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
What a farce!

John Stepek on surviving the Greek fallout

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

From ADRs to Z scores – all the terms you wish you understood, but were too embarrassed to ask about.

Gervais Williams: if you want real dividend growth, buy small-cap stocks

Merryn Somerset Webb interviews small-cap stock expert Gervais Williams about how penny shares outperform blue chips 'again and again'.


Which investment platform is the right one for you?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from, with varying fees and charges. Find out which is best for you.


29 June 2007: Apple's iPhone goes on sale for the first time 


Apple's iPhone went on sale for the first time on this day in 2007, revolutionising the mobile phone market.


Anatomy of a Grexit: how Greece would go about leaving the euro

Jonathan Loynes and Jennifer McKeown, economists at Capital Economics, look at the key issues and challenges of a Grexit, how it might be best managed, and set out a timetable for change.