Qatar’s global investment
 

Qatari authorities have at their disposal a notable $30bn for investment purposes in 2012 alone

By Dr Jasim Husain Ali


Qatar is a rising global star in numerous aspects including its investment strategy. One proof of that is the selection of Qatar as the host of the World Cup 2022, for the first time ever in the Middle East and North African region.It is possibly fair to link this achievement, at least partially, to the country’s active and visible investment drive on the world scene.

The country’s foreign investment portfolio is sizable on the one hand and diversified enough on the other, and continues to expand into new ventures. It emerged recently that Qatari authorities have at their disposal a notable $30bn for investment purposes in 2012 alone. The figure became known in April when the country played host to the annual meeting of the UN Conference on Trade and Development (Unctad).

It is understandable why some countries eye a share of the pie. Among other things, foreign direct investments (FDI) have the ability to sustain economic growth and create jobs for locals, something in demand the world over.

By one account the accumulated size of the country’s state wealth fund (SWF) stands at a staggering $100bn. As such, the magnitude of Qatar’s investments worldwide is sizable in relation to other hard facts pertaining to the country. For instance, Qatar’s gross domestic product (GDP) is projected to amount to $197bn in 2012 in nominal terms, not adjusted for inflation, the third largest in the Gulf Cooperation Council (GCC) after Saudi Arabia and the UAE.

Fastest growing economy
Accordingly, this makes Qatar stand out in the world with regard to foreign investment on a per capita basis. Yet reports issued by the IMF and other credible sources consider Qatar the fastest growing economy among the six-nation entity, suggesting continued strength in the years ahead.

Ever since the inception of the Qatar Investment Authority in 2005 as a state wealth fund entity, the country has already created a positive impression in numerous parts of the world. Choices of the diverse investment portfolio entail stakes in banks in Brazil and agricultural development in several countries in Southeast Asia.

Also, Qatar is a major investor in the UK’s retail sector including owning the giant Harrods. Still, Qatar has committed to investing heavily in debt-ridden Greece.

To be sure, the international tendencies of Qatar are an established fact including being a major player in the dissemination of international news via Al Jazeera. It seems Qatar is racing against time to possibly make up for lost potential in past years. Happily, foreign investment is a two-way street phenomenon, a reference to FDI attracted to Qatar.

In fact, the Unctad World Investment Report 2011 regards Qatar as the second largest recipient of FDI among GCC countries. According to the report, Qatar attracted some $5.5bn worth of FDI, second though to $28.5bn invested in Saudi Arabia.

Largest exporter of LNG
Qatar opened up its energy sector to international firms in the past two decades, thereby promising phenomenal results. In 2011, Qatar hit a new milestone by celebrating the achievement of 77 million tonnes per year of liquefied natural gas. Comparatively, production capacity only amounted to 54 million tonnes in 2010. But for a self-imposed moratorium to help maintain prices, output could be further boosted. This explains why Qatar has emerged as the largest exporter of LNG, a position previously held by Indonesia.

In return, the country is using proceeds from the petroleum sector including gas and oil to carry out its investment drive.Qatar presents itself as an exemplary country when it comes to tapping its potential. Clearly, it pays to be an internationally-oriented country. 
 

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