Doha: The Qatar Financial Markets Authority (QFMA) announced the issuance of the Code of Governance for Listed Companies. In accordance with the Board of Directors Resolution No. (5) of 2025, the code mandates compliance from all relevant parties within a year of its publication in the Official Gazette, emphasizing its provisions and guidelines.
According to Qatar News Agency, the new Code addresses a variety of critical issues, including the responsibilities and composition of the Board of Directors, Board practices, conflicts of interest, senior executive management, internal control systems, and policies related to remuneration and incentives. It also outlines communication strategies between the Board and shareholders, disclosure of corporate governance, and governance of companies with government stakeholders.
Khalid Saif Al Sulaiti, Director of the Governance and Disclosure Department at QFMA, underscored that the new code aligns with the evolving regulatory framework of the capital market, maintaining international standards and aligning with the Qatari financial market's characteristics. The initiative intends to bolster transparency and integrity, safeguarding shareholders' rights and reinforcing confidence in the Qatari capital market.
The code supersedes the previous framework from 2016, introducing significant changes such as adjusting the minimum and maximum numbers of board members for listed companies. It also establishes a detailed mechanism for the nomination and election process, detailing the formation of the board and its committees and specifying member types and mandatory committees.
Al Sulaiti noted that the code is rooted in international best practices and governance standards, prioritizing transparency, particularly regarding shareholders' rights and equity. The code also mandates the disclosure of sustainability, corporate social responsibility, and climate-related standards, requiring periodic reports from listed companies.
He commended the adherence of Qatari companies to governance standards, which elevates their domestic and international reputation and strengthens client and supplier confidence. The new code requires companies to disclose sustainability, climate, and corporate social responsibility reports, with QFMA providing a guiding manual for compliance with international standards.
In relation to attracting foreign investors, Al Sulaiti highlighted the pivotal role of the regulations in enhancing investor confidence, with foreign investors often assessing the regulatory environment before market entry. This is supported by comprehensive annual governance-related disclosures by Qatari companies.
Al Sulaiti emphasized that Qatari companies, particularly in the industries, banks, and communications sectors, adhere to top governance standards, positioning them as leaders regionally and globally. He anticipates that the new code will foster transparency and investor confidence, adding significant value to the Qatari financial market.
The code derives its rules from international recommendations on corporate governance, notably from institutions like the International Organization of Securities Commissions (IOSCO) and the Organisation for Economic Co-operation and Development (OECD). Each company must develop a policy for disclosure and transparency in line with these international principles, serving the interests of the company and its stakeholders.
These practices aim to enhance governance standards and ensure timely compliance with disclosure requirements, including financial reports and the annual sustainability report, which covers the company's environmental, social, and corporate governance contributions. QFMA's efforts in promoting corporate governance principles aim to optimize company performance, protect investors, and ensure market stability.
Al Sulaiti concluded by noting that governance establishes relationships between a firm's management, board of directors, shareholders, and other stakeholders, guiding the decision-making process and achieving corporate goals. Governance also regulates the company's external relationships, ensuring proper management in the interest of the company and all stakeholders involved.