DOHA: The international index compiler MSCI will announce the names of Qatari companies to be qualified for its Emerging Market list on May 14, 2014. Qatar bourse expects that at least nine local companies will be eligible to get into the list, Rashid bin Ali Al Mansoori (pictured), CEO, Qatar Exchange (QE) has said.
He noted that the MSCI upgrade will help accelerate the inflow of international investors into Qatari market and will enhance the market liquidity and the value of many companies. Qatari companies will gain global recognition by major investment portfolios and global institutional global funds.
Speaking to Qatar News Agency, Al Mansoori said the importance of joining the wide range global index stems from the fact that MSCI is one of the pioneer companies in Global Equity Index.
This new reclassification allows Qatar to be in line with Brazil, Russia, India, China and Turkey in attracting foreign investments.
The upgrading offers an opportunity for a steady increase in the trade volume in the local market for the coming few years, that would help enhance the upwards trend sustained since the beginning of the current year. The bourse is ready to deal with higher trading volumes and is capable of any possible market speculations, including the daily index price fluctuation and managing the daily rise and fall of stock prices.
Al Mansoori said Qatar Exchange has been preparing over the last five years to manage large fund flows and liquidity by finalising its technological infrastructure, trading systems, electronic control systems and legal procedures. The Cabinet’s recent approval of a draft law exempting non-Qatari investors from the income tax will boost the inflow of foreign fund to the local market.
The bourse CEO who shared his expectations that several listed companies would raise the bar of foreign investment in their companies in line with the MSCI’s aspirations, noted it would help boost these companies’ performance and values. “The market is in need of further listings to cope with Qatar’s accelerating growth. The number of current listed companies does not really reflect the real strength”, he said. The listing of these potential companies will help widen the market base,s he added.
On the delay in the listing of companies like Barwa Bank and Qatar First Bank (QFIB), which claim that they have already completed their listing requirements Al Mansoori, said: “We support the transformation of private and family companies to public joint-stock companies prior to listing them. However, we are not the only body that takes final decision on the listing procedures”.
He urged the concerned bodies to facilitate procedures and solve all pending issues hindering the listing of the said companies. Adding new companies to the market is key for the market out performance.
On the listing of the small and medium-sized (SMEs) companies, he said the works are fast progressing with the support of various authorities.