Qatar hopes to attract foreign asset managers through its new market-making program

Qatar is set to attract foreign asset managers as its sovereign wealth fund dedicates up to 1 billion Qatari riyals ($275 million) toward a market-making program.

The program will promote price discovery and diversify the country’s capital markets, reported the Qatar Investment Authority on Tuesday.

In turn, this move will enable the market to pull in more foreign asset managers to invest in the country’s local shares.

Additionally, it will boost liquidity on the Qatar Stock Exchange, noted the $445 billion sovereign wealth fund.

Set to operate over the next five years, the market-making program will cover 90 percent of the size of the market capitalization listed on the local bourse.

Saudi-Qatari trade ties

Qatari Minister of Commerce and Industry Mohammed Al-Thani met with Saudi Investment Minister Khalid Al-Falih on Tuesday.

In the meeting, Al-Thani highlighted how its economic policies effectively encouraged investors and businessmen to invest in the country.

Al-Falih flew to Doha to participate in the three-day Qatar Economic Forum.

In January, Qatar’s sovereign wealth fund increased its stake in Credit Suisse to just under 7 percent, becoming the Swiss bank’s second-largest shareholder after Saudi National Bank, indicating that its Gulf investor base is growing in importance.

Cleantech leadership

The country is also set to drive the growth of the clean technology industry in the Middle East and Africa as its favorable policies and advanced technological infrastructure present investment opportunities worth $75 billion, revealed an industry report earlier this month.

Qatar’s Investment Promotion Agency stated that the country’s sustainability initiatives, abundant natural resources, and an early-mover advantage in green hydrogen production made the gas-rich nation an emerging leader in the cleantech industry.

“With its abundant solar energy resources, Qatar is well positioned to take advantage of hydrogen production, which is essential to decarbonize hard-to-abate sectors,” the report said.

The report pointed out that the support of government policies in Qatar and the Middle East and North Africa region has a vital role in the growth of the cleantech sector.