State media said the shock move was taken to detain Ali Shareef al Emadi as part of an ongoing investigation.
Al-Emadi had been in his post as finance minister since 2103.
An economist, he also serves on the board of the Qatar National Bank, though it is thought the investigation relates only to his work as a minister.
He also sits on the board of Qatar’s vast $300bn sovereign wealth fund, the Qatar Investment Authority, which has various interests globally, including in the UK such as Heathrow Airport and The Shard building in London.
Arrests of such a high-ranking officials on suspicion of corruption are extremely rare in Qatar.
Prior to Thursday’s announcement, al Emadi had enjoyed a reputation for helping the gas rich monarchy to navigate economic shocks such as the fall in energy prices in 2014 and 2015. He also helped Qatar overcome a trade and political blockade by several neighbouring countries which only ended in January after almost four years.
As finance minister, al Emadi will have also been involved in key decisions in the run-up to next year’s football World Cup, which will be hosted in Qatar.
It will be the first time the finals have been held in the Middle East, though has proved hugely controversial amid claims of corruption on human rights abuses,
The tiny state, it has a population of some 2.8 million, is overseeing massive national infrastructure projects worth hundreds of billions of dollars for the event.
In 2017, al Emadi revealed that Qatar was spending close to $500 million a week on major projects for the tournament, and it would spend an eye-watering $200 billion in total in preparation for the World Cup.
The country has been utterly transformed in preparation for the tournament, building or refurbishing eight stadiums, a new airport, port, metro system and even a new city will host the World Cup final.
“We are really giving ourselves a good chance of delivering things on time and we don’t want to get in a place that we start painting while people are coming to the country,” he said then.
Super rich Qatar has transformed its economy largely through gas exports.
It is the world’s largest producer of super-chilled liquefied natural gas and shares the world’s biggest natural gas field with Iran.