The draft rules is being presented for consultation with the concerned stakeholders, which is expected to come into force soon after approval.
The draft IPO and listing rules completes the various regulatory initiatives that the authority is currently undertaking in order to support the objectives of the capital market in the state and increase its role in driving the cogs of economic development in Qatar. The project is in line with the decision issued by the Supreme Council for Economic and Investment Affairs, and is thought of as a leading step forward in achieving the goals of Qatar National Vision 2030.
Speaking on the occasion, Nasser Ahmed Al-Shaibi, CEO of QFMA, said: "The project of listing SMEs on the capital market aims to support these companies by providing them access to the adequate financing to help them grow, expand and develop. This goal can be achieved by listing these businesses on a dedicated market in Qatar exchange, under flexible regulations that fit the structural and legal situation of these enterprises, while maintaining a strong level of supervision to protect the interests of shareholders.
"Small and medium enterprises are the backbone of this economy and all others. Listing these companies on capital markets can help achieve a number of goals, including the support of the national economy by enabling these companies to source the necessary funds to finance their expansion to new markets," Al-Shaibi added.
Al-Shaibi clarified that the new project includes a package of incentives for SMEs, and easier IPO and listing requirements as compared to companies listed on the main market, in terms of the minimum required capital, number of shareholders, number of shares issued in the IPO and the company's financial history. The disclosure rules will be less in the SMEs, without compromising the integrity of the market. The cost of IPO and listing will be less as compared to companies listed on the main market.
"Listing this type of companies on the capital market will maximize their economic value, improve their position in relation with banks and clients and make these enterprises a destination of choice for strategic investors that are looking for long-term investment opportunities," Al-Shaibi added.
