It was reported that the Qatari Council of Ministers approved a draft law permitting foreign investors to own 100% of companies listed on the Doha Stock Exchange, on Thursday. Before then, foreign investors were allowed to own only up to 49% of companies listed on the local stock exchange. On the other hand, foreign investors can own %100 of unlisted companies and real estate.
After its weekly meeting on Wednesday, the Council issued a statement highlighting its commitment to continue the work of the National Guarantee Program carried out by the Qatar Development Bank until the end of September 2021. The aforementioned program aims to support the Qatari government to guarantee loans to the sectors severely hit by the coronavirus pandemic.
It is estimated that if the implementation begins to be implemented, it could trigger approximately $1.5 billion worth of inflow into listed companies. After the Council’s decision, the QE Index increased in value by 2.8%, according to closing market prices on Thursday. This percentage marks the highest in more than a year.
The move came as the gas-rich Gulf country is seeking to attract investments from abroad due to the economic repercussions of the global coronavirus pandemic. The move is also accepted as part of Qatari efforts to liberalize its economy.