Qatar’s QIA unveils market making initiative to boost liquidity

By Shilpa Annie Joseph, Desk Reporter
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Qatar’s sovereign wealth fund Qatar Investment Authority (QIA) has launched a market making initiative to boost liquidity at the Qatar Stock Exchange (QSE).

QSE licensed market makers will be able to access some of QIA’s stock inventory and incentives programs to facilitate markets in QSE-listed stocks, as per the statement.

QSE, 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 Qatar Central Securities Depository (QCSD) on this important program.

Mansoor Bin Ebrahim Al Mahmoud
Mansoor Bin Ebrahim Al Mahmoud

“Qatar is uniquely positioned to further open its capital markets to foreign issuers. 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 the first step towards this goal and helps to further develop the Qatari financial markets.”

According to the statement, “This year QSE has seen the largest foreign investment flows in its history given its renewed focus on liquidity.” The launch of market making initiative will support the continuation of this momentum.

“We welcome 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 Mr. Abdul Aziz Al Emadi, Acting CEO of QSE.

QSE is also engaged with various stakeholders to further increase the free float in the market. Further, the QSE is working to attract more listings, and introduce more exchange-traded funds (ETF) as well as derivatives to help investors diversify their portfolios and better manage their investment risks.

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