The Qatar Investment Authority announced the launch of a permanent market-making program on the Qatar Stock Exchange.
This comes after the successful launch and initial implementation of the market-making initiative launched by the Qatar Investment Authority in September 2022, and given that the Qatar Stock Exchange witnessed the largest foreign investment inflows in its history last year, the Qatar Investment Authority is committed to allocating an amount of up to one billion Qatari riyals to establish a permanent market-making program To support the continuation of this momentum and contribute to the growth of the Qatari economy. The Qatar Investment Authority’s commitment is in line with the policy of developing the competitiveness of the Qatari economy.
The program is scheduled to continue over the next five years and will cover 90% of the market capitalization listed on the Qatar Stock Exchange. The program provides incentives for trading in the form of discounting trading costs for authorized market makers.
The permanent program will help enhance liquidity in the market, improve price discovery mechanisms, and increase investor confidence, as the program will contribute to attracting more foreign asset managers to invest in Qatar and stimulate their participation on the other hand, which leads to the diversification and expansion of financial markets in the State of Qatar.
It is noteworthy that the Qatar Stock Exchange is also working in the context of its strategy to attract more listings, improve environmental, social and institutional sustainability disclosures, list more exchange traded funds, and launch a derivatives market, with the aim of helping investors diversify their investment portfolios. In the context of its strategy, the stock exchange is working on a number of initiatives to enhance liquidity and is cooperating closely with the Qatar Financial Markets Authority and the Qatar Central Securities Depository Company to achieve this important goal.
