Qatar Exchange hails 'upgrade'
Doha, November 12, 2013
The Qatar Exchange welcomed the upgrade of its market from 'frontier market' to 'emerging market' by Standard & Poors Dow Jones Indices.
It described it as a positive step that will attract further foreign investments to the Qatari stock market.
Rashid Bin Ali Al-Mansoori, CEO of Qatar Exchange, said the upgrade clearly and evidently reflects the recognition of the positive steps made by Qatar Exchange over the past years, in terms of the development of the market infrastructure and the implementation of a number of important projects and initiatives.
“This upgrade will attract more international investors to the stock market, on the grounds that many international investors are interested in investment in the emerging markets as the upgrade reflects the compliance with the best international practices and standards,” he added.
The upgrade of Qatar status reflects meeting the S&P Dow Jones requirements for inclusion in Emerging markets, especially the degree of openness of the market to the international investment community and an established and well-tested operational framework, said a statement issued by S&P Dow Jones.
The Qatari market has also met the quantitative requirements as defined for Emerging Markets as several large companies have increased their foreign ownership limits to encourage further foreign investment, it said.
Qatar Exchange also introduced the DVP (Delivery Versus Payment) settlement system in 2011 and enhanced it twice in 2012 to ensure full protection of investors’ assets in case of rejection by the seller, it added.
Other requirement was the availability of securities lending and borrowing facilities, which were launched at the Qatar Exchange and are currently available for use by liquidity providers as a mechanism to prevent settlement failures, said the statement.
The market participation was in line with the standards set by other emerging markets, it said.
The S&P Dow Jones Indices is a global resource for index-based concepts, data and research and financial market indicators, such as the S&P 500 and the Dow Jones Industrial AverageSM. - TradeArabia News Service