Milaha (formerly Qatar Navigation) has recommended up to 100% foreign ownership, after the cabinet endorsed a plan that offered full foreign holding in the listed companies.
Qatar had early this month allowed up to 100% foreign ownership limit (FOL) in the listed companies from the present limit of 49%, a crucial move that ought to substantially enhance liquidity and trading in the market.
"The board of directors approves the amendment of the Articles of Association to increase the percentage of non-Qatari ownership from 49% to 100% subject to the approval of the concerned official authorities and the company’s extra ordinary general assembly and according to the necessary procedures in this regard," Milaha said in a regulatory filing with the Qatar Stock Exchange (QSE).
Milaha is the second Qatari listed company to approve the move to 100% foreign ownership limit, following the government's approval to raise the limit, according to QSE chief executive Rashid bin Ali al-Mansoori.
It is expected that after up to 100% FOL is implemented, the weight of these companies 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 had 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.
Qatar had early this month allowed up to 100% foreign ownership limit (FOL) in the listed companies from the present limit of 49%, a crucial move that ought to substantially enhance liquidity and trading in the market.
"The board of directors approves the amendment of the Articles of Association to increase the percentage of non-Qatari ownership from 49% to 100% subject to the approval of the concerned official authorities and the company’s extra ordinary general assembly and according to the necessary procedures in this regard," Milaha said in a regulatory filing with the Qatar Stock Exchange (QSE).
Milaha is the second Qatari listed company to approve the move to 100% foreign ownership limit, following the government's approval to raise the limit, according to QSE chief executive Rashid bin Ali al-Mansoori.
It is expected that after up to 100% FOL is implemented, the weight of these companies 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 had 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.
