Doha Securities Market

Doha Securities Market (DSM)

The Doha Securities Market (DSM) is governed by Law No.(14)and was officially opened on 26th May 1997.The administration and regulation of activities on the Securities Market is governed by the ‘Market Committee’, comprising of eleven members recommended by the Minister of Economy and Commerce and appointed by the Council of Ministers, for a three-year term.

Twenty-seven companies are currently listed on the DSM, which include stocks in the banking, insurance, services and industry sectors .In order to qualify for listing on the DSM, a company must have at least 100 shareholders, and a minimum share capital of QR 10 million, at least 50 per cent of which must be fully paid. Listed companies must publish audited financial results annually, and also report interim results. Starting in 2003,DSM listed companies are also required to publish quarterly results.

Nine brokers, four of which are banks (including Qatar National Bank), have been licensed to trade on the market. In March 2002,electronic trading was introduced at the DSM. In August 2002,a new Mutual Funds Law (No.25)was issued, which allows for non-Qatari ’s to invest in the DSM  through the medium of mutual funds. Currently, non-Qataris are allowed only to own and trade in shares of Qatar Telecom (Q-TEL) and Al-Salam International Investment. GCC citizens are allowed to own and trade in up to 25%of DSM listed shares, with the exception of the banking and insurance sectors.

Trading activities for the first half of 2003 recorded a 113.5%rise in the value of shares traded over the corresponding period in 2002,to reach QR 3,998.4 million (Table 10.1 and Fig.10.1).During the first half of 2003,the Service Sector represented 53.5%of total value of shares traded, followed by Banking (37.6%),Industry (5.8%)and Insurance (3.1%).

The DSM index recorded an increase of 37.3%during the first half of 2003,to reach 3,189.48 ,and stood at 3,780.41 at the end of August 2003,increasing by 63.0%year to date during 2003.

Contributing factors to this trend include the shift of investor ’s focus from international markets, which have been in decline since 2000,to the local market and low interest rates on deposits. The Kuwait Stock Exchange (KSE) recorded the highest growth among the GCC markets during the first half of 2003,rising by 51.2%,followed by the Saudi TASI with an increase of 43.6%.