The main objective of this study is to focus on examining the impact of some selected macroeconomic indicators on Qatar Stock Exchange, which will be represented by two indices, namely, Qatar Exchange Main Index and Al Rayyan Islamic Index. A comparison will be held between the two indices to determine how similar or different they are impacted by the selected macroeconomic indicators. It also seeks to develop an econometric model for estimating the two indices when the values of the selected macroeconomic indicators are known or estimated.
The importance of this study stems from the fact that financial markets constitute a major player in the process of economic development. Through the functions of financial intermediation and financial innovation, financial markets play a crucial role, whether at the macro level in producing an efficient allocation of capital, which in turn leads to promoting economic efficiency or at the micro-level by directly affecting wealth and behaviour of business firms, as well, as, the well-being of individuals. Hence, financial markets are considered as one of the vital indicators of the health of countries’ economies.
The result of this exploratory study will provide a reliable information base for economic policymakers to make decisions that contribute to the growth and stabilization of the financial stock markets. Furthermore, the study will serve the purpose of promoting investments in Islamic financial securities.