The investment climate in the country is overall good for the investors, including those from the neighbouring countries, but it is not dependent on one segment for the liquidity, which has never been an issue, a top official of the Qatar Stock Exchange (QSE) said Wednesday.
“The liquidity was always there on the QSE. It is an international market and does not depend on one segment but all positive news is good,” the bourse’s chief executive Rashid bin Ali al-Mansoori told reporters Wednesday on the sidelines of the listing of QLM Life and Medical Insurance Company.
He was replying specifically to a query whether the QSE is expecting more funds inflows from the other Gulf countries in the wake of lifting of the blockade.
At the Gulf Cooperation Council summit in Saudi Arabia on January 5, it was decided to end the boycott on Qatar, following which the markets across the region rallied.
QLM chief executive Fahd Mohamed al-Suwaidi said there is huge growth potential for it in the neighbouring countries in the Gulf region.
Highlighting the “overall good” investment climate in the country; al-Mansoori said his priorities are to promote the listing of companies and encourage the family-owned companies to go public, following the successful listings of the companies, including the QLM.
The local bourse has been active in raising awareness among small business owners and family-owned companies of the advantages of listing on its market.
QSE listings director Abdulaziz al-Emadi said it will reinvigorate efforts to encourage the family-owned companies and private companies to market the stock exchange internally and externally as part of measures to bring in more liquidity and companies.
“There has been good appetite (for listing) and now it is even more. We expect good number of listings in this year and we have a good list of potential (candidates) but the decision is up to the companies themselves,” he added.
The QSE saw a new listing of a family-owned corporate, Investment Holding Group in 2017. There is a similar listing of a family-owned retail company on the horizon, according to the Qatar Capital Market 2020 report, prepared by the Qatar Financial Centre.
Qatari businesses have been less inclined to pursue equity funding as they have enjoyed easy access to cheaper bank financing, the report had said, adding most corporates, especially family-owned businesses, also have concerns about the impact of listing on their ownership stake and control of their assets.
The QSE’s efforts to raise awareness of the benefits of public listing for family-owned companies should be supported with an incentive programme to make listings more attractive, especially in terms of cost, it had said.