Qatar Investment Authority’s $10 billion joint-venture fund deal with Citic Group reflects both its new, more strategic approach and its old fondness for making a splash.
Optimism greeted news that Saudi Arabia aims to open its equities market to foreign investors next year. Amid the surge, managers are talking up the prospects of Qatar and UAE.
The Qatari fund manager would consider a partnership with an Asian firm, but first wants to boost its local equity penetration – a tough ask in the Middle East.
They see Doha as a safe haven and favour emerging markets for offshore investment. They are also active in managing their wealth and prefer Africa and Europe over the US.
Even relative safe havens such as the GCC countries have suffered from turbulence in the wider Middle East and North Africa, despite the region’s potential.
Asia-Pacific portfolio managers feel equities will outperform other asset classes next year, and that commodities and property are the most attractive alternative investments.