The first thing that comes to the mind of the general investor when the Qatar investment topic is discussed is that why an oil rich country is looking forward to foreign investments. The answer to this Qatar investment question rests in the fact that the Qatar economy has realized that the natural oil reserves are not going to exist for long, so if Qatar does not find alternative ways of investments diversification, the country’s economy will not be able to sustain itself in the long run. This said, this article explores the different investments opportunities that Qatar is offering for the investors.
Another important reason why Qatar investment is looking at international investment diversification is the policy of Qatar economy to emerge as the economic superpower during the fragile times of ongoing economic recession. The Qatar investment plans are a direct testimony to the changing of world power equations as a result of the current financial crisis. (see http://online.wsj.com/article/SB10001424052748704379004575248174033805334.html?mod=WSJ_hpp_sections_business ). The financial crisis has in fact created an opportunities window for Qatar, because the real estate prices all over the world have fallen drastically due to the economic recession. In the United states, the bursting of the real estate bubble has been upheld as the major reason behind the financial recession.
Qatar’s efforts to bring itself in the global investments map have resulted in the formation of the Qatar Investment Authority or the QIA in 2005. The QIA maintains a goal to become a major international center of investments diversification and management. QIA adheres by the parameters of international trade to create a strong track record of investment diversification through securities, property and other investment strategies. In fact, the QIA was the largest investing sovereign fund in 2009, when the other funds of the world were trying to cope with the economic recession.
In order to build its investments portfolio, QIA not only targets the major economies but also the emerging/struggling economies of the world. A testimony to this fact is the recent multi billion dollar property infrastructure project initiated by the QIA in the debt ridden economy of Cyprus. Also, the QIA signed a 5 billion USD deal with the Malaysian government to be invested in real estate projects of klang valley Malaysia. (see http://biz.thestar.com.my/news/story.asp?file=/2010/5/14/business/20100514190847&sec=business and http://www.tradearabia.com/news/ttn_178528.html ). Not only countries like Cyprus or Malaysia, but Qatar is also proceeding in real estate investments in countries like Russia. (see http://www.realestatechannel.com/international-markets/commercial-real-estate/real-estate-news-gazprombank-qatar-sovereign-fund-oman-sovereign-fund-qatar-sovereign-fund-real-estate-investments-moscow-real-estate-investors-2520.php ). From these huge initiatives, one point is evident about Qatar investment. The country has got enough money to wait for long term profits to emerge from its billion dollar real estate deals. The real estate sector is the sector of prime importance for the QIA Qatar investment plans.
Another aspect of Qatar investment is the aspect of foreign investments in Qatar. The article (2) of chapter two of Qatar’s foreign investment law (law number 13 of 2000) regulates the foreign investments in Qatar. (see http://www.investinqatar.com.qa/files/rule_13e.pdf ). According to the Qatari law, a foreign investor should have a proper Qatari investments partner whose company shares are at a minimum of 51% of the total capital. However, the Qatari government can raise the contribution level of the foreign company if it decides so. Foreign investors are not permitted to make banking ,insurance or real estate investments in Qatar.
TwitterDid you like that post? You will love these.
Tags: investments, Qatar, Qatar investment, QIA, real estate
