Qatar risks biting off more investments than it can chew

Qatar risks biting off more investments than it can chew

Qatar is into everything everywhere in the world right now, from automotives to banking. But Una Galani cautions that it without transparency these high-profile assets could be dangerous.

September 20, 2011 11:08 by Reuters

INVESTMENT TIMELINE

– The Gulf state of Qatar is interested in buying a 7.5 percent stake in European aerospace and defence company EADS from German carmaker Daimler, according to Der Speigel magazine. At current prices, the stake would be worth around $2 billion.

– Qatar expects its gross foreign reserves to total $20.4 billion in 2011 and $24.2 billion in 2012 or 5.5 and 5.8 months of imports respectively, according to the country’s National Development Strategy 2011-2016.

– In addition, the Qatar Investment Authority (QIA) is estimated to have between $60 billion and $100 billion worth of assets under management. The country’s main sovereign wealth fund was established in 2005 from its existing investments.

– The QIA takes a flexible approach to investing and has interests across a wide range of geographies and in different asset classes including listed securities, property, alternative assets and private equity, according to the fund’s website.

– Qatar National Development Strategy 2011-2016 http://www.gsdp.gov.qa/portal/page/portal/GSDP_Vision_Root/GSDP_EN/NDS/Final_NDS_EN.pdf

(The author, Una Galani, is a Reuters Breakingviews columnist. The opinions expressed are her own. Editing by Pierre Briançon and David Evans)

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Tags: airbus, Daimler, EADS, porsche, Qatar, sovereign wealth, Volkswagen