On the 15th of April 2021, Labuan International Business and Financial Centre (Labuan IBFC) and Qatar Financial Centre Authority (QFC) signed a Memorandum of Understanding (MoU) in order to strengthen financial ties. Chief Executive Officer (CEO) of Labuan IBFC, Farah Jaafar-Crossby, and CEO of QFC, Yousuf Mohamed Al-Jaida, signed the MoU.
Why it Matters?
Labuan IBFC and QFC are strategically situated in Asia and the Middle East, respectively and are significant catalysts for regional economic growth. The goal is to create a mutually beneficial framework to enable the relevant financial institutions in the respective jurisdictions to operate in the other’s territory. They have agreed to collaborate on financial sector domains such as setting up business operations with regard to Islamic finance, digital finance, capital markets, asset and investment management, as well as other pertinent financial institutions and financial service providers within their ecosystems. This will allow both centres to expand into strategic and lucrative markets.
- The MoU talks about the recognition of banks, insurers and other financial sector entities in the respective markets, subject to complying with the other jurisdiction’s regulatory requirements, and collaborating to explore mutual recognition of regulations through the pertinent authorities.
- Jaafar-Crossby said this MoU indicates Labuan IBFC’s growth goals in the Middle East and North Africa region (MENA).
The QFC gives registered companies up to 100% foreign ownership, 100% repatriation of profits, 10% corporate tax on locally sourced profits and a comprehensive double taxation treaty network with more than 85 countries. It also allows trading in any currency.