The QIA was founded by the State of Qatar 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. Qatar’s goal is to become a major international centre for finance and investment management, a vision shared by its government, people and institutions.
Headquartered in Doha, the QIA is structured to operate at the very highest levels of global investing. As a world class investor, the QIA adheres to the strictest financial and commercial disciplines. 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.
The Qatar Investment Authority is an integral part of Qatar’s strategy to diversify its finances into new asset classes, so strengthening and broadening the country’s fast-growing economy which is rooted in the natural resources sector.
Under the far-sighted policy of reform implemented by His Highness, the Emir of Qatar Sheikh Hamad bin Khalifa Al Thani, the Qatar economy has been one of the most dynamic. Current GDP is estimated at some $52bn, up from $8bn as recently as 1995. Growth forecasts for the economy vary, but most estimates put growth at 10% per annum at least for the next 5 years, with further growth of at least 7% per annum foreseen beyond that.
This growth is due in part to the rising energy prices and higher exports of liquefied natural gas (LNG). Qatar has huge gas reserves as much as one third of the world’s total gas reserves lies within its territory. The Qatar government is using this resource and the funds flowing from it to develop the country’s infrastructure, including education and health facilities, and modern hydrocarbon operations. Some $130bn is earmarked for investment over the next 5 6 years, of which $65bn will be devoted to energy-related projects.
Economic growth has been further strengthened by very open and competitive economic conditions, including respect for the rule of law, stability, the encouragement of private enterprise and the promotion of foreign investment.
Set up as a vehicle through which the State of Qatar can help secure the future prosperity of its people by building up a diversified asset base to complement its wealth of natural resources, the QIA’s investment strategy is based on its responsibility to generate a strong and sustainable return for the shareholder.
The QIA fulfills its mission of building this global investment portfolio by pursuing financially sound investments across various asset classes, industries and geographies. Although the QIA was formed as recently as 2005, it has already built up a strong track record of diversified investments, ranging from listed securities, property, alternative assets and private equity.
Backed by very significant resources, the QIA forms part of an elite of financial institutions which can truly claim to be global investors. Although its approach adheres to the strictest commercial disciplines, the QIA benefits from being a central part of the State of Qatar’s economic vision which allows it to invest in a manner which transcends the cyclicality of economic cycles and fluctuations of the financial markets. The QIA’s ability to take the long view in its investment strategy offers the benefits of stability to all the stakeholders.