Monday, 29 May 2023 06:47 GMT

Qatar's Market-Making Program to Attract Foreign Asset Managers, Enhance Capital Markets

(MENAFN) In a bid to strengthen its capital markets and attract foreign asset managers, Qatar is introducing a market-making program, with the Qatar Investment Authority (QIA) allocating up to 1 billion Qatari riyals (USD275 million) towards this initiative. The program, announced by the QIA on Tuesday, aims to promote price discovery and diversify the country's capital markets.

By implementing this program, Qatar seeks to draw in more foreign asset managers who will invest in local shares, ultimately contributing to the growth and development of the country's financial sector. The Qatar Stock Exchange is expected to benefit from increased liquidity, offering greater opportunities for both local and international investors.

The market-making program, which is anticipated to operate over a span of five years, will encompass approximately 90 percent of the market capitalization listed on the local bourse. This comprehensive coverage signifies Qatar's commitment to enhancing liquidity and market efficiency across a wide range of listed companies.

The initiative underscores Qatar's proactive approach to furthering its economic diversification agenda and creating an attractive investment environment. By facilitating price discovery and encouraging active trading, the market-making program aims to foster a dynamic and vibrant capital market that can effectively meet the needs of domestic and international investors.

Qatar's commitment to bolstering its capital markets and attracting foreign asset managers is a testament to the country's long-term vision for sustainable economic growth and financial stability. The market-making program is set to play a crucial role in achieving these objectives by encouraging increased participation, improving liquidity, and enhancing the overall investment ecosystem in Qatar.


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