What is the Qatari Riyal?

Understand the Qatari Riyal, how it works, who uses it, and how to exchange or manage it while travelling or doing business in Qatar.

What is the currency of Qatar?

Whether you're planning a trip to Doha, managing international payments, or simply curious about Middle Eastern finance, understanding the currency of Qatar is essential. This guide is written for travellers, expats, investors, and businesses looking to work with or within Qatar. We’ll cover what the currency is, how it works, who uses it, and how to handle it efficiently while avoiding common pitfalls.

What is the Qatari Riyal?

The official currency of Qatar is the Qatari Riyal, abbreviated as QAR and commonly symbolised as ر.ق or QR. It has been the country’s legal tender since 1973, when it replaced the Qatar and Dubai Riyal following Dubai’s decision to join the United Arab Emirates.

The Qatari Riyal is subdivided into 100 dirhams, although coins are rarely used in everyday transactions, especially outside supermarkets or banks.

Banknotes are typically issued in denominations of 1, 5, 10, 50, 100, and 500 riyals. All currency is issued by the Qatar Central Bank, which is also responsible for monetary policy and exchange rate management.

Who uses the Qatari Riyal?

The Qatari Riyal is used throughout Qatar, a wealthy Gulf nation on the northeastern coast of the Arabian Peninsula. It is the only legal tender for goods, services, salaries, and official transactions in the country.

Expat workers, tourists, and local residents all use QAR in daily life. While US Dollars and other foreign currencies may occasionally be accepted in high-end hotels or luxury stores, such cases are rare and not legally binding. Most transactions must be settled in Qatari Riyals.

How does the Qatari Riyal work?

The Qatari Riyal is a pegged currency, meaning its value is fixed to another currency—in this case, the US Dollar. Since 2001, the official exchange rate has been maintained at 1 USD = 3.64 QAR, providing price stability and confidence in international trade and investment.

This fixed exchange rate is enforced by the Qatar Central Bank, which holds large foreign currency reserves to maintain the peg. Because of this system, QAR is considered a stable and predictable currency, particularly attractive to investors and international companies operating in the region.

Benefits and risks of the Qatari Riyal system

Benefits:

  • Stability: The peg to the US Dollar provides exchange rate certainty, which is valuable for importers, exporters, and investors.

  • Low inflation: Qatar has historically maintained low inflation levels due to tight monetary control.

  • Strong reserves: Qatar holds significant foreign currency reserves and sovereign wealth to support the currency.

Risks:

  • Limited flexibility: Qatar cannot adjust its interest rates independently to respond to domestic economic changes.

  • Exposure to oil price fluctuations: As a major hydrocarbon economy, the strength of QAR depends indirectly on global oil and gas markets, even with the dollar peg in place.

Common misconceptions

A common misunderstanding is that other Gulf currencies are interchangeable. While countries like Saudi Arabia and the UAE use their own riyals and dirhams, you cannot use them in Qatar. The Qatari Riyal is the only accepted currency.

Another myth is that QAR’s value fluctuates daily like floating currencies. In fact, due to its dollar peg, it remains consistent at around 3.64 QAR to 1 USD, with only minor allowed fluctuations in practice.

Tips for handling Qatari Riyals

For travellers:

  • Exchange currency at Qatari banks or licensed exchanges in cities or airports. Rates are competitive, though banks usually offer the most secure transactions.

  • Use debit or credit cards where accepted, but keep cash on hand for taxis, local markets, or small purchases.

  • Avoid relying on foreign currency, as it is not widely accepted and must be converted.

For businesses:

  • Invoice in QAR when dealing with local clients or suppliers unless otherwise agreed.

  • Use forward contracts or hedging strategies if dealing with fluctuating currencies to manage risk against the stable QAR.

  • Open a local currency account if operating a branch or representative office in Qatar to simplify payroll, rent, and tax obligations.

FAQs

Can I use other Gulf currencies in Qatar?
No. Only Qatari Riyals are accepted for transactions. You will need to convert other Gulf currencies to QAR.

Is it better to bring US Dollars or GBP when travelling to Qatar?
Either can be exchanged, but Qatari banks and exchanges readily accept GBP and offer competitive rates. It’s usually not necessary to convert to USD first.

Are cards widely accepted?
Yes, in urban centres, hotels, and shopping malls. However, cash is still commonly used, especially for taxis, street vendors, and small shops.

How secure is the Qatari Riyal?
The currency is considered highly secure and stable, backed by strong reserves and a conservative fiscal policy.

Real-life example

Suppose you’re attending a business conference in Doha. You land with £300 and exchange it at the airport, receiving approximately 1,350 QAR (based on a rate of around 4.5 QAR to the pound). You use a mix of cash and card during your stay. When shopping in local souqs or using taxis, having riyals proves essential as most of these vendors do not accept foreign cards or currencies.