QIA Opens NY Office, Commits to Invest $35B in US

The Qatar Investment Authority (QIA), the sovereign wealth fund of the State of Qatar, announced today that it's opening an office in New York and is committed to investing $35 billion in the United States over the next five years. "Honored to join opening of Qatar Investment Authority's office in NY which the Amir entrusted to vanguard our economic cooperation [with] the US," tweeted Mohammed Al Kuwari, Qatar's Ambassador to Washington D.C. The decision to open an office in New York is indicative of QIA's confidence in the country's long-term economic growth and investment prospects, and allows the opportunity to strengthen partnerships with both public and private sector organizations, according to a press release from QIA. The Sovereign Wealth Fund Institute estimates the QIA manages some $256 billion in investments.

The fund, founded in 2005, and other Qatari government-linked investors traditionally have invested heavily in Europe, snapping up headline-grabbing trophies such as stakes in prominent London properties and the Paris Saint-Germain soccer team, according to a Star Tribune report. The QIA's existing American holdings include a more than 10-percent stake in New York-based luxury jeweler Tiffany & Co At the opening of the New York office, HE Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, the CEO of QIA, said: "With boots on the ground, our presence in New York will anchor our interest in the region. It is the perfect location to help strengthen our existing relationships and promote new partnerships as we continue to expand geographically, diversify our assets and seek long term growth."

The Doha-based fund has deployed the nation's riches on assets ranging from British bank Barclays Plc to Total SA and commodities trader Glencore Plc, with most of its investments so far confined to Europe, according to a Bloomberg report. "QIA has traditionally preferred Europe and is now looking to source more deals in the U.S.," said Enrico Soddu, head of data and research at the London-based Sovereign Wealth Center. "Middle Eastern sovereign-wealth funds have often struggled to source direct deals in the States," he added, noting that QIA has nevertheless already made some investments in the U.S. including buying a stake in movie distributor Miramax. QIA said it also "remains committed to its investments in Europe, Asia and the Middle East," while the New York office "facilitates access to significant investment opportunities".

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