Qatar Central Bank recently launched the first phase of its Primary Dealer framework in collaboration with Bloomberg, marking a key milestone in the development of the country’s capital markets. This initiative, which aligns with the central bank’s Third Financial Sector Strategy, is set to modernize the market infrastructure, enhancing efficiency, transparency and participation in financial markets.

This effort is also a key component of Qatar’s National Vision 2030 which seeks to diversify the economy and increase its attractiveness for foreign direct investment.

“The Primary Dealer framework supports the issuance and distribution of government bonds, including Islamic sukuk, and is a crucial part of our broader strategic plan. The development is a testament to our dedication to creating a modern and transparent financial market, reinforcing Qatar’s position as a leading financial hub in the region,”stated Sheikh Ahmed bin Khalid Al-Thani, assistant governor of financial market instruments and payment systems at Qatar Central Bank.

Streamlining local currency debt issuance

Qatar Central Bank adopted Bloomberg’s Auction System to streamline its local currency debt issuance and liquidity management workflows. Integrated with the Bloomberg Terminal, this system supports the development of the central bank’s debt issuance process, marking a significant milestone with the successful conclusion of its first auction on December 26, 2024.

“This first phase of the Primary Dealer framework rollout ensures a structured and effective approach to enhancing market infrastructure and boosting investor participation and confidence,” added bin Khalid.

In addition to the Auction System, Qatar Central Bank implemented Bloomberg AIM, a leading order and investment management solution that delivers multi-asset solutions and comprehensive front-to-back workflows. This integration enhances the central bank’s ability to manage the entire trade lifecycle with advanced analytics to optimize fiscal strategy and improve operational oversight.

Read: UAE, Russia sign double taxation avoidance draft agreement to boost economic cooperation

Future phases to deepen liquidity in secondary markets

The adoption of Bloomberg’s Auction System also allows local banks to bid for Qatar Central Bank-issued securities directly through the Bloomberg Terminal, creating a streamlined and efficient process. This system also supports secondary market trading, enabling banks to offer these securities to clients.

“The adoption of our solutions will enable Qatar Central Bank to enhance its operations, improve transparency and strengthen connectivity with the global financial community, further contributing to the growth of Qatar’s financial market,” added Nicholas Bean, Bloomberg’s global head of electronic trading solutions.

The first phase of the Primary Dealer framework focused on integrating the Bloomberg Auction System to enhance the local currency debt issuance process and workflows. Future phases will focus on enabling cross-border access, scalability and deepening liquidity in secondary markets.

The Primary Dealer framework aims to increase market efficiency, liquidity and investor confidence, supporting the issuance and distribution of government securities, including Islamic sukuk. In addition, it promotes greater market stability and participation. These efforts underscore Qatar Central Bank’s commitment to fostering a dynamic and transparent financial ecosystem.