About QSE

 

About the Qatar Stock Exchange

Established in 1995, the Doha Securities Market (DSM) officially started operations in 1997. Since then the exchange has grown to become one of the leading stock markets in the GCC region.

In June 2009, Qatar Holding, the strategic and direct investment arm of Qatar Investment Authority (QIA), and NYSE Euronext, the world’s leading exchange group, signed an agreement to form a major strategic partnership to establish the Exchange as a world-class market. The DSM was renamed the Qatar Stock Exchange on the conclusion of the deal.

The primary aim of the Qatar Stock Exchange is to support Qatar’s economy by providing a venue for capital raising for Qatari companies as part of their corporate strategy and giving investors a platform through which they can trade a variety of products in a transparent and efficient manner. The Qatar Stock Exchange also provides the public with access to market information and ensures correct disclosure of information.

Vision and Mission

The agreement with NYSE Euronext marks the beginning of a new era for the Qatar Stock Exchange. The partnership will help establish the Qatar Stock Exchange as a world-class international market and reinforce the country’s position as a regional financial centre with the introduction to Doha of new trading products, technology and international investors and issuers.

A national and regional marketplace
The Qatar Stock Exchange will be an important national and regional capital marketplace for issuers to raise capital and for investors to trade securities and derivatives products.

A natural marketplace for international investors
The Qatar Stock Exchange will be an exchange leader in the GCC region and a natural marketplace for investors and issuers both locally and from across Europe, Asia and the Americas. The exchange will be an important tool for sustainable wealth creation for the State of Qatar and the region. It will be central to the government’s goal of creating a viable financial services industry and an efficient capital market in order to diversify the Qatari economy.

A venue for international listings
The Qatar Stock Exchange will be a major centre for regional and international initial public offerings (IPOs) as companies look to access investors in the region.

A developed cash market
Additional cash market products will be developed and sophisticated indices will be designed for investors in Qatar and other GCC markets.

Part of a global network
By end of 2010 the Qatar Stock Exchange will be connected to NYSE Euronext’s global markets through the SFTI network helping to make the Exchange more easily accessible to international investors.

History of the Exchange
 
1997
The start of first day of trading of securities in the Doha Securities Market (DSM).
 
1998
Introduction of the Central Registration System.
 
1999
Investors able to sell shares purchased on the day following the day of their purchase (T+1).
 
2000
Implementation of companies’ linkage project through the internet. The first of its kind in the Gulf area at the time.
 
2001
Start of the electronic trading project to replace the manual trading systems.
 
2002
  • Launch of DSM web site.
  • Investors able to sell their purchased shares on the same day.
  • Approval of a new market index to reflect changes in listed companies’ prices more reliably and accurately.
 
2003
Moved into a new building to better serve the investment community.
 
2005
Non-Qataris permitted to invest up to 25% of the shares offered for trading.
 
2006
Integration of both the regular and irregular markets.
 
2007
Became a member of World Federation of Exchanges (WFE).
 
2009

Signed a strategic partnership agreement with NYSE Euronext to transform the Qatar Stock Exchange into a world-class market.

Regulation of the Exchange

  • The Qatar Stock Exchange is regulated by the Qatar Financial Markets Authority (QFMA).
  • The QFMA is an independent and empowered regulatory and supervisory authority for the capital markets in Qatar.
  • On September 14, 2005, Law No (33) for the Year 2002 was issued relevant to the establishment of QFMA and the Doha Securities Market Company (DSMC).
  • On April 3, 2005, a law was issued amending some provisions of Law No (13) of the Year 2000 regulating the foreign investment in the economic activities. The amendment allows non-Qatari’s to invest in all companies listed at the QSE (DSM formerly) at a rate not exceeding 25% of the traded shares.

 

NUMBER OF LISTED COMPANIES
Market Inception 17
End of 1997 18
End of 1998 19
End of 2000 22
End of 2001 23
End of 2002 25
End of 2003 28
End of 2004 30
End of 2005 32
End of 2006 36
End of 2007 40
End of 2008 43
End of September 2009 43

 

MARKET CAPITALIZATION
Year Market Capitalization (QR Billion) % Change
End of 2000 18.8 --------
End of 2001 26.7 +42%
End of 2002 38.4 +44%
End of 2003 97.2 +153.1%
End of 2004 147.2 +51.2%
End of 2005 317.2 +115.5%
End of 2006 221.7 -30.1%
End of 2007 347.7 +56.8%
End of 2008 279 -19.8%
End of Q3, 2009 335.9 +20%
 

 

QSE PRICE INDEX
Year Exchange Index (Points) % Change
End of 2002 2,324 --------
End of 2003 3,190 +37.3%
End of 2004 6,494 +64.5%
End of 2005 11,053 +70.2%
End of 2006 7,133 -35.5%
End of 2007 9,581 +34.3%
End of 2008 6,886 -28.12%
End of Q3, 2009 7,414 +7.7%
 

 

TRADED VALUE
Year Traded Value (QR Million) % Change
2000 869 -27.6%
2001 1,500 +72.6%
2002 3,200 +113.8%
2003 11,700 +265.6%
2004 23,000 +96.6%
2005 102,000 +345.3%
2006 74,936 -27.1%
2007 108,929 +45.4%
2008 175,552 +61.2%
Q3, 2009 72,382 -58.77%