Qatar Exchange has announced the formation of QE Venture Market, a new market for the country's small and medium enterprises.

The formation of the market is an important part of Qatar Exchange’s ongoing development offering capital raising opportunities for issuers and a variety of investment alternatives for the retail and institutional investor base both domestically and internationally.

Unlike the Main Market which is designed for larger companies with established track records QE Venture Market is designed with smaller companies in mind with a more flexible disclosure and corporate governance regime, said a senior official.

"After significant preparatory work Qatar Exchange already has in place the necessary infrastructure to list and trade the securities of SMEs on the QE Venture Market," remarked Andre Went, CEO of Qatar Exchange.

Qatar Exchange, he said, recognizes the importance of the SME sector which globally provides the foundation for successful economies, contributing employment opportunities, wealth creation and increased output.

According to him, SMEs had already been recognized in Qatar as a key element in the success of a growing and healthy economy.

"With the addition of the QE Venture Market to our product suite we are providing young and entrepreneurial companies a customized route to market to ensure they have access to the necessary funds to contribute to Qatar’s economy," Went remarked.

"However, as an Exchange we have undertaken to do more than just provide the platform; we will actively seek to assist those SMEs to prepare for their life as a public company listed on QE Venture Market,” he added.

Being publicly listed brings benefits in terms of ability to raise capital and liquidity but for SMEs, QE Venture Market provides additional acknowledged benefits such as a dedicated route to market for small and mid-cap companies; an entry route to public markets and creating a universe of peer group companies which can be beneficial to investor following, research coverage and ultimately maximization of valuation.

With the recent finalization of the QFMA listing rules the basis for the market’s operation is now in place and Qatar Exchange looks forward to welcoming companies to its market, said Went.-TradeArabia News Service