Foreign institutions increasingly penetrate QSE; account for 40% of average daily turnover

Top executives of listed companies with QSE acting CEO Abdulaziz Nasser al-Emadi at the New York roadshow.

Foreign institutional investors are increasingly penetrating the Qatar Stock Exchange (QSE), typically accounting for 30%-40% of average daily turnover in the recent past and continue to have an active presence in the QSE, which is becoming an investment destination in view of the country embarking on a new phase of growth driven by the proposed North Field expansion.

This was the message conveyed by top QSE officials to international investment managers at a roadshow in New York, hosted at the Bank of America’s offices. The roadshow was part of the QSE’s strategy to expand its investor base, attract further foreign investment and showcase the strength and potential of Qatar’s capital markets.

The bourse led a delegation of its leading listed companies such as QNB, Commercial Bank of Qatar, Qatar Islamic Bank, Masraf Al Rayan, Mesaieed Petrochemical Holding, Industries Qatar, Gulf International Services and Qamco, Qatar Insurance, Milaha and Nakilat.

The roadshow offers the US investors an opportunity to expand their relationship with Qatar as an investment destination and strengthen their understanding of investment opportunities with Qatar’s leading companies. It also reflects the increased penetration of foreign institutional investors into Qatar’s capital markets.

“The QSE’s and our listed companies’ commitment to ongoing outreach is part of a long-term commitment. In fact, the Third Financial Sector Strategy enshrines internationalisation as one of its key objectives,” QSE acting chief executive officer Abdulaziz Nasser al-Emadi said.

“This covers not just equity investors but also fixed income investors as well as the regional and global market participants who provide the international connectivity that has been such an important part of Qatar’s overall growth. The two go hand-in-hand with increased awareness, requiring further development of market access and market infrastructure that will make portfolio investment more efficient,” he added.

Post World Cup and its related infrastructure build-out, he said Qatar is embarking on a new phase of growth driven by the proposed North Field expansion, which will increase liquefied natural gas production capacity to 142mn tonnes per annum by 2030, an 85% increase.

According Standard & Poor’s (S&P), an international credit rating agency, Qatar’s LNG production increase would imply demand for additional exports, particularly to Europe and enhancing of the country’s per capita income to above $80,000.

Qatar derives about 40% of its GDP or gross domestic product, 80% of government revenue, and 90% of exports from the hydrocarbon sector. As a result, S&P forecasts the country’s strong fiscal and current account surpluses will persist in 2024-27, based on a Brent oil price assumption of $81 per barrel (/bbl) in 2024 and $75/bbl in 2025-2027, together with expected increases in LNG production capacity by 2027.