“The new rules, while part of the Authority’s strategic plan, were a result of intense discussions between QFMA and Qatar Exchange to further consolidate the local financial market and to regulate the working relationship between various parties concerned with the listing process to cope with developments in Qatar’s capital markets,” Nasser Ahmed Al Shaibi, CEO of QFMA, said.
“In particular, the new rules also encourage newly established Small and Medium Enterprises (SMEs) to list in Qatar Exchange”, Al Shaibi, added.
“The secondary market comprises several categories as defined by QFMA or established by a financial market under its umbrella. Hence, the new rules include various chapters related to definitions, IPO and listing requirements, disclosure rules, suspension, cancellation and re-listing of companies as well as other general rules. In addition, the rules provide reference information on the new regulations and the official forms to be used with them.”
According to Al Shaibi, QFMA strategy aimed at advancing the Authority’s competitive edge in terms of the regulatory, supervision and control of the financial markets by adopting world standard regulations based on global best practices in the financial securities market.
The Authority also plans consolidating integrity and transparency in the financial markets through strict transparent controls. In addition, QFMA has the mandate of creating a truly competitive edge for the Qatari market to become a destination for foreign capitals as well as the provision of financial services related to stock exchanges and promoting the culture of investment among all parties in Qatar.
Commenting on the move, Rashid Ali Al Mansouri, the Deputy Chief Executive Officer of Qatar Exchange, welcomed the adoption of the new listing and IPO rules in the secondary market saying it will provide the right framework for the inclusion of many products and investment tools in Qatar Exchange.
“The rules came at the right time when Qatar Exchange is getting ready to launch the Venture Market segment as part of the markets and products to be included under the umbrella of the new listing and IPO rules in the secondary market. The Venture Market segment will be launched to encourage SMEs and newly formulated companies to list in Qatar Exchange,” Al Mansouri, said.
According to Qatar Exchange’s Deputy CEO, the SME sector is an essential economic sector that helps create jobs and generate revenues. The creation of the new market segment at QE is expected to strengthen these companies and raise their financial value in the stock market while providing further diversification of the Qatari and GCC economy.