Specifics of banking in Qatar

Qatar has experienced impressive economic growth over the past few decades, largely due to revenues from natural gas and oil production. For this reason, the country has been increasingly upgrading its financial and banking system to make it more efficient and secure.

Banking System of Qatar

The Qatar Central Bank (QCB) is the government's bank and the monetary authority for the country's banking and financial system. The bank was founded in 1973 as the Qatar Monetary Agency. Its role is to supervise banks and financial institutions, manage monetary policy, and oversee the financial and insurance systems.

As the country's economy has made tremendous progress in recent decades, supported by the government's free market policies, Qatar has developed an extremely efficient, sound, and safe banking and financial system to protect the country's interests. Despite its rapid growth, Qatar's banking system is still small in terms of market size compared to other countries.

Banks play a central role in supporting economic development by providing credit and financial services. In addition, the Qatari authorities support domestic banks with direct investment where necessary.

According to the website of the Ministry of Foreign Affairs, there are currently 20 commercial banks operating in Qatar: 12 national banks (including 4 Islamic banks) and 7 international banks. They operate through 223 local branches, and the Qatar Central Bank controls all of them.

Major banks of Qatar

• Qatar National Bank (QNB) is the country's largest commercial bank and lender by profitability, deposits and assets, and the largest financial institution in the Middle East by total assets. Its market share is more than 55% of the banking assets of all banks in Qatar. The bank was founded in 1964 and currently employs more than 28,000 people. QNB operates an extensive network of 1,200 branches and 4,300 ATMs.
• Commercial Bank of Qatar is the largest private bank in Qatar. It is the third largest bank in the country by assets. CBQ was founded in 1975. It has wholesale and retail banking divisions with over 2,250 employees. CBQ operates 29 branches and 179 ATMs across the country.
• Doha Bank is one of the most international commercial banks in Qatar. It has international branches in Dubai, Abu Dhabi, Kuwait and Mumbai, as well as representative offices in Australia, Singapore, Canada, Germany, Japan, China, Hong Kong, South Africa, South Korea and the United Kingdom. Doha Bank operates a retail network of 27 local branches, nine e-branches and 110 ATMs.
• Qatar Development Bank
• Ahli Bank

Islamic Banks in Qatar

Islamic banking institutions are based on the principles of Sharia (Islamic law). Since 2011, only Sharia-compliant banks can offer Islamic banking services, but both Muslims and non-Muslims can access them. Islamic banks in Qatar:

• Qatar Islamic Bank (QIB) is the largest Islamic bank in Qatar and the second largest bank in the country by assets. Founded in 1982, it now holds over 40% of the Islamic banking market. The bank has 30 branches in Qatar and employs approximately 1,000 people.
• Masraf Al Rayan is the second largest Islamic bank in the country.
• Barwa Bank is the youngest Islamic bank in Qatar, founded in 2008.
• Qatar International Islamic Bank (QIIB) is a private Islamic bank.

International Banks in Qatar

Foreign banks established in Qatar are licensed by the Qatar Central Bank or the Qatar Financial Centre Regulatory Authority (QFCRA). While the Qatari government allows QFCRA-licensed foreign banks to establish a physical presence and conduct most banking business in the Qatar Financial Centre (QFC), including providing Sharia-compliant banking services, these foreign banks are not allowed to offer certain retail banking services outside the QFC.

• Bank Saderat Iran
• Barclays Bank
• BNP Paribas
• HSBC Bank Middle East
• Mashreq Bank
• Standard Chartered Bank
• United Bank Limited

Operating Hours of Banks in the Country

In general, banks in Qatar are open from 7:30 am to 1:00 pm — Sunday to Thursday. However, some banks - such as HSBC and some branches of QNB and Al Sadd in downtown Doha - are also open on Fridays and Saturdays. Banks in shopping malls have more flexible hours and are often open from 10:00 a.m. to 10:00 p.m.

Types of Banking

Digital/Online Banking: Qatar’s banks offer innovative e-banking services that are among the most advanced in the world, including a full range of internet and mobile banking services, contactless mobile payments, and numerous e-payment technologies for merchants. Most banks offer a simplified registration process for these services. You don’t need to go to a branch to register if you have a debit card.

Mobile Banking: Many banks offer mobile banking to customers, and this can be done through an app that is available for all devices and can be downloaded from any app store.

Business Banking: All major banks in Qatar offer a dedicated business account. However, before opening a corporate bank account, you will need to obtain Commercial Residency (CR) — a document proving that you have a legal entity — and pay all applicable fees.

Types of Bank Accounts

Current Accounts: This type of account is used for everyday banking, and the interest rates paid are usually low. They usually have no monthly fees as long as a minimum balance is maintained (around QAR 3,000). Some banks offer unlimited transactions.

Savings Accounts: Generally, savings accounts pay a higher interest rate than current accounts, but lower than fixed deposit accounts. Withdrawing money from savings accounts is easy, but your bank may only allow you a maximum number of withdrawals per month — after which it will likely charge a fee. Most savings accounts require a minimum balance of around QAR 5,000.

Fixed Deposit Account: This account is mainly for long-term savings and usually offers higher interest rates than checking or savings accounts. These accounts require a minimum balance of around QAR 20,000. You may not have access to your money until this account matures. You can open savings or deposit accounts at any retail bank in Qatar.

Overdrafts: Before writing a cheque in Qatar, you must ensure that you have sufficient funds in your account, as writing a cheque without them is considered a serious criminal offence. Unauthorized overdrafts carry significant penalties.

Offshore Accounts: In addition to extremely low or no currency exchange fees, an offshore account has low taxes and, in most cases, offers a multi-currency debit card, which is ideal for the global citizen. Other benefits an offshore account can offer are transactions made in several different currencies, full access no matter where you are in the world, and 24/7 access and assistance. Some banks provide offshore banking services, but the type of account may vary. In Qatar, you can find this service at HSBC Qatar, PNB Paribas, and Standard Bank.

Opening a Bank Account in Qatar

If you are starting your own business, you should open an account with a local bank. Since the introduction of the salary system in Qatar, all employees working in the country must have their salary paid into a Qatari bank account in Qatari currency.

Opening a bank account in the country is relatively easy. You can apply for a bank account online before arriving in the country. However, you must provide in person all of the following documents required by the bank:

• A copy of your passport (personal information and visa pages);
• A copy of your residence and work permit;
• A no-objection letter from your employer stating your monthly salary;
• Two passport-size photographs.

How to Open a Corporate Bank Account in Qatar

It may take up to four weeks for your corporate bank account to be opened and operational. You will need the following documents:

• Corporate Trading License
• Certificate of Incorporation
• Share Certificates
• Memorandum and Articles of Association
• Board of Directors Resolution authorizing the company officer to open the account
• Copies of passports and residence visas for shareholders and authorized persons

Bank Fees in Qatar

Generally, current accounts in Qatar are not subject to administrative fees as long as you maintain a minimum balance in the account. However, you will have to pay a fee when you:

• create standing orders with other banks in Qatar or abroad;
• issue payment orders;
• replace damaged or additional cards;
• withdraw cash from ATMs outside Qatar;
• pay annual fees for a credit card;
• request a new cheque book. 

According to Sharia, charging interest is prohibited in Islamic institutions, so as a result, a fee is charged for each type of service. Fees vary depending on the account type and bank, so you should carefully review all fees before opening an account, especially since switching banks can be difficult and expensive.

Overdraft

Never overdraw your bank account unless you have permission from your bank. If this happens and the amount is small, your bank will likely pay the amount and notify you of the shortfall. However, they may not approve the cheque if you are a new customer or have a bad standing with the bank. Always remember that in Qatar you will have to pay a significant fee for an unauthorized overdraft, and the bank will question you about the incident. Additionally, writing a cheque without the required funds in the account is a serious criminal offence in the region.