QFMA Issues Code Of Governance For Listed Companies

Doha, Qatar: The Qatar Financial Markets Authority (QFMA) announced yesterday the issuance of the Code of Governance for listed companies.

In accordance with the Board of Directors Resolution No. (5) of 2025, all parties covered by this system are required to ensure compliance with its provisions within one year from the date of its publication in the Official Gazette, QFMA stressed.

This Code addresses many topics, encompassing the duties and responsibilities of the Board of Directors, its composition and membership requirements, Board practices and conflicts of interest, Board committees, the senior executive management, the internal control system, the principles and policies for granting remuneration and incentives, communication between the Board and shareholders, disclosure of corporate governance, and companies in which the government is a stakeholder.

A set of principles were observed in drafting the provisions of this Code, including transparency and clarity, justice and equality, and responsibility, oversight, and accountability.

In conversation with Qatar News Agency (QNA), Director of the Governance and Disclosure Department at QFMA, Khalid Saif Al Sulaiti, emphasised that this new code is a crucial step in keeping up with the advancement of the capital market's regulatory framework to meet the highest international standards, and in a manner consistent with the characteristics of the Qatari financial market.

The initiative aims to reinforce principles of transparency and integrity, while safeguarding shareholders' rights, thereby strengthening confidence in the Qatari capital market.

The code replaces the previous framework issued in 2016, and includes substantive amendments, most notably raising the minimum number of board members for listed companies to seven, while setting a maximum limit of

11 members, Al Sulaiti highlighted. He evinced that code also sets out a clear and detailed mechanism for the nomination and election process and includes an annex explaining the procedures from the opening of nominations through the formation of the board and its committees, specifying the types of members, whether independent, non-independent, executive, or non-executive, as well as the mandatory committees that must be established.

The code is based on international best practices and standards of governance, giving foremost importance to the principle of disclosure, particularly regarding shareholders' rights and equality among them, Al Sulaiti said.

Al Sulaiti further added that the code introduces disclosures on companies' adherence to sustainability, corporate social responsibility, and climate-related standards, requiring listed companies to publish periodic reports on these aspects, alongside disclosures of material news and financial statements.

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