Interview: Yousuf Al Jaida
Where do you identify global trends driving financial innovation, and how are financial centres looking to capitalise on these opportunities?
YOUSUF AL JAIDA: Artificial intelligence (AI), blockchain, big data, financial technology (fintech), digital banking and sustainable finance stand out as particularly critical trends poised to reshape the financial landscape. The integration of AI and machine learning is catalysing transformative shifts across various financial areas, encompassing risk assessment, fraud detection and customer service. Blockchain technology is instigating transformations in the financial industry, augmenting transaction security and transparency, with potential applications extending into decentralised finance. Big data is unlocking avenues for highly personalised insights, predictive analytics and enhanced risk management.
Simultaneously, fintech and digital-only banks are overhauling banking processes, amplifying accessibility through innovative solutions. Concurrently, the growing emphasis on environmental, social and governance considerations is fuelling an upswing in demand for sustainable and green finance.
Financial centres around the world are harnessing emerging opportunities to retain a leading position in innovation and address evolving market demands. They are cultivating partnerships with technology firms, fostering tech-driven start-ups, revising regulatory frameworks and advocating for digital adoption, thereby shaping a progressive financial market characterised by heightened accessibility and efficiency in financial services.
How is the QFC developing the legal environment to support asset classes and new technologies?
AL JAIDA: In October 2023 the QFC Regulatory Authority initiated the solicitation of feedback on its proposed QFC Digital Assets Framework. The primary goal of this mechanism is to establish comprehensive rules and regulations governing digital assets within the QFC jurisdiction, ensuring legal certainty and fostering an environment conducive to innovation.
The framework is expected to address various facets of digital assets, encompassing ownership, custody arrangements, transfer protocols, trading mechanisms and the implementation of smart contracts. Furthermore, it will prioritise the development of a robust technology infrastructure, aimed at instilling trust among consumers and attracting service providers. Ultimately, this regulatory initiative is designed to instil confidence and stability in the burgeoning digital assets market.
In what ways have changes to the legal framework boosted Qatar’s global competitiveness?
AL JAIDA: The country has undertaken significant legal reforms in recent years to meet evolving national needs, tackle emerging challenges, uphold core values and better align with international standards. These reforms leverage technology in order to simplify procedures, improve the ease of doing business, enhance transparency and strengthen investor protection.
For instance, amendments to the Labour Law have created a fairer employment environment by increasing labour mobility, introducing minimum wage regulations and mandating health insurance. Changes in the Customs Law have stimulated trade by streamlining procedures, centralising documents and expanding duty exemptions. Amendments in tender regulations have fostered entrepreneurship by improving procurement processes and exempting small businesses from tender fees below QR1m ($274,000). Qatar has attracted more foreign investment by expanding the areas where non-Qataris can purchase properties, while the introduction of the Public-Private Partnership Law enables investors to engage in large-scale infrastructure projects.
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