Estimated to be worth about $250 billion, the QIA has built up a string of stakes in a few of the world’s largest corporates, including Royal Dutch Shell, Barclays and Volkswagen.
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On Monday, the QIA confirmed that it would be opening an office in New York, indicating in a press statement that it planned to invest $35 billion in the country over the next five years.
The Qatar Investment Authority (QIA), the sovereign wealth fund of the state of Qatar, opened its office in the United States of America.
The sovereign wealth fund held a stake of nearly 13 percent in VW’s preferred shares and 17 percent in the ordinary stock, according to data compiled by Bloomberg.
The authority also said the office would contribute to its diversification efforts, while voicing its commitment to existing investments in Europe, Asia and the Middle East.
Qatar’s sovereign-wealth fund lost $5.9 billion on paper in 10 days from its stakes in Volkswagen AG and Glencore Plc.
With world economies, markets and currencies often moving in different cycles and rhythms, the importance of a globally-diversified investment portfolio is central to QIA, whose portfolio is strategically spread across asset classes to generate sustainable returns and maintain resilience against adverse market cycles and volatility. The announcement represents a major vote of confidence by the sovereign wealth fund in the US, a key ally of the small but energy-rich Gulf Arab nation.
The fund, along with other investors, a year ago agreed to acquire American Express Co.’s business-travel division for $900 million.
In July this year, the Ascott had entered into a joint venture with QIA to set up a $600mn serviced residence fund.
The fund is also pressing ahead with investments overseas while a few nations in the Arabian Peninsula seek to liquidate assets to shore up their finances amid declining crude prices.
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Qatar’s government investment fund is making a big bet on the USA economy.
