Global investors bullish on Qatari companies
January 14, 2014 - 8:01:35 am
BY SACHIN KUMAR
Doha: Global investors have become bullish on Qatar listed companies. In the past one year Foreign Institutional Investors (FIIs), global fund managers and individual investors, have raised their stakes in companies operating in Qatar. Of the top 18 companies that are part of Qatar Exchange (QE) Index, global investors have increased their stake in 12 of them.
QE index, the main index of Qatar stock market, measures the 20 largest and most liquid stocks. Al Meera, Gulf International and Doha Bank were among the companies which saw global investors hiking their stake substantially. Non-Qatari ownership in Al Meera went up by 156 percent, to 8.2 percent of its total capital, as on January 9 this year, from 3.21 percent of its total capital, as on January 9, 2012.
Non-Qatari ownership in the Doha Bank jumped 62 percent to 10.09 percent of its total capital as on January 9 this year, from 6.24 percent of bank’s total capital on January 2, 2012 while Gulf International saw non-Qatari ownership go up by 46 percent, to 11.77 percent, as on January 9, 2014 from 8.08 percent on January 9 2012.
Global investors’ rising stake in companies operating in Qatar reflects that they expect these companies to perform better in future and that the fundamentals of these companies are strong.
Non-Qatari ownership in Qatar National Bank went up to 5.54 percent as on January 9, 2014, from 3.95 percent on January 9, 2012, Ooredoo saw foreigners hiking stake to 22.28 percent from 21.2 percent while in Nakilat it went up to 10.48 from 10.13.
Other companies in which foreign investors raised their stakes were Barwa (stake went up to 5.55 percent from 4.13 percent), Qatar Navigation (stake went up to 6.19 percent from 5.7 percent), United Development Company (stake went up to 13.74 percent from 12.82 percent), Qatar International Islamic Bank (stake went up to 2.88 percent from 2.74 percent), Vodafone Qatar (stake went up to 4.65 percent from 3.72 percent) and National Leasing (stake went up to 13.39 percent from 11.47 percent).
Rising stakes of foreign investors is good news for Qatar government which is is encouraging companies to increase the limit of maximum ownership allocated to non-Qataris as it will bring foreign investment in the country.