Masraf Al Rayan has become the first listed entity to recommend up to 100% foreign ownership, after the cabinet endorsed a plan that offered full foreign holding in the listed companies.
The bank "is the first Qatari listed company whose board of directors has approved the foreign ownership ceiling to 100% after the honourable Council of Ministers decision in this regard," Qatar Stock Exchange (QSE) chief executive Rashid bin Ali al-Mansoori said in a tweet yesterday.
Now that the Masraf Al Rayan board has approved up to 100% foreign ownership limit (FOL), a proposal regarding amendment to Articles of Association has to be discussed with the shareholders by calling for an extraordinary general assembly.
Masraf Al Rayan, now in the midst of merging al khaliji with it, is one of the few entities that saw significant appreciation in its share value after the cabinet nod to allow up to 100% FOL in the listed companies, a move that ought to substantially enhance liquidity and trading in the market.
The merger of al khaliji with Masraf Al Rayan has been approved by the board of directors of both banks and is expected to be completed in the first half of 2021, subject to central bank and regulatory approvals.
Upon the completion of the merger, al khaliji will be "dissolved" and Masraf Al Rayan will be the surviving entity, continuing to operate as an Islamic bank.
It is expected that after up to100% FOL is implemented, the weight of such entities in the emerging market indices (MSCI and FTSE) would increase as the indices calculate the weight of each company based on percentage ownership available to investors (local, regional and international).
The (expected) increase (in the weight) translates into new money coming to that stock mainly from international funds to match with the new weight of that company.
"The decision to raise the percentage of foreign ownership in the shares of Qatari companies will positively affect the liquidity and trading in the market,” al-Mansoori earlier said.
Qatar is the first country to have 100% FOL for all listed firms. Since FOLs are a consideration in the weight of stocks in global emerging market indices, such as those managed by MSCI and FTSE, the increase in FOL will increase the weights of Qatari stocks in these indices, said Akber Khan, senior director (Asset Management Group), Al Rayan Investment.
The draft law, approved by the cabinet, includes the amendment of Article (7) of the law so that non-Qatari investors can own up to 100% of the capital of Qatari shareholding companies listed on the QSE.
Other than Masraf Al Rayan, Khan said Qatar Islamic Bank, Commercial Bank and QIIB are expected to see the lion’s share of inflows that could be in excess of $1.5bn.
The bank "is the first Qatari listed company whose board of directors has approved the foreign ownership ceiling to 100% after the honourable Council of Ministers decision in this regard," Qatar Stock Exchange (QSE) chief executive Rashid bin Ali al-Mansoori said in a tweet yesterday.
Now that the Masraf Al Rayan board has approved up to 100% foreign ownership limit (FOL), a proposal regarding amendment to Articles of Association has to be discussed with the shareholders by calling for an extraordinary general assembly.
Masraf Al Rayan, now in the midst of merging al khaliji with it, is one of the few entities that saw significant appreciation in its share value after the cabinet nod to allow up to 100% FOL in the listed companies, a move that ought to substantially enhance liquidity and trading in the market.
The merger of al khaliji with Masraf Al Rayan has been approved by the board of directors of both banks and is expected to be completed in the first half of 2021, subject to central bank and regulatory approvals.
Upon the completion of the merger, al khaliji will be "dissolved" and Masraf Al Rayan will be the surviving entity, continuing to operate as an Islamic bank.
It is expected that after up to100% FOL is implemented, the weight of such entities in the emerging market indices (MSCI and FTSE) would increase as the indices calculate the weight of each company based on percentage ownership available to investors (local, regional and international).
The (expected) increase (in the weight) translates into new money coming to that stock mainly from international funds to match with the new weight of that company.
"The decision to raise the percentage of foreign ownership in the shares of Qatari companies will positively affect the liquidity and trading in the market,” al-Mansoori earlier said.
Qatar is the first country to have 100% FOL for all listed firms. Since FOLs are a consideration in the weight of stocks in global emerging market indices, such as those managed by MSCI and FTSE, the increase in FOL will increase the weights of Qatari stocks in these indices, said Akber Khan, senior director (Asset Management Group), Al Rayan Investment.
The draft law, approved by the cabinet, includes the amendment of Article (7) of the law so that non-Qatari investors can own up to 100% of the capital of Qatari shareholding companies listed on the QSE.
Other than Masraf Al Rayan, Khan said Qatar Islamic Bank, Commercial Bank and QIIB are expected to see the lion’s share of inflows that could be in excess of $1.5bn.
