Tuesday 09, May 2017 by Georgina Enzer

Doha Bank ETF In final phase

Qatar Exchange aims to provide more products this year to encourage investments from global investors.

The Exchange Traded Fund (ETF) is part of this initiative of Qatar Exchange. This would result in increase in inflows to Qatar economy both from the region and from globe and thereby promote sustainability according to Rashid Ali Al-Mansoori, Qatar Exchange CEO.

Qatar economy is expected to grow by 3.4 per cent in 2017. Qatar continues to follow its non- hydrocarbon diversification model and prudent fiscal management amidst low oil prices. In Qatar’s 2017 budget, the total allocation for key sectors such as health, education and infrastructure was nearly 44 per cent of the total expenditure, out of which 12.3 per cent is for health, 10.4 per cent is for education and 21.2 per cent is for infrastructure segment respectively.

“There is a clear focus on health, education and infrastructure development. In the infrastructure space, Qatar is currently witnessing mega infrastructure projects culminating towards the FIFA world cup in 2022, which is a jewel in the crown of Qatar. Qatar’s diversification has thereby contributed to sustainable development. The Qatar government is also taking steps to increase non-oil revenues, focusing on indirect taxes and levies. Qatar had come up with its $9 billion bond issue in 2016,” said Dr. R. Seetharaman CEO of Doha Bank.

Qatar ranked 18th in ‘the Global Competitiveness Report 2016-17’ and stands second in the region. Qatar is also planning to introduce PPP law this year. The financial sector has a key role to play in achieving the Qatar National Vision 2030 owing to high level of capitalisation and good capital adequacy ratios of banks.

“Measures taken by the Qatar central bank and the government have led to a robust growth in the financial industry, even during crisis. Qatar exchange has received MSCI upgrade in 2014 and more capital market reforms are pursed by Qatar economy. The upgrade enables better visibility of Qatar’s existing listed firms before foreign institutions. Qatar’s financial sector will be therefore be an enabler for Qatar’s economic transformation. Qatar Exchange is planning to introduce a number of products this year which will improve the investor’s participation. Qatar economy is sustainable on account of the economic and financial market reforms. Doha Bank will aim to support Qatar’s financial market reforms through the ETF,” said said Dr. R. Seetharaman.

 Doha Bank has been working closely with the Listing Committee and Qatar Exchange and local regulators in driving the new listing towards growing the investment platform in Qatar via new offerings.

“In line with this initiative, we are proud to announce that the bank as Founder is in the final phase for filing its application for listing approval for the proposed launch of the QE Index ETF (QETF). The QETF will invest and replicate the Qatar Index largest 20 companies in terms of market capitalisation and liquid listings - The crown jewels of Q-Inc. The fund will replicate the index in performance, net of fees. The fees or ‘Total Expense Ratio’ to be 0.50 per cent; one of the lowest in Emerging Markets offerings. The fund will pay an annual dividend, net of fees, similar to the index; which currently carries a yield of 3.80 per cent. The offering will enjoy easy access, as the investor needs only an investor number and broker and the ETF will be easily traded in the secondary market like other current listings. The Fund also has on boarded a dedicated ‘Liquidity Provider’ to ensure secondary market liquidity. The fund enjoys full support from local government and regulators and currently the bank is raising seed capital to be invested along with the bank pre-listing,” said Dr. R. Seetharaman.

Abdul Aziz, Head of QE listing and David Challinor, CFO at Doha Bank also participated on the sidelines of this Annual Investment Forum.

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