DUBAI  - Qatar's first listed exchange traded fund (ETF) will begin trading from Monday on the Qatar Stock Exchange for investors seeking to capture exposure to companies listed on the bourse, the asset manager handling the ETF said.

The ETF is designed to track the Qatar Exchange Index which screens for the top 20 listed companies in Qatar by market capitalisation and liquidity.

Reuters reported last month that Qatar's stock market is set to list its first exchange-traded funds this quarter citing market sources, as authorities seek to develop the bourse in the face of a boycott by other Arab states.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar last June, causing the Qatari stock index to plunge more than 20 percent at one stage.

But the market has since recovered much of those losses and authorities say they aim to press ahead with reforms to improve liquidity and attract more foreign money.

Qatari investment firm Amwal raised funds for the ETF and Doha Bank is acting as a founder.

(Reporting by Hadeel Al Sayegh; Writing by Saeed Azhar; Editing by Tom Arnold) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))