Extensive Efforts to Increase Maximum Foreign Ownership Limit in Qatari Listed Companies

Doha, June 05 (QNA) - The Minister of Economy and Finance and Chairman of the Financial Markets Development Committee, HE Youssef Hussain Kamal, stated that the parties, which are responsible for the financial markets in the State of Qatar, are making extensive efforts to provide an investment environment that is more attractive for foreign investors to direct their investments towards the Qatari market through encouraging several listed companies to increase the maximum ownership percentage allocated for non-Qataris. HE the Minister highlighted many examples for this trend noting that the foreign ownership limit (FOL) of several large listed companies is at or close to 25% of their market capitalization. Doha Bank is the most recent example of this trend, recently changing their FOL to 25% of the market capitalization in accordance with an amendment on the Banks articles of association aimed at allowing this change, a statement issued by the Qatar Exchange reported. He also noted that several companies have actually exceeded this percentage as Ooredoo and Vodafone have FOL of 100%, while the maximum foreign ownership limit in Masraf Al Rayan 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, H.E the Minister added". H.E the Minister noted that the CBQ and QIB are examples of QE listed companies that have responded positively to this change and have recently requested Qatar Exchange to increase the number of their shares available to foreign investors to 25 percent to their total market capitalization. It is expected that within 6 to 9 months these changes can be implemented after modifying their articles of association. Furthermore, other companies are expected to follow this approach. Confirming the importance of this move in assisting the Qatar Exchange in being an attractive market not just for its domestic audience but for its international investors as well, H.E the Minister 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." (QNA)