Qatar invests in US to show resilience

Qatar plans more US investments in an effort to further diversify its assets as the country’s diplomatic standoff with its Gulf neighbours enters its third month.

The Qatar Investment Authority, which was created to handle the country’s windfall from liquefied natural gas sales, of which it is the world’s biggest exporter, will spend most of what remains of its $45bn investment target on infrastructure and technology in the country, CEO Sheikh Abdullah bin Mohammed bin Saud al-Thani said in Doha on Wednesday.

The fund had invested more than half of the money so far, the CEO said.

“For a long-term investor like us having to liquidate some of your assets with asset prices at the bottom is the worst-case scenario,” he said.

“How can you develop a global portfolio strategy when you are faced with uncertainty? The answer is diversification.”

The Qatar Investment Authority is pressing ahead with plans to invest in the US to show that the political crisis with Saudi Arabia and its allies has not affected its ability to strike global deals, people with knowledge of the matter said in July.

GLOBAL ASSETS

The fund, which has amassed a $320bn portfolio around the globe, has deployed the nation’s riches on assets ranging from British bank Barclays to commodities trader Glencore, with the bulk confined to Europe.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic and transport links with Qatar on June 5, accusing the sheikhdom of supporting Sunni extremist groups and Iranian-backed militants. Qatar has denied the charges.

The dispute pits US allies against each other in a region that controls about a fifth of global oil supplies. Qatar also hosts the regional headquarters of the US Central Command, which includes an air base used to target Islamic State.