Euronext buys 25 per cent stake in Doha bourse

Qatar has agreed to sell a 25 per cent stake in the Doha Securities Market (DSM) to NYSE Euronext for $250 million (Dh917m) in cash, in a deal that will see the emergence of a new cash-and-derivatives exchange in Doha.

NYSE Euronext will receive three of the 11 seats on the DSM's board of directors and will manage the operation of the new exchange and appoint the senior management team.

According to an official statement, the closing of the transaction is expected to take place early during the fourth quarter of 2008, subject to the completion of documentation and obtaining no-objection from regulators. Notably, this is the largest investment ever made by NYSE Euronext in a foreign exchange.

"This represents a hugely significant development for Doha's financial markets, for the people of Qatar and for the Middle East. We are delighted to partner with NYSE Euronext which has a global reputation for excellence," said Sheikh Hamad bin Jassim bin Jabor Al Thani, Prime Minister and Minister of Foreign Affairs of Qatar.

NYSE Euronext said it will manage the Qatari bourse for at least the next five years, as part of its investment in the Gulf's second-best performing exchange. "It is a privilege to align NYSE Euronext with Qatar and Doha's financial marketplace, whose role is increasingly important in the Gulf region and globally," said Duncan Niederauer, CEO of NYSE Euronext.

NYSE Euronext Deputy Chief Executive Jean-François Théodore said: "We share the entrepreneurial vision of Qatar and the DSM. In addition to proving beneficial to the people and business community of the Middle East, Europe and the US, this partnership will serve to strengthen the global capital marketplace."

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