QFMA Governance Code 2025 - Board Level Trainings View

Introduction

The Qatar Financial Markets Authority (QFMA) has issued the Governance Code for Listed Companies 2025, a major update from the previous 2016 framework. Among the most significant enhancements is the introduction of structured, mandatory Board training, a shift that signals a broader regulatory push toward stronger governance maturity, accountability, and risk oversight across listed entities.

For clients and corporate leaders, understanding what has changed—and how to prepare—is essential for achieving compliance and demonstrating governance excellence to shareholders, regulators, and stakeholders.

Why Training Has Become a Regulatory Priority

Across global markets, regulators increasingly expect boards to possess the skills and awareness needed to oversee complex, fast-evolving operating environments. Risks today span digital transformation, cybersecurity, ESG reporting, climate exposure, regulatory compliance, related-party oversight, governance ethics, and more.

The QFMA’s 2025 Code aligns with best practices from:

• OECD Corporate Governance Principles

• IOSCO governance guidelines

• ISSB sustainability disclosure standards

This alignment ensures Qatar’s markets remain competitive, credible, and transparent—and that boards keep pace with international standards of competence.

Key Changes Introduced in the 2025 Code

Below is a breakdown of the enhancements as reflected in the newly published Governance Code.

1. Mandatory Induction Training for New Board Members

The Code now requires a formal and structured induction program for every new director. This must include:

• Strategic plans and corporate objectives

• Financial management and accounting

• Risk management practices

• Compliance frameworks

• Internal and external audit insights

• Legal and regulatory awareness

• Site visits and engagement with senior executives

The Objective: Ensure every new director contributes effectively from day one, closing the competency gap and eliminating passive governance.

2. Annual Board Training is Now Mandatory

Unlike the 2016 Code, which only encouraged continuing development, the 2025 Code requires annual training programs to be organized for all board members.

These programs must maintain:

• Technical proficiency: finance, audit, risk, compliance

• Administrative competence: board processes, committee functions

• Industry awareness: market shifts, regulations, sustainability

The Objective: Promote consistent upskilling and ensure decisions made in the boardroom reflect modern governance expectations.

3. The Secretariat Plays an Active Role in Training Delivery

The Board Secretariat (Corporate Governance Office) must now:

• Organize training courses, presentations, and briefings

• Facilitate attendance at seminars, conferences, and governance workshops

• Coordinate with departments and external trainers

This institutionalizes training within the company rather than leaving it as an optional or ad-hoc effort.

4. Oversight by the Nomination, Remuneration & Incentives Committee

The Code assigns oversight responsibilities to the Nomination, Remuneration & Incentives Committee (NRIC) for:

• Governance-specific training plans

• Monitoring participation

• Ensuring alignment with governance needs

This ensures training becomes part of broader governance strategy, not administrative routine.

5. Mandatory Disclosure of Training in Annual Governance Reports

For the first time, companies must publicly disclose:

• Training programs held

• Participation by the Chairman and Board

• Development initiatives offered to senior executives

This transparency demonstrates:

• Investment in board competence

• Alignment with regulatory requirements

• Credibility to investors and analysts

Public disclosure creates a compliance incentive and holds boards accountable for maintaining relevant expertise.

What This Means for Listed Companies

1. Training must become part of the annual governance calendar

Boards will now need a structured yearly training plan approved and monitored by the NRIC.

2. Companies must budget and plan proactively

Training will require coordination with:

• External advisory firms

• Governance institutes

• ESG, audit, risk, and legal experts

  
  

3. Documentation and recordkeeping are essential

The QFMA can request evidence of training, meaning companies must maintain:

• Attendance logs

• Training agendas

• Certificates and materials

• Committee oversight records

  
  

4. Governance Reports must reflect training efforts

Disclosure is no longer optional; transparency is mandatory.

How ESGweise Supports Compliance

We have excelled in training different boards with market updates, governance risk mandates, sustainability, M&A, economic update, cyber security and many more

At ESGwise.com, we help companies:

• Design board induction frameworks

• Build annual training calendars aligned to the 2025 Code

• Deliver ESG, governance, audit, and risk masterclasses

• Prepare disclosure-ready documentation

• Benchmark board competencies

• Ensure full compliance with QFMA Governance Code 2025

This approach strengthens governance maturity and enhances investor confidence.

Reach out to contact@esgweise.com for any query.