Rashid Ali Al Mansoori (second left), CEO of QSE and Dr R Seetharaman (second right), CEO Doha Bank and other officials at the event in New York Palace Hotel in New York, yesterday.
Qatar Stock Exchange (QSE) is planning to introduce more products to attract further foreign investment in the country, said a top official of the QSE at an event held in New York.
“Qatar exchange aims to provide more products this year to encourage investments from global investors. The Exchange traded fund (ETF) is part of this initiative of Qatar Exchange. This would result in increase in inflows to Qatar economy both from the region and from globe and thereby promote sustainability”, said Rashid Ali Al Mansoori, CEO of QSE at the Annual Investment Forum 2017.
The two-day event organised jointly by QSE and HSBC concluded yesterday at New York Palace Hotel.
On the sidelines of the forum, Dr R Seetharaman CEO of Doha Bank gave insight on Qatar economy and Doha Bank ETF progress.
He said: “Qatar economy is expected to grow by 3.4 percent in 2017. Qatar continues to follow its non- hydrocarbon diversification model and prudent fiscal management amidst low oil prices.”
Qatar had come up with its $9bn bond issue in 2016. The country ranked 18th in ‘the Global Competitiveness Report 2016-17’ and stands second in the region. Qatar is also planning to introduce PPP law this year.
QSE has received MSCI upgrade in 2014 and more capital market reforms are pursued by Qatar economy. The upgrade enables better visibility of Qatar’s existing listed firms before foreign institutions.
Qatar’s financial sector will be therefore be an enabler for Qatar’s economic transformation. Qatar Exchange is planning to introduce a number of products this year which will improve the investor’s participation.
Qatar economy is sustainable on account of the economic and financial market reforms. Doha Bank will aim to support Qatar’s financial market reforms through the ETF.
On Doha Bank ETF Plans, Dr Seetharaman, said: “Doha Bank has been working closely with the Listing Committee and Qatar Exchange and local regulators in driving the new listing towards growing the investment platform in Qatar via new offerings.
In line with this initiative, we are proud to announce that the bank, as Founder, is in the final phase for filing its application for listing approval for the proposed launch of the QE Index ETF (QETF). The QETF will invest and replicate the Qatar Index largest 20 companies in terms of market capitalisation and liquid listings - The crown jewels of Q-Inc.
The fund will replicate the index in performance, net of fees. The fees or ‘Total Expense Ratio’ to be 0.50 percent; one of the lowest in Emerging Markets offerings. The fund will pay an annual dividend, net of fees, similar to the index; which currently carries a yield of 3.80 percent.
The offering will enjoy easy access, as the investor needs only an investor number and broker and the ETF will be easily traded in the secondary market like other current listings. The Fund also has on boarded a dedicated ‘Liquidity Provider’ to ensure secondary market liquidity.
The fund enjoys full support from local government and regulators and currently the bank is raising seed capital to be invested along with the bank pre-listing.
