São Paulo – The Qatar Investment Fund posted a net loss of USD 37.9 million in the financial year ended June 30. The result stemmed from low oil prices, the website of UAE daily The National said this Monday (12).
"During the 12 months the entire GCC region was hit by lower oil prices and bearish sentiment and Qatar was no exception," The National quoted the fund’s chairman Nick Wilson as saying. In the 2015 financial year, Qatar Investment Fund had seen a net profit of USD 22.6 million.
The daily stresses that the economies of Qatar and the Gulf are slowing due to falling energy prices, which are detracting from the profitability of listed equities.
According to The National, Qatar, a member of the Organization of Petroleum Exporting Countries (Opec) and the world’s top liquefied natural gas exporter, will see its first fiscal deficit in 15 years this year, as a result of lower energy revenue.
Meanwhile, the Qatar Investment Fund expects Qatari economic growth to pick up on the back of a robust infrastructure pipeline, continued fiscal spending, and efforts to diversify the economy away from energy income. The fund forecasts 3.7% growth for the country for this year and the next.
"The board views the future of the company with confidence and firmly believes that continued growth in the non-hydrocarbon Qatari economy combined with improving demographics will lead to significant improvements in corporate profitability," said Wilson.
*Translated by Gabriel Pomerancblum
