#Qatar Stock Market Could Attract Up to $3.5 Billion on Free Float Plan - Bloomberg

Qatar Stock Market Could Attract Up to $3.5 Billion on Free Float Plan - Bloomberg

Qatar’s equity market could attract as much as $3.5 billion of passive flows if the Gulf state proceeds with a plan to combine all of the local stocks held by its sovereign wealth and pension funds, according to Dubai-based Arqaam Capital Ltd.

The $450 billion Qatar Investment Authority and the General Retirement and Social Insurance Authority are examining a proposal to consolidate their local holdings worth up to $3 billion under a separate entity in a bid to draw more foreign investor interest and deepen markets, Bloomberg News reported on Tuesday.

The new entity would hire third-party funds to actively manage and trade the shares, effectively boosting activity in the overall market, according to people with knowledge of the plans who asked not to be identified because the information isn’t public.


Such a move could attract an estimated $2.46 billion inflows from MSCI trackers and $1 billion inflows from FTSE trackers in a “blue sky scenario” where both entities pooled all of their stakes to free float, Arqaam analysts Jaap Meijer and Elia Al Chaar, wrote in a note on Wednesday.