[G]reater foreign participation in the equity market is only possible if investors become confident about the long-term sustainability of local businesses…. By reforming the structure of these businesses and accepting international business practices, these businesses may be able to win the confidence of global investors and witness greater flow of capital. (Arabian Gazette)
Morgan Stanley Capital International (MSCI) recently upgraded Qatar from frontier market to emerging market. While this is good news for Qatar and Qatari companies, it is interesting to note that in 2008, MSCI declined to elevate Qater to emerging market status due in part to shortcomings in market technology and mechanisms. Five years later, Qatar becomes an emerging market, but just as the wave of emerging market interest has started to recede. (See “Is the Emerging Market Boom Over?” in today’s Guardian newspaper.)
Want your market to be an attractive destination for foreign capital? Consider Qatar’s experience and think about making infrastructure and regulatory upgrades sooner rather than later.
MarketReg Advisors 