By Mohammad Shoeb
DOHA: Concerns over the loss of privacy and loss of autonomy are the twin major reasons that prevent family-owned businesses from listing their companies on Qatar Exchange (QE). The disclosure of the value of assets and losing control over their companies seem to be real problems for them, said a top official at Qatari bourse.
Rashid bin Ali Al Mansoori (pictured), CEO of QE said that listing of big family-owned businesses and private companies can help reflect the robust size and vibrancy of the national economy. But such companies are still out of the ambit of QE, and are very reluctant to get listed.
“Over the last six years we have been waiting for family-owned businesses and other private companies to get listed at the QE, but they are shying away. They think that after listing they may lose control over their businesses, but they never thought about continuing their businesses from one generation to another,” Al Mansoori told the audience at a discussion forum organised by Doha Bank. The event was well attended by a number of business leaders and representatives from the private sector.
He said that QE tried to find out the reasons for not listing, and hosted a conference to discuss the issues with family-owned businesses, which was attended by over 300 people.
“After the meeting we reached to a conclusion that such business owners are apprehensive about disclosure and losing control over their companies. They are relying only on government to contribute to the stock market”, he said. “Then we launched a programme with an aim at convincing and guiding them to the right direction. As a result this year we have some companies in the pipeline for listing.”
Al Mansoori was speaking at session on “Growing Opportunities in Qatar” held at Doha Bank headquarters. The other panelists included top officials from the Qatar Financial Centre (QFC), Doha Bank and Amwal, a local asset management company.
Al Mansoori hoped that QFC, which is set to revise its laws to enable QFC-licensed firms aiming to provide more access to the Qatar economy, will encourage more companies to get listed. However, he noted that there is a need to contribute to further strengthening the confidence of retail investors on the stock exchange as it provides an alternative investment destination for those who can’t investment in real estate or other avenues of investment.
“We are going to introduce this year some new products such as ETFs (Exchange Traded Funds) providing more options for investors. In this regard we are working closely with QFC and other authorities concerned,” he said.
He also highlighted that QE within a short period has made significant achievements. Over the last few years it is sitting next to exchanges that have been there for around hundred years.
“Over the last few years we made it to the “Emerging market” status as we have been classified and upgraded to this category by MSCI and S&P. And the FTSE Group has also announced to upgrade QE to the same status this year by September, which means more investments and liquidity in the market,” said the QE CEO.
Al Mansoori added that QE already witnessed the impact of the upgraded classification, and it will continue supporting and empowering the Qatar economy as part of its ultimate mission.
The Peninsula
