The Banking The Banking Executive Magazine - June 2024 Issue

QCB His Excellency explained that the launch of the Third Strategic Plan 2023-2027 of QFMA was the starting point and beginning for this new phase, as this plan is based on the key principles of QNV 2030 and de- rives its objectives from both the Third Qatar National Development Strategy (QNDS) and the Third Qatar Financial Sector Strategy (FSS). It aims to achieve the sustainability of financial markets, promote green fi- nancial instruments, and adopt tech- nological and digital developments. The Third QFMAs Strategic Plan in- cludes a set of initiatives and projects that reflect the QFMAs future vision for the financial markets and seeks to achieve the desired goals in the com- ing years and establishes a regulatory framework and infrastructure for the Qatari financial markets to be in line with the best international standards and practices and emphasizes the importance of financial awareness among the market participants. It contributes to the transition towards sustainable financial markets and strengthens the QFMAs local and in- ternational strategic alliances. His Excellency added that 2023 wit- nessed the QFMAs issuance of a set of legislations aimed at accommo- dating the changes in the regional and international financial markets, attracting more Qatari and non- Qatari investors, and reducing the cost, burden and effort on all those dealing with the Qatari financial markets, in addition to unifying the procedures and interface periods, both when opening trading accounts or subscribing to securities or distrib- uting dividends to the beneficiaries investors. QFMA also introduced to the Qatari market for the first time the mechanism for the interim divi- dend distribution during the financial year. His Excellency affirmed that such ef- forts and changes were reflected in the Qatari financial market perform- ance during 2023, as the QSE gen- eral index increased by 1.4% compared to a decrease of 8.13% during 2022, and the market value of listed companies increased by about 2.7% to reach 624.6 QR billion. The influx of foreign investment into the Qatari market continued, with net purchases by non-foreigners reach- ing QR 1.7 billion, contributing to the increase in non-Qatari ownership of Qatari shares listed on the finan- cial market, as well as the increase in the contributions of activities brought to the Qatari financial market by QFMA, such as the activities of mar- ket maker and liquidity provider, which contributed to about 22% of the total value of market trading, amounting to QR 125 billion. Margin trading activity also contributed to about 28.8% of the total value of trading during 2023. His Excellency emphasized that QFMA, in this new phase in its jour- ney towards elevating the Qatari fi- nancial markets to the ranks of developed financial markets, is open to cooperation and coordination with all of the State agencies and par- ties concerned with the Qatari finan- cial markets, as well to share them with all issued legislation for consul- tation, and that QFMA is fully pre- pared to consider and adopt any proposals aimed at developing pro- cedures or removing any obstacles. For his part, QFMAs Chief Executive Officer Dr. Tamy bin Ahmad Al Bi- nali said in his message at the 2023 annual report, that during the next five years, QFMA looks forward to developing an infrastructure for Qatari capital markets that adopts the best international standards and practices, uses the latest technologi- cal methods and programs and arti- ficial intelligence programs, and is flexible and able to accommodate all developments in the international capital markets, as well can confront crises in the financial markets and re- duce the associated risks. Dr. Al Binali explained that in order to achieve the QFMAs future vision, during 2023, QFMA implemented a set of initiatives and projects, includ- ing the launch of the third QFMA's Strategic Plan 2023-2027, which is the beginning of a new phase differ- ent from the stages of development of the previous Qatari capital mar- kets, during which QFMA aims to raise the competitiveness with other capital markets, attract more Qatari and non-Qatari investments, and ad- vance the Qatari financial markets to the rank of developed markets, as well as raise the institutional and technological capabilities and em- power Qatari competencies and ex- pertise. Dr. Al Binali pointed out that QFMA has also implemented new mecha- nisms to facilitate the procedures of the financial market participants, such as the mechanism to facilitate the opening of the investor account from outside the country by allowing the customer to own a bank account in the country of residence subject to a regulatory jurisdiction, as well as the mechanism to facilitate subscrip- tion and trading procedures, by al- lowing one of the parents to trade for the benefit of minor children through the bank account of either of them, or from the bank account of the minor. He said that the QFMA issued a de- cision to form the "Single Window Committee for the Capital Market" in order to achieve maximum facilita- tion and ease for companies wishing to securities offering or listing in one of the Qatari capital markets subject to the QFMA's jurisdiction. The sin- gle window will simplify the proce- dures for such companies by limiting their dealings with only one entity in- stead of dealing with other compe- tent authorities separately, including QFMA, Ministry of Commerce and Industry (MOCI), Qatar Stock Ex- change (QSE), and Edaa (QCSD). QFMA also issued an update to the Dispute Settlement Rules aimed at reducing the costs of arbitration and arbitrators' fees and urging market dealers to use arbitration as a fair and complete means to settle disputes ISSUE 186 JUNE 2024 the BANKING EXECUTIVE 19