Qatar Electricity and Water (QEWC) could get a jolt if as expected the country is upgraded to an emerging market from its current frontier market status.
Shares in the third-largest traded utility in the Middle East by revenue have increased 27.5 per cent in the past six months but traders expect another boost ahead of a widely anticipated upgrade to the MSCI Emerging Market Index.
Yesterday the stock was rated "buy" in new coverage at Deutsche Bank, with a price estimate of 165 Qatari rials for the company.
It closed 1.49 per cent lower at 132 rials yesterday as the Qatari index had its biggest one-day fall since November.
"There is a sense from some investors that Qatar may be included. As such, some investors remain overweight on Qatar preferring more defensive names such as QEWC," said Scott Darling, an analyst at Nomura.
The MSCI decision on Qatar's market status is expected in June.
Qatar has signalled it is considering implementing short-selling and derivatives trading in line with efforts to upgrade to emerging markets status. The country also said it may raise the percentage of shares that foreigners can own in a company to 49 per cent from 25 per cent, according to Bloomberg.
MSCI classifies all of the Gulf markets as frontier, apart from Saudi Arabia, which is not categorised. This is a designation that typically applies to less developed markets and often deters international investors from buying into such markets because they are considered more volatile.
The Middle East power market is also perceived as a good market to invest in, with most countries' capacity constrained despite strong power demand growth, Mr Darling said.
QEWC is expected to partly mitigate the seasonal swing in demand for power in Qatar by its acquisition of assets of the power company AES, which it completed in the fourth quarter. QEWC bought all of AES's stake in Ras Laffan Power, the owner of an independent power and water desalination plant.
Mr Darling also has a "buy" rating on the stock, with a target price of 151 Qatari rials. He said fourth-quarter results were expected to be positive in addition to dividend growth this year.
The Specs:
The Specs:
Engine: 2.9-litre, V6 twin-turbo
Transmission: 8-speed automatic
Power: 444bhp
Torque: 600Nm
Price: AED 356,580 incl VAT
On sale: now.
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Date: Sunday, November 25
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England v Spain, Saturday, 11.45pm (UAE)
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A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
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3. More tax audits
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4. More beneficial VAT and excise tax penalty regime
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5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
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7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
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Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
