Qatar stock market to launch exchange-traded funds

26 May 2014

Authorities plan to introduce new products to tackle exchange’s illiquidity

Qatar Stock Exchange (QSE) will be launching two exchange-traded funds (ETFs) in the next six months, its chief executive Rashid al-Mansoori told investors during an event it hosted in London on 24 May.

“One of these will be an ETF based on government fixed income risk from an Asian borrower and the second product is likely to be an ETF based on a representative Qatar-country index,” said Al-Mansoori.

“We hope to introduce these ETFs to the market in the next 6 months.”

Qatar’s stock market is seeking to attract higher foreign investment after index compiler MSCI officially upgrades it to ‘emerging markets’ status on 1 June. While the move is set to attract interest from emerging markets fund managers across the globe, the exchange’s illiquidity and lack of depth are seen as major challenges.

Authorities have announced a range of initiatives aimed at improving the market’s mechanisms and enhancing its product offering, though it remains unclear when it will be introducing these.

You might also like...

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications