Doha \u2013 One of the main instruments in the economic diversification strategy of Qatar is Qatar Investment Authority (QIA), the sovereign fund boosted by resources in the oil and gas industry, especially liquefied natural gas (LNG), a product of which the country is a great exporter. Through Qatar Holding, the executive branch, and other subsidiaries, the fund invests worldwide and in the most varied of sectors.<\/p>\n
In an interview to ANBA, the CEO at Qatar Holding, Ahmad Al-Sayed, said the company is \u201copportunistic\u201d and always seeks attractive business. It is currently eyeing Brazil, as, in January, during a visit of the emir of Qatar, Hamad Bin Khalifa Al Thani, to Bras\u00edlia, cooperation agreements were signed with mining company Vale, Previ, the pension fund of the employees of the Bank of Brazil, and the Brazilian Development Bank (BNDES).<\/p>\n
\u201cIn Brazil, we are focussed on commodities, natural resources and agriculture, and we are discussing the matter,\u201d said Sayed, adding, however, that the company does not discard \u201clooking closer\u201d at other opportunities.<\/p>\n
He pointed out that Qatar Holding already has investment in Brazil, \u201cbut not large\u201d. \u201cWe expect to increase investment. The country has our interest,\u201d he said. According to the executive, his company and Brazilian partners are working seeking opportunities and something should turn out in the near future. \u201cWe believe that our teams are going to find something soon,\u201d he added.<\/p>\n
According to Sayed, there is not a specific volume of funds to be turned to Brazil or to joint business with Brazilian companies. The total to be invested is discussed on a case-to-case basis. The agreements also forecast the search for mutual investment opportunities in other countries.<\/p>\n
The sovereign fund of Qatar also invests in areas like industry, real estate and trade. Recently, for example, Qatar Holding announced the purchase of traditional English department store Harrods, which belonged to Egyptian millionaire Mohamed Al-Fayed. The company is also one of the main shareholders in the Volkswagen group, to mention one more example. QIA also has a subsidiary for the real estate sector, Qatari Diar.<\/p>\n
Sayed did not reveal the total volume of funds controlled by the fund, as he said the figure is confidential. Market figures, previously published by the press, estimate that QIA manages between US$ 60 billion and US$ 70 billion. In practice, what the sovereign fund does is invest the money obtained with hydrocarbons in other areas, thus guaranteeing new sources of income to the country.<\/p>\n
The executive added that the fund tided the international financial crisis and is generating profit. \u201cThe prime minister announced that we are currently making money, fortunately. We did very well in 2009 and in 2010, up to now, we are doing well,\u201d he said, referring to the prime minister of Qatar, Hamad Bin Jassem Al-Thani, who is also the CEO at QIA and the Foreign minister.<\/p>\n
Business attraction<\/b><\/p>\n
In the domestic area, according to the deputy general manager at the Qatari Businessmen Association (QBA), Sarah Abdallah, the country wants to have a \u201cbalanced\u201d economy. She believes that Brazil, which has a greatly diversified economy, may help with its experience.<\/p>\n
Qatar also wants to attract Brazilian companies and that is already taking place. Construction company Andrade Gutierrez, which is developing several works in the Arab world, for example, is establishing an office in Doha to prospect the local market, which promises good opportunities in the area of infrastructure.<\/p>\n
The economy of the country, according to Sarah, survived the international crisis well as the LNG industry, the main source of revenues, was less affected than the oil area. She added that Qatar wants to strengthen the private sector through small and medium companies \u2013 currently much of the business is in the hands of state-owned companies \u2013 and developing the banking sector and the tourism industry, especially business tourism.<\/p>\n
In the latter case, Qatar Airways plays a fundamental part. The airline has been investing in the expansion of routes and, starting on June 24, should have a direct flight to S\u00e3o Paulo. In the case of Brazil, the main competitor will be Emirates, which flies from Dubai to S\u00e3o Paulo. The CEO at the airline, Akbar Al Baker, stated that the great differentials are the quality of the service and the speed in connections.<\/p>\n
But, to start with, the company seems to want to win clients through prices. In an advertisement published last Thursday (20) in newspaper O Estado de S. Paulo<\/i>, Qatar Airways offered round trip tickets to Beirut, Lebanon, through Doha, for 1,531 Brazilian reals (US$ 810), a very competitive price when the matter is travels to the Middle East. \u201cThe flight should create great opportunities between both countries (Brazil and Qatar),\u201d said the executive.<\/p>\n
*Translated by Mark Ament<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
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