Qatar's equity market could receive $3.5 billion in passive flows if it combines local stocks held by its sovereign wealth and pension funds, according to Arqaam Capital Ltd. The Qatar Investment Authority and the General Retirement and Social Insurance Authority are exploring consolidating their local holdings worth up to $3 billion, under a new entity, to attract more foreign investors and strengthen the market.

The entity plans to hire external funds to actively manage and trade shares, boosting market activity. If MSCI and FTSE trackers pooled their stakes, it could attract around $2.46 billion and $1 billion in investments, respectively. Releasing 5% of its local stocks could bring in approximately $587 million in inflows for the exchange, benefiting Qatar National Bank QPSC, Industries Qatar QSC, and Qatar Islamic Bank SAQ.