The state of Qatar has agreed to sell 25 percent of the Doha Securities Market to NYSE Euronext for US$250million in a bid to become the region's financial hub, while extending global links.
NYSE Euronext said today, June 24, it will buy a 25 percent stake in Qatar's Doha stock market, as the operator of the New York Stock Exchange moves to build a financial hub in the Middle East.
Established in 1995, the Doha Securities Market (DSM) began operations in May 1997, and currently has 43 listed companies. Its market capitalization has climbed to US$136billion from US$5.2billion in 2000.
The deal, which represents NYSE Euronext's largest investment ever in a foreign exchange, is expected to close early in the fourth quarter.
Booming region
Qatar, the world's biggest exporter of liquefied natural gas, will retain a 75 percent majority ownership of the Doha Securities Market (DSM) and plans to sell a minority stake in the DSM in a domestic initial public offering within the next three years.
NYSE Euronext will receive three of 11 seats on the DSM's board and will be the technology provider for both the cash equities and derivatives markets.
The transatlantic bourse said it will base a number of its growing Middle East region operational and technology support functions in Doha, growing its financial hub there.
This news breaks as western exchanges look to boost their presence in booming emerging markets amid a slowdown in European and American economies.