HomeNewsQatar shares surge to two-year high on winning World Cup bid

Qatar shares surge to two-year high on winning World Cup bid

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Qatar’s shares soared to the highest in more than two years after the country won the rights to host soccer’s 2022 World Cup, becoming the first Arab nation to hold the world’s most-watched sporting event.

Qatar National Bank, the emirate’s biggest lender by assets, climbed to the highest on record. Barwa Real Estate Co., Qatar’s largest publicly traded property developer by assets, gained the most since June.

The QE Index jumped as much as 7,8% to 8,820.09, the highest since October 2008. The measure rose 3,3% in Doha as all 20 shares advanced.

“Sentiment is understandably flying extremely high,” said Akber Khan, a director at Al Rayan Investment in Doha.

“There will be a material impact on some companies as the government fast-tracks billions of dollars of spending. Banks, real estate and construction-related names would be among the key beneficiaries.”

Qatar, projected by the International Monetary Fund to have the world’s fastest-growing economy this year, plans to more than double the number of hotel rooms, build nine stadiums and refurbish three others and construct a rail and metro network for the tournament. The US estimates that the tournament is worth

$5 billion to the hosts. Qatar National Bank jumped 6,2% to 186,5 riyals, the highest since at least June 2003, when Bloomberg started tracking the stock.

Barwa Real Estate Co. rose 6,2% to 36 riyals, the highest since April 22 $25 Billion.

The country plans to spend $4 billion on the stadium construction and refurbishment programme.

With summer temperatures approaching 50 degrees Celsius, each facility will be designed with a solar-powered air-conditioning system.

A new 200 000-population city called Lusail, north of the capital, is scheduled to be built over the next decade and will feature the stadium that hosts the World Cup final.

Qatar expects to construct a rail and metro network, costing more than $25 billion, in Doha and extending to cities outside the capital.

It’s also planning the longest bridge in the world to connect to the nearby island kingdom of Bahrain, and aims to open a new airport next year.

Soccer ruling body, the Fédération Internationale de Football Association, or Fifa, announced that Qatar won the World Cup bid in Zurich December 2 after competing with the US, Australia, Japan and South Korea. Russia was chosen to host the 2018 tournament.

Industries Qatar, the second-biggest petrochemicals maker in the Middle East, advanced 2% to 132,1 riyals.

Bahrain’s All Share Index and Kuwait’s gauge gained 0,3%. Oman’s MSM30 Index advanced 0,4%.

Markets in the United Arab Emirates are closed today for an Islamic holiday.

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