Qatar’s Buy and Build Approach

The Qatar Investment Authority (QIA) makes large investments in a select universe of potentially strategic companies and assets through Qatar Holding. The Gulf sovereign wealth fund is opportunistic in nature; furthermore, it does not follow tightly controlled models or allocations. The QIA does not have an official geographic allocation or asset allocation, since the global financial crises has shifted long-term thinking and mindsets. The investments of the QIA include a concentrated portfolio of strategic assets.

Other sovereign wealth funds are trying to adopt a similar strategy. The Western norms of following modern portfolio theory is constantly being tested, some funds have thrown it out the window. Many sovereign wealth funds and even pension funds have become disillusioned with the Occidental philosophy of finance, risk and asset allocation.

In 2010, Qatar Holding purchased Harrods for around £1.5 billion from Mohamed Al Fayed. Many Gulf sovereign investors have been purchasing luxury-branded companies and assets around the world whether it comes to consumer goods or real estate properties. In fact, Qatar through its sovereign wealth fund and other investment vehicles is a major owner of commercial property in central London. Qatar Holding plans to transform Harrods into a global hotel brand, playing off its successful image of luxury and quality. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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