Required Trade Documents
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 credit facilities provided by banks to facilitate their imports. Letters of Credit are the safest means of payment that protect the rights of the Qatari importer and the foreign exporter.
Qatari companies also use other methods of payment such as advanced payment and “open accounts” via banks, but these options all depend on the relationship established with the foreign principal.
Banks in Qatar also provide short-term overdrafts and loans to their customers and issue Performance Bonds, Bid Bonds and Advance Payment guarantees on behalf of their customers to support local contracting activities. They can also facilitate foreign exchange transactions and most banks are able to structure basic derivatives such as Interest Rate Swaps to hedge interest rate risk.