UPDATE:NYSE Expands In Middle East, Invests In Qatar Exchange
19 Giugno 2009 - 5:16PM
Dow Jones News
NYSE Euronext (NYX) said Friday that it has invested $200
million in a rebranded stock exchange in Qatar, a move that gives
NYSE Euronext a foothold in a energy-rich Persian Gulf nation that
is trying to bill itself as a regional economic center for the
Middle East market.
NYSE Euronext and Qatar Holding, the investment arm of the Qatar
Investment Authority, said their partnership will give rise to
Qatar Exchange, the successor of the Doha Securities Market.
Under the deal, NYSE Euronext is taking a 20% stake in the
exchange, with the rest owned by the QIA through Qatar Holding. All
workers at DSM will simply be transferred to Qatar Exchange.
NYSE Euronext will provide the technology for the new
exchange.
Stock exchanges in the Gulf region have outperformed many of
their peers elsewhere in recent years due in part to their
fast-growing economies. But the financial crisis has in the past
few quarters also hit exchanges there, sapping a lot of trading
volume and putting public listings on hold.
Still, Qatar is expected to be the second-largest economy in the
Gulf Cooperation Council by 2015, so the move would give NYSE
exposure to one of the world's growth areas.
The investment and technology joint venture is part of the
country's plans to compete with the financial-services sector in
Dubai and Abu Dhabi.
"The start of this relationship between NYSE Euronext and the
state of Qatar and Qatar Exchange will add a lot of value to us in
terms of technology, in terms of developing the project and in
going international," Hussain Al-Abdulla, board member executive of
the QIA, told Dow Jones Newswires.
NYSE Euronext CEO Duncan Niederauer said: "Our strategic
partnership with the state of Qatar will benefit the Gulf region
and customers on a global scale. Our world-class technology,
leadership and expertise in the marketplace will complement the
strong foundation and vision of our partners."
Niederauer said his company is still on the lookout for
potential acquisitions or new investments even after its move into
Europe and into countries like Brazil, Malaysia and Japan.
"We're always looking for opportunities to get involved in
regions or products that are strategic or present meaningful
opportunities for the company," Niederauer said.
NYSE Euronext's $200 million investment is lower than the $250
million it planned for previously but is still the largest
investment it has made so far in a foreign exchange.
In explaining the lower investment figure, QIA's Al-Abdulla also
said that the Qatari government is planning to publicly list Qatar
Exchange soon.
"We asked NYSE Euronext to cut their shareholding from 25% to
20% because we have plans to take the company public in the near
future and it will be listed as Qatar Exchange," Al-Abdulla
said.
He didn't say when exactly the exchange will be listed.
Qatar Exchange will begin trading Sunday under the new name and
a management team led by new CEO Andre Went, an NYSE Euronext
executive who was based in Amsterdam.
Al-Abdulla also said the exchange is planning to diversify its
business by launching derivatives trading but didn't say when that
would happen.
Qatar Prime Minister and Minister of Foreign Affairs Hamad bin
Jassim bin Jabor Al-Thani said the opening of the new exchange
"paves the way for Qatar to take a prominent role in the world's
capital markets for the benefit of both the people of Qatar and the
Middle East more generally."
He added the country's vision is to create a "world-class
financial center" on par with those in Europe, Asia and the
U.S.
Company Web site: www.qia.qawww.nyse.com
-By Vladimir Guevarra and Kerry E. Grace, Dow Jones Newswires.
Tel. +44 (0) 2078429486, vladimir.guevarra@dowjones.com