Interview: Abdulaziz Nasser Al Emadi
How is Qatar enhancing the visibility of its capital markets on the international stage?
ABDULAZIZ NASSER AL EMADI: The QSE has implemented a programme of roadshows whereby Qatari-listed companies travel to specific countries to introduce themselves to key institutions in order to enhance the visibility of both the companies and the QSE as an investment destination. Looking ahead, we plan to target additional countries, expand the scope of these roadshows, and launch a new multi-channel marketing and communications strategy.
In what ways does the QSE promote diversification among issuers and local investors?
AL EMADI: The QSE is actively attracting small and medium-sized enterprises (SMEs) through a dedicated programme that provides them with access to specialist skills to support their development and eventual listing. Additionally, we engage in outreach programmes to educate family-owned companies on the benefits of becoming a listed entity and provide support throughout their listing journey. In expanding the range of assets for investors, we plan to list real estate investment trusts and corporate fixed income securities. In 2024 we will launch a derivatives market, offering investors portfolio management through hedging.
Where do you identify opportunities to utilise digital technologies to enhance accessibility?
AL EMADI: Digital technologies enable the continuous assessment and improvement of systems. The implementation of a new matching engine in 2023 allowed the QSE to refine operations and enhance security. The exchange is integrating clearing and risk management systems, and planning to introduce a pricing and order-management solution for better member access amid the upcoming derivatives market launch. Security is ensured through advanced technology, partnerships with specialist companies overseeing network access control and compliance with international standards.
What is your assessment of the appetite for more initial public offerings (IPOs) in Qatar?
AL EMADI: IPOs serve as a financing avenue for Qatar’s future champions. Since 2019 collaborative efforts with local listing advisors have heightened awareness and led to a robust pipeline of potential IPOs. In 2023 we witnessed successful debuts for four entities – Dukhan Bank, Meeza, Al Mahar and Beema – as well as Mekdam Holding Group’s transition from the Qatar Equities Venture Market (QEVM) to the main market. Market segmentation allows us to tailor the regulatory environment to accommodate companies at various stages of their growth cycle. The rules for the QEVM encourage new listings and offer flexibility for SMEs, serving as a springboard to the main market.
To what extent is the growing interest in sustainable investment being met though the capital markets?
AL EMADI: The QSE and MSCI launched a sustainability index in November 2021, identifying 20 securities with excellent adherence to environmental, social and governance standards. This MSCI QSE 20 Index was designed to be a tradable index for index-linked financial products, including anticipated exchange-traded funds to be launched in the coming months.
Qatar’s Third Financial Sector Strategic Plan covers sustainability, with green taxonomies and climate stress-testing ongoing within the banking sector. Several local banks have already announced operational sustainable finance frameworks. For listed companies, a knowledge transfer process has been ongoing since 2022, raising awareness around sustainability and non-financial reporting through bi-monthly webinars with independent third-party experts. As a member of the International Organisation of Securities Commissions, Qatar supports the adoption of International Financial Reporting Standards S1 and S2 under the International Sustainability Standards Board, which will likely become the baseline for large companies globally.
Read More from OBG
