QIA (Qatar Investment Authority) stated that it has signed a memorandum of understanding with The CITIC Group to launch a $10 billion fund to invest in Asia, reveals an official statement.
CEO of Qatar’s sovereign wealth fund Ahmad Al-Sayed made the announcement at the launch of the Credit Suisse Fifth Annual Emerging Markets Leadership Forum in Beijing, China.
The fund will be a joint venture (50:50) between both parties. Qatar Investment Authority remains open to new partnerships as it aims to invest US$15 billion to US$20 billion in the next five years.
Al-Sayed said at the conference that there is long-term investment potential in companies operating in China because of the availability of attractive sustainable investment opportunities as the economy diversifies, as well as the growing stature of Chinese corporates, and the frequent emergence of the discerning middle class.
He added that they will also continue to invest in Europe, where the sovereign wealth fund acquired Harrods department store in London. Al-Sayed feels there is a need to diversify geographical location and asset allocation.
The authority is a financial investor that wants to invest globally along all asset classes, and Al-Sayed announced the QIA will opening offices in New Delhi, India, and Beijing, China. There are also plans to open an office in New York.
QIA headquarters are in Doha; the institution is estimated to control US$100 billion in assets, and it has invested billions of dollars in China and Asia this year. It also acquired some stake in the Hong Kong-based Lifestyle International Holdings Limited group in October for US$620 million. The Holdings-Limited group is the operator of SOGO department stores.
And in May, QIA was part of the investors buying US$5.1 billion shares in CITIC Pacific Ltd.; it was acquiring assets from parent group CITIC. Further, QIA also has a major share of US$4 billion-under-management in the CITIC Capital Holdings Ltd. along with CITIC Group and China Investment Corporation.
The QIA is expected to continue looking for investment opportunities in regions that have good fundamentals and will bring long-term sustainable returns.