Qatar's development strategy has also been accompanied by structural reforms to strengthen the financial sector, increase the role of private sector, and create a business-friendly regulatory environment. The minimum capital adequacy ratio was raised to 10 percent, and nonperforming loan classification criteria tightened, while strictly enforcing loan-loss provisions. The Qatar Central Bank has gradually enhanced its capacity to implement a market-based monetary policy by liberalizing interest rates and simplifying reserve requirements. The privatization of the power sector has advanced rapidly, with most government power generation plants already sold to Qatar Electricity and Water Corporation-which is majority-owned by the local private sector. In addition, construction has already started on the first independent power and water plant in the country, which is majority-owned by a foreign developer. A new foreign investment law was recently approved that allows 100 percent foreign ownership of companies in agriculture, education, health, industry, and tourism, as well as streamlines approval procedures.
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