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Qatar bourse to see QAR5bn inflows on MSCI upgrade

Feb 27 2014

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By Santhosh V Perumal

Qatar Exchange
) expects as most as QR5bn unfamiliar supports influx after a ascent by MSCI to rising market, effective Jun this year.

The bourse, that is slated to see some-more listings in future, could really shortly see a appearance of sell traded funds, a behaving authority Dr Hussain Ali al-Abdullah said. “May be QR3bn to QR5bn will come from unfamiliar investors to Qatar” (after a upgrade), he pronounced on a sidelines of a duty to symbol a entrance of Mesaieed Petrochemical Holding Company, a Qatar Petroleum subsidiary, on the

Global index compiler MSCI had final year upgraded Qatar and a UAE to ‘emerging’ marketplace from a ‘frontier’ status, after carrying confirmed a status-quo on prior occasions.

“The ascent will supplement some-more liquidity to a market,” al-Abdullah said.

An ascent would not usually safeguard improved prominence of a existent listed firms before unfamiliar financial powerhouses though also tempt other entities, including family-owned companies, to go public. Liquid bonds ought to advantage more.

MSCI’s marketplace sequence horizon consists of 3 criteria: mercantile development, distance and liquidity as good as marketplace accessibility. However, mercantile expansion is germane usually in a box of sequence of grown markets.

Qatar’s economy is clever and companies listed are “performing really well” and attracting internal and unfamiliar investors alike. The
was among a best behaving marketplace in a segment final year and second best division profitable marketplace globally, a bourse orator had said.

“The boost in a series of shares accessible to unfamiliar investors significantly opens adult a marketplace in Qatar. This affirms a joining of a supervision to renovate Qatar into a informal investment hub,” former financial apportion Yousef Hussein Kamal had said.

Many financial experts noticed both aloft unfamiliar tenure boundary and an ascent to ‘emerging’ marketplace standing as “inevitable” since of a flourishing and plain investment opportunities in Qatar and a timorous prospects in other investment destinations.

Standard Chartered recently hold Qatar’s ascent to ‘emerging’ marketplace is critical for a nation though there was a need for some-more investment instruments, quite internal banking debts; where Doha can take a lead in a Gulf segment in formulating a market.

“The ascent is critical since tellurian investors will be looking during Qatar, whose economy will grow quick and boom. It is a fast economy as well,” StanChart’s tellurian conduct for macro investigate Marios Maratheftis said.

The parties, that are obliged for a financial markets in Qatar, are creation “extensive efforts” to yield an investment sourroundings that is some-more appealing for unfamiliar investors to approach their investments towards a Qatari marketplace by enlivening several listed companies to boost a extent tenure commission allocated for non-Qataris, according to a Financial Markets Development Committee of Qatar.

Qatar, that was comparatively “immune” to a tellurian and informal shocks, has been flourishing indifferent and is approaching to parasite double-digit growth. The country’s a outrageous collateral expenditure, along with diversification into non-oil economy, offers outrageous intensity and aloft unfamiliar investment extent will infer to be an enabling factor, quite for a private sector, experts said.

Recently, al khaliji, a new era lender, perceived capitulation from shareholders to boost a unfamiliar tenure extent to 49%, forward of a MSCI upgrade.

“There is no certainty that it will assistance the bank. But positively in terms of MSCI index (we don’t know either we will be partial of that index), it could direct additional liquidity on the shares,” al khaliji organisation CEO Robin McCall said.

© Gulf Times 2014

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