Despite Blockade, Qatari Stocks to Attract $5 Billion in Foreign Funds

Published December 6th, 2018 - 10:33 GMT
Qatar has emerged as the best performing stock market this year with a rise of more than 24 percent till date. (AFP)
Qatar has emerged as the best performing stock market this year with a rise of more than 24 percent till date. (AFP)

Foreign funds worth more than $5 billion are waiting to be infused into Qatar’s stock market, a senior official of Qatar Stock Exchange (QSE) has said.

In an exclusive interview with Qatar Tribune, QSE Products and Marketing Development Director Mohsin Mujtaba said foreign institutional investors have already invested more than $5 billion in Qatari stocks in the last few years and another $5 billion is waiting on the sidelines to enter Qatar’s equity market. 

This year alone, he said, foreign institutions have bought Qatari equities worth $2.3 billion on net basis.

Despite facing economic blocked for the last 18 months, Qatar has emerged as the best performing stock market this year with a rise of more than 24 percent till date.

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The combined earnings of QSE-listed companies in the first nine months of this year have gone up by 6.7 percent, compared with the same period last year. “We expect this trend to continue next year as well,” he said.

The economic resilience shown by Qatar despite the blockade has made the country one of the safest places in the world to invest in, he said, adding that the listed firms should capitalise on the country’s robust economic growth to attract foreign funds waiting on the sidelines.

“This is the high time listed companies should hold roadshows at all the major financial centres in the world like New York, London, Paris, Singapore and others where there is pool of capital. The Qatari companies should engage with such long-term investors and tell their growth stories to them not once but thrice or four times a year. That is the $5 billion that is waiting to hear your story. If we are successful in doing that, the fund will flow into the Qatari market,” Mujtaba said. 

“Rising oil prices, increase in local production and consumption have made many Qatari-listed firms perform better this year. Most of the energy-related firms like Industries Qatar, MPHC, Woqod have outperformed. Qatar National Bank (QNB) has done very well, as for many investors the bank represents the Qatar story,” he said.


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