The Qatari Cabinet approved a bill that will allow non-Qatari investors to own up to 100% of the capital of companies listed on the Qatar stock exchange. This new bill could trigger more than $1 billion of overseas inflows.
Foreign ownership of many Qatari companies currently sits way below the 49 percent limit.
Bloomberg reports that while implementation in Qatar is yet to be confirmed, the decision could trigger inflows of about $1.5 billion into listed companies that would earn bigger representation in global benchmarks, according to estimates by investment bank EFG-Hermes.
The Cabinet has also decided to keep central bank liquidity support for local banks based on need as the country faces a second wave of the coronavirus pandemic.
GCC countries have all been making efforts to attract foreign investment as they attempt to move away from oil-and-gas-centric economies. In January 2020, the UAE announced that it would start granting citizenship to foreigners upon nomination from UAE nationals. While Saudi Arabia granted a record 466 foreign investment licenses in the fourth quarter of 2020, the highest on record since data compilation began in 2005. Additionally, the Kingdom is aggressively pushing international companies to move their regional headquarters within its borders.
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