QCB and Euroclear to Make Qatari Government Debt Euroclearable

Qatar Central Bank and Euroclear have agreed to connect Qatar's domestic government debt market to Euroclear's international settlement network. Under the arrangement, the country's sovereign bonds and sukuk will become Euroclearable, a designation that lets foreign investors hold and settle the instruments without opening local custody accounts.

Investors worldwide will be able to access and settle the eligible instruments, which are issued by the government and denominated in Qatari riyals. Both bonds and sukuk are included, so conventional debt and Islamic finance certificates sit inside the same framework.

Euroclear runs an international central securities depository, and institutions that already clear cross-border trades through it will be able to hold Qatari government paper in the same accounts as other international assets. That removes a practical hurdle for funds that would otherwise need to arrange local access before they can buy.

The Qatari government debt market has until now functioned largely through domestic channels. Tying it to an international depository opens participation to a broader global investor base and places the securities on a venue that foreign institutions already use.

Roles and mechanics

Settlement will be handled by Euroclear Bank, the group's international central securities depository. The arrangement divides responsibilities between three institutions.

• Euroclear Bank acts as issuer CSD.
• Edaa, Qatar's central securities depository, acts as investor CSD for local investors.
• Qatar Central Bank acts as issuer and paying agent.

The split leaves the domestic leg in Qatari hands while Euroclear Bank carries the cross-border side of the transaction.

For issuers, the link widens access to a larger and more varied pool of capital. Both organisations expect it to raise liquidity, improve how efficiently the market functions and deepen the flow of international capital into Qatar.

"Qatar's continued development of the government securities market reflects our commitment to fostering a deeper, more efficient and resilient capital market," said H.E. Sheikh Ahmed bin Khalid bin Ahmed Al Thani, Deputy Governor of QCB.

Policy backdrop

The initiative supports Qatar's Third Financial Sector Strategy and the Third National Development Strategy 2024-2030. Both are aimed at building a capital market that is more innovative, more efficient and more closely tied to global markets, and both set the direction for the financial sector through the end of the decade.

The link also forms part of wider efforts to integrate Qatar's financial markets into the international financial system.

"By making Qatari government bonds and sukuk Euroclearable, we are helping to simplify market access, enhance liquidity and strengthen Qatar's appeal to global investors," said Valérie Urbain, Chief Executive Officer of Euroclear.