Tuesday, 02 January 2024 12:17 GMT

QIA Plans To Scale Up US Investments As Global Markets Shift


(MENAFN- The Peninsula) Joel Johnson | The Peninsula

Doha, Qatar: The Qatar Investment Authority (QIA) is preparing to significantly expand its presence in the United States, as part of a broader effort to adapt to shifting global market dynamics. According to the Chief Executive Officer at QIA, Mohammed Saif Al-Sowaidi, the US, which represents roughly 60 percent of global traded markets, remains a key focus due to its economic resilience, growth outlook, and robust financial systems.

With fresh capital inflows expected from Qatar's LNG expansion, QIA is enhancing its internal capabilities and strategic planning to position itself as a more efficient, long-term investor in the world's largest market.

During his first live speaking engagement on day one of the Qatar Economic Forum, Al-Sowaidi outlined the fund's evolving strategic direction, reaffirming its core mission to grow national wealth for the benefit of Qatar and future generations, while adapting to an increasingly complex global investment environment.

“The vision of QIA has always been a noble one: to accumulate and grow the net worth of the fund in a way that contributes meaningfully back to Qatar and to future generations,” said Al-Sowaidi.“This is a long-term mission, and while we are not shifting our core strategy, we are continually refining how we approach our investments, especially in such dynamic global markets.”

Describing QIA as“a big ship,” Al-Sowaidi emphasised the importance of regular introspection and adaptability.“It makes a lot of sense to pause from time to time, to revise and reflect on what we're doing, and identify how we can do it better,” he noted.“We are increasingly focused on specialisation, determining the right areas, right priorities, and ensuring we have the best human talent in place to deliver performance with agility.”

While QIA has remained strategically consistent over the past 15 years, Al-Sowaidi highlighted a new phase of strategic refinement driven by internal development and external market shifts. He said,“We're accelerating our pace in terms of deepening expertise, building internal capabilities, and targeting themes and sectors that align with our long-term ambitions.” In a significant development, Al-Sowaidi confirmed that additional revenues generated from Qatar's LNG expansion will be channeled into the Future Generations Fund.“It's a crucial step-this capital must be thoughtfully managed to ensure long-term returns for the nation,” he said. A major portion of this capital, he stated, will be directed toward the US market, which accounts for about 60 percent of global trading activity.

“The US continues to be a key market for us. Its robust systems and strong growth prospects make it a natural destination for expanded investment. But this is more than just scale-it's about preparing ourselves and our systems to grow significantly and invest with purpose,” Al-Sowaidi said.

As QIA's fund size increases, Al-Sowaidi explained, the organisation is actively assessing how to evolve as a more efficient and forward-looking investor.“We're not expecting major stylistic shifts, but rather a refinement-focused on thematic investing, longer-duration positions, and leveraging our size to capture liquidity premiums,” he said.

He also mentioned the importance of internal capability development. Al-Sowaidi said,“We are expanding our team, building stronger processes, and aiming to be an excellent investor across diverse and complex markets. The capital we manage is substantial, and with that comes the responsibility to be increasingly strategic and long-term in our thinking.”

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