation during the period from 2008 to 2012, he noted, pointing out that the increase in oil prices during this period and the periods preceding it provided governments with a large surplus of about 11% in GDP during that period. The current account surplus was very large, averaging about 18% of GDP during that period as well, he said. In light of these developments, the State of Qatar sought to strengthen financial capacity to withstand by developing a strategic plan for the financial sector within the overall objectives of economic diversification, His Excellency said. 

HE the QCB Governor noted that the first strategic plan included six main objectives: to strengthen regulation, expand the scope of total prudential supervision, enhance market infrastructure, protect consumers and investors, enhance organizational cooperation and develop human capital, pointing out that this plan was characterized by reviewing the legal structure of the regulatory framework for financial sector in the country. The legislation aimed at unifying this framework under one umbrella, the Central Bank of Qatar as the supreme supervisory authority within the framework of the national strategic vision, has been enacted and followed up with the implementation of policies related to regulation, monitoring and supervision of all financial services and business activities undertaken in the state and in the QFC or through it, as well as policies relating to regulation, monitoring and supervision of all financial markets in the country. It also established the financial stability and risk control committee, which includes representatives of all monitoring and supervisory bodies in the country. 

HE the Governor of the Qatar Central Bank pointed out that the committee is tasked with examining potential risks to all services, business, activities and financial markets and developing solutions and proposals for them. The committee is also responsible to coordinate the regulatory, monitoring and supervisory bodies in the country and to enhance cooperation and exchange of information among them, said, noting that this will help to create a harmonious and cooperative regulatory environment. In addition, the committee proposes policies related to regulation, monitoring and supervision, combating money laundering and financing of terrorism and licensing of activities and financial markets. It has been operating since 2013, contributing to finding many solutions and developing plans and programs to overcome all the difficulties facing regulatory bodies and create a safe environment based on full cooperation and coordination between those bodies. 

His Excellency pointed out that the first strategic plan has achieved many of its objectives. The basic financial structure has witnessed a great development especially in the fields of governance, payment systems, settlements, clearing and others, he said. Financial markets have become more profound and effective, and credit information systems and customer protection mechanisms have been strengthened and activated, HE the QCB Governor pointed out, adding that efforts intensified in this regard, and significant progress has been made in the area of financial stability. The implementation of the strategic plan in the aftermath of the last financial crisis helped the financial sector in the country to overcome the repercussions of that crisis. 

HE the Governor of QCB, Chairman of QFMA and Chairman of QFCRA Sheikh Abdullah bin Saud Al-Thani stressed that the second strategic plan for financial sector in the country comes at a time when an unjust and unfair siege is imposed on Qatar by its neighbors with the intention of damaging the state and its people and its residents and this was clear in the closure of the country's only land port its airspace and sea space, which resulted in the suspension of the flow of goods and foodstuffs through these ports and thus affecting the Qatari economy, but they were disappointed thanks to the wise leadership of HH the Emir Sheikh Tamim bin Hamad Al-Thani, and thanks to the policies adopted by the State, and thanks to the vigilance of its people and residents. The State managed, within a very short period, to overcome the effects of the unjust blockade by opening urgent supply lines with friendly countries and through preparing and making ports and airports ready in a record time to receive ships and aircrafts from different countries of the world. 

HE also stressed that the State of Qatar has impressed the entire world with its ability and quick response to overcome all the effects of the unjust blockade. It also emerged from the crisis with lessons learned, particularly the need for self-reliance, especially in the field of food and essential commodities. The State has provided the necessary and immediate support to the private sector in order to enable it to play its role in bridging the gap at a record speed. This crisis has clearly demonstrated the strength of the Qatari economy and its ability to meet challenges and to overcome all difficulties as all plans, programs and projects implemented by the State are excellent and going according to timetables. 

HE the QCB Governor stressed that the attempts by the siege countries to hurt the State of Qatar and excluded from its Gulf and Arab surrounding have been a total failure. The State of Qatar has remained a symbol in all regional and international forums and an active member of the Gulf Cooperation Council and the Gulf Monetary Union and still participating in all meetings as well as in the work of their respective committees. 

HE noted that the world has witnessed a number of important developments in various fields, especially in the field of information technology through the development of systems and networks and the emergence of new products that brought large digital gains, but at the same time brought with it many risks. Globally, a weak and uneven recovery has led to a divergence of monetary policy among major central banks around the world and a decline in key interest rates. On the domestic level, Qatar Central Bank, in cooperation with the Qatar Financial Center Regulatory Authority, has issued instructions for the insurance sector, which has been under the umbrella of the Central Bank since the beginning of 2013, and also issued corporate governance instructions for insurance companies. Thus, the organization of this vital and important sector has been completed to ensure the provision of insurance and reinsurance services in accordance with the best international standards and practices. 

HE pointed out that in order to achieve balance in light of the growth decline and the financing challenges, the State of Qatar has taken proactive steps prepared in accordance with a fully considered plan based on encouraging the private sector for further development and growth and linking the prices of a wide range of commodities to the market. In addition, an infrastructure program has been implemented covering a number of vital areas as well as focusing on improving expenditure management and developing a medium-term budget approach to improve financial control. Qatar Central Bank has taken several measures to support the economy and protect it from regional and global volatility, the monetary policy is also reviewed from time to time in line with the various developments and the control of liquidity system through the use of a set of tools and policies and there are studies to expand the basic market and take measures to enhance financial stability. 

In the field of information security and protection, HE the Governor explained that all programs and systems have been updated and the best international expertise in this field has been used. In the past years, Qatar Central Bank has organized an annual international conference dealing with all matters related to cybersecurity and information protection, which deals with all issues and with the participation of specialists from various international organizations and bodies, banks, central banks, financial institutions and relevant government agencies. In the area of finance, a number of financing instruments have been introduced in the past period, especially short term instruments and local currency. All Basel III requirements and international accounting standards have been applied. The accounting standard No. 9 is also prepared in coordination with banks operating in the country. 

Concerning combating money laundering and financing of terrorism, HE said that all the systems and programs have been updated in cooperation with the competent international organizations. The qualified cadres have been prepared to enforce the law and applying all legislation. HE also said that he is pleased with the efforts exerted by the State to develop regulations and international cooperation in this area.  

HE the Governor of QCB Sheikh Abdullah bin Saud Al-Thani said that the second strategic plan for financial sector (2017-2022) has five key objectives: strengthening financial sector supervision and regulatory cooperation, developing financial markets and enhancing financial innovation, maintaining integrity of and confidence in the financial system, enhancing financial inclusion and education, and developing human capital. 

He pointed out that these objectives have been carefully formulated taking into account the lessons learned from the implementation of the first strategic plan, as there was a need for greater coordination to complete much work and to create a common base for cooperation, along with the need to issue joint instructions to entities under supervision in a number of areas. The development of financial markets will lead to the creation of more opportunities for lending and investment and helps transform the economy from a system based on bank financing to the non-bank financing system, which will contribute to the activation of the policy of diversification of the economy and achieve the greatest growth. The use of financial technology (Fin Tech) has become necessary in the view of the challenges facing information security globally, so we have to take advantage of financial strengths and work to improve the credit information network and take all precautions to maintain the security and integrity of information in the financial sector. 

His Excellency stressed that integrity and confidence in the country's financial system are necessary to strengthen the financial sector and attract foreign capital. In this regard, all measures related to transparency, governance, consumer and investor protection, as well as dealing with all problems arising from suspicious transactions and financial crimes have been taken, he said, pointing out that the financial inclusion has gained great importance in recent times, and the Board of Governors of the Arab Central Banks in its meeting in April of last year stressed the need to commit to improving and developing the financial coverage because of its great importance in achieving economic development. "Therefore, we focused on this in the second strategy," he added. The aim of the second strategy is to take all measures to implement it, such as financial and banking literacy, promoting best practices of sustainable management, and others. "We hope that the implementation of this objective will help to develop our financial systems and expand their activities in order to contribute to national economy." HE pointed out that human capital is an important element in achieving economic growth, with the same attention as we have shown in the first strategic plan, we reaffirm our focus on and attention to human capital through capacity building, identifying career paths, sponsoring national talent, training and qualifying them for further development and economic growth. 

His Excellency added that achieving the objectives of the second strategy of financial sector faces a number of challenges, about which every efforts must be taken to confront them firmly. These challenges include cybersecurity threats which have increased significantly in the world, which could cause severe damage to the economy. There are also many risks surrounding the work of central banks around the world, especially in the area of expectations and price pressures and behavior of institutions and financial markets and information and data and their direct importance in the process of policy-making and the development of future plans and programs, in addition to some geopolitical fluctuations that have a negative impact on the economy in general. Therefore, such challenges and risks must be addressed and all the procedures and arrangements must be taken to address and confront them to reduce risks.  

For his part, Chief Executive Officer of Qatar Financial Markets Authority (QFMA) Nasser Al Shaibi said that the Authority was established as an independent body with all powers and authorities. It is responsible for organizing and supervising the Qatari capital market under Law No. 33 of 2005, with the conversion of Doha Securities Market to a Qatar Stock market whose main activity is to manage and operate the markets licensed by the Qatar Financial Markets Authority. Since its formal inception, the authority sought to establish regulatory foundations that achieve equity and equality among Qatari capital market participants, ensuring stability and balance in the market. 

Al Shaibi said that the law gave the QFMA many powers aimed at maintaining confidence in the system of trading in financial markets, reducing the risks that may be exposed to it, and protecting owners of securities and customers, in terms of supervision and control, integrity and transparency in transactions and educating public and monitoring transactions, implementing disclosure policies, combating the causes of securities-related crime, conducting studies, statistics and exchanging information. The law also gave the Authority all powers and supervisory powers over all parties related to transactions in the market, whether related to the organization of trades, clearing and settlement transactions, financial services providers or investors in order to promote the principle of fairness and justice in market trading. 

He pointed out that the Authority realized that transforming the Qatari capital market into a regional and international competitive market capable of attracting foreign investment requires diversification of markets and activities.Therefore, the QFMA has established a number of new markets along with the main market such as the emerging market for small and medium-sized companies, the bond and sukuk market and the investment fund market, in addition to securities market of the companies established in Qatar Financial Centre. 

He added that the Authority has added a number of securities to be traded in the market, including government bonds, treasury bills, subscription rights, investment units for funds, bonds and sukuk for listed shareholding companies. The Authority has also made a similar diversification in the financial services provided to investors, where the structure of financial services activities consists of eighteen activities, after it was one activity before the establishment of the Authority. 

Within 10 years of continuous effort, the Authority has managed to establish a diverse legislative base with more than 30 legislations, which were ranked according to the International Competitiveness Report in the first place in the Arab world and the ninth internationally, he said. The Authority has also been able to develop an integrated system of legal enforcement in accordance with the best international standards and practices, consisting of procedures for receiving complaints and investigative and accounting procedures, as well as a system of grievances from penal decisions issued by the Authority. In addition, the QFMA has become an active member of the various local, regional and international organizations concerned with capital market affairs, headed by the International Organization of Financial Market Entities, the Union of Arab Securities Commissions and others. It participates in several local, regional and international committees. The Authority also signed memorandums of understanding with seven Arab and international securities bodies on the exchange of information and experience. 

He stressed that the efforts made to develop the Qatari capital market from the beginning of the implementation of the Authority's decree to date have been based on the reformulation of the Authority's future vision and its mission to all relevant parties, the values that must characterize its employees, and the QFMA's adoption of the strategic planning approach with its main objectives and sub-objectives, projects and timetables for their implementation, taking into account the priorities of modernization and development in the Qatari capital market sector. 

HE added that the QFMA's vision is to promote Qatar's capital markets as a model for financial services. Its mission is to protect investors, maintain stability, integrity and transparency of capital markets, and develop skills and knowledge to support the growth and diversification of the national economy. Its values are the integrity in the application of the highest ethical standards in handling issues, decision-making, excellence, innovation, creativity, reality-based planning and execution, justice, neutrality and independence in dealing with the public and related institutions, the responsibility to make decisions and to implement procedures clearly and transparently and bear the consequences, and the team spirit and cooperative work for the mutual benefit in order to meet the common interests and to preserve the culture and the national values.  

As a continuation of the QFMA's ongoing efforts to support and advance the Qatari capital market and its strategic planning approach, the Authority developed its strategic plan until 2022, the Chief Executive Officer of QFMA said. 

To define its objectives, the QFNA focused on Qatar National Vision 2030, Qatar's National Development Strategy, strategic objectives of financial sector and the provisions of the QFMA's Law, as well as the principles and objectives of the International Organization of Securities Commissions (IOSCO), he said, adding that the QFMA's strategic plan has more than eight goals and more than twenty-three sub-goals, as well as several projects and programs with a specific time and date until the end of 2022. 

Al Shaibi pointed out that the Authority has set its strategic objectives until 2022 in: improving the efficiency of its institutional capacities, raising the efficiency of the legislations regulating the markets, maximizing the performance of financial services companies, developing and improving financial services and products provided to investors, increasing reliance on modern technology tools, upgrading market information security, reducing risks to local markets, supporting cooperation initiatives with regional and international organizations and institutions, and developing human capital. 

The Chief Executive Officer of QFMA stressed the importance of clear mechanisms to implement projects and programs included in the strategic plan, as well as continuous monitoring and evaluation of what is being done to ensure the achievement of the QFMA's strategic objectives and the availability of suitable human resources to achieve and maintain the gains of the Qatari capital market. 

Despite the many achievements attained by the Authority during the last ten years, which placed the Qatari capital market in the ranks of the international financial markets and allowed it to compete and adapt to all circumstances and crises, the QFMA believes that the development and modernization of the market cannot stop but will continue to maintain its achieved gains and international status, Al Shaib said, noting that the Authority cooperates with all parties in the State, and adopts any proposals aimed at further modernization and development and address the legislative shortcomings, if any. 

Chief Executive Officer of the QFCRA Michael Ryan said that the Second Strategic Plan for Financial Sector (2017-2022) is the result of cooperation between regulators and supervisory bodies in recent years, and it sets out for each of these bodies a common and ambitious agenda. 

He pointed out that the policy-makers set the roadmap for the Second Strategic Plan for Financial Sector in order to continue the path initiated by the first strategic plan, taking into account the challenges accompanied the implementation and the lessons learned from them, pointing out that this was reflected in the objectives of the Second Strategic Plan, which are largely in line with those in the First Strategic Plan but with numerous adjustments and new objectives introduced. 

The Second Strategic Plan for Financial Sector includes five strategic objectives, he said. The first seeks to strengthen financial sector supervision and regulatory cooperation, ensuring that the supervisory and regulatory environment in the country conforms to international practices to protect financial stability and ensure long-term sustainable growth, Ryan said, pointing out that the second objective aims to develop financial markets and promote financial innovation. This objective is linked to market initiatives implemented under the first strategic plan, but is much broader in scale and scope. It is one of the key objectives on the agenda of the regulatory authorities that seek to make financial markets more stable while expanding them, he said. 

The QFCRA CEO pointed out that the third strategic objective is to maintain integrity of and confidence in the financial system, especially since building and maintaining the Qatari financial sector is not only important for financial stability but also for maintaining diversity and long-term growth. The fourth strategic objective enhances financial inclusion especially as the role of financial inclusion as a key strategic policy is to contribute to the promotion of sustainable growth, job creation, reduction of inequalities, protection of financial stability, he said, adding that the fifth strategic objective is related to human capital. This objective reinforces the commitment of regulators to the financial sector to build and develop human capital, he said. (END)