QIA launches market making initiative to boost QSE liquidity

Liquidity on the Qatar Stock Exchange (QSE) is all set to improve drastically with the Qatar Investment Authority (QIA) allowing the QSE-licensed market makers to access some of its stock inventory.
In this regard, the QIA has set up a market making initiative through which the QSE-licensed market makers will be able to access some of QIA’s stock inventory and incentives programmes to facilitate markets in QSE-listed stocks.
The move by the country’s sovereign wealth fund comes as part of its efforts to attract foreign asset managers as well as to support and develop local economy.
“Qatar is uniquely positioned to further open its capital markets to foreign issuers,” said Mansoor bin Ebrahim al-Mahmoud, chief executive officer of the QIA.
The QIA’s commitment to deepening its capital market is an important step to attracting foreign asset managers to invest in Qatar, and to stimulate retail participation that will help diversify and broaden the market.
This QIA-sponsored market making initiative is a first step towards this goal and helps to further develop the Qatari financial markets.
“We welcome the QIA’s initiative to enhance liquidity in the market. Higher liquidity will further attract investors into the market while improving price discovery and boosting investor confidence.” said Abdul Aziz al-Emadi, acting chief executive officer of the QSE. The need for strengthened market makers comes in view of more exchange traded funds or ETFs expected to be traded on the QSE.
This year the QSE has seen the largest foreign investment flows in its history, given its renewed focus on liquidity. The launch of market making initiative would support continuation of this momentum.
The Qatari bourse, as part of its wider reform strategy, has been working on various initiatives to enhance liquidity in its market and is working closely with the Qatar Financial Markets Authority (QFMA) and the Qatar Central Securities Depository (QCSD) on this important programme.
The QSE is also engaged with various stakeholders to further increase the free float in the market, a bourse spokesman said.
The recent announcements by major companies for the removal of foreign ownership limits are part of an overarching plan to enhance access for foreign investors.
Supporting the development of asset management industry is also part of QSE’s strategy, the spokesman said.
The QSE is also working to attract more listings, introduce more ETFs and derivatives to help investors diversify their portfolios and better manage their investment risks, the spokesman added.