Bloomberg Agency said that Qatari stocks rose to the highest level in a year, after Qatar allowed foreign investors to own up to 100% of joint stock companies listed on the stock exchange, indicating that this trend may lead to outflows of more than one billion dollars.
The agency also indicated that if the new law is implemented, this will lead to internal inflows of about $ 1.5 billion for listed companies, which will gain more representation in global standards, according to estimates by the investment bank “EFG-Hermes”.
The agency noted that the Qatar Stock Exchange index rose by 2.8% on Thursday, the largest in more than a year, to close at the highest level since January 14.
The agency quoted the investment bank as saying that the stocks that could benefit the most from others include Qatar Islamic Bank, Al Rayan Bank and the Commercial Bank of Qatar, as their shares rose by 8.3%, 5.5% and 10%, respectively, which led to gains between Members of the main scale.
The report indicated that Qatar is pursuing a set of decisions aimed at attracting capital inflows from abroad.
According to a Bloomberg report, Akbar Khan, Director of Asset Management at Al Rayan Investment Company in Doha, said, “The proposal (the bill) represents another milestone on the path to liberalizing the economy, as Qatar sets the standard for foreign ownership of the region.”
The agency also noted the Cabinet’s decision to extend support for private companies in the continuing Corona pandemic, and in particular the guarantee program that allows some companies to borrow money without paying interest to pay salaries and rents until the end of September, pointing to the precautionary restrictions taken by the state, such as closing restaurants and cafes (except for external requests) Salons and some other activities.
Edmund Christo, an analyst at Bloomberg Intelligence, was quoted by the agency as saying, “With the expansion of the loan deferment program, companies will have more time to improve cash flow before lenders assess clients’ ability to repay deferred dues and allow for further loan restructuring.”