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Saturday June 20, 2009

NYSE Euronext invests in Qatari stock exchange


LONDON: Stock exchange operator NYSE Euronext said Friday it has invested 200 million pounds in a rebranded stock exchange in Qatar, reducing the size of its planned investment in the energy-rich Persian Gulf.

NYSE Euronext said that it will pick up a 20 percent stake in a joint venture to rebrand the exchange with the Qatar Investment Authority - instead of the 250 million pounds for a 25 percent stake they had announced a year ago.

The new venture, to be called the Qatar Exchange, will replace the existing Doha Securities Market.

Qatari Prime Minister Sheik Hamad Bin Jassem Al Thani said the deal paves the way for the middle Eastern state to take a prominent role in global capital markets.

"Our vision is to create a world class financial center around a global exchange that is on par with the deepest pools of capital across Europe, the U.S. and Asia," he said.

Along with other traditional bourses like the London Stock Exchange, NYSE Euronext has been looking for new revenue streams in the face of heavy competition from alternative trading platforms.

The two companies did not comment on the reduced investment from NYSE Euronext, but analysts said it reflected the slowdown in the global economy.

"These international markets may be facing uncertain times today, but our focus remains on what the opportunities may be tomorrow for our people and indeed the generations to come," said Al Thani. - AP


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