(MENAFN- The Peninsula) Qatar's venture or junior stock market listing small and medium-sized enterprises (SMEs) is all set to be operational by early next year, the CEO of the country's bourse said on Monday.
To begin with, five SMEs will be listed on the Qatar Exchange (QE) Venture Market, while several others are in the process of getting approval from the authorities concerned, said Rashid Al Mansoori.
He told this newspaper on the sidelines of a workshop on SMEs held by Doha Bank that 10 SMEs had actually applied for listing and five of them have fulfilled the necessary requirements.
"They (the five SMEs) are in the process of getting listed, which means that by early 2015 we will have not less than five companies as part of the new and emerging SMEs stock market."
Asked to elaborate, Al Mansoori said: "I can't disclose the names of these companies as they are still in the process of listing."
He, however, added that there are several other companies that are preparing themselves to get "consultative support". He said he hoped that these companies would be in a position to be listed by 2015-end.
For the SMEs and "emerging enterprises" there is a mechanism to help and develop them by increasing their capital, searching for right partners for them, and improving their performance (after listing) to win the confidence of investors.
"We are asking for a capital of QR5m, and of that only half needs to be paid up," said Al Mansoori, talking of the SMEs' listing requirements on the parallel, junior or emerging market.
Replying to a question about the delay in the listing of Barwa Bank on the main stock market (Qatar Exchange), the CEO said: "Apart from Barwa Bank there is one more bank - Qatar First Bank - which is planning to get listed. We are continuously following up on them".
But before the listing there are some requirements that they need to be fulfilled with the regulator (the Qatar Financial Markets Authority) in respect of Qatar First bank."
Al Mansoori said that since Qatar First Bank is registered with the Qatar Financial Centre Authority, it needs to go through certain process before getting the approval of the regulator of the Qatar Exchange, the Qatar Financial Markets Authority (QFMA) for listing.
About Qatar Petroleum's listing plans, he said that the company has promised that it will be listing some group companies (subsidiaries) over the next 10 years.
Asked about the reasons for lukewarm response of companies for listing on the QE, he said: "We are continuously trying to convince and educate companies, particularly family-owned businesses, about the benefits of listing".
Initially they show very encouraging response but later they just become passive and reluctant. "Some of them have expressed reservations that even small investors with 100 or 200 shares can drag the chairman of a listed entity to court."
Regarding plans to issue corporate bonds, he reiterated that there indeed is a plan and added that discussions were held with the Qatar Central Bank and response was awaited.
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