Qatar Development Bank (QDB) will fund QR300,000 to QR400,000 to small and medium enterprises (SMEs) as part of efforts to help them get listed on the Qatar Stock Exchange’s (QSE) ‘Venture Market’ (QEVM).

In this regard, QDB entered into a memorandum of understanding (MoU) with the QSE. Both the parties have pledged to work together to collaborate in identifying SMEs for possible listing on the QEVM, which is a junior bourse for the sector with less stringent listing norms. The deal was signed by QSE chief executive Rashid bin Ali al-Mansoori and his QDB counterpart Abdulaziz al-Khalifa.

“It is QR300,000 to QR400,000 per each company which seeks listing on the QEVM,” QSE chief executive al-Mansoori told reporters on the sidelines of the agreement signing at the Made in Qatar expo.

The proposed funding from the development institution is regarding the fees payable to listing advisers and other costs associated with the listing.

In January 2012, the bourse established a separate stand-alone ‘Venture Market’ stipulating eased entry norms as well as lower capital base and shareholders but made mandatory liquidity provider and perpetual services of listing adviser.

The Qatar Financial Market Authority has stipulated SMEs with a track record of one year and a minimum subscribed capital of QR5mn (50% paid) to be eligible for listing compared to three years and a higher capital base of QR40mn (50% paid) for those in the main market.

"Our partnership with QDB has been for a long time since we established QEVM," al-Mansoori said, adding the MoU is to leverage on QDB's expertise to encourage more such firms to come to the QSE.

Since QDB and the QSE share the same objectives in terms of supporting SMEs and acknowledging their importance to sustainable economic development and in accordance with Qatar National Vision 2030, he said the MoU establishes a framework between both parties to coordinate and build upon existing activities to best support the development of SMEs.

Asked by when SMEs would be traded in the QEVM, al-Mansoori said the QSE is aiming by the first half of 2018.

“Technically and legally we are ready but it is for the companies themselves to decide” (when to approach the market), he said, adding there have been interests from SMEs across several sectors and verticals.

With the addition of the QEVM to the product suite, QSE would provide young and entrepreneurial companies a customised route to market to ensure they have access to the necessary funds to contribute to Qatar’s economy, sources in the bourse said.

It (QEVM) will be value proposition for investors as well due to enhanced range of investment choices, sources added.

It is believed that the bourse is presently working with a short-list of companies who have appointed advisors and subject to the approval of the regulators; they could form the launch candidates.

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