NYSE Euronext, the holding company of NYSE Group Inc in the US and Europe's Euronext N V, and operator of the world's largest stock exchange group has set a footing in the gas-rich Arabian gulf nation of Qatar by acquiring a 20-per cent stake in the Qatar Exchange for $200 million (727 million Qatar rial) as part of the deal with its parent company, Qatar Holdings, NYSE Euronext said yesterday.

The deal will give birth to the new Qatar Exchange based on NYSE Euronext technology, which will replace the existing Doha Securities Market (DSM). The remaining 80 per cent of the stake will be owned by Qatar Investment Authority (QIA) through Qatar Holdings.

The $200 million investment is the largest so far by NYSE Euronext in a foreign stock exchange. NYSE earlier planned an investment of $250 million to acquire 25 per cent stake, which has been further reduced to $200 million as the Qatari government is planning for public listing of the Qatar Exchange in the near future.

NYSE Euronext secured the deal outpacing the competition from the London Stock Exchange which was also keen to expand its business in the region.

The new Qatar Exchange which is stated to be opened on Sunday, will be headed by Andrew Went, a senior executive of NYSE Euronext. All employees of DSM will be transferred to Qatar Exchange.

The prime minister of Qatar Sheik Hamad bin Jassem Al Thani said the deal with NYSE Euronext will help the gulf nation to assume a leading role in the global capital markets.

"Our vision is to create a world class financial center around a global exchange that is on par with the deepest pools of capital across Europe, the U.S. and Asia." Al Thani said.

Qatar finance minister Yousef Hussain Kamal said: ''We seek to elevate the market from the local level to a regional level and then to an international level and open it up for products other than the current stocks being traded."

Kamal hoped that this partnership succeeds in improving the market's efficiency and international reputation to which the nation aspires.

NYSE Euronext which was launched in 2007 is the world's largest exchange group offering a vast array of financial products and services in the United States and Europe. With over 8,000 listed issues globally, its equity markets – New York Stock Exchange, Euronext, NYSE Arca and NYSE Amex – represent around 40 per cent of the world's cash equities trading volume.

NYSE Euronext CEO Duncan Niederauer said: "Our strategic partnership with the state of Qatar will benefit the Gulf region and customers on a global scale. Our world-class technology, leadership and expertise in the marketplace will complement the strong foundation and vision of our partners."

He said that his company is on the lookout for new opportunities in regions or products that are strategic for the company.

Qatar, a major exporter of liquefied natural gas (LNG) aims to become the second-largest economy in the Gulf Cooperation Council (GCC) region by 2015 and NYSE Euronext expect to benefit from the growth potential.

Both the partners aim at boosting the business in the Gulf region by competing with the Abu Dhabi and Dubai exchanges.

NYSE Euronext shares ended 0.93 per cent lower at 28.33 on the New York Stock Exchange on Friday.