The end of an embargo on Qatar has come at a handy time for the Gulf’s biggest equity-focused exchange traded fund, just as the gas-rich country is set to get a boost from hosting one of the world’s most popular events.
Inflows to the Doha-based Al Rayan Qatar ETF jumped when news of the potential normalization of relations with Saudi Arabia emerged late last year. Daily volumes surged earlier this month as the end of a three-year rift that also included the United Arab Emirates was finally confirmed.
The Shariah-compliant ETF is listed in Doha, with a market capitalization of about $153 million, and has returned almost 19% since its inception in 2018. It allocates to the 23 stocks currently in the QE Al Rayan Islamic Index. The fund started less than a year after the group of Arab countries cut ties with Qatar for allegedly supporting terrorist groups, an accusation Qatar has always denied.
Now, as Qatar gets ready to host the FIFA World Cup soccer tournament next year, the benefit for listed companies ranging from logistics to telecommunications and hospitality helps to build an investment case that could appeal to wealthy Saudi and Emirati individuals, according to the fund’s manager.
No comments:
Post a Comment