(MENAFN- The Peninsula) Joel Johnson |The Peninsula
Doha, Qatar: Qatar is optimistic about investing in businesses that are consumer-driven across critical industries in Asia and other regions, explained a senior executive at the Qatar Economic Forum 2024, yesterday.
In a panel session titled 'Putting Sovereign Wealth to Work', Chief investment Officer of Region Americas at Qatar Investment Authority (QIA), Mohammed Al Sowaidi, stressed importance of sovereign wealth funds having clear investment policies and developing local economies, in addition to QIA's objectives on investment outlook.
The experts highlighted the priorities of sovereign investors in today's market implementing longer-term with unconventional risks. They noted that sovereigns that are looking for returns go beyond pure investment profits by exploring advantages and opportunities across the world.
Al Sowaidi said that the“Majority of sovereign wealth funds have clear investment policy statements as indicated and they are disciplined in terms of policy with good governance and boards and they revise their position as well. So at some point in time developing the local economies is important as well so that they could include matters affecting the economy they encounter and execute.”
He remarked that QIA has the highest standards and is looking in China and other parts of Asia to invest.
“Sovereign wealth funds have lots of businesses and houses so they could use their investments in existing portfolio companies operating internally to foster economic growth rather than themselves doing new investments. This can be enforced through clear economic policy and good governance,” Al Sowaidi said.
Regarding QIA's plans, the official noted carrying out the long-term investment nature including digitalisation, decarbonisation, sustainability, inclusivity, and growth. He said“For some of the long-term themes, this would be a great combination to have. We do minority investments most of the time so having like-minded shareholders and stakeholders is important.”
At present, QIA has positioned itself as one of the leading investment entities globally with long-term and established public and private companies.
He mentioned that other areas of investment include real estate and infrastructure, apart from heavily investing in the technology sector.
He also said“If you combine the sovereign wealth fund, it's about $11 to 12 trillion. This equates to probably 11 to 12 percent of the global equity market capitalisations. Looking at this region, it's $4 trillion. It's quite large, sizable and growing. It demonstrates a great way of disciplining also to governments operating with an opportunity cost, which is saving a preserving capital and growing capital.”
“We are now a super sophisticated investor and a great reputation globally. We have been expanding to different new strategies and are long-term oriented as a partner so the evolution has been gradually moving more toward greater debt in terms of knowledge, and greater investments in human capital,” Al Sowaidi added.
Since its inception in 2005, QIA aims to diversify the country's economy and to protect and grow Qatar's financial assets.
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