The Qatar Investment Authority (QIA) is launching a $275 billion permanent market-making program to attract foreign investments and enhance liquidity. Over the next five years, this program will cover 90% of the market capitalization of companies listed on the Qatar Stock Exchange (QSE).
As mentioned in the release, the Qatar Investment Authority (QIA) will play a pivotal role in promoting price discovery and diversification within Qatar’s capital markets. To achieve this, the wealth fund plans to provide an economic incentive through rebates to reduce trading costs for established market makers.
Implementing such measures aims to attract more foreign asset managers to invest in local shares within Qatar. This strategic move is expected to enhance market participation, stimulate increased foreign investment, and foster a more vibrant and internationally appealing investment landscape in the country.
“The commitment from QIA aligns with its mandate to support the development of a competitive Qatari economy,” the wealth fund said in a statement.
In January of this year, Qatar welcomed its first initial public offering (IPO) in nearly three years. The IPO was for MEEZA, an IT services firm, and marked a turning point facilitated by new regulations. These regulations enable companies to present a price range, assess investor interest, and determine pricing accordingly.
By broadening the range of investment instruments available, the QSE aims to attract both domestic and foreign investors, offering them greater flexibility and opportunities to tailor their investment portfolios to their specific preferences and risk tolerance.