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'MSCI upgrade to attract huge investment in Qatar'
 
SATYENDRA PATHAK

DOHA QATAR received a shot in the arm with the global index compiler MSCI elevating the country to emerging markets, a status that would boost investor sentiment and attract foreign investment inflows into the county.

Research by Insight Discovery and Zawya in June and July shows that the MSCI's decision to elevate Qatar to its "universe of emerging market is a very positive development".

Almost all of the 141 investors and other market participants surveyed think that the flow of funds to the Qatari market will increase sharply.

However, there is a diversity of views on the amount of money involved.

Although 28 percent of survey respondents believe that it is too early to quantify the incremental investment flows to the two markets, about one quarter expect that the amount will exceed $1 billion annually.

Another 23 percent believe that the amount will be between $500 million and $1 billion per annum. Only 4 percent of respondents suggested that this would not be the case.

Meanwhile, there is a diversity of views as to which asset management companies will benefit most from the elevation to Qatar indices. Some 58 percent of survey respondents believe that the main beneficiaries will be international asset management companies which have a local presence in the GCC countries and which offer regional funds.

Another 33 percent identify local and regional asset management companies.

The remaining 9 percent think that the main winners will be international asset management companies which do not have a regional presence, but which can offer regional funds.

The asset management companies mentioned by respondents as benefiting the most from this development include a wide range of local and regional firms.

The companies highlighted most frequently include Franklin Templeton, National Bank of Abu Dhabi and Emirates NBD. In total, over 30 companies were mentioned as being significant beneficiaries.

The MSCI re-designation has come at a time when Qatar is embarking on massive infrastructure development.

Also, more than 80 percent of survey respondents think that the decision in relation to Qatar and the UAE will accelerate the reclassification of Saudi Arabia's 'Tadawul market'.


 
 

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