DOHA: Non-Qataris, including expatriates, may be allowed to buy and sell shares listed at Doha Securities Market by January next year.
Quoting a press statement issued by the Ministry of Economy and Commerce, Qatar News Agency said yesterday the Ministry had decided to open up the Qatari bourse to foreigners.
Non-Qataris will be permitted trading rights in respect of all the listed companies provided their ownership does not exceed 25 per cent of a firm's issued capital, said QNA.
There are presently 30 companies listed at the DSM and they are divided into four sectors, namely, banking, insurance, industry and services.
QNA added that the Ministry would soon ask the listed companies to make suitable amendents to their memorandum of associations so as to allow foreigners trading rights to the extent of 25 per cent of their issued capital.
The entire process, from amending company constitutions to permitting foreign investors to trade, is expected to take around six months, QNA said.
The Ministry took the decision to finally throw the Qatari bourse open to foreigners after a study conducted by DSM recommended broadening its investor base.
The mechanism of how non-Qataris would trade formed a key part of DSM's sudy. QNA said quoting the ministry that the decision was in line with Qatar's objective to attract more foreign investment and open up the entire national economy to foreign capital.
"The country will benefit from an open market, " the news agency added, quoting the ministry.
Meanwhile, senior DSM official Khalifa Al Mohannadi's instant reaction to the development was: "My heartfelt congratulation to expatriate brothers, especially. They can now invest at our bourse and benefit from the boom."
Khalifa, who heads the public relations department at DSM, told The Peninsula last evening that the move would allow foreigners, including companies and individuals, to own shares of listed Qatari companies.
This will enable DSM to attract major foreign institutional investors (FIIs) and companies keen to seek mergers with Qatari listed firms.
Foreign companies could also set up branches in Doha and buy and sell local shares, he said. The bourse, according to Khalifa, would get a big boost with this decision.
© The Peninsula 2004
