Qatar introduces bonds for trading in its market
Qatar Exchange has announced the introduction of government bonds issued by the Qatar Central Bank for trading on the exchange, which will commence on 20 June 2013, in a step that supports the development of the financial market in the State of Qatar on the one hand and diversification of investment tools available for banks, institutions and investors on the other.
The trading of government bonds follows the trading of T-Bills, which was launched in December 2011. At the launch of the government bond market, four bonds will be available for trading and it is expected that the future quarterly issues will also be listed on the market, according to a media statement from Qatar Exchange.
Rashid bin Ali Al Mansoori, CEO of Qatar Exchange, explained that the bonds trading entails various investment benefits and advantages on the grounds that they constitute an important source of diversification of securities that would provide a wider range of investors with various types of investment choices. He elaborated that the bonds can provide investors with fixed regular income.
Mansoori stated that the listing of government bonds comes as a first stage to launch a market for corporate bonds intended to finance the companies' expansion plans and provide investment opportunities to take advantage of the growth of the national economy and the successes achieved by the Qatari companies.
Al-Mansoori added that bonds will be traded in the market through the existing licensed brokerage firms and using the existing trading system currently used for stock trading. Information about the bonds and the trading in bonds will be available on the QE website and through regular information channels.
In addition to the information on the QE website, Qatar Exchange will spare no effort in holding public seminars and educational meetings for investors and interested parties to familiarize them with bonds, their investment advantages, pricing mechanism, and yield calculations, Al-Mansoori added.
“It is worth mentioning that the investment in bonds has become a popular investment among major financial institutions, large and small investors all over the world and the demand for bond investments has increased recently due to the advantages generated for both the issuer and the investor,” said the media statement. “Therefore, any development in the bond market will be in the interest of the local financial community in the first place. In view of the fact that Qatar Exchange is seeking to occupy a leading position, it has been able to achieve a number of initiatives such as the diversification of products and applying the best international standards in the trading and post trading environments, in line with the development of the Qatari economy and the prospects for future growth outlined by Qatar National Vision 2030.”