10 Gulf banks apply for Qatar licence

Date

9/14/2015 2:05:08 AM

(MENAFN- The Peninsula)

DOHA: At least eight to 10 banks from the GCC countries have applied for licence to operate in Qatar and they are likely to get approval before the end of this year.

Some of the banks are seeking the Qatar Financial Centre (QFC) route to enter Qatar while others want to operate outside of it. Since QCB is the pivotal licensing authority all the banks have made their applications to the banking regulator.

Once approval is granted they are expected to meet the necessary requirements complete the paperwork and begin their operations by early next year — sometime by the first quarter.

Al Sharq reported yesterday quoting unnamed sources from QCB that the banks aspiring to be here are from Saudi Arabia the UAE Kuwait Bahrain and Oman.

The top applicants include First Gulf Bank from the UAE and Bank Muscat from Oman in addition to some Saudi and Kuwaiti banks.

Qatar’s decision to allow GCC banks to open branches in its territory is part of a GCC-wide policy to bolster regional economic cooperation in all fields.

The decision is based on reciprocal arrangements. Many Qatari banks have also applied to set up operations in other GCC states as part of their expansion strategy.

The GCC’s top leadership had decided at their summits earlier to permit banks from member-states to operate in one another’s territory to boost regional economic cooperation.

The goal is part of a broader strategy to establish a full-fledged common regional market and a regional currency.

Qatar is providing licence to GCC banks on the condition that they would introduce innovative and non-conventional products and services to help improve the local market.

This aside the banks will contribute to Qatar’s economy in other ways as well — by buying or leasing out property to set up branches and generating jobs.

“After getting approval the banks will naturally be looking for locations to open branches and staffers to man those branches” said Al Sharq.

The demand for banking in Qatar and the rest of the GCC has been going up. So the decision for local banks to expand their activities within the region comes at the right time.

Sources said that before approval is provided to the GCC banks to operate on Qatar’s soil their share in the GCC markets and their financial status will be studied carefully.

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