Qatar’s stock market slips from record high

The Qatar stock market surged to a record high over 13,000 last week – and then promptly hit the skids. It lost over 5% as concern mounted that Qatar might lose the 2022 World Cup amid allegations of bribery.

The jitters came just as the market was promoted to the MSCI Emerging Markets index. It had previously been a ‘frontier market’, MSCI’s term for a small, illiquid exchange with poor governance.

The upgrade is expected to unlock $15bn of additional investment in the next few years, as the MSCI index is followed by some of the world’s largest asset managers, says John Ficenec in The Daily Telegraph.

And with huge gas reserves funding lightning-quick development, growth has been hurtling along at annual rates of 5%-17% in the past few years.

But the short-term outlook is murkier. Infrastructure projects worth $140bn-$200bn over the next few years – GDP is still only around $200bn – had cheered investors, but losing the Cup could threaten many of them.

Investors should also note that the local market remains small and volatile. Our favourite Qatar play, the Qatar Investment Fund (UK: QIF), already looks reasonably priced on a discount to net asset value of 16%, but could well become cheaper over the next few months.

• Stay up to date with MoneyWeek: Follow us on TwitterFacebook and Google+

MoneyWeek magazine

Latest issue:

Magazine cover
Avoid the dinosaurs

Why smaller stocks are better bets

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Vote in the MoneyWeek Readers' Choice Awards

Vote for your favourite financial services companies in the inaugural MoneyWeek Awards, and you could win a year's subscription to MoneyWeek magazine. Find out more and vote here.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.