LSE names Qatar as Gulf partner

The London Stock Exchange has confirmed Qatar as its main partner to develop a regional financial market, it was reported on Monday.

Under a deal to be announced soon, LSE will supply services and technology to develop the Doha Stock Market, reported Emirates Business 24/7.

According to LSE officials, a decision has already been made, and an announcement could come within weeks, the business daily said.

Qatar owns 15% of the LSE through the Qatar Investment Authority, its $60 billion sovereign wealth fund. The QIA said in January it planned to use its stake in the LSE to develop its own capital markets.

A deal with Dubai had been ruled out due to conflict of interest despite Borse Dubai holding a 20% stake in LSE, said CEO Clara Furse.

Borse Dubai and Nasdaq closed a deal last month to buy Nordic and Baltic stock exchange OMX.

Under the deal Borse Dubai took Nasdaq’s stake in the LSE, while Nasdaq agreed to take a 33% stake in the DIFX.

“We having nothing against Dubai, but they must believe Nasdaq can do a better job for them. They have chosen to ally themselves with Nasdaq, which is a major competitor to LSE. They cannot do a deal with both of us” an LSE executive told Emirates Business.

Borse Dubai said in February it would consider selling a stake in the LSE to Qatar, but had not received any approaches and was unlikely to sell any stake in the short term.