Reuters/Doha/Dubai

The Qatar Central Bank is capping bonuses for board members of commercial banks in the country, it said in a circular to banks yesterday.

The central bank did not give reasons for the restrictions in its circular, which was posted on its website (www.qcb.gov.qa). Central bank officials were not available to comment on the policy.

The global financial crisis aroused widespread anger against lavishly paid bankers in the West, prompting the European Union to cap banking bonuses. But while Qatar’s banking sector required government aid, the economy escaped serious damage.

Since becoming the Emir last June, HH Sheikh Tamim bin Hamad al-Thani has taken a number of steps to spread the country’s gas wealth more widely among all Qataris. He has vowed to crack down on corruption and business monopolies, while $880mn worth of shares in a state petrochemical firm were sold at a discounted price to citizens.

The maximum annual bonus for a chairman of the board of a bank in Qatar has been set at 2mn riyals ($550,000), while the cap for a board member is 1.5mn riyals.

Bonuses can only be granted if a bank makes a net profit and 5% of bank capital is distributed to investors. No bonuses can be distributed without the central bank’s approval.

No bonuses can be distributed without the central bank’s approval