BY MOHAMAD SHOEB
DOHA: At least one company registered with the Qatar Financial Centre (QFC) Authority is set to be listed on Qatar’s upcoming venture or junior stock market which is anticipated to start operations by early next year.
A senior QFCA official said the Authority is literally inundated with requests for registration from prestigious foreign businesses amidst Qatar’s massive public spending on infrastructure development projects linked to the 2022 FIFA event.
The QFCA is, thus, witnessing a double-digit growth, with over 25 new companies set to kickstart operations this year from the Centre, said Yousef Mohamed Al Jaida (pictured), Deputy CEO of the QFCA.
One of the QFCA-registered companies will be listed on the parallel market that is going to begin operations at the Qatari bourse (Qatar Exchange) from early 2015, said Al Jaida.
He, however, gave no further details. He also didn’t say if the said QFCA-registered entity is one of the five small and medium-sized enterprises (SMEs) that have already been cleared for listing on the Qatar Exchange’s proposed junior market.
“We promise that soon we will witness the listing of the first QFCA-registered company in the market,” said the Deputy CEO, adding “We are working on all the legal requirements, and as of now the government is looking into measures to allow QFC- registered companies to be listed in the Qatari market.”
Media reports say that Qatar Exchange (QE) Venture Market, listing SMEs, is set to be operational by early next year, initially with five SMEs, while several others to be listed after that.
Al Jaida, while speaking to The Peninsula on the sidelines of a recently-held business networking event, said: “In 2014 we have a very interesting double-digit (about 20 percent) increase in the number of companies. There are 40 companies which are planning to enter the Qatari market, out of that nearly 25 are set to begin their operations by the year-end.”
He said that lots of businesses coming in are from the non-regulated side, which include professional service providers and consultancies related to real estate, recruitment and event management sectors.
In addition, several Qatari businesses, including holding companies, are also trying to invest overseas using ‘English common law’ (under QFCA) and financial structures that are provided by the Authority.
“With Qatar set to invest over $150bn over the next several years, many big companies from the sports, health and infrastructure sector are expected to enter the market very soon. Recently some big Singapore-based companies have begun operations in Qatar, which is a great opportunity to exchange knowledge for the local economy,” added Al Jaida. “Asia is a difficult market so we intend to do a lot more with Far-eastern countries but there are enquires from the West as well.”
Established in 2005, the QFC Authority is a business and financial centre that provides platform to companies and investors with legal and business infrastructure. Currently there are over 200 companies representing a wide-range of sectors operating from the QFC Authority.
Asked if the soon-to-be-changed sponsorship law will have any impact on QFC Authority, he said: “Businesses are looking forward to see the government measures that are being put in place. It is too early to call about the impact. Businesses want to know more about it. However, I believe that whatever the measures government takes it will attract more businesses and investment to further boosting the economy.”
Replying to a question on legal system, dispute settlement and grievance redressal mechanism, he said: “We have a very solid legal system and well regulated environment within the QFCA. We operate under English common law. We have Qatar International Courts to receive such complaints. So we have very fair and just courts in place to handle legal problems.”The Peninsula
