Qatar plans to invest $35 billion in United States over 5 years

The announcement Monday by the Qatar Investment Authority represents a major vote of confidence in the USA, a key ally of the small Gulf Arab nation.

The Doha-based fund controls more than $100bn and has deployed the nation’s riches on assets ranging from British bank Barclays to German automaker Volkswagen, with many of its investments confined to Europe. It led a group of investors that agreed in January to buy London’s Canary Wharf financial district in a deal that valued owner Songbird Estates Plc at about 2.6 billion pounds ($3.94 billion).

The sovereign wealth fund held a stake of almost 13 percent in VW’s preferred shares and 17 percent in the ordinary stock, according to data compiled by Bloomberg.

Qatar plans to invest $35 billion in the U.S. over the next five years as it sought to diversify assets. The QIA, which has about $334 billion of assets according to industry tracker Sovereign Wealth Center, said in April it planned to open the office in the city.

The authority also said the office would contribute to its diversification efforts, while voicing its commitment to existing investments in Europe, Asia and the Middle East.

With world economies, markets and currencies often moving in different cycles and rhythms, the importance of a globally-diversified investment portfolio is central to QIA, whose portfolio is strategically spread across asset classes to generate sustainable returns and maintain resilience against adverse market cycles and volatility. The sovereign fund also planned to invest $10bn into Asia in next five years.

In July this year, the Ascott had entered into a joint venture with QIA to set up a $600mn serviced residence fund.

Another top holding in the world’s ninth biggest wealth fund is Glencore, which has been shaken by China’s slowing demand for commodities and investors’ concerns about the company’s huge debt pile.