Business | Markets
NYSE Euronext to buy 25 per cent stake in Doha exchange
The NYSE Euronext and the State of Qatar have announced a strategic partnership through which the former has acquired a 25 per cent stake in the state owned Doha Stock Market.
- By Babu Das Augustine, Banking Editor
- Published: 11:29 June 24, 2008
- Image Credit: EPA
- Traders work on the floor of the New York Stock Exchange. NYSE Euronext said it would buy a 25 per cent stake in the Doha Securities Market.
Doha: The NYSE Euronext and the State of Qatar have announced a strategic partnership through which the former has acquired a 25 per cent stake in the state owned Doha Stock Market.
The deal valued at $250 million is expected to accelerate the pace of regional stock exchange consolidation in which major global stock exchanges such as NYSE Euronext and Nasdaq OMX group are playing a big role.
Qatar's deal with NYSE Euronext could transform the Doha Securities Market (DSM) into a significant international player in the global exchange space and provide NYSE Euronext with a strong presence in the Middle East.
“Today's announcement represents the cornerstone of Qatar's vision to bring our entire economic infrastructure up to the highest international standards, thereby laying the best possible foundations for the development of this dynamic nation,'' Sheikh Hamad bin Jassim bin Jabor Al-Thani, Prime Minister and Minister of Foreign Affairs of Qatar, said in an emailed statement.
Analysts said that the deal is expected to counter the ambitious plans of Nasdaq OMX group to consolidate their presence in the region through their association with Borse Dubai.
DSM sources have hinted that this new partnership will target creation of a new, cash and derivatives exchange in Doha that will tap into other regioal markets.
Earlier this year Borse Dubai completed a complex deal with Nasdaq OMX group through which it acquired 19.9 per cent stake in the US exchange and as part of the deal, Nasdaq OMX group acquired 33 per cent stake in Dubai International Finacial Exchange (DIFX).
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