Qatar, South Korea look to deepen market ties

15/04/2014 06:12 AST

Qatar and South Korea yesterday explored opportunities for investments and co-operation in the capital markets as part of their efforts to achieve common goals.

In this regard, South Korean Ambassador Keejong Chung paid a visit to the Qatar Stock Exchange (QSE), which will join the MSCI’s ‘emerging’ market grouping by June and is now on track to become a hub in the wider Gulf and Middle East region.

In his meeting with QSE chief executive Rashid bin Ali al-Mansoori, Chung discussed the prospects of capital markets and investments co-operation between the two countries.

Al-Mansoori gave a presentation on the QSE and its evolution to become one of the leading stock markets as well as an important financial centre in the region, attracting investors from around the world.

South Korea’s interest in the QSE, which is all set to launch exchange traded funds next week, comes at a time when many global fund houses are actively looking at the bourse in view of the MSCI upgrade, following which as much as QR3bn to QR5bn overseas funds inflows to the local market are expected.

Both Morgan Stanley Composite Index and Standard & Poor’s-Dow Jones had decided to upgrade the QSE into ‘emerging’ market from its current ‘frontier’ status by June and September respectively.

The QSE official expressed interest in promoting co-operation with South Korea to achieve the common goals of both countries and contribute to the provision of investment opportunities, stressing the desire of the QSE to attract Korean investors, whether residing in or outside Qatar.

Chung stressed the readiness of South Korea to provide all possible assistance to expand the scope of co-operation in order to go beyond current investments in construction and energy sectors.

Ahead of the MSCI upgrade, al khaliji and Commercial Bank have announced higher foreign ownership limits (FOL), while many other listed companies are seeking to enhance the FOL.

An upgrade would better the visibility of the listed companies before international fund houses and also benefit liquid stocks, while encouraging family-owned companies to list their shares on the QSE, according to Doha Bank Group CEO R Seetharaman.

Gulf Times