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Doha Bank
Exchange Traded Fund (Etf) In Final Phase
May 10, 2017
Qatar stock Exchange and HSBC organized the Annual Investment
Forum 2017 on 8-9 May 2017 at New York Palace Hotel. Mr.
Rashid Ali Al-Mansoori, Qatar Exchange CEO said,
“Qatar exchange aims to provide more products this year to
encourage investments from global investors. The Exchange traded
fund (ETF) is part of this initiative of Qatar Exchange. This
would result in increase in inflows to Qatar economy both from
the region and from globe and thereby promote sustainability.”
On the sidelines of the forum, Dr. R. Seetharaman CEO of Doha
Bank gave insight on Qatar economy and Doha Bank ETF progress.
He said “Qatar economy expected to grow by 3.4 percent in 2017.
Qatar continues to follow its non- hydrocarbon diversification
model and prudent fiscal management amidst low oil prices. In
Qatar Budget 2017, the total allocation for key sectors such as
health, education and infrastructure was nearly 44 percent of
the total expenditure, out of which 12.3 percent is for health,
10.4 percent is for education and 21.2 percent is for
infrastructure segment respectively. There is a clear focus on
health, education and infrastructure development. In the
infrastructure space, Qatar is currently witnessing mega
infrastructure projects culminating towards the FIFA world cup
in 2022, which is a jewel in the crown of Qatar. Qatar’s
diversification has thereby contributed to sustainable
development. The Qatar government is also taking steps to
increase non-oil revenues, focusing on indirect taxes and
levies. Qatar had come up with its $9bn bond issue in 2016.
Qatar ranked 18th in ‘the Global Competitiveness Report 2016-17’
and stands second in the region. Qatar is also planning to
introduce PPP law this year. The financial sector has a key role
to play in achieving the Qatar National Vision 2030 owing to
high level of capitalization and good capital adequacy ratios of
banks. Measures taken by the Qatar central bank and the
government have led to a robust growth in the financial
industry, even during crisis. Qatar exchange has received MSCI
upgrade in 2014 and more capital market reforms are pursed by
Qatar economy. The upgrade enables better visibility of Qatar’s
existing listed firms before foreign institutions. Qatar’s
financial sector will be therefore be an enabler for Qatar’s
economic transformation. Qatar Exchange is planning to introduce
a number of products this year which will improve the investor’s
participation. Qatar economy is sustainable on account of the
economic and financial market reforms. Doha Bank will aim to
support Qatar’s financial market reforms through the ETF. “
On Doha Bank ETF Plans, Dr. R. Seetharaman said “Doha Bank has
been working closely with the Listing Committee and Qatar
Exchange and local regulators in driving the new listing towards
growing the investment platform in Qatar via new offerings. In
line with this initiative, we are proud to announce that the
bank as Founder is in the final phase for filing its application
for listing approval for the proposed launch of the QE Index ETF
(QETF). The QETF will invest and replicate the Qatar Index
largest 20 companies in terms of market capitalization and
liquid listings - The crown jewels of Q-Inc. The fund will
replicate the index in performance, net of fees. The fees or
‘Total Expense Ratio’ to be 0.50%; one of the lowest in Emerging
Markets offerings. The fund will pay an annual dividend, net of
fees, similar to the index; which currently carries a yield of
3.80%. The offering will enjoy easy access, as the investor
needs only an investor number and broker and the ETF will be
easily traded in the secondary market like other current
listings. The Fund also has on boarded a dedicated ‘Liquidity
Provider’ to ensure secondary market liquidity. The fund enjoys
full support from local government and regulators and currently
the bank is raising seed capital to be invested along with the
bank pre-listing. “
Mr. Abdul Aziz Al - Emadi, Director of the Listing department
and Mr. David Challinor, CFO Doha Bank also participated on the
sidelines of this Annual Investment Forum.
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