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Qatar Investment Authority (QIA)

Qatar Investment Authority (QIA)
EconomyGovernment and Policy

What Is the Qatar Investment Authority (QIA)?

The Qatar Investment Authority (QIA) is a government-owned entity accused of dealing with the sovereign wealth fund (SWF) of Qatar. QIA's mission is to invest, oversee and develop Qatar's reserves to support the development of Qatar's economy.

However Qatar's population is generally small, its sovereign wealth fund is among the largest in the world, and it has among the world's most minimal unemployment.

Figuring out the Qatar Investment Authority (QIA)

The Qatar Investment Authority was laid out in 2005 and is situated in Doha, Qatar. QIA endeavors to invest and oversee funds assigned to it by the Supreme Council for Economic Affairs and Investment (SCEAI). The QIA is owned by the government of Qatar however reports to the SCEAI. Moreover, it is managed by a board of directors. Qatar's State Audit Bureau is responsible for auditing the financial operations of the QIA.

The QIA has no commanded limitations on its investment universe and can invest in both domestic and foreign marketable securities, real property, real estate, alternative assets, private equity funds, and credit and fixed income securities. The QIA likewise utilizes derivatives in its investment strategy. A large portion of QIA's investments are outside of Qatar.

The QIA states that it is directed by five principal values: integrity, mission center, entrepreneurialism, greatness and respect for individuals. The authority follows a severe four-stage approach to every investment, which is broken down into origination, evaluation, execution and active portfolio management. The QIA additionally claims that risk management is at the core of its investment strategy.

QIA's Investment Strategy

QIA's portfolio managers utilize a patient approach, with long time skylines. The fund utilizes a 4-step interaction to pick investments. Origination is the term the QIA uses to track down possible investments, frequently utilizing [co-investors](/equity-coinvestment, for example, global banks or other sovereign wealth funds. Evaluation is the next step, where due diligence is employed. Execution includes entering the investment at the best available prices and without moving markets. Active management is the fourth step, where positions are reconsidered and changes can be made, including discarding the position.

In 2020, the QIA presented a more conventional top-down portfolio asset allocation cycle to direct the medium and long-term development of its portfolio. QIA's Reference Portfolio is intended to meet the long-term return objectives, subject to risk and liquidity limits set by the Board. The Reference Portfolio is then used to foster annual and medium-term investment plans for every investment team.

QIA actively trades its portfolio, yet are not activist towards invested companies.

QIA Investments

The QIA makes direct investments in projects connected with real estate, infrastructure, financial institutions, industry, and investment funds. It additionally invests in public securities including global equities, fixed-income, and alternative investments.

As of mid-2022, QIA's holdings were estimated to be around $360 billion, down from a record $450 billion came to before in 2022.

History of the QIA

  • 2000: The Supreme Council for the investment of state reserves is laid out to deal with the investment of Qatar's revenue surplus.
  • 2005: QIA is laid out to create, invest and oversee state reserve funds and different assets.
  • 2006: QIA investment operations formally start.
  • 2009: New investment teams are made that incorporate financial institutions and real estate.
  • 2011: The Capital Markets Team is laid out.
  • 2012: Commodities, infrastructure, retail, and consumer facilities are added.
  • 2015: QIA starts focusing on diversification of its portfolio
  • 2017: QIA becomes one of six establishing individuals from the One Planet Sovereign Wealth Fund Group. This initiative spotlights on risks and opportunities connected with climate change into the management of large, long-term asset pools.
  • 2020: QIA declares it will make no new investments in petroleum products at the World Economic Forum annual meeting.

Features

  • A lot of Qatar's wealth comes from oil and gas revenues.
  • Laid out in 2005, the QIA has developed to happen to of the world's largest SWFs.
  • As of mid-2022, the QIA's portfolio was worth generally $360 billion.
  • The fund has a long-term investment outlook and can invest in a wide assortment of asset classes.
  • The Qatar Investment Authority (QIA) is that country's sovereign wealth fund, situated in Doha.

FAQ

How Big Is Qatar's Sovereign Wealth Fund?

The QIA portfolio is estimated to be worth around $360 billion as of mid-2022. This puts it at the lower part of the top 10 sovereign wealth funds in terms of total assets.

Where Can I Invest in Qatar?

Foreign investors are permitted to take ownership of 100% of Qatari companies; nonetheless, for most investors, it is challenging to access such holdings. All things being equal, U.S. investors can focus on the iShares MSCI Qatar ETF (QAT), which tracks the nation's stock market.

Who Owns the Qatar Investment Authority?

The QIA is owned by the national government of the State of Qatar. It is run by a CEO and board of governors.