Qatar: a snapshot Population 2 21.3% annual growth 2004-2010 to reach 1.7 million Economic growth 1...
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Transcript of Qatar: a snapshot Population 2 21.3% annual growth 2004-2010 to reach 1.7 million Economic growth 1...
1
Qatar: a snapshotPopulation2
21.3% annual growth 2004-2010 to reach 1.7 million
Economic growth1
27.2% nominal GDP growth 2005-2009 28.1% expected nominal GDP for 2010 25.5 % expected nominal GDP for 2011 Qatari Riyal pegged to US Dollar at 3.64
Oil & gas3
Proven reserves of 85 years at current production levels
Largest supplier of LNG with 14.43% of world reserves (Note: LNG production capacity reached 77 million tons by Dec 2010)
1. QNB, Qatar Economic Review, July 20102. Qatar Statistics Authority, 2010 Census3. IMF Data
Foreign affairs
Qatar is member of the GCC, UN, OPEC, WTO, IMF
2
2010 and beyond: economy remains buoyant
Source: QNB: Qatar Economic Review July 2010. QNB Capital Forecasts
Dependence on oil & gas
2009 first year that oil & gas sector was overtaken
Government is actively diversifying revenue sources
* Preliminary ** QNB Forecasts
Growth estimates
One of the highest growth rates in the world
Impact of global financial turmoil has been limited
(QR million) 2009 2010 2011Nominal Oil and Gas GDP 165,325 235,500 318,650% Growth/Decline -23.1% 42.4% 35.3%Nominal non-Oil and Gas GDP 192,535 223,025 256,590% Growth 2.4% 15.8% 15.0%Total Nominal GDP 357,860 458,525 575,240% Nominal GDP Growth/(Decline) -11.2% 28.1% 25.5%% Real GDP Growth 8.7% 14.5% 17.0%
(QR million) 2006 2007 2008 2009 20101. Oil & Gas 130,203 166,642 215,053 165,325 235,500% Change 41.4% 28.0% 29.1% -23.1% 42.4%- Gas 54,762 78,944 97,550 87,500 142,100- Oil 75,441 87,698 117,503 77,825 93,4002. Non-Oil & Gas 90,005 127,291 187,940 192,535 223,025% Change 39.4% 41.4% 47.6% 2.4% 15.8%- Agriculture & Fishing 233 270 305 315 325- Manufacturing 23,236 26,001 37,946 28,363 43,800- Electricity & Water 2,431 3,179 4,348 3,913 4,700- Building & Construction 7,674 21,625 32,507 25,781 27,100- Trade, Restaurants and Hotels 9,609 15,480 20,674 23,946 26,150- Transport & Communications 8,950 13,539 21,199 22,696 28,300- Finance, Insurance & Real Estate 19,476 27,309 38,106 43,374 45,550- Other Services 18,396 19,888 32,855 44,147 47,100Total GDP 220,208 293,933 402,993 357,860 458,525% Change 40.6% 33.5% 37.1% -11.2% 28.1%Total GDP ($ million) 60,497 80,751 110,712 98,313 125,968GDP per capita ($) 58,073 65,854 71,256 60,251 74,100
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QE History
1997 First day of trading of securities at
Doha Securities
Market (DSM).
1998 Introduction of
the Central Registration
System.
1999 Investors were able to
sell their purchased
shares on the next day
following their purchase (T+1)
2000 Implementation of companies’ linkage project
through the internet the first of its kind in the
GCC
2001 Start of electronic
trading project to replace
manual trading systems.
2002 Investors able to sell
their purchased shares on the
same day; approval of a new market
index
2005 Non-Qataris
permitted to invest in up to
25% of the shares offered
for trading.
2007 Became correspondent
of World Federation of Exchanges
(WFE).
2009 Signed strategic
partnership agreement with
NYSE Euronext to
transform Qatar Exchange into
world-class market.
2010 launched NYSE
Euronext Universal Trading Platform
April 2011
Implementation of DVP
SFTI
connectivity
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QIA - QE - NYSE Euronext partnership
80% shareholding of QE through Qatar Holdings
20% shareholding of QE
In June, 2009 QIA and NYSE Euronext formed a strategic partnership agreement – Qatar Exchange. The Exchange is part of a comprehensive national strategy that aims to establish Qatar as a world-class international market and reinforce the Country’s position as regional financial centre by introducing new trading products, technology and international investors and issuers to Doha. Qatar Exchange is regulated by the Qatar Financial Markets Authority
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Objectives:
• Develop a successful regional and international exchange with strong domestic roots
• Offer diversified range of investment and trading opportunities for investors and members
• Provide access to domestic and international investors for listed companies from Qatar and abroad
Competitive Advantages
• Strength of the economy
• Support and commitment from State of Qatar to reform financial & regulatory system
• Building on solid foundations
- not a start up struggling to attract business but a reasonable sized domestic exchange
• Partnership with NYSE Euronext
- shareholder with vested interest
- expert knowledge in developing international markets
QE Strategy
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QE Strategy
• Best trading environment • New trading opportunities• Efficient post trade system
• Companies and IPOs meet international standards• Cash product diversification• Derivatives
• Broad access • International best practices• Education & training
• Broaden membership base• Lower barriers to entry• Diversify services provided
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• Banks • DMA• SFTI• QFCRA licensed institutions• Segregation of roles in value chain
• Adjusted trading model• UTP• Liquidity providers• Lending & borrowing• Covered short selling• CCP
• Disclosure & IR practices• IPO process• Free float requirement• Corporate actions• Indices• Cash market: ETFs & bonds• Derivatives• GCC IPOs• Dual listings with NYSE Euronext
• Foreign participation• WFE & MSCI• Education & Training• Trading hours• Global Custodians
Regulatio
n Regula
tion
Educatio
n
Educa
tion
QE Strategy
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QE: a snapshotInvestors
Foreign institutions account for 22.5% of the annual trading turnover
Qatari institutions account for 20.5% of the annual trading turnover
Over 1200 foreign institutions and funds investing in QE stocks directly
Growth 2004-2010
24.75% growth in the QE20 index during 2010 206% growth in the market cap 270% growth in number of annual transactions
2004 2005 2006 2007 2008 2009 20100
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
450,000,000
500,000,000
0
2,000
4,000
6,000
8,000
10,000
12,000
147,190,720.67
317,201,745.88
221,729,740.16
347,695,032.47
279,038,216.44
320,207,247.63
450,203,021.09
Market Capitalization Market Index
Mar
ket
Cap
QR
Ind
ex
QE was the best performing market in the MENA region for 2010
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QE today
• 41 listed companies and four sectors (plan to move to 7 sectors in line with international standards)
• Total market cap: over $120 billion• QE Index covers 20 companies• Ten brokers, 3 of which just started in 2011• Fees: 27.5 bps (charged by brokers)
• 22 bps to brokers• 5.5 bps to the Qatar Exchange
• SWIFT in place between QE, custodians and QCB• UTP successfully implemented – Sept 2010• New Tick Sizes• Enhanced Trading hours
Sector Full Market Weighting
Banking and Financial 33.66%
Industrial 18.92%
Insurance 2.30%
Services 45.12%
Qatar Exchange - Brokers
Ahli Brokerage Company
Commercial Bank Investment Services
Dlala Brokerage
Dlala Islamic Brokerage
Gulf Investments Group
International Financial Securities
Islamic Financial Securities
Qatar Securities
QNB Financial Services
The Group Securities
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The QE Central Registry Department (CRD)
• Fully integrated within QE• 25 staff• Nasdaq-OMX Equator technology• 3 Custodians: HSBC, Qatar National Bank,
Standard Chartered• Dual listing with ADSM(QTEL)
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The CRD’s Missions
• NIN Account Openings• Exempt (off-market) Transfers• Processing of Pledges and Court Orders• Monitoring of the Brokers’ Settlement Cap• Corporate Actions• Foreign & Single Ownership Limits• DvP & Failed Trades Management• Daily Settlement Procedure• Cash-settlement Process with the QCB
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The CRD in Numbers (2010)
• 10,708 Exempt Transfers• 1,444 Pledges• 5,035 new Accounts opened• 263,747 Account Statements• 0 Failed Trade
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2011 so far & still to come
• Successful DvP Implementation• Buyer’s Compensation Enhancement• New Custodians• Securities Lending Program• Margin Lending• VaR-based Risk Management• SWIFT Developments• ANNA membership
14
Longer Term Plans
• Creation of a fully-integrated CCP 100% QE-owned separate legal entity CCP for Cash, Derivatives & OTC Settlement Cap replaced with Guarantee
Fund
• Creation of a Third-Party CSD Separate legal entity with QE stake