DOHA (Xinhua) - Qatar Stock Exchange said (Tuesday) that the Qatar Investment Authority, the country's sovereign wealth fund, launched the Market Industry Initiative to enhance liquidity on the Qatar Stock Exchange, in a move that comes in the context of its commitment to support the local economy and support the liquidity of stocks listed on the stock exchange.

The stock exchange added, in a statement on its website, that under this initiative, licensed market makers will be able to access part of the holdings of shares owned by the Qatar Investment Authority and incentive programs, in order to support the liquidity of shares listed on the Qatar Stock Exchange.

The statement quoted the CEO of the Authority, Mansour bin Ibrahim Al Mahmoud, as saying that this step comes in the context of the Qatar Investment Authority’s commitment to deepening the capital market, which contributes to attracting foreign asset managers to invest in Qatar on the one hand, and stimulates the participation of individuals that will help diversify and expand the market on the one hand. other.

Al Mahmoud added that the launch of the Market Industry Initiative is only a first step to reach the desired goal and to help develop the Qatari financial markets, especially since Qatar enjoys a unique position that allows it to open capital markets to foreign issuers.

In turn, the Acting CEO of the Qatar Stock Exchange, Abdulaziz Al-Emadi, said that the initiative will contribute to supporting liquidity and attracting investors to the market, especially with the consequences of improving price discovery mechanisms and enhancing investor confidence in the shares of companies listed on the stock exchange.

Al-Emadi added that the Qatar Stock Exchange witnessed this year the largest foreign investment inflows in its history due to its renewed focus on liquidity, pointing out that the launch of the market-making initiative will support the continuation of this trend.

According to the statement, the Qatar Stock Exchange, in the context of its strategy, is working on a number of initiatives to enhance liquidity and is cooperating closely with the Qatar Financial Markets Authority and the Qatar Central Securities Depository Company to achieve this important goal.

The exchange is also working to attract more listings and introduce more exchange traded funds and derivatives, to help investors diversify their investment portfolios and better manage their investment risks.

The exchange encourages various stakeholders to increase the free float shares available for trading in the market.

The recent announcements by major companies regarding increasing the limits of foreign ownership in them are part of a comprehensive plan to enhance the access of foreign investors, and supporting and developing the asset management sector is part of the strategy of the Qatar Stock Exchange, according to the statement.