Qatari capital market attracts foreign investments worth $4.3bln in 2022

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Doha, Qatar: Qatari capital market has attracted foreign investments representing the foreigners’ net purchase of securities listed in the market, worth approximately QR15.8bn ($4.3bn).

In the introductory message of the 2022 annual report issued by Qatar Financial Markets Authority (QFMA), the Board Chairman of QFMA, H E Sheikh Bandar bin Mohammed bin Saoud Al Thani indicated that during 2022, the Qatari capital market attracted foreign investments representing the foreigners’ net purchase of securities listed in the market, worth approximately QR15.8bn ($4.3bn), and witnessed an increase in trading value by 42 percent compared to last year, where the trading value exceeded QR160bn, compared to QR112bn in 2021.

Sheikh Bandar said that efforts being done to develop the market or improve its institutional capabilities would not have been possible without the support of all relevant authorities and ministries in the State, as well as the participation of the capital market actors such as Qatar Stock Exchange “QSE”, Qatar Central Securities Depository ‘QCSD’, financial services companies and listed shareholding companies.

The report includes details about the QFMA’s key activities, achievements and initiatives during 2022. It also highlights on many legislations, regulations and rules issued during the year, as well as a review of its functions and competences, and presents its most important contributions and participation in relative conferences and meetings locally and internationally.

2022 witnessed the completion and implementation of the development initiatives and projects of second QFMA’s Strategic Plan 2017-2022. It also witnessed start of draft preparation and processing of the QFMA’s vision and strategic objectives for the next stage, based on its experiences in strategic planning during the past years and the results of application and implementation of the first and second strategic plans, the accompanying challenges and obstacles, and the opinions and suggestions of the capital market dealers.

As a part of the QFMA’s efforts in promoting the attractiveness of the Qatari capital market and developing its legislative structure in order to increase the confidence of market dealers, it was able, during 2022, to provide new financial services to the Qatari capital market’s dealers aimed to stimulate dealings and increase their liquidity volume in the financial markets; thus, QFMA issued Securities’ Lending and Borrowing Rules, which allows the long-term investor to benefit from the owned securities by lending them, and also allows the borrower to benefit from price fluctuations in the markets, in addition to issuing Covered Short Selling Rules, Sheikh Bandar noted.

He added that in 2022, QFMA carried out a set of initiatives aimed at developing the institutional work and building the institutional capabilities of QFMA, to advance it to serve as a model for financial regulator in a way that enhances its independence and maintains its position as an IOSCO member.

Sheikh Bandar bin Mohammed emphasised that QFMA exerts great efforts to maintain the investors’ confidence in the securities dealing system in the Qatari capital market, to protect participants dealing in such market, and to reduce risks may face their investments, especially under the economic crises and unrest facing the international financial markets, in order to ensure market stability and maintain gains over the past ten years.

He also confirmed that the importance of the Qatari capital market stems from its being one of the main pillars supporting the realisation of Qatar National Vision “QNV 2030” and the growth and stability of the Qatari economy, due to the innovative and diversified financial instruments it provides, including equity instrument and low-cost debt instruments, and due to contribution to the diversity of funding sources and raising the economy’s ability to attract national or foreign investments.