First Published: 2008-01-21

 
Qatar's $60 billion fund targets US financials
 

Qatar Investment Authority considers buying into financial, construction sectors in US, Europe.

 

Middle East Online

By John Irish - DOHA

Qatar owns 15 percent of the LSE

Qatar's $60 billion sovereign wealth fund is looking at possibly buying into financial services and construction companies in the United States and Europe, a person familiar with fund said on Monday.

The Qatar Investment Authority also plans to use its stakes in the London Stock Exchange (LSE.L: Quote, Profile, Research) and Stockholm-based OMX AG (OMX.ST: Quote, Profile, Research) to develop its own capital markets, and sell shares in its exchange to the public, said the person, who asked not to be identified.

"We are in research and analysis mode," said the person. "The US, Western Europe and the UK market have seen revaluation ... the financial and construction sectors have experienced significant downturn."

Gulf Arab investors, including Saudi Prince Alwaleed bin Talal and Kuwait, have been at the centre of rescue packages for Western lenders such at Citigroup Inc (C.N: Quote, Profile, Research) and Merrill Lynch & Co (MER.N: Quote, Profile, Research), hit by write-downs over their home loans business.

Kuwait agreed last week to invest $5 billion in Citigroup and Merrill Lynch.

Qatar owns 15 percent of the LSE, and almost 10 percent of Nordic and Baltic bourse operator OMX, vying with Dubai which bid to take over OMX and later agreed to sell it to Nasdaq Stock Market Inc (NDAQ.O: Quote, Profile, Research) for a share in the combined company.

"Our interest in the LSE is to work on a long-term relationship to help develop the DSM and Qatar's capital markets," said the person of the Doha Securities Market, the Gulf's fourth-largest exchange.

As part of its September deal with Dubai, Nasdaq agreed to take a 33 percent stake in the Dubai International Financial Exchange, renaming the bourse Nasdaq-DIFX and allowing Dubai to use the Nasdaq brand and technology across North Africa, the Middle East and South Asia.

Qatar, with a population of 1 million and holder of the world's third-largest natural gas reserves, is looking to use its petroleum wealth to diversify its economy. Standard Chartered puts the value of QIA assets at $60 billion.

"Qatar needs to have total capital market infrastructure, and an exchange that can handle cash, derivatives, clearing systems... with the best out there," said the person. "That requires strategic partnership to attract them to Qatar."

"The DSM needs to be converted into a private company," said the person. "The leadership wants to allow Qatari citizens and investors to share in it."

The QIA in November dropped its 10.6 billion pound bid for J.Sainsbury's (SBRY.L: Quote, Profile, Research), Britain's third-largest supermarket group.

"The credit markets were no longer offering terms to make the investment meet the criteria," said the person. "If you are leveraging to take 100 percent into the company then you have to be guided by credit markets."

 

Extremist groups capture last major regime holdout in northwest Syria

Deadly fighting rages in Yemen southern towns

‘Islamic State’ suicide bombers target Iraq-Jordan crossing

Four Egypt Islamists killed while preparing bombs

France opens preliminary probe into forced labour allegations in Qatar

‘Islamic State’ kills Iraq senior officers in Anbar province

Entrepreneurs encourage people to ‘buy Syrian’

Over 100 children killed in Yemen since March 26

Libya militia alliance 'carries out air raids' against IS

UN 'confident' rebels will sign Mali peace deal

Petraeus gets two years probation for info leak

Iranian ships turn back from Yemen

Palestinians mourn as Jews celebrate

UN chief set to appoint Mauritanian diplomat as Yemen envoy

Obama takes 'full responsibility' for deaths of Qaeda hostages in US operation

Turkey warns Austria over decision to condemn ‘Armenian genocide’

Yemen conflict poses dangers across Gulf of Aden

Hopes for final deal on second day of Iran nuclear talks in Vienna

Security tightened at Saudi shopping malls

US returns stolen Egypt artifacts

EU mulls military action against human traffickers in Libya

Libyan journalist shot dead in Benghazi

Arms experts warn of 'Faustian bargain' with Iran

Fresh Saudi-led air strikes target Yemen rebels

Rebel-IS clashes in Syria kill at least 42 fighters in 24 hours

Who’s more dangerous: Jihadists who left their countries or those staying at home?

France foils 'imminent' attack by jihadist sympathiser

Algeria army kills three armed Islamists west of capital

Israel removes Palestinian teen's name from memorial wall

Egyptian businessman testifies at Al-Jazeera retrial

Kenya asks donors to save world’s largest refugee camp

Sanctions, possible Congress intervention to dominate fresh nuclear talks

Arab army chiefs kick off work on building regional force

One year after agreement, Palestinian reconciliation hits rock bottom

Arab coalition resumes airstrikes against Huthi rebels

UN member states urged to protect Iraqi cultural sites

London mulls ways to help Europe's refugee crisis

Finalising of Iran nuclear deal set to begin

Saudi–led coalition declares end to Yemen air war

Palestine teenager inscribed on Israel memorial wall

Deadly attack targets busy restaurant in Somalia capital

War in Yemen raises profile of Saudi Prince Mohammed bin Salman

Libya condemns 'death smugglers' after shipwreck

Sudan security agents detain opposition activist

Main Kurdish party vows to be 'sultan' Erdogan's nightmare