Al-Raisi (left) and al-Mansoori: SMEs can add value locally and compete globally.
By Santhosh V Perumal/Business Reporter
The junior bourse of Qatar Stock Exchange (QSE) for small and medium enterprises (SMEs), QE Venture Market (QEVM), which is expected to kick off with a small set of domestic companies, is all set to welcome SMEs from the wider Gulf Cooperation Council (GCC) and Middle East and North Africa (Mena) regions as well, according to its top official.
“It is expected that these companies will be SMEs from Qatar, the GCC and the Mena region to establish a solid foundation for our nation’s future” in ensuring a “healthy pipeline” of suitably qualified companies in the QEVM, QSE chief executive Rashid bin Ali al-Mansoori told a workshop for SMEs, jointly organised by the QSE and Commercial Bank.
Highlighting the need for the ecosystem for empowering listing of SMEs on the QSE, he said it is particularly important for the success and future growth of SMEs because it is critical to get the community working together, including company founders, investment bankers, lawyers, accountants, traders, analysts and investor relations professionals.
In January 2012, the bourse established a separate stand-alone QEVM stipulating eased entry norms as well as lower capital base and shareholders but made mandatory liquidity provider and perpetual services of listing adviser.
“QEVM is envisioned as the home of entrepreneurial Qatari companies adding value locally with the potential to compete globally,” Commercial Bank chief executive Abdulla Saleh al-Raisi said.
This is a very ambitious goal and the QEVM is still in its development phase, but through proper SME engagement and partnerships with key strategic partners such as Commercial Bank, the junior bourse is seeking to raise awareness and increase interest from potential companies looking to list, al-Raisi said.
The QSE had last year signed agreement with Enterprise Qatar (which was then merged with Qatar Development Bank) to launch an SME subsidy programme whereby each successful applicant will be eligible to receive a percentage of the fees payable to their listing adviser.
As per the framework agreement, any Qatari company which meets both the Enterprise Qatar SME criteria and the QSE/QFMA rules for listing on the junior bourse will be eligible to apply for the assistance through the programme which will be limited in scope.
The Qatar National Vision 2030 identifies developing the SME sector as essential to achieving sustainable economic development by diversifying Qatar’s economy away from the reliance on oil and gas, creating jobs and driving new sources of innovation.
“Key to this blueprint is achieving economic diversity and sustainability through SMEs, and Commercial Bank is committed to serving the needs of SMEs to support the growth and vitality of our national economy,” al-Raisi said.
Commercial Bank is the SMEs bank of choice in Qatar and through specialised enterprise banking department, the bank provides targeted support through its bespoke, value-added products and services for the SMEs to grow and succeed, he said.
Highlighting that globally SME sector provides the foundation for successful economies, contributing employment opportunities, wealth creation and increased output, al-Mansoori said “Qatar is no exception and the QSE has therefore developed the QEVM with the objective of supporting the growth of SMEs and positioning the bourse at the centre of government’s ongoing support for this important sector, which is a key element in the QNV 2030”.
He said QSE is presently working with a shortlist of companies that have appointed advisors and expect such companies, subject to the approval of the regulators, to form its launch candidates in the coming days.
Giving a detailed presentation on the benefits of SMEs; QSE director of listing Abdul Aziz al-Emadi said offering liquidity and valuation is a primary benefit for listing on the QSE, especially in view of the fact that private and family businesses are reaching a stage where the first or second generation owners are no longer so active in the business.
“Thus, listing is a solution for succession and business continuity considerations,” he added.
