Investment firm Amwal QSC launched an exchange-traded fund on the Qatar Stock Exchange, marking the country's first listing of such fund, Reuters reported March 5, citing the asset manager handling the ETF.
The ETF, which tracks the movement of the 20 largest and most liquid stocks in Qatar, began trading March 5, according to the report. ETFs are investment funds that trade like common stocks on a stock exchange.
Doha Bank acted as a founder for the transaction, which comes as Qatar's authorities are trying to recover losses, improve liquidity and attract more foreign investment amid a Saudi-led boycott of the country. In June 2017, four Arab countries — Saudi Arabia, the United Arab Emirates, Bahrain and Egypt — severed diplomatic and transport ties with Qatar, alleging links to terrorism.
Masraf Al Rayan (QPSC) was also reportedly in the process of raising 400 million Qatari riyals from investors for its ETF, which will track the movement of Shariah-compliant stocks.
As of March 3, US$1 was equivalent to 3.64 Qatari riyals.
