UNCLAS SECTION 01 OF 02 DOHA 000415
E.O. 12958: N/A
TAGS: EFIN EINV QA
SUBJECT: QATAR PARTNERS WITH NYSE EURONEXT TO REBRAND SECURITIES
(SBU) KEY POINTS
-- Rebranding its bourse as "Qatar Exchange" (formerly the Doha
Securities Market), the Qatar Investment Authority (QIA) and NYSE
Euronext announced June 19 a formal agreement to give the latter a
20 percent stake in the exchange (for $200 million) in exchange for
services and technology assistance, and a leading management role.
-- The agreement will not change existing market practices or
regulation in the short-term, although it envisions a future
exchange that can accommodate more diverse products and will invite
more international investment.
-- The launch of Qatar Exchange is Qatar's latest success in luring
internationally-recognized firms to provide technology and knowledge
transfer, in exchange for a piece of the fast-growing Qatari
-- Modernization of the Qatar Exchange's processes could help it
become more competitive and efficient, giving it an advantage in
competition with other Gulf markets.
-- A small coterie of Qatari officials managed the formation of this
venture. The model is similar to the Qatar Financial Center, where
the GOQ parachutes in an internationally-recognized system to
quickly upgrade Qatar's image and capabilities, vice pushing for
incremental reforms of the private sector.
-- Qatar Exchange remains a relatively small operation - with only
43 listed companies and market capitalization of about USD 75
billion. While not a bellwether of Qatar's overall economic health,
many Qataris are invested in the exchange and so its fluctuations
have a significant influence on personal financial health.
End Key Points and Comments.