Sheikh Abdulla bin Mohamed: QIA’s chief executive.

QIA’s portfolio is intended to create long-term value for generations to come

By Santhosh V Perumal
Business Reporter


Qatar has committed to invest as much as $35bn in the US over the next five years as part of its  strategy to have a globally-diversified investment portfolio.
In this regard, the Qatar Investment Authority (QIA), the sovereign wealth fund of the country, has opened an office in the US, enabling it to develop and expand its global investment portfolio.
The office in New York will give QIA better access to new and existing investment partners and illustrates the “confident outlook” QIA holds for the US and the wider Americas, said a spokesman of the fund, which already has representative offices in China and India.
It also marks QIA’s desire to continue its diversification, which is a key objective established by its strategic review.
“With boots on the ground, our presence in New York will anchor our interest in the region,” said Sheikh Abdulla bin Mohamed bin Saud al-Thani, chief executive of QIA, which is one of the co-founders of the Santiago Principles, a set of 24 voluntary guidelines that assign best practices for the operations of sovereign wealth funds.
“It is the perfect location to help strengthen our existing relationships and promote new partnerships as we continue to expand geographically, diversify our assets and seek long term growth,” said Sheikh Abdulla.
The decision to open an office in New York is indicative of QIA’s confidence in the country’s long-term economic growth and investment prospects and allows the opportunity to strengthen partnerships with both public and private sector organisations.
With world economies, markets and currencies often moving in different cycles and rhythms, the importance of a globally-diversified investment portfolio is central to QIA, whose portfolio is strategically spread across asset classes to generate sustainable returns and maintain resilience against adverse market cycles and volatility.
Whilst QIA remains committed to its investments in Europe, Asia and the Middle East, this next step facilitates access to significant investment opportunities, whilst enhancing education, cultural and scientific links with the US and expanding QIA’s global footprint.
QIA’s portfolio is intended to create long-term value for generations to come and is therefore not subject to conventional short-term performance measures or tactical portfolio optimisation.
The sovereign wealth fund has made substantial and diversified holdings in the sectors ranging from real estate to power utility, retail department store, financial sector and agriculture.
Geographically, its European portfolio includes Barclays, Credit Suisse Group, Volkswagen and the London Stock Exchange.
In July this year, the Ascott had entered into a joint venture with QIA to set up a $600mn serviced residence fund.
The Sovereign Wealth Fund Institute estimates QIA’s holdings to be worth $256bn, making it the ninth largest fund in the world.
QIA was founded in 2005 to strengthen the country’s economy by diversifying into new asset classes. Building on the heritage of Qatar investments dating back more than three decades, its growing portfolio of long-term strategic investments help complement the state’s huge wealth in natural resources.
It has a strong track record of investing in different asset classes, including listed securities, property, alternative assets and private equity in all the major capital markets as well as the newer emerging markets.