“Build a best in class financial sector that protects consumers and investors and fosters innovation and organizational excellence while ensuring healthy, sustainable and inclusive economic growth and development”
Under the auspices of HE Sheikh Abdulla bin Saoud Al-Thani, Governor of Qatar Central Bank and Chairman of Qatar Financial Center Regulatory Authority and Qatar Financial Markets Authority; QCB, QFCRA and QFMA launched the Second Strategic Plan for financial sector regulation (2017 - 2022) in the State of Qatar during the inauguration ceremony held on Tuesday 12/12/2017.
The ceremony was attended by HE the Minister of Finance and a number of officials from the financial sector, as well as executives, businessmen and experts in the country. In the speech he delivered, HE the Governor stated: "The Second Strategic Plan constitutes the roadmap, which reflects Qatar's future steps toward building a sound and resilient financial sector that will promote sustainable economic growth.
First Strategic Plan (2013-2016) major achievements:
The Second Strategic Plan for financial sector regulation is an extension of the First Strategic Plan 2013-2016, which was prepared and implemented with the joint cooperation and coordination of the three regulatory authorities. The employees of these bodies exerted significant efforts to implement the strategic plan, which has positively reflected on the financial and banking sectors in the country, contributed to the achievement of financial stability and the creation of many investment opportunities and attracted foreign capital.
HE pointed out that the First Strategic Plan has achieved many of its objectives. The financial infrastructure has witnessed significant development especially in the areas of governance, payment and settlement systems, clearing and others. The financial markets have become more profound and effective, and the credit information systems have been strengthened and protected. In this regard, significant progress has been achieved in terms of financial stability and overcoming the repercussions of the global financial crisis.
Qatar National Vision 2030 and the second financial sector strategy 2017-2022
HE Sheikh Abdulla bin Saoud Al-Thani, Governor of Qatar Central Bank, stated that the Second Strategy for Financial Sector Regulation (2017-2022) constitutes a new and important building block in achieving QNV 2030. It is a highly developed plan, prepared against the backdrop of a weak and uneven global recovery, divergent monetary policies across major central banks and excessive leverage by both banks and corporates. It also takes into account the new normal for oil prices, the greater interconnectedness of financial institutions and markets, the rapid growth of financial innovation and high technology and the accompanying risks.
Objectives of the Second Strategic Plan (2017-2022)
HE Sheikh Abdullah Bin Saoud Al-Thani stated that the Second Strategic Plan for Financial Sector Regulation in the country (2017-2022) comprises five main goals:
1- Enhancing financial sector regulation and promoting regulatory cooperation
2- Developing financial markets and fostering financial innovation
3- Maintaining integrity of and confidence in the financial system
4- Promoting financial inclusion and financial literacy
5- Developing human capital
HE also noted that these goals have been carefully formulated taking into account the lessons learned from the implementation of the First Strategic Plan, the most important of which are:
1- Coordination and creation of a common base for cooperation, along with the need to issue joint instructions to the entities subject to regulation in a number of areas;
2- The development of financial markets will create more opportunities for lending and investment and help transform the economy from a bank financing system to a non-bank financing system, thereby contributing to a policy of diversification and growth.
3- The use of financial technology (FinTech) has become necessary in view of the challenges facing global information security, which necessitates improving the credit information network and taking all precautions to maintain the security and safety of information in the financial sector.
HE 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 adopted.
HE added that financial inclusion has gained significant importance in recent times and the Second Strategy (2017-2022) focuses on this goal as all related measures will be taken to implement it namely financial and banking literacy, promoting best practices of sustainable management and otherwise.
HE added: “we hope that the implementation of this objective will help to develop our financial systems and to expand their activities in order to contribute to the advancement of the national economy”.
HE stated that achieving the goals of the Second Strategy for Financial Sector Regulation faces a number of challenges, and no effort should be spared to confront them firmly and resolutely. These challenges include cyber security threats, which have increased significantly around the world, as well as the risks surrounding the central banks’ work and its direct impact on policy making and the development of future plans and programs, in addition to the geopolitical fluctuations, which have a negative impact on the economy in general. Therefore, such challenges and risks must be addressed and all measures must be taken to confront them and reduce the risks.