(MENAFN- Gulf Times) Qatar yesterday said it is keen to allow dual listing of German companies as part of efforts to attract more German institutional
investments into its bourse, which is now an emerging market category under global index compilers MSCI and Standard & Poor's-Dow
Jones.
This was disclosed by Qatar Stock Exchange (QSE) CEO Rashid bin Ali al-Mansoori after his meeting with Andreas Peruss, Deutsche
Borse deputy CEO and Tom Bindiksen, a top official of Eurex Frankfurt.
The proposed dual listing, which offers more visibility of the QSE in the international arena, comes in the wake of upgrade of
the Qatari market to an emerging market following the technical and regulatory developments of the bourse. Many estimates put the
expected foreign funds inflows to the tune of QR3bn to QR5bn in view of the upgrade.
The QSE, which is toying with the idea of having multi-currency trading platform and which may see the advent of foreign stock
brokerages via 'remote membership', had signed a letter of intent with Deutsche Borse for co-operation in product and market
development, market data dissemination, indices and technology.
Both the sides discussed the prospects and opportunities for enhancing co-operation between the two sides in the areas of capital
markets developments and technical co-operation.
Al-Mansoori gave a presentation on the QSE and its strategy aimed at developing the exchange to become a leading regional market
capable of attracting investors from around the world.
He expressed the keenness of the local bourse to promote co-operation with the Deutsche Börse in order to achieve the common
interests of both sides.
The Qatar bourse CEO stressed on desire and efforts to enhance co-operation with global stock exchanges and international
financial institutions in the areas that would contribute to the development of the Qatari capital market and the strengthening
of the national economy.
"The capital market reforms will remain in isolation unless accompanied by measured steps to broaden and deepen the investment
universe," an analyst said, adding the market certainly has more absorption capacity.
Although the reasons for dual listing vary from company to company and are generally dependent on a multitude of factors specific
to each, a market source said it will provide access to large pool of potential investors (both retail and institutional) and at
the same time, provide investors in Qatar with wider choices.
However, the analyst said, there are many issues such as the listing costs, differences in the clearing settlement cycle and
those relating to companies act need to be addressed.
The call for dual listing comes at a time when the QSE - in which NYSE Euronext had 20% stake and later divested - is fast
gearing up to expand the investment universe by introducing exchange traded funds and margin trading for which the Qatar
Financial Market Authority has already given the approval.
Qatar's bourse is also planning to allow companies in the other Gulf Co-operation Council states as well as wider Middle East and
North Africa to list their stocks.
The bourse has already embarked on a three-phased development programme to make it an attractive investment destination and since
then undertaken major reforms, which include the introduction of delivery-versus-payment in the first phase.
An official of the London Stock Exchange had earlier said many UK and international companies are interested in cross listing
their equities in local bourses in the Gulf region.
Al-Mansoori and other QSE officials with visiting delegation from Deutsche Borse and Eurex Frankfurt.
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