Al Rayan Qatar ETF wants to reap dividends from re-opening of borders. Upcoming FIFA World Cup will another factor drawing investor interest in sectors, stocks.
Qatar , Qatar
20 January 2021, 12:00 AM
31 January 2021, 12:00 AM
Gulf's biggest equity-focused exchange traded fund (ETF) is set to get a boost from hosting one of the world's most popular events.
The Doha-based Al Rayan Qatar ETF inflows accelerated when news of the potential normalization of relations with Saudi Arabia emerged late last year. Daily volumes surged earlier this month as the end of a three-year rift that also included the UAE was finally confirmed.
Now, as Qatar gets ready to host the FIFA World Cup soccer tournament next year, the benefit for listed companies ranging from logistics to telecommunications and hospitality helps to build an investment case that could appeal to wealthy Saudi and Emirati individuals, according to the fund's manager.
Akber Khan, senior director of asset management at Al Rayan Investment, said,"Take this country of two-and-a-half million and add 500,000 to a 1 million visitors over a two-, or three-week period and the significance is obvious."
Economic activity is expected to accelerate in the year prior to the tournament, he said. "Kick off is 21 November, 2022, but well before that logistics, utilities, telecoms, retailers, banks will all benefit."