Finance, Insurance, Real Estate, Business Services Contribute 10% of GDP - Al Shaibi

Doha, November 12 (QNA) - The Finance, Insurance, Real Estate and Business Services sector now contributes about 10% of GDP - one of the biggest sectors after hydrocarbons, said Abdulrahman Ahmed Al Shaibi, Managing Director and Board Member of Qatar Financial Center Authority. "Financial services have a major role to play in diversifying Qatar's economy and we have made good progress in that direction. The finance, Insurance, Real Estate and Business Services sector now contributes about 10% of GDP- one of the biggest sectors after hydrocarbons- and we expect it to grow further." Al Shaibi was addressing the MENA Investment Management Forum during which he highlighted Qatar's Place in Global Asset Management - what can Qatar offer to the International and Regional Asset Management Community and what are the plans for future development. "Today, I would like to set out what Qatar offers you, the international asset management community, and what our plans are for enhancing that offer. Qatar is a prime example of the news financial centers which are arising. And I believe it stands out for very good reasons. with hydrocarbon reserves fuelling growth, political and financial stability and a government that has shown vision and inspiration, Qatar is emerging as a solid, dependable partner in a part of the world where sometimes making choices can be difficult. "Qatar's long-term growth is underpinned by the world's third largest reserves of natural gas. In the decade to 2011 the economy grew at a double-digit average annual rate. Growth has slowed and is likely to remain more moderate. But Qatar will continue to be the fastest growing economy in a fast growing part of the world. It is on course to be the second biggest economy in the region after Saudi Arabia. Most important, growth will be sustainable." Helping to promote the expansion of Qatar's financial sector is the principal purpose of the Qatar Financial Centre, Al Shaibi said. "The QFC was established by the Government of Qatar in 2005 with a mandate to support the development of a world class financial services industry in the whole of the country." "We offer investors a legal system based on English common law. The Qatar International Court and Dispute resolution Center has an independent court to resolve disputes between licensed firms and others who agree to bring their case before it and an alternative dispute resolution center. In addition to world-class legal and regulatory regimes, the tax regime is internationally competitive, he said, adding that the tax rate for QFC licensed firms is 10% on profits made in Qatar. There are no social, capital or personal taxes. AFC licensed firms can repatriate their profits and operate in any current, he noted. "This conference is a major event in Doha's financial calendar. It is also a privilege for me to address such distinguished audience which consists of so many influential and leading figures from the world of investment management. "The Middle East and North Africa region is still a relatively small part of the global asset management industry- although it is growing quickly. Global assets under management total more than US $ 100 trillion. About half of the World's AUM is in the United States. Europe accounts for about another third. The majority of the balance is split between South East Asia, Japan and Australia. "According to the Markaz Asset Management and Banking Survey published in April this year, in the GCC there were 100 asset management companies which together had $ 26.5 billion under management," he said. "The picture is similar for the MENA region's stock markets. Their capitalization is around just 2% of global market capitalization." (QNA)