22/03/2018 08:15 AST

Qatar on Wednesday witnessed the launch of the world's largest single country Islamic exchange traded fund (ETF), which is increasingly seeking investors from Asia, Europe and the US.

Buoyed by the response from domestic investors, Al Rayan Qatar ETF — sponsored by Masraf Al Rayan and whose seed capital came from diversified sources including quasi-government investment firms, family offices and corporates — is planning to create more units to meet the increasing demand. "As an exchange, we’re delighted that the world’s largest single-country Islamic ETF is available to trade exclusively in Doha," said Rashid bin Ali al-Mansoori, chief executive of the Qatar Stock Exchange (QSE), on which Al Rayan Qatar ETF (QATR) got listed.

It is one of the largest Islamic funds traded in the Middle East and emerging countries as well as the second largest Islamic fund in the world. The open-ended fund, with initial assets of $120mn, is three times larger than any other ETF in Qatar and Gulf region and has pegged total expense ratio at 0.5% of net asset value, which is considered to be the lowest for any single country ETF in the region.

Dr Hussain Ali al-Abdulla, chairman and managing director of Masraf Al Rayan, said the bank is a forerunner of developing local capital markets by introducing new and innovative products such as QATR, whose underlying index comprises large and medium sized Shariah-compliant listed Qatari companies. "With the global popularity of ETFs, it was opportune for us to launch this new investment product. QATR is perfect for investors seeking diversified exposure to Shariah-compliant Qatari stocks with the simplicity and efficiency of buying just one share," said Haithem Katerji, chief investment officer of Al Rayan Investment, which is the fund manager for QATR.

The QATR seeks to track the performance of the ‘QE Al Rayan Islamic Index (Price)’ and provides investors diversified exposure to Qatari equities. Over the last five years, QE Al Rayan Islamic Index (Price) has outperformed the conventional ‘QE Index’ by more than 13%; over ten years the outperformance is in excess of 75%.

"Given the strong historic performance of the index, QATR offers an attractive opportunity to gain exposure to the Qatari economy,” Katerji said, adding it expects to hold investor roadshows across the international financial hubs in Asia, Europe and the US.

A total of 2.33mn QATR valued at QR56.36mn changed hands across 1,465 deals, which according to Mohsin Mujtaba, QSE director (Product and Market Development), is an indicator of robust demand.

Finding the growing interests among investors for the QATR, Katerji said Al Rayan Investment is planning to create more units. Elaborating on the proposed creation of more units, Akbar Khan, senior director, Al Rayan Investment, said the whole index is made up of many baskets (of individual scrips) and "when there is more demand and when people keep buying, as the money comes in, we have to create new baskets."

The Doha office of global law firm K&L Gates has advised Al Rayan Investment on the listing of QATR. "We were able to apply best market practices in order to realise this highly significant ETF listing for a client that is a leader in the Qatari market,” said Amjad Hussain, Doha partner of K&L Gates.


Gulf Times

Ticker Price Volume
QNBK 196.50 47,039
APPC 52.50 136,631
JARIR 154.40 128,461
SAICO 12.10 1,639,850
WALAA 22.60 154,172
CATERING 86.50 91,333
ALMARAI 51.10 75,356

QE 10,604.28 5.88 (0.06%)

Market
P/E
Price/BookValue
Dividend Yield (%)
Performance
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Index vs...
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
QNBK 196.50 -0.30 (-0.16%)
IQCD 137.99 0.64 (0.46%)
QIBK 155.99 -0.51 (-0.33%)
ERES 12.95 0.19 (1.48%)
MARK 42.21 -0.27 (-0.64%)
Senaat lists $300m sukuk on Abu Dhabi stock market

10/12/2018

Abu Dhabi’s General Holding Corporation (Senaat) listed $300 million (Dh1.1 billion) sukuk on the Abu Dhabi stock market on Sunday, making it the third listing of a bond this year.

The suk

Gulf News

APM Terminals shares start trading on Bahrain Bourse

10/12/2018

APM Terminals Bahrain, the operator of Bahrain’s Khalifa Bin Salman Port (KBSP), was today (Sunday, December 9) listed and traded on the Bahrain Bourse under the trading symbol APMTB, following a tra

Trade Arabia

Long-term outlook for Dubai takes another turn down

09/12/2018

Regardless of the shortened three-day trading week, the bear market continued in Dubai with the Dubai Financial Market General Index (DFMGI) falling 88.39 or 3.31 per cent to end at 2,580.27. This is

Gulf News

Abu Dhabi index surges post MSCI rebalancing

05/12/2018

The Abu Dhabi index jumped the most in a year as markets adjusted post the MSCI rebalancing of FAB and Etisalat shares even as trading remained thin in other stocks.

The Abu Dhabi Securiti

Gulf News

QSE surges on banks, IQ; benchmark index up 24.40% year-to-date

05/12/2018

Qatar stocks surged 1.45 percent yesterday lifting the entire sectoral indexes firmly into green, powered by blue chips. The benchmark index extended Monday’s gain to add 151.51 points before finishi

The Peninsula