What Is the Qatar Investment Authority (QIA)?
The Qatar Investment Authority (QIA) is a government-owned entity charged with managing the sovereign wealth fund (SWF) of Qatar. QIA’s enterprise is to take a position, arrange and increase Qatar’s reserves as a way to toughen the development of Qatar’s monetary machine.
Even though Qatar’s population is quite small, its sovereign wealth fund is among the largest on the planet, and it has various the world’s lowest unemployment.
Key Takeaways
- The Qatar Investment Authority (QIA) is that nation’s sovereign wealth fund, positioned in Doha.
- Established in 2005, the QIA has grown to turn out to be of of the sector’s largest SWFs.
- Numerous Qatar’s wealth comes from oil and gas revenues.
- As of mid-2022, the QIA’s portfolio was value kind of $360 billion.
- The fund has a long-term investment outlook and can put money into a wide variety of asset classes.
Working out the Qatar Investment Authority (QIA)
The Qatar Investment Authority was established in 2005 and is based totally utterly in Doha, Qatar. QIA strives to take a position and arrange price range assigned to it by the use of the Final Council for Monetary Affairs and Investment (SCEAI). The QIA is owned by the use of the government of Qatar alternatively critiques to the SCEAI. Additionally, it is managed by the use of a board of directors. Qatar’s State Audit Bureau is in control of auditing the financial operations of the QIA.
The QIA does not have any mandated boundaries on its investment universe and is able to put money into every house and world marketable securities, precise property, precise belongings, variety property, private equity price range, and credit score ranking and fixed earnings securities. The QIA moreover employs derivatives in its investment method. Most of QIA’s investments are out of doors of Qatar.
The QIA states that it is guided by the use of 5 predominant values: integrity, enterprise point of interest, entrepreneurialism, excellence and respect for people. The authority follows a strict four-stage approach to every investment, which is broken down into origination, research, execution and lively portfolio regulate. The QIA moreover claims that opportunity regulate is at the core of its investment method.
QIA’s Investment Methodology
QIA’s portfolio managers employ a affected individual way, with very very long time horizons. The fund uses a 4-step process to select investments. Origination is the time frame the QIA uses to hunt out possible investments, frequently leveraging co-investors similar to international banks or other sovereign wealth price range. Research is the next move, where due diligence is employed. Execution involves getting into the investment at the most productive available prices and without moving markets. Energetic regulate is the fourth step, where positions are re-evaluated and changes can be made, along side doing away with the location.
In 2020, the QIA presented a additional formal top-down portfolio asset allocation process to guide the medium and long-term evolution of its portfolio. QIA’s Reference Portfolio is designed to fulfill the long-term return goals, subject to probability and liquidity limits set by the use of the Board. The Reference Portfolio is then used to increase annual and medium-term investment plans for every investment staff.
QIA actively trades its portfolio, alternatively are not activist in opposition to invested firms.
QIA Investments
The QIA makes direct investments in duties related to precise belongings, infrastructure, financial institutions, business, and investment price range. It moreover invests in publicly-traded securities along side international equities, fixed-income, and choice investments.
As of mid-2022, QIA’s holdings had been estimated to be spherical $360 billion, down from a document $450 billion reached earlier in 2022.
History of the QIA
- 2000: The Final Council for the investment of state reserves is established to keep an eye on the investment of Qatar’s income surplus.
- 2005: QIA is established to increase, invest and arrange state reserve price range and other property.
- 2006: QIA investment operations officially get began.
- 2009: New investment teams are created that include financial institutions and precise belongings.
- 2011: The Capital Markets Group of workers is established.
- 2012: Commodities, infrastructure, retail, and consumer facilities are added.
- 2015: QIA begins prioritizing diversification of its portfolio
- 2017: QIA becomes one in all six founding members of the One Planet Sovereign Wealth Fund Workforce. This initiative focuses on risks and choices related to native climate become the regulate of large, long-term asset swimming swimming pools.
- 2020: QIA publicizes it’s going to make no new investments in fossil fuels at the Global Monetary Dialogue board annual meeting.
Who Owns the Qatar Investment Authority?
The QIA is owned by the use of the national government of the State of Qatar. It is run by the use of a CEO and board of governors.
Where Can I Invest in Qatar?
Global buyers are allowed to own up to 100% of Qatari firms; however, for plenty of buyers, gaining access to such holdings is tricky. Instead, U.S. buyers can look to the iShares MSCI Qatar ETF (QAT), which tracks the country’s stock market.
How Massive Is Qatar’s Sovereign Wealth Fund?
The QIA portfolio is estimated to be value spherical $360 billion as of mid-2022. This puts it at the bottom of the easiest 10 sovereign wealth price range relating to common property.
