NEXT PHASE: QIA and CITIC Form $10 Billion JV Fund

Ahmad Al-Sayed

Ahmad Al-Sayed, Chief Executive Officer,
Qatar Investment Authority

For years, Qatar has demonstrated significant interest investing in China whether applying for a quota under China’s QFII scheme, being a cornerstone investor in the Agricultural Bank of China’s IPO or opening an office in Beijing. The Qatar Investment Authority (QIA) penned an agreement with state-owned CITIC Group Corporation to form a US$ 10 billion fund for Asia. The 50:50 joint venture investment fund will help the QIA diversify from excess exposure to European portfolio holdings. This deal follows the central banks of China and Qatar signing a major currency swap deal. In addition, according to the People’s Bank of China, one of China’s 4 major banks, Industrial and Commercial Bank of China has been chosen to clear all yuan trades in Qatar.

View the Institutional Investor Profile of the Qatar Investment Authority

CEO Ahmed Al-Sayed of the QAIA told reporters at an investment conference in Beijing, ” We’ve just done a deal in Europe, and we’ll continue doing deals in Europe.”

He then added, ” But as a global fund, also we need to diversify asset allocations and geographical location but we will continue in Europe, of course.”

The QIA is seeking to invest between US$ 15 billion to US$ 20 billion in Asia over the next 5 years. The QIA is growing its Beijing office, and is looking at investments in real estate, infrastructure and healthcare in China. By partnering with state-backed Chinese investment companies, the QIA will be exposed to greater deal flow.

In August 2012, Qatar Holding, a sovereign wealth enterprise of the QIA, acquired a 22% stake in CITIC Capital Holdings. Qatar is looking for greater exposure in the Chinese alternative space.

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