The Qatari Market Investment Environment


11.09.2011 by Amro Lubnani

The Qatari stock index closed this mid-week with a gain of 0.42%, recording a closing rate of 8,342.19, i.e., an additional 34.71 points. Trading today was recorded at 5,645 with a total value of 265,299 million Riyals, distributed over 3,863 operations. With regards to stock performance, there was a rise in the shares of 23 companies and a drop in the shares of 13 companies, out of a total of 41trading companies.

Highest Shares:

The Al-Ahly headed the list with a rise 4.52%, closing at 81.00 Riyals

Al-Khalij came in second with a rise of 4.22%, closing at 4450 Riyals.

Almira rose by 2.19% and closed at 140.00 Riyals, followed by Qatar Insurance which rose by 1.89%, closing at 81.00 Riyals. Lastly, electricity/water stocks rose by 1.45%, closing at 133.00 Riyals.

Lowest shares:

Cinema stock recorded the highest loss today with a drop of 8.11%, closing at 68.00 Riyals.

Al-Tiba shares fell by 1.00%, closing at 7.92 Riyals followed by Qatar Gas which fell by 0.93% closing at 244.60 Riyals.

In fourth place, Al-Khaligy shares which saw a drop of 0.52% closing at 17.31; and finally, cattle shares which dropped by 0.46% and closed at 21.87 Riyals.

Most active stocks

Al-Rayan was the most active with regards to the number of shares traded, at 1.666 shares.

Next is Al-Tugary with shares numbering 0.510 million, followed by Barwa with 0.466 million shares.

Next is Naqilat with 0.418 shares traded and finally, Qatar Industries with 0352 million shares traded.

Following the severe recessions suffered by international financial markets, fears of an economic recession in the U.S and a worse one on a global level, and after statements by Robert Zoelick, president of the world bank, that “The global economy will enter a new and dangerous stage this autumn” and that “The financial crisis in Europe had become one of national debts with serious complications for financial unions, banks and competitive ability of certain countries,” European stock indexes dropped by 3% following these warnings related to the debt crises of several countries on the Old Continent.

As expected, all of that has had an affect on Arab markets. The Qatari index, which is the second largest Arab index, fell by 1.6% yesterday. Despite this, observers confirm that the drop in the second largest Arab index is within acceptable limits, in light of the regressions in both the American and European markets.

Investors confirm that the losses seen in the Qatari market are psychological, meaning the decline in U.S. national rankings the financial debts it has incurred lately. At the same time, investors express their great confidence that the market will revive in the coming period.

As for foreign investment in the Qatari market and the investment environment, they are very encouraging for various reasons; Firstly, the political stability, security and the encouraging investment environment in Qatar. In the annual report of the World Economic Forum (WEF) which was issued yesterday, Qatar holds first place in the Middle East and North Africa and 14th place in global competitiveness.

Qatar achieved a new world record of 5.24 points, which qualify it to move up from 17th place in 2010 to 14th place this year, out of 142 states covered by the Global Competitiveness Report (GCR). According to the report, competitive benefits in Qatar rest on 2 constants: Internationally competent institutional frameworks and a stable economic environment with an effective consumer market, in addition to the absence of corruption, and the presence of security and financial stability.

The president of the Qatari Chamber of Commerce and Industry confirmed that “The economy of Qatar attracts the interest of the biggest financial authorities and this has helped invigorate local investment, leading to the growth and development of certain sectors such as tourism, communications and air transport. As a result, Qatar will be able to pump new profits into the local economy.”

It is a certainly that the economic open door policy of Qatar has reached an advanced stage, especially after Qatar initiated a new economic phase  under the banners of openness and progress, giving a major role to the private sector wherein the state would relinquish up many of its roles, specifically the management of production and service institutions

Despite the world economic recession, the government continues its investment and global openness efforts, dealing efficiently with the current crisis. The economic resources of Qatar are huge indeed. The company is the biggest international exporter of liquid natural gas which is of the highest quality and specifications. It boasts the highest per capita income in the world. And let’s not forget that Qatar will be hosting the 2022 Soccer World Cup. All of these signs confirm that the future of Qatar is promising and that it’s on the right road.


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