A set of Qatari banks will enter the Qatar Exchange as members and start providing financial services activities, including brokerage services, with QNB being the first bank to offer brokerage services at Qatar Exchange on Monday May 16th, 2011.
Other banks will start brokerage activities in the next weeks or months in accordance with the licenses given to them by Qatar Financial Markets Authority (QFMA), says Andre Went, Chief Executive Officer of Qatar Exchange. These banks are Commercial Bank represented by Commercialbank Investment Services and Ahli Bank represented by Ahli Brokerage.
Additional applications by some other banks are currently being reviewed by the Regulator.
Went stressed that “allowing banks to perform brokerage activities has many advantages and benefits for the exchange and the investors as well in respect of attracting foreign investment portfolios and enhancing confidence of international investors in the Qatari Market. The step will also contribute in improving the efficiency of the brokerage services provided through fostering competition in terms of providing the best and diversified services to investors.”
Established in 1995, the Doha Securities Market (DSM) officially commenced operations in May 1997. Since then the exchange has grown to become one of the leading stock markets in the GCC region.
Following a strategic partnership agreement between Qatar Holding and NYSE Euronext in June 2009, the DSM was renamed the Qatar Exchange (QE).
QE currently has 42 listed companies and its market capitalization is around QR450 billion (US$123 billion).
The primary aim of QE is to support Qatars economy by giving investors a platform through which they can trade fairly and efficiently. QE also provides the public with access to market information, ensures correct disclosure of information, and enforces securities regulations. QE is regulated by the Qatar Financial Markets Authority.
The participation of banks represents a major milestone in the development of the marketplace, says Went. It will strengthen the confidence of the international investors that Qatar is an efficient market to invest in.
(LB)