Qatar Proposes Draft AI Regulations for Financial Markets

Qatar has unveiled draft regulations to govern the use of Artificial Intelligence in the financial sector, reinforcing its commitment to responsible innovation.

The Qatar Financial Markets Authority (QFMA) has announced plans to introduce draft regulations governing the use of Artificial Intelligence (AI) in the country’s financial sector (hereinafter, referred to as “AI regulations”). The proposed framework, aligned with QFMA’s Strategic Plan 2023–2027, is intended to bring greater clarity and oversight to AI applications within capital markets, as financial institutions increasingly adopt advanced technologies across trading, compliance, and advisory functions.

The move reflects a broader policy direction in the Gulf, where regulators are seeking to strike a balance between promoting financial innovation and mitigating associated risks. For market participants, the QFMA’s efforts could offer both operational clarity and a more stable regulatory environment as AI technologies become further embedded in the financial system.

Strategic framework for Qatar’s financial AI regulations

The QFMA’s move to regulate AI is embedded within a broader institutional strategy aimed at transforming Qatar’s capital markets into a hub of innovation and efficiency. Outlined in its Strategic Plan 2023–2027, the Authority’s vision is to position Qatar as a regional leader in capital market development, with a focus on market liquidity, technological modernization, and investor confidence.

The strategy prioritizes the creation of a regulatory environment that keeps pace with evolving financial technologies while upholding the core principles of investor protection, market integrity, and operational transparency. These objectives are not only aligned with the Qatar National Vision 2030 but also draw from global best practices, including guidance from the International Organization of Securities Commissions (IOSCO) and the Financial Action Task Force (FATF).

The mission outlined in the strategic plan underscores the QFMA’s commitment to building a robust and diversified financial system—one that is agile enough to accommodate innovation, yet rigorous enough to manage the risks it entails.

Strategic objectives of Qatar financial AI regulations

Accelerating digital and innovative advancements

The regulation of artificial intelligence is directly linked to the QFMA’s strategic objective of driving digital innovation across Qatar’s capital markets. The Authority has identified the integration of emerging technologies—such as AI, robotic advisory systems, and smart contracts—as essential to maintaining global competitiveness and enhancing operational efficiency.

Within this framework, the proposed AI regulations are seen as a continuation of several key digital initiatives already underway. These include the development of a comprehensive digital transformation strategy, the rollout of intelligent reporting systems for market surveillance, and the formulation of regulatory frameworks for digital assets. Each of these initiatives is designed to modernize market infrastructure, improve data analytics capabilities, and ensure that technology is deployed in a responsible and secure manner.

In this context, the regulation of AI is not an isolated policy effort but a structural component of Qatar’s broader capital market modernization agenda.

Enabling future-proof legislations

The QFMA’s draft AI regulations also advance its goal of creating flexible and future-ready legislative frameworks. As financial markets become more reliant on complex algorithms and machine learning systems, the need for adaptive regulatory structures becomes more pressing. The proposed rules are intended to address this gap by establishing a baseline for ethical use, data governance, and accountability in AI-powered financial services.

This initiative builds on the QFMA’s broader commitment to aligning with international regulatory norms and anticipating systemic risks linked to technological adoption. It also reflects the Authority’s understanding that legislative agility—particularly in rapidly evolving domains like AI—is critical to maintaining investor trust and financial system stability.

Regulatory goals and anticipated scope

With the introduction of its draft regulations on artificial intelligence, the QFMA aims to establish a comprehensive framework that addresses both the functional deployment of AI and its associated risks in the financial market. The core regulatory objectives include ensuring transparency in algorithmic decision-making, maintaining accountability across AI-driven services, and protecting investors from the unintended consequences of automated financial processes.

Although full details of the draft have yet to be released, it is anticipated that the regulations will cover several key areas:

• Disclosure requirements: Financial institutions leveraging AI, particularly in trading, risk management, or customer interfacing functions, may be required to disclose the scope, limitations, and decision-making criteria of the algorithms in use.
• Model governance: Firms are likely to be held accountable for monitoring, testing, and auditing AI systems to mitigate bias, prevent market manipulation, and ensure compliance with ethical standards.
• Data protection and usage standards: Given the data-intensive nature of AI, the regulatory framework is expected to address how personal and transactional data is collected, processed, and stored—aligning with broader data governance protocols.
• Use of AI in RegTech and SupTech: The QFMA may also set parameters around the use of AI for regulatory compliance (RegTech) and supervisory functions (SupTech), emphasizing reliability, security, and explainability.

The overarching goal is to create an enabling environment where financial innovation is encouraged, but not at the expense of systemic stability or investor trust.

Implementation timeline and mechanisms

The rollout of Qatar’s draft AI regulations will follow a phased implementation approach, aligned with the QFMA’s strategic planning and digital transformation schedule. As per the Strategic Plan 2023–2027, execution will be closely monitored through defined Key Performance Indicators (KPIs), supported by digital dashboards and quarterly progress reports. This structured process ensures that policy objectives are met in measurable and transparent ways.

The draft regulations will first be opened to public consultation, inviting feedback from financial institutions, technology providers, legal professionals, and other market stakeholders. This consultation phase is expected to play a key role in shaping the final regulatory language and in building industry alignment with the QFMA’s objectives.

Internally, implementation will be supported by:

• Specialized training and capacity building to address identified gaps in AI and data science expertise within the Authority;
• Collaborative efforts with domestic and international regulatory peers, as part of a broader strategy to harmonize Qatar’s capital market regulations with global standards; and
• Integration with national-level digital transformation initiatives, including cybersecurity and data infrastructure development.

Conclusion: A regional signal of strategic digital alignment

The QFMA’s move to introduce draft regulations on AI reflects not only a domestic policy shift but also a calculated step toward regional leadership in financial innovation.

As Gulf economies increasingly integrate AI into capital markets, Qatar joins its peers—the UAE and Saudi Arabia—in actively shaping the regulatory landscape for emerging technologies. However, what distinguishes Qatar’s approach is the clear linkage between regulatory design and a long-term national development vision.

Also read: China and Hong Kong’s Bilateral Trade and Investment Outlook with Qatar

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