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What Is the Qatar Investment Authority (QIA)?
Let me tell you directly: the Qatar Investment Authority, or QIA, is a government-owned entity that handles Qatar's sovereign wealth fund. Its main job is to invest, manage, and grow the country's reserves to bolster Qatar's economy.
Even though Qatar has a small population, its sovereign wealth fund ranks among the largest globally, and the country boasts one of the world's lowest unemployment rates.
Key Takeaways
Here's what you need to know: The QIA is Qatar's sovereign wealth fund, headquartered in Doha. It was set up in 2005 and has grown into one of the world's biggest SWFs. A lot of Qatar's wealth comes from oil and gas revenues. As of mid-2022, the QIA's portfolio stood at about $360 billion. The fund takes a long-term view and invests in a broad range of asset classes.
Understanding the Qatar Investment Authority (QIA)
The QIA started in 2005 and operates out of Doha, Qatar. It invests and manages funds given to it by the Supreme Council for Economic Affairs and Investment, or SCEAI. The government of Qatar owns it, but it reports to the SCEAI and is run by a board of directors. The State Audit Bureau audits its finances.
There are no set limits on what the QIA can invest in; it covers domestic and foreign securities, real estate, alternative assets, private equity, and fixed income. It also uses derivatives. Most investments are outside Qatar.
The QIA follows five core values: integrity, mission focus, entrepreneurialism, excellence, and respect for people. It uses a strict four-stage process for investments: origination, evaluation, execution, and active portfolio management. Risk management is central to its strategy.
QIA's Investment Strategy
QIA's managers take a patient, long-horizon approach. They follow a four-step process: origination to find investments, often with co-investors like banks or other funds; evaluation with due diligence; execution to enter at optimal prices without market disruption; and active management to reassess and adjust positions, including exits.
In 2020, the QIA rolled out a formal top-down asset allocation process for medium- and long-term portfolio evolution. Their Reference Portfolio aims for long-term returns within board-set risk and liquidity limits, guiding annual and medium-term plans for investment teams.
Fast Fact
The QIA actively trades its portfolio but does not act as an activist investor in the companies it holds.
QIA Investments
The QIA invests directly in real estate, infrastructure, financial institutions, industry, and funds. It also puts money into publicly traded securities like global equities, fixed-income, and alternatives.
As of mid-2022, holdings were around $360 billion, down from a peak of $450 billion earlier that year.
History of the QIA
In 2000, the Supreme Council for the investment of state reserves was created to manage Qatar’s revenue surplus. By 2005, the QIA was established to develop, invest, and manage state funds and assets. Operations kicked off in 2006.
In 2009, new teams for financial institutions and real estate were added. The Capital Markets Team came in 2011. Commodities, infrastructure, retail, and consumer facilities joined in 2012. Diversification became a priority in 2015.
In 2017, the QIA was a founding member of the One Planet Sovereign Wealth Fund Group, focusing on climate change risks and opportunities for long-term assets. In 2020, at the World Economic Forum, it announced no new fossil fuel investments.
Who Owns the Qatar Investment Authority?
The national government of Qatar owns the QIA. It's led by a CEO and a board of governors.
Where Can I Invest in Qatar?
Foreign investors can own up to 100% of Qatari companies, but accessing them is tough for most. If you're in the U.S., consider the iShares MSCI Qatar ETF (QAT), which tracks Qatar's stock market.
How Big Is Qatar’s Sovereign Wealth Fund?
The QIA's portfolio is estimated at around $360 billion as of mid-2022, placing it at the lower end of the top 10 sovereign wealth funds by assets.
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