Qatar Pushes to Increase Foreign Ownership Limit of Listed Companies

Doha, June 05 (QNA) - Companies listed on Qatar Exchange (QE) are being encouraged to increase the limit of maximum ownership percentage allocated to non-Qataris in a bid to attract foreign investments into the country's financial markets, Qatar's Minister for Economy and Finance has said. According to a media statement by the Qatari bourse issued Wednesday, HE the Minister of Economy and Finance who is also Chairman of the Financial Markets Development Committee Yousef Hussain Kamal said, "Financial market authorities in the State of Qatar are making extensive efforts to provide an investment environment that is more attractive to foreign investors." Many large cap companies listed on the QE have their Foreign Ownership Limit (FOL) at 25% (or close to it) of their market capitalization, the minister said and cited the example of Doha Bank which recently increased its FOL to 25% following an amendment to its Articles of Association to allow this increase. Several top companies have actually exceeded this limit, he said. Telecom company Ooredoo, previously known as Q-Tel, and Vodafone Qatar have FOL of 100% while Masraf Al Rayan's maximum FOL is set at 49%. "Some other companies have expressed their willingness to amend the current FOL set at 25% of their free float shares to 25% of their full capital, HE the minister added. The Commercialbank of Qatar (CBQ) and Qatar Islamic Bank (QIB) are examples of QE listed companies that have responded positively to this change and have recently requested the Qatari bourse to increase the number of their shares available to foreign investors to 25% of their total market capitalization, he said. It is expected that these changes can be implemented within six to nine months after modifying their Articles of Association. Other listed companies are expected to follow this approach, he noted. Reiterating the importance of this move in assisting the QE's development into an attractive market for its domestic as well as its international investors, HE Yousef Kamal said, "The increase in the number of shares available to foreign investors significantly opens up the market in Qatar. This affirms the commitment of the government to transform Qatar into a regional investment hub." Established in 1995, the Doha Securities Market (DSM) officially commenced operations in May 1997. Since then the Exchange has grown to become one of the leading stock markets in the GCC region and for two consecutive years (2010, 2011), was the best performing stock Exchange in the GCC. (QNA)