Qatar Investment Authority and Ashmore Group Launch $200 Million Equity Fund to Boost Foreign Investment

In a joint effort, the Qatar Investment Authority (QIA) and Ashmore Group (ASHM.L) have unveiled a new fund designed to entice foreign investors into the Gulf nation's stock market.

Revealed on Tuesday, the Ashmore Qatar Equity Fund, boasting a $200 million investment, was established with the QIA acting as the primary investor by reallocating shares in publicly listed Qatari companies.

This initiative aims to offer both international and local investors an avenue for exposure to Qatar's economy while tapping into Ashmore's expertise in investment, as highlighted in a statement from the sovereign wealth fund.

As part of a broader strategy, QIA announced its intention to form partnerships with leading global asset managers specializing in Gulf countries, as well as local asset managers meeting the investment criteria set by the QIA.

The move aligns with Qatar's overarching goal to diversify its economy beyond gas, particularly as it seeks foreign investment and endeavors to overcome the economic challenges posed by the COVID-19 pandemic.

Despite being the world's leading liquefied natural gas exporter and the upcoming host of the FIFA World Cup in 2022, Qatar has faced challenges in attracting foreign capital.

The country notably missed out on the IPO surge witnessed by its neighboring countries, Saudi Arabia and the United Arab Emirates, last year.

Market observers attribute Qatar's comparatively subdued activity to the dual impact of the COVID-19 pandemic and the nation's prioritization of World Cup preparations.

Federico Maccioni and Hadeel El Sayegh / Reuters