In 1973 the Qatar Rriyal was introduced as the national currency. As befits a modern and dynamic economy, Qatar possesses a sophisticated and well-regulated banking system. Qatari banks have a strong capital base, offering a wide range of services to corporate and private clients and operate under the regulation of the Qatar Central Bank (QCB) which acts as the government's agent to control monetary policy and monitor the commercial banking system, financial institutions and exchange houses.

The QCB was established in 1985, when it replaced the Qatar Monetary Agency. The banking sector consists of 15 commercial banks, of which 8 are Qatari owned (including 2 Islamic banks and the QIDB (Qatar Industrial Development Bank) 2 are Arab owned and 5 are branches of foreign banks. The oldest and largest bank is the Qatar National Bank, jointly owned by the government (50%) and the private sector. Banks are required to maintain a minimum capital adequacy level of 10% and a legal reserve of 2.75% of total deposits.

A bank may not lend more than 7% of its capital to a single borrower. Established in 1997, state-owned QIDB encourages industrial and economic development and diversification of the State of Qatar through financing small to medium sized joint venture industrial projects. In addition to financing, QIDB provides assistance with project development, including project assessments and feasibility studies, obtaining legal documentation and government approvals etc. The Qatar Riyal is fixed to the US Dollar at US$ 1.00 = QR 3.64. Qatar has no restrictions on foreign exchange and money transfer. However, some restrictions exist when transferring in excess of QR 100,000, as well as in cases where suspicion of money laundering calls for official intervention. In the absence of governmental finance programmes for exports, banks in Qatar continue to be the main source of finance. In Qatar, the Government is usually the end-user of the banking sector credit facilities. The GOQ's ratio of banking sector credit facilities to total credit was 46.4% in 2002. The GOQ is expected to continue to be the leading borrower in the local market. Other borrowers are merchants, housing sector, industry and individuals. Firms interested in seeking finance for products or projects in Qatar should inquire with leading banks in Qatar.

Standard Letters of Credit processed by local banks and corresponding banks in the exporting countries control almost all import transactions. In accordance with QCB policy, merchants in Qatar make use of the overdraft facilities provided by banks to process their import operations. Most banks in Qatar provide short-term credit facilities of up to 75% of letter of credit values. The current interest rates charged by the banking system on general credit facilities are in line with interest rates prevailing in the international markets. In addition to the usual insurance, foreign firms operating in Qatar may be required to provide guarantees signed by their Qatari agents/sponsors to have access to credit facilities from the local banks.