DOHA: As the index compiler Morgan Stanley Capital International (MSCI) is set to announce the results of its market classification review of Qatar Exchange (QE) today, Qatar yesterday re-asserted its commitment to enhance ownership percentage of non-Qataris in the listed companies.
A statement by H E Yousuf Hussein Kamal, Minister of Economy and Finance and Chairman of the Financial Markets Development Committee posted on the official website of QE yesterday read: “ the parties, which are responsible for the financial markets in the State of Qatar, are making extensive efforts to provide an investment environment that is more attractive for foreign investors to direct their investments towards the Qatari market through encouraging several listed companies to increase the maximum ownership percentage allocated for non-Qataris”.
In the statement the minister also highlighted examples for this trend noting that the foreign ownership limit (FOL) of several large listed companies is at or close to 25 percent of their market capitalisation.
Doha Bank is the most recent example of this trend, recently changing their FOL to 25 percent of the market capitalisation in accordance with an amendment on the bank’s Articles of Association aimed at allowing this change.
He also noted that several companies have actually exceeded this percentage as Ooredoo and Vodafone have FOL of 100 percent, while the maximum foreign ownership limit in Masraf Al Rayan is set at 49 percent. “Some other companies have expressed their willingness to amend the current FOL set at 25 percent of their free float shares to 25 percent of their full capital”, the Minister added.
Qatar, along with the UAE are under consideration for a fifth year for a possible upgrade from Frontier market status to the Emerging market at MSCI, a move that could open up their bourses to millions of dollars of inflows from funds that are mandated to invest only in emerging markets.
“Investors are betting that the United Arab Emirates will finally be elevated to emerging market status in the (latest) review..., but expect Qatar to miss out due to still stringent foreign ownership limits”, Reuters reported.
The Peninsula
