Qatar stocks surge on plans to allow full foreign ownership

Qatar stocks surge on plans to allow full foreign ownership

Qatari stocks rose the most in a year after the country said it may allow foreign investors to fully own listed companies, a move that could trigger more than $1bn of overseas inflows.

The cabinet approved a draft law that will allow overseas investors to own up to 100 per cent of listed companies, according to the state-run Qatar News Agency. If the law is implemented, companies would have to individually approve the increased limit.

While implementation is yet to be confirmed, the decision could trigger inflows of about $1.5bn into listed companies that would earn bigger representation in global benchmarks, according to estimates by investment bank EFG-Hermes.

The QE Index gained 2.8 per cent on Thursday, the most in more than a year, to close at the highest level since January 14.

Stocks that could benefit the most include Qatar Islamic Bank, Masraf Al Rayan and the Commercial Bank of Qatar, the investment bank said. Their shares climbed 8.3 per cent, 5.5 per cent and 10 per cent on Thursday, respectively, leading gains among members of the main gauge.

The gas-rich nation is following similar decisions by other Gulf countries as they seek to attract inflows from abroad. In 2019, the United Arab Emirates