MSCI has decided last night to extend the review period for potential reclassification of the MSCI Qatar Index from Frontier Market to Emerging Market status to December 2011 in order to give additional time for market participants to assess the impact of the recent positive changes implemented at QE and provide more time to the exchange and regulatory authorities to address the remaining concerns raised by international institutional investors regarding foreign ownership limits.
Commenting on the decision a spokesman for the QE said that: “Qatar Exchange views the decision as recognition of the positive steps taken by the Exchange and the regulators in Qatar to meet the requirements of the MSCI and satisfy the needs of the International institutional investors”.
“We will continue to work with the regulators and all stakeholders including the investors to improve the market infrastructure, and we will continue our efforts to develop the market. We would also like to emphasize that the progress made so far has received wide international recognition and appreciation”, he added
“A future upgrade to emerging market status will confirm the progress on the market infrastructure front, but does not impact the underlying economic strength of Qatar. The economy of Qatar is strong and companies listed on the QE are performing very well and attracting local and foreign investors alike. QE was the best performing market in the region last year and second best dividend paying market globally”, the QE spokesman elaborated.
The MSCI is a leading provider of investment decision support tools worldwide, including indices, portfolio risks and performance analytics and corporate governance.
