Quality Not Quantity

The Qatar Exchange (QE) has been very successful in recent years, and has seen 14% year-on-year growth since 2012. What strategies have led to this success since the founding of the Exchange?

The QE was established 16 years ago, and its success is related to the broader success of Qatar itself. Despite all that is occurring in the region, Qatar has seen strong continuous GDP growth in the mid- to-upper teens since 2008. Our success is linked to this positive performance, which has been motivated by the strong policies of Qatar’s leadership. The exchange supports local companies and promotes investment in Qatar’s future, and we are constantly adapting to help achieve the goals of the Qatar National Vision 2030.

How do you think the QE fits into Qatar’s long-term economic aspirations?

The development of the QE is clearly an essential aspect of the broader development of the capital markets in Qatar. Efficient and well-established capital markets contribute to the growth of the economy since they facilitate efficient capital allocation, providing funds to those projects and companies that generate the highest return. At the same time, the development of a vibrant private sector is an important element in Qatar’s strategy for diversifying the economy and building thriving business across various sectors. We believe that the QE has been developing and will continue to develop to play its role in realizing this objective.

How has the recent upgrade to Emerging Market Status broadened your horizons?

The upgrade will attract additional international institutional investors to the market and will support liquidity, thus benefiting listed companies and the other investors in the market.

How does the QE facilitate foreign investment in the Qatari economy, and what is your outlook for foreign investment going forward?

Firstly, companies listed on the exchange can now, in some cases, have foreign ownership in excess of 25%. In addition, the state is building confidence among international investors through regulation. It is key for any investor to know that when they enter a market their investment is subject to adequate regulation. Additionally, we are trying to introduce new tools and products for the international investor, and these are other factors that will encourage the investor to come to the Qatari market. We are using the grid infrastructure and have a robust disclosure system.

How do new, large listings affect the exchange?

The listing of any company in the market represents value-added to the market as the listing of the shares of a new company will increase the investment options offered to investors and enhance the liquidity in the market. It provides investors with more options, some of which hold very strong positions in the market. Though we have only 42 companies listed, some are vast entities with huge capitalization exceeding the numerous exchanges that boast hundreds of listed companies. These 42 companies have a capitalization of roughly $130 billion, so it is not a question of the number of companies, but of their credibility.