By MOHAMED SHOEB
DOHA: Qatar’s venture or junior stock market listing small and medium-sized enterprises (SMEs) is all set to be operational by early next year, the CEO of the country’s bourse said on Monday.
To begin with, five SMEs will be listed on the Qatar Exchange (QE) Venture Market, while several others are in the process of getting approval from the authorities concerned, said Rashid Al Mansoori.
He told this newspaper on the sidelines of a workshop on SMEs held by Doha Bank that 10 SMEs had actually applied for listing and five of them have fulfilled the necessary requirements.
“They (the five SMEs) are in the process of getting listed, which means that by early 2015 we will have not less than five companies as part of the new and emerging SMEs stock market.”
Asked to elaborate, Al Mansoori said: “I can’t disclose the names of these companies as they are still in the process of listing.”
He, however, added that there are several other companies that are preparing themselves to get “consultative support”. He said he hoped that these companies would be in a position to be listed by 2015-end.
For the SMEs and “emerging enterprises” there is a mechanism to help and develop them by increasing their capital, searching for right partners for them, and improving their performance (after listing) to win the confidence of investors.
“We are asking for a capital of QR5m, and of that only half needs to be paid up,” said Al Mansoori, talking of the SMEs’ listing requirements on the parallel, junior or emerging market.
Replying to a question about the delay in the listing of Barwa Bank on the main stock market (Qatar Exchange), the CEO said: “Apart from Barwa Bank there is one more bank — Qatar First Bank — which is planning to get listed. We are continuously following up on them”.
But before the listing there are some requirements that they need to be fulfilled with the regulator (the Qatar Financial Markets Authority) in respect of Qatar First bank.”
Al Mansoori said that since Qatar First Bank is registered with the Qatar Financial Centre Authority, it needs to go through certain process before getting the approval of the regulator of the Qatar Exchange, the Qatar Financial Markets Authority (QFMA) for listing.
About Qatar Petroleum’s listing plans, he said that the company has promised that it will be listing some group companies (subsidiaries) over the next 10 years.
Asked about the reasons for lukewarm response of companies for listing on the QE, he said: “We are continuously trying to convince and educate companies, particularly family-owned businesses, about the benefits of listing”.
Initially they show very encouraging response but later they just become passive and reluctant. “Some of them have expressed reservations that even small investors with 100 or 200 shares can drag the chairman of a listed entity to court.”
Regarding plans to issue corporate bonds, he reiterated that there indeed is a plan and added that discussions were held with the Qatar Central Bank and response was awaited.
The Peninsula
DOHA: As part of their efforts to achieve economic diversification by promoting small and medium enterprises (SMEs) several public as well as private stakeholders, including Qatar Exchange (QE) and Enterprise Qatar (EQ) participated in a workshop on ‘Empowering SMEs, here recently.
The event, hosted by Doha Bank on Monday at its headquarters, was also attended by senior officials of Qatar Development Bank (QDB), Qatar Business Incubation Centre (QBIC), Doha Bank and the UK Trade Investment Centre at the British embassy in Qatar.
Participants of the workshop included Rashid bin Ali Al Mansoori, CEO of QE, R Seetharaman, Group CEO, Doha Bank, Omran bin Hamad Al Kuwari, CEO of EQ, Hamad Khamis Al Kubaisi, Executive Director of Strategy and Business Development at QDB, Aysha Al Mudahka, CEO of EQ and Gareth O’Brien, Director of Trade and Investment at the British embassy. They highlighted opportunities for SMEs to grow and flourish.
Rashid Al Mansoori said: “Like all our colleagues here tonight, Qatar Stock Exchange recognises the importance of the SME sector which globally provides the foundation for successful economies, contributing employment opportunities, wealth creation and increased output.”
He added: “With the addition of the QE Venture Market to our listing opportunities, we are providing young and entrepreneurial companies a customised route to market to ensure they have access to the necessary funds to contribute to Qatar’s economy. The characteristics of the market reflect the objectives of allowing SMEs to list and raise capital more easily with less stringent requirements than would be the case on the Main Market.”
He compared between various finance options for SMEs and stated that listing on stock exchange is one of the best solutions to make these companies available for investments. A dedicated market for SMEs with regulation customized to their needs has been the most successful ‘model’; this is the basis on which we have designed the QE Venture Market.
Seetharaman outlined the importance of the SME space in achieving the goals laid down in the Qatar National Vision 2030 document. He reiterated the critical role being played by SMEs in bringing in innovation, advancement and sustainable development worldwide.
Omran Al Kuwari gave a presentation on EQ’s initiatives to empowering the SMEs —The Rating and Accreditation Programme. He explained that the SMEs applying for the program will undergo a comprehensive assessment on all aspects of the business as part of the rating and accreditation process.
While Al Kubaisi of QDB highlighted various aspects of the ‘Al Dhameen’ credit guarantee program of QDB which was launched to help SMEs, new and existing, to access the Qatari credit market with lack of collateral for establishment or growth in their businesses.
The Peninsula
