QSE chief calls for fresh listings to benefit from booming Qatar

04/05/2014 07:30 AST

The Qatar Stock Exchange CEO Rashid bin Ali al-Mansoori said the QSE is in need of more listings to benefit from the accelerating growth in Qatar. The total number of the current listings does not reflect the status of the Qatari economy as influential economic entities are still not operating in the market, he said.

The listing of such companies will reflect positively on the investors and Qatar’s booming economy, he said. New listings will also provide attractive investment opportunities for Qatari citizens, he added.

Speaking to Qatar News Agency (QNA), al-Mansoori said new listings will go a long way in boosting market liquidity and investor confidence as shown by the listing of Mesaieed Petrochemical Holding Company (MPHC).

Al-Mansoori stressed the importance of the recent decision of upgrading Qatar to emerging market status by MSCI World Index, effective on June 2.

The upgrade adds to the QSE’s continued successes over the years in terms of developing its infrastructure, providing further services and trading mechanisms for investors and applying new tools of investments.

The upgrade allows Qatar to be in line with Brazil, Russia, India, China and Turkey in the list of countries attracting foreign investments that apply the MSCI and S&P indices for emerging markets, al-Mansoori said.

He expects that the number of the Qatari companies actually qualified for this listing will be around 9, pointing out that names of the companies will be announced by MSCI by May 14, while they will be officially inducted on June 2.

Al-Mansoori said the entry of international investors will enhance liquidity in the market and the value of many companies. It will also reduce the capital costs related to the investment process and increase the appeal of the Qatari market as it will gain the global recognition of major investment portfolios and funds.

Al-Mansoori described the upgrade as an opportunity for a steady increase in the QSE trade volumes. He said the the market is well-prepared to deal with higher trading volumes and has special procedures to control speculation, including the daily index price fluctuation and setting of limits for the daily rise and fall in listed stocks.

The QSE has been preparing over the last five years to manage large money inflows and liquidity after revamping its technological infrastructure, trading systems, electronic control systems and legal procedures, he said.

Al-Mansoori said he was looking forward to an increase in the foreign ownership limits of listed companies in line with the MSCI upgrade as it will allow companies to better their performance and retain money in the local market.

Commenting on the obstacles hampering the listing of companies, which have completed the QSE listing requirements such as Barwa Bank and Qatar First Bank (QFIB), al-Mansoori said the bourse would support the transformation of private and family-owned companies to public joint-stock companies prior to their listing. “However, we are not the only body that plays this role as the approval of the competent authorities is more important for the listing, al-Mansoori said.

He said the launch of a programme to support the listing of emerging small and medium-sized (SMEs) companies in collaboration with Qatar Projects was an important step towards developing the SME sector in Qatar.

Al-Mansoori said the performance of the QSE for the current year would be among the best in the Middle East.

QNA