As Qatar emerges from the shadows of the UAE and the Kingdom of Saudi Arabia, the world’s richest country suddenly appears to have great appeal to expats, but how does a QROPS work in this exciting new territory?
For those looking to further their careers in a lucrative tax-free move to the Middle East, Dubai is no longer the attention grabbing hotspot it once was.
More and more expats are taking an interest in what Doha – the capital of Qatar – has to offer, and word is rife on expat forums that Qatar as a wider destination has improved immensely over the last five years.
Due to the rapid economic growth, many companies are expanding into Qatar currently, and jobs are plentiful right now, particularly within the education, construction, oil and gas industries. It is the spread across these four sectors which provides much of the expat work force, and coincidentally, these sectors are also four which will be slightly concerned – and perhaps confused – by the swift and robust amendments to UK pension legislation which is set to lock all defined benefit schemes into the deficit-laden UK pension market for good.
How it Works in Qatar
QROPS are growing in popularity across the globe as more and more expats look at the state of the UK market, feel uncomfortable with the uncertain nature of the pension landscape, concerned by the financial security offered by a life’s worth of savings being left there, and opt to place their retirement funds into a stable and controlled environment within a wide selection of jurisdictions.
While residing in Qatar, expats should take great caution with who they consult for advice upon Qatar QROPS advice and issues surrounding the UK pension market. As of April 2015, db schemes are set to be locked into the UK forever, which has sent shockwaves and panic throughout the db expat community, but this should not cloud the judgment of those looking to seek the best financial consultancy for the job. In Qatar it works a little differently.
The Qatar Financial Centre (QFC) was introduced as a district of the capital Doha to attract the leading financial institutions across the globe to conduct business form there. However, those which operate from within the confines of the QFC are also governed by a specific set of rules administered by the Qatar Financial Centre Regulatory Authority (QFCRA). Those which operate across the rest of Qatar do so under the watchful eye of the Qatar Central Bank (QCB).
Only Fools Rush In
Unfortunately, in 2012 the QFCRA opted to prevent QROPS, QNUPS or in fact any kind of pension transfers involving expats from any country, from taking place within their district. This was because the increase in demand for transfers within the QFC was seen to be excessive in comparison to its size and its ability to effectively monitor, regulate and process such a high level of business within this sector. This came as a blow to many top financial consultancies in the QFC, but left those that were not so quick to rush in, to pick up the pieces under the governance of the QCB.
As a result it is extremely important as an expatriate to find out where your financial advisor operates from. If it is from within the Financial District, they aren’t going to be able to help you with any type of QROPS – which tend to be the most important and in-demand area of expat finance called upon. If they are however operating under the regulation set out by the QCB, you may seek their advice freely, safe in the knowledge that they are properly regulated, and are not liable to costing you 55% of your savings for an illegitimate transfer.
