Doha Bank has 258.37mn total subscribed shares, of which free float constitutes more than 77% or 190.77mn shares

By Santhosh V Perumal/Business Reporter


Foreign shareholders can now hold up to 49% in Doha Bank.
The Qatar Central Securities Depository (QCSD) has amended the foreign ownership limit (FOL) in the shares of the Doha Bank to 49% of capital, as at the end of yesterday’s trading session, a spokesman of the Qatar Stock Exchange said, confirming the development.
The QCSD explained that this amendment comes in implementation of Law No (9), which allows foreign investors to own a percentage not more than 49% of each company listed on the domestic bourse.
The law also provides for the treatment of the Gulf Co-operation Council (GCC) citizens as Qataris in terms of owning the shares of the listed companies.
This move comes after the Doha Bank received approval from its general assembly to amend the articles of association in line with the law provisions, and following the approval of the Ministry of Economy and Commerce on the amendment.
Doha Bank has 258.37mn total subscribed shares, of which free float constitutes more than 77% or 190.77mn shares. Although foreign shareholders could hold a maximum of 64.59mn shares (at the previous limit of 25%), their actual holding was only 31.38mn shares, or little more than 12%, according to the latest data available from the bourse. “The new directive issued by HH the Emir Sheikh Tamim bin Hamad al-Thani to raise foreign ownership in Qatari stocks by investors outside the GCC nations to 49% from 25% will proof positive for the Qatari stock market,” Deutsche Bank had said earlier.
Historically Qatar has classified investors into two categories: Qatari and non-Qatari. But with the new announcement relating to increased FOL, the country has moved towards a three-tier system of Qatari, GCC and foreign investors. This three-tier system is already prevalent in the UAE and Kuwait exchanges.
The decision to enhance the FOL could result in an additional $440mn inflow of foreign funds (active and passive) into the QSE, where QNB, Industries Qatar, Commercial Bank and Doha Bank may get higher weighting, Deutsche Bank had said in a report.
Commercial Bank had last year received the nod from shareholders to hike the FOL up to 49% and the QCSD had amended it to that effect.
Many listed companies, it is learnt, are in the process of enhancing the FOL in view of the upgrade by MSCI and Standard and Poor’s-Dow Jones.