Qatar plans $35 billion of USA investments with New York office

Qatar’s sovereign wealth fund plans to invest $35 billion in the USA over the next five years, and it’s opened a New York office to “better access new and existing investment partners”.

Qatar’s sovereign-wealth fund lost $5.9 billion on paper in 10 days from its stakes in Volkswagen AG and Glencore Plc.

The investment in core sectors of the United States economy will create more jobs for Americans.

Estimated to be worth about $250 billion, the QIA has built up a string of stakes in a few of the world’s largest corporates, including Royal Dutch Shell, Barclays and Volkswagen.

The QIA was also the biggest holder of VW’s preferred shares and the third-largest owner of its ordinary stock.

QIA Chief Executive Sheikh Abdullah bin Mohamed bin Saud al-Thani said: “It’s the flawless 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 value of its holding in the automaker might taken a €3.8-billion hit after last week’s controversy about rigged emissions testing according to commentators.

Whilst QIA remains committed to its investments in Europe, Asia and the Middle East, this next step facilitates access to significant investment opportunities, whilst enhancing education, cultural and scientific links with the United States of America and expanding QIA’s global footprint.

Qatar Investment Authority previous year announced that it planned for $10-bn investment venture with China’s Citic Group as part of diversifying plan from retail and property assets in Europe. Diversification “is a key objective established by QIA’s strategic review”, it said.

Washington considers Qatar an important ally in the Arab world.

Qatar Investment Authority is the Gulf state’s sovereign wealth fund.

The fund, along with other investors, previous year agreed to acquire American Express Co.’s business-travel division for $900 million.