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Qatar’s sovereign wealth fund has struck a cope with Canadian asset supervisor Fiera Capital to arrange a fund that may make investments $200mn in Qatari shares, because it seeks to entice financiers to Doha.
The Qatar Funding Authority, estimated to handle $500bn, is making an attempt to increase Qatar’s monetary centre and make it a regional hub for cash managers.
With decrease oil costs anticipated to sluggish the economic system of its bigger neighbour Saudi Arabia, whose urge for food for overseas offers is shrinking, financiers are eyeing an anticipated petrodollar windfall in Qatar, the place pure gasoline manufacturing is anticipated to nearly double by 2030.
QIA was anchoring the $200mn Fiera Qatar Fairness Fund with each money and shares listed on the Qatar Inventory Change, it mentioned in an announcement on Wednesday, with out offering additional particulars.
Toronto-listed Fiera, which is able to handle the fund, is anticipated to open an workplace in Doha, in accordance with an individual accustomed to the matter. Fiera declined to touch upon the workplace.
Like Saudi Arabia’s Public Funding Fund, the QIA has a mandate to spice up Qatar’s home economic system in addition to handle abroad belongings, together with stakes in London’s Canary Wharf and Heathrow airport, in addition to Spanish power group Iberdrola.
“Attracting abroad asset managers to put money into Qatar fairness will gas market participation and assist to diversify and broaden the market,” mentioned Mohammed Saif Al-Sowaidi, QIA chief govt.
Klaus Schuster, chief govt of Fiera Capital’s enterprise in Europe, the Center East and Africa, mentioned it was the asset supervisor’s duty to “create wealth for institutional buyers, but additionally to diversify Qatar’s capital markets”.
The announcement got here two days after Iran focused a US army base in Qatar in retaliation for US strikes on its nuclear infrastructure. Whereas Qatar’s army intercepted all however one of many missiles and nobody was harm, the tried strikes briefly embroiled the gas-rich nation within the Israel-Iran conflict.
The settlement with Fiera is the second underneath a QIA programme to accomplice with energetic fund managers — the primary $200mn fund went to rising market specialist Ashmore Group, and can also be invested in Qatar-listed equities. Ashmore mentioned in Might that it had opened a Doha workplace.
In the meantime, the QIA has sought to lure enterprise capital buyers to Doha, with a $1bn fund of funds designed to assist Qatar’s nascent start-up scene.
Gulf sovereign funds more and more intention to get extra from the cash they make investments with exterior managers, wanting them to open outposts of their monetary centres in a bid to diversify their economies and reduce reliance on fossil fuels, in addition to create an funding expertise pool.
“There’s a completely different stage of engagement when [the partners] are ready to speculate into the nation and assist diversify your individual economic system,” the QIA’s head of funds Mohsin Pirzada advised the FT this 12 months.
BlackRock final 12 months opened an funding firm in Saudi Arabia, anchored by $5bn from the PIF, whereas hedge funds, asset managers and personal fairness companies — from Brevan Howard to Companions Group — have flocked to be nearer to Abu Dhabi’s roughly $1.7tn sovereign buyers. Fiera Capital opened an Abu Dhabi workplace final 12 months.
“At present’s fund launch represents the following part of [Fiera’s regional] development,” the asset supervisor mentioned in an announcement to the FT, “and reinforces our dedication to serving the rising demand from institutional buyers within the Center East, with additional growth plans in progress.”
