Qatar Investment Authority

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Qatar Investment Authority
Founded 2000
Headquarters Qatar
Key People H.E. Sheikh Abdulla bin Mohammed bin Saud Al-Thani, CEO; H.H. Sheikh Abdullah bin Hamad bin Khalifa Al-Thani, Chairman
Employees 92
Products Financial Services
Website http://www.qia.qa

Qatar Investment Authority (QIA) is a sovereign wealth fund whose prime objective is to achieve revenue diversification for the state of Qatar. As a result of its stated strategy to minimize risk from Qatar's reliance on energy prices, the fund predominantly invests in international markets (USA, Europe and Asia) and within Qatar outside the energy sector. The fund focuses on three asset classes: real estate, private equity and investment funds.

QIA established Qatari Diar Real Estate Investment Company as a platform to handle several significant investments in local as well as international markets including Morocco, Egypt, Oman and Syria. In the UK, QIA's investments include the acquisition of four of the largest nursing home chains in the UK for approximately 5 billion USD. In addition, QIA has a significant direct interest in the Canary Wharf Estate in London; it also owns and is developing a large prime location retail mall in Kuala Lumpur. QIA also directly owns 100% of Qatar National Hotels Company.

In private equity, QIA has direct stakes in several Qatari blue chip companies like QNB and Qtel and co-invests alongside them. QIA's private equity also looks after local private equity and venture capital initiatives such as the Qatar Foundation.

QIA's international investments include stakes in the UK-based Four Seasons Healthcare, London Stock Exchange Group, Nordic Exchange OMX, Lagardere of France, Jordan's Housing Bank for Trade and Finance, and Singapore's Raffles Medical Group. It was also a co-investor in Dubai International Capital's purchase of a 3.12 percent stake in European Aeronautic, Defence and Space Company (EADS).

QIA is backed by surplus funds (after meeting domestic budgets) originating from the sale of 800,000 barrels of oil per day. Some estimates put the current fund size at USD 60 billion.[1]

History

QIA's origins go back to the establishment of the Supreme Council for the investment of State Reserves, for the purpose of investing Qatar's revenue surplus. It was formally established in 2005 to develop and invest the state reserve funds and other assets assigned by Supreme Council for Economic Affairs and Investments (SCEAI).

QIA began investment operations in 2006. It gradually reduced investments in third-party funds and activated direct investments in 2008, and in 2009 it established new investment teams including General Portfolio, Financial Institutions and Real Estate.

In 2012 it established further sectors, including Commodities, Infrastructure, Retail, and Consumer.

H.E Sheikh Abdullah bin Mohammed Al Thani was named CEO of QIA in 2014.[2]

In July of 2014, The Financial Times reported that the Qatar Investment Authority would sell down a third of its stake in the London Stock Exchange Group ahead of the exchange’s $1.6bn rights issue to help purchase Frank Russell, the US index compiler. The QIA retained a 10.31 per cent stake in the LSE.[3] [4]

In 2015, QIA committed $45bn investment in the US. [5]

Products and Services

Sovereign Wealth Enterprises:

1. Qatar Holding LLC was incorporated in April 2006 within the jurisdiction of Qatar Financial Centre as the prime vehicle for strategic and direct investments by the State of Qatar.

The fund also owns a holding company called the Qatar Investment Company which owns the Qatar Holding LLC.

2. Delta Two LTD is also an investment vehicle of the Qatar Investment Authority.

3. Qatari Diar – Real Estate Investment Company This investment arm was established in December 2004 and was initially capitalized at US$ 1 Billion. It is involved in real estate partnerships and ventures throughout the world. [6]

Key People

References

  1. Qatar Investment Authority. Zawya Middle East Business News.
  2. Our History. Qatar Investment Authority.
  3. Qatar to sell down stake in LSE. The Financial Times.
  4. Qatar Investment Authority puts weight behind LSE chairman in battle with activist investor Sir Chris Hohn. City A.M..
  5. US tax reforms to add value to Qatar investments. The Peninsula (Qatar).
  6. Qatar Investment Authority. Sovereign Wealth Fund Institute.