Qatar Exchange (QE) and Qatar Chamber of Commerce and Industry (QCCI) held a joint signing ceremony to formalise the launch of a series of initiatives envisaged by their memorandum of understanding (MOU). The ceremony took place at QCCI’s offices and was attended by representatives of both parties. HE Sheikh Khalifa Bin Jassim Bin Mohammed Al Thani, Chairman signed the undertaking on behalf of QCCI whilst Andre Went, CEO signed on behalf of QE.
The MOU lays out the framework of a cooperative relationship between QCCI and QE where both parties will work together to raise awareness of listed products and their markets and in particular the importance of an initial public offering (IPO) as a valid financing route for Qatari companies.
HE Sheikh Khalifa Bin Jassim Bin Mohammed Al Thani said “As QCCI approaches its commemorative 40th year we continue to look for new ways to help Qatar’s companies and its economy grow. We expect that this MOU will lead to a close working relationship with QE and we look forward to developing together a series of initiatives to benefit our membership. We believe we are natural partners with a common vision which means we will be able to further enhance the commercial activities of Qatar’s private businesses. Our membership covers the bulk of Qatar’s private sector and we hope that over the coming years an increasing number of companies will look at QE as a viable financing alternative”.
He added “Qatar’s economy is an undoubted success story with GDP growth of approximately 18% this year and perhaps nearing 20% next year. This puts Qatar at the forefront of investors’ minds not just as an example within the GCC but across the globe. QCCI’s member companies are an important part of this exciting growth story and we hope that their growing understanding of the public markets, fostered by the relationship represented by this MOU, will see them take advantage of the funding opportunities provided by being listed. In doing so we expect them to continue to contribute to the ongoing growth of Qatar and the building industries”.
Mr. Andre Went said “We are delighted to have signed this MOU with QCCI. QCCI’s aim of developing the commercial and industrial activities of their companies for the benefit of the Qatar economy and their membership in particular is closely aligned with our own vision. Since its formation, QE has been an important part of the financial landscape in Qatar and we believe that the close relationship we will develop with QCCI through this MOU will further enhance our position as a key part of the Qatar economy and see this as entirely consistent with the goals envisaged by the Qatar National Vision 2030.”
Andre Went added “QE is committed to developing all aspects of our business and having recently worked with our listed companies to raise their profile with international investors on a London roadshow this MOU will build on that and allow us to work with those un-listed companies we hope will represent the next wave. We look forward to a long and fruitful relationship with QCCI.”
Mr Abdul Aziz Al-Emadi, Director of the Listing Department, emphasised the rationale for both parties to work together for the benefit of Qatar and its companies: “Whilst the objectives for Qatari companies in seeking a listing will vary greatly from company to company we firmly believe that using the public markets and conducting an IPO can be an exciting opportunity and should at least be a consideration for ambitious growing companies. Whether founding shareholders are seeking to diversify their shareholder base, to raise the company’s profile domestically or internationally or achieve a valuation and liquidity for their stock an IPO can be a highly beneficial corporate strategy. Our aim in working more closely with QCCI is to ensure that as many of Qatar’s companies as possible are aware of their financing alternatives and this includes an IPO.”
He added, “QE has 43 companies listed on our market as of today but we have ambitious growth targets in this area. We are aware from our discussions around the world that the domestic and international investor base is keen to tap into the growth opportunities represented by Qatar’s economy and one way of doing this is to increase the number and type of companies listed on our market. The visibility and education programme we intend to run with QCCI will be an important part of our strategy.”
QCCI and QE will hold their first joint event on 7th December, 2010. The half day seminar, entitled “Listing on Qatar Exchange?” is targeted at private companies who may be considering a listing as part of a medium and long term strategy. The seminar will be followed by further events, supported by industry experts, on the more detailed processes and procedures involved in going public.