Qatar Holding (“QH”), the strategic and direct investment arm of Qatar Investment Authority (“QIA”), and NYSE Euronext (NYX) is signing a binding agreements to form a major strategic partnership which will establish Qatar Exchange (successor to the current Doha Securities Market (“DSM”)) as a world-class international exchange, and provide NYSE Euronext with a valuable presence in the Middle East. The successful closing of negotiations follows a preliminary announcement on 24 June 2008 that Qatar had selected NYSE Euronext as a partner.
“Today’s announcement paves the way for Qatar to take a prominent role in the world’s capital markets for the benefit of both the people of Qatar and the Middle East more generally,” says Sheikh Hamad bin Jassim bin Jabor Al-Thani, prime minister and minister of foreign affairs of Qatar. “Our vision is to create a world class financial center around a global exchange that is on par with the deepest pools of capital across Europe, the U.S. and Asia.
This announcement confirms the strategy behind the partnership between the State of Qatar and NYSE Euronext as set out in the preliminary announcement issued by both parties on 24 June 2008. The intention of the strategic partnership is to transform the QE into an internationally recognized exchange. It will provide Qatar with total market infrastructure capability and the opportunity to reinforce the country’s position as a regional capital market with the introduction to Doha of new trading products, technology and international investors and issuers.
The benefits of the partnership will extend beyond the international development of the QE, as NYSE Euronext has committed to use Doha as its Middle East operational and support hub. Furthermore, both the State of Qatar and NYSE Euronext have committed to work together in partnership to develop other opportunities in the Middle East region.
The terms of the agreements are intended to align closely the interests of both partners to the success of the project. It provides the State of Qatar with a means of developing a sophisticated global market to provide issuers and investors an exposure to the success of its economy which continues to grow despite the global downturn. By 2015, Qatar is expected to be the second-largest economy in the GCC region which underlines the rationale behind the country’s role as a major regional capital market. It offers NYSE Euronext the exposure to one of the world’s fastest growing regions.
Having now successfully closed the negotiations between both parties with the signing of the agreements, the partners are in a position to take forward the objective of developing Qatar’s financial markets to best practice international standards.
The Board of QE will be chaired by Khalid Al-Attiyah, State Minister for International Cooperation and the Acting Minister for Business and Trade. Ahmad Al-Sayed, Managing Director and CEO of Qatar Holding, will be Vice Chairman.
QE’s Chief Executive Officer will be Andre Went, who previously served as a Managing Director based at NYSE Euronext in Amsterdam. Other roles in which he served during more than 20 years in the Euronext group include Director Strategy and Market Development Director Group Policy, Euronext Paris, and head of Secondary Markets in Amsterdam.
The new market will begin trading as QE under the new management structure on 21 June, 2009. All staff employed by the DSM will be transferred to QE and will continue to enjoy the same employment rights and status. The aim of the management is to build on the achievements of the DSM, creating a world class exchange trading cash equities and derivatives. Trading will continue to be in Qatari Riyals with longer term plans for multi-currency functions.
D.C.