The State of Qatar and NYSE Euronext today announced a strategic partnership that will see the NYSE take a 25% stake in the Doha Securities Market.

NYSE Euronext is purchasing the stake in the DSM for US$250 million in cash, the largest investment ever made by NYSE Euronext in a foreign exchange. It will receive three of the 11 seats on DSM’s board of directors. The State of Qatar is to retain ownership of the remaining 75% of the DSM through the Qatar Investment Authority.

Also, the NYSE Euronext has been selected as the technology provider by the State of Qatar and the DSM for both the cash equities and derivatives markets, and it will act as a partner managing the operation of the new exchange, including the appointment of the senior management team.

The closing of the transaction is expected to take place early during the fourth quarter of 2008, subject to the completion of documentation and obtaining non-objection from regulators.

“This represents a hugely significant development for Doha’s financial markets, for the people of Qatar and for the Middle East,” said Sheikh Hamad bin Jassim bin Jabor Al-Thani, prime minister and minister of foreign affairs of Qatar, in a release. “We are delighted to partner with NYSE Euronext which has a global reputation for excellence. It’s a significant endorsement of Qatar’s importance in the world’s capital markets and will provide considerable opportunities for our future generations. This partnership lays the foundations for us to build Doha into a world class financial center. Our country’s financial markets will be an integral part of a group which links together the world’s major trading centers across the U.S. and Europe and now the Middle East.”