QIA Review 2016 QIA
Qatar Investment Authority Review 2016
Contents
2 4 6 8 10
Letter from Letter from Our Board QIA at a Glance Governance our Chairman our CEO Members and Framework Our Mission Executive Legal Framework Management Our Vision Our History Governance Investment Governance
Building the Future with Global Vision 14 18 24 30 34
Human Capital: Our Strategy Investment Risk Management Our Portfolio Culture & Talent Approach QIA Strategy Risk Governance International How we invest Strategy Our Investment Risk Management Portfolio in our people Implementation Approach Framework Qatar Qatarisation Market Review Our Investment Investments and Outlook Process
1 Letter from our Chairman
We play an important role in supporting the goals of the Qatar National Vision 2030, and also in looking beyond that – to generate the resources necessary to meet the needs and expectations of our children’s children. It means being able to look beyond short-term turbulence and market trends, and consider deeper issues of sustainable value and growth.
2 Building the Future with Global Vision Dear Stakeholders, Over the past few years, we At Qatar Investment Authority, have adapted our strategy we are very conscious of our to reflect contemporary responsibilities to the people macroeconomic trends, which of the State of Qatar and also include low global growth, to future generations. We play low energy prices, and strong an important role in supporting competition for viable investment the goals of the Qatar National opportunities from other Vision 2030, and also in looking institutions. We have focused beyond that – to generate the on wealth preservation and resources necessary to meet the increased diversification, needs and expectations of our because we see these two children’s children. areas as critical for ensuring that we excel in our role as Applying this long-term a core component of the perspective is an essential part of State of Qatar’s long-term our role as a world-class investor. growth strategy. It means being able to look beyond short-term turbulence We will continue to refine and and market trends, and consider enhance this approach, in order deeper issues of sustainable value to be as successful a global and growth. This thinking is a key investor as we can be. By doing part of our investment philosophy, this, we aim to build a bright which sees us spread our risk future with global vision, and live across different asset classes and up to the trust placed in us by the geographies, so that we are State of Qatar and its people. diversified and able to secure the legacy of the nation. Abdullah Bin Hamad Bin Khalifa Our philosophy ensures that we Al-Thani are ready to adapt and change Chairman with the times. As you will see in this first-ever QIA Review, Qatar Investment Authority is an institution that continues to evolve its organisational structure, its approach and its skills base, in order to deliver sustainable growth. In particular, we invest in our people, bringing the very best Qatari and international talent together to ensure that we have a team who can tackle the critical investment issues of the day while identifying opportunities for the future. By doing this, we are not only enhancing our organisation, we are also supporting the Economic Development Pillar of the Qatar National Vision 2030, boosting the knowledge-based economy and training young talent.
3 Letter from our CEO
QIA is entrusted with As an organisation, we are deeply Importantly, our nation has taken contributing to the long-term aware of our role in contributing significant steps to diversify its prosperity of the State, to the diversification and evolution economy away from the oil and of Qatar’s economy, and also gas sector. Recognising the enabling it to realise future in ensuring that sufficient reserves incredible opportunities that opportunities, and providing are available in the future to Qatar’s energy reserves offer, but for expenditures such as enable the people to pursue also recognising that these are education and healthcare. their aspirations. ultimately finite resources, the country has used the funds As such, I would like to cover four generated by these sectors to key areas of focus for QIA in this invest in our most valuable and introduction. These are: our role sustainable asset – the people in the development of the State of Qatar. New industries continue of Qatar; our role as a global Dear Stakeholders, to develop in Qatar, and investor; the steps we are taking concurrently a number of Qatari On behalf of Qatar Investment to build a world-class organisation; enterprises have emerged as true Authority, it is my pleasure to and the programmes we are global leaders in the banking, present this inaugural review introducing to develop the Qatari aviation, communication, real to you. We are proud of the talent of the future. progress we have made and the estate, and hospitality sectors. In all of these areas, we continue story we have to tell. This review QIA has a clear and defined role to pursue excellence in order to provides insight into QIA’s role, in this diversification process, both build for the future. strategy and achievements, in through our role as a shareholder addition to outlining the steps we Our role for the State of Qatar in leading companies, and as have taken over the last year to an organisation that is driving ensure that we continue on our It is worth stressing that the past decade has been one of the development of world-class successful development path. national talent. As our Chairman has outlined, almost unmatched growth and every investment decision that development for the State of QIA makes is shaped by our Qatar. As a nation, we have responsibility to the people pursued projects and launched of Qatar. new initiatives that would have been practically unthinkable just a single generation ago.
4 Building the Future with Global Vision We invest in the very best, in Our people are an integral a wide range of asset classes part of our success and we and regions, stand-alone and continuously seek to secure also in partnerships, joint ventures the very best local and and co-investments with leading international talent with the institutions around the world. right skills and capabilities.
QIA is entrusted with contributing As you will see in this review, our Developing Qatari leaders to the long-term prosperity of the successful flagship investments Building for the future also means State, enabling it to realise future have generated international developing talent in Qatar. We opportunities and providing for attention, but have also have recruited numerous Qatari expenditures such as education positioned us well for future nationals, and we are building and healthcare. Additionally, growth, in spite of the uncertainties a strong pool of Qatari trainees QIA acts as a reserve fund of the global economy. across the organisation. We are with the capacity to provide committed to supporting future support for the State in case of Our organisation Qatari leaders and to helping extreme emergency. Since the formal establishment young Qatari talent achieve their of QIA in 2005, we have strived potential. For this reason, we By taking on this role – as both to create and nurture an have developed a state-of-the- supporter of diversification and institution built on excellence. art development programme, guardian of long-term economic outlined in this review, including stability – we provide the State Our people are an integral dedicated graduate recruitment, of Qatar with a key asset in its part of our success, and we career development and long-term strategy for growth. continuously seek to secure the very best local and leadership programmes. Our role as a global investor international talent with the In conclusion, QIA continues to In addition to our involvement right skills and capabilities. grow and develop, just as the in Qatar’s economy, we are Although our activity has grown, State of Qatar continues to building a diversified and global we remain a lean and nimble strengthen and diversify. We are investment portfolio for the benefit organisation, which is able to taking all necessary measures to of the State. We aim to generate combine international best ensure that we continue to live sustainable returns and maintain practice in investment execution up to our responsibilities and to resilience against adverse market and risk management with a the trust placed in us by the cycles and volatility. dynamic, collaborative and leadership of Qatar. We operate as a multinational proactive style. We devote time I would like to thank H.H. Sheikh investor with a global perspective. and effort to refining our processes, Tamim Bin Hamad Bin Khalifa We draw on comprehensive and have invested in world-class Al-Thani, Emir of the State of Qatar, sector insight and the analysis systems to support our work. We for his vision and clear-sighted of our investment specialists to intend to maintain this approach, direction. I would also like to thank identify opportunities. We invest in as constant improvement is intrinsic our Chairman, H.H. Sheikh the very best, in a wide range of to our culture. Abdullah Bin Hamad Bin Khalifa asset classes and regions, stand- As this review outlines in depth, Al-Thani and our distinguished alone and also in partnerships, we invested significant time and Board of Directors for their wise joint ventures and co-investments resource in 2015 to developing guidance and support. Everything with leading institutions around our human resources, including QIA achieves is made possible by the world. a far-reaching organisational their contribution. Our portfolio has a long-term transformation programme and a Finally, I would like to extend my perspective and a prudent number of Qatarisation initiatives. gratitude to all our employees – risk-return profile, in line with our As a result, we have inculcated they have helped create the institution’s objective of ‘Building an international business culture modern, dynamic, global and the Future with Global Vision’. that supports and extends our world-class institution that Qatar Our track record of investment global reach. Our teams are Investment Authority is today. to date demonstrates the active in major financial centres, breadth of our ambition, and from London to New York, and our willingness to invest for the Beijing to Paris. Most recently, Abdulla Bin Mohammed Bin long term. we set up the Qatar Investment Saud Al-Thani Authority Advisory (USA) in New Chief Executive Officer York in 2015, to strengthen our partnerships and to provide investment research and advisory services related to our portfolio and potential investments in North America.
5 Our Board Members and Executive Management
OUR BOARD MEMBERS
H.H. Sheikh Abdullah H.E. Sheikh Ahmed H.E. Ali Sharif Al-Emadi H.E. Sheikh Abdullah Bin Hamad Bin Khalifa Bin Jassim Bin Mohamed Member Bin Saoud Al-Thani Al-Thani Al-Thani Member Chairman Vice Chairman His Excellency Ali Sharif Al-Emadi is the Minister His Excellency Sheikh His Highness Sheikh His Excellency Sheikh of Finance for the State Abdulla Bin Saoud Al-Thani Abdullah Bin Hamad Bin Ahmed Bin Jassim Al Thani of Qatar. In addition, His is the Governor of Qatar Khalifa Al-Thani is the is the Minister of Economy Excellency serves as a Central Bank. He is a Deputy Emir of the State and Commerce for the Member and Secretary member of the Islamic of Qatar and Chairman State of Qatar. In addition, General of the Supreme Financial Services Board of QIA. His Excellency serves as Council of Economic and the International the Chairman of Qatar Affairs and Investment; Islamic Liquidity Stock Exchange, Enterprise Chairman of Qatar Management Corporation. Qatar and the Economic National Bank (QNB He serves as the Chairman Zones Company. He is Group); and President of the Board of Directors of responsible for the General of the Executive Board Qatar Development Bank Supervision of Qatar of Qatar Airways. and is a member of the Tourism Authority, and is Board of Directors of the the Deputy Chairman of Supreme Council for the Qatar Financial Centre Economic Affairs and Authority and Vice Investment. He is also the Chairman of the Qatar Chairman of the Governors Investment Authority. of the GCC Monetary Agencies and Central Banks Committee.
6 Building the Future with Global Vision EXECUTIVE MANAGEMENT
H.E. Dr Hussain Ali H.E. Nasser Bin Ghanim Mr Saad Sherida S J H.E. Sheikh Abdulla Bin Al Abdulla Al-Khulaifi Al-Kaabi Mohammed Bin Saud Member Member Member Al-Thani Chief Executive Officer Dr Hussain Al Abdulla is H.E. Nasser Bin Ghanim Eng. Saad Sherida S J a Minister of State and Al-Khulaifi is Chairman and Al-Kaabi is the President H.E. Sheikh Abdulla Bin Board Member of Qatar Chief Executive Officer of and CEO of Qatar Mohammed Bin Saud Investment Authority. He is beIN Media Group. He is Petroleum (QP). He has Al-Thani is the Chief also a member of Qatar’s also Chairman of QSI, the represented QP on boards Executive Officer of Qatar Supreme Council for owner of Paris Saint- and committees for oil and Investment Authority. He is Economic Affairs and Germain Football Club. A gas developments inside a Minister of State and a Investment. He is Chairman former ATP-ranked tennis and outside of Qatar. member of the Supreme and Managing Director player, His Excellency is also Council for Economic of Masraf Al Rayan, Qatar; President of the Qatar Affairs and Investment, a Board Director of Gulf Tennis Federation and Vice and Chairman of the Investment Corporation, President of the Asian Tennis Board of Directors of Kuwait; a Board Director Federation for West Asia. Ooredoo Group. His of Volkswagen, Germany; Excellency is also a board and Chairman of Kirnaf member of the IFSWF Instalment & Investment, (International Forum of Saudi Arabia. Sovereign Wealth Funds).
7 QIA at a Glance
1. OUR MISSION 2. OUR VISION QIA’s mission is to secure the financial Our vision is to be recognised prosperity of Qatar’s future generations by: as a world-class investment • Preserving and enhancing the long- institution and to become the term value of Qatar’s funds preferred partner of choice for investors, financiers and • Supporting the development of our stakeholders. a competitive Qatari economy, facilitating economic diversification and developing local talent
3. OUR HISTORY Foundation Phase 2005-2008
The story of QIA, since its As Qatar continued to see QIA started its investment establishment in 2005, is very increasing returns from its operations in 2006. The Board much the story of Qatar’s investment in oil, gas and related established a structured asset development over the past industries, in particular the allocation for asset classes and decade. It is a story that reflects development of the North Field, geographies. At that time, QIA the nation’s traditions of far- the largest non-associated had started building internal sighted leadership, prudent natural gas field in the world, investment capabilities and was stewardship of resources, and a Qatar’s leaders recognised that largely reliant on external parties willingness to seize opportunities the revenues generated for all investments. Investments for growth when they present presented a once-in-a- were primarily made into third- themselves to benefit the people generation opportunity to create party managed funds in Private of Qatar. an endowment for the future. Equity, Listed Equities, Hedge Funds, and also directly into Our origins can be traced back This far-sighted approach led to Real Estate. QIA participated to 2000, when the Supreme the formal establishment of QIA selectively in ‘special situation’ Council for the Investment of in 2005. QIA’s mission was to direct investments, advised State Reserves was established develop, invest and manage the by and executed through with the objective of investing State Reserve funds and other external managers. Qatar’s surplus revenues. property assigned to it by the Supreme Council for Economic Affairs and Investment (SCEAI). This began our Foundation Phase (2005-2008).
8 Building the Future with Global Vision Strategic Diversification and Growth Phase Stabilisation Phase 2009-2014 2015 to today
In 2009, against the backdrop Throughout this phase, QIA’s Under the leadership of our of the global financial crisis, the investment approach focused CEO, H.E. Sheikh Abdulla Bin Board decided to move to a mainly on pursuing strategic Mohammed Bin Saud Al-Thani, direct investment approach with opportunities in high-quality who was appointed in December particular focus on individual European equities and real estate 2014, QIA has further evolved its asset selection. This saw QIA enter assets with significant upside strategy to diversify and stabilise a new phase of development: potential. During the period, the portfolio. The strategy was the Strategic Growth Phase QIA made successful flagship approved by the Board in May (2009-2014). investments in entities such as 2015, as QIA embarked on the Volkswagen, Barclays, Credit Diversification and Stabilisation Investments were made by Suisse, and Harrods, building an Phase (2015 to today). combining readily available impressive global portfolio and funds, a high risk tolerance, At the heart of this evolution in establishing itself as a world-class and a fast decision-making QIA’s strategy is the recognition investment institution. process together with superior that, after a period of rapid analytics and negotiation skills growth, a period of stabilisation to create value. and consolidation is required as QIA reviews its existing assets and The move towards a more approach. In parallel, given the dynamic investment strategy was changing macroeconomic supported by the development conditions, QIA will work to diversify of strong internal capabilities, its investment portfolio and as QIA brought in and trained broaden its investment approach. a new generation of investment experts and deal-makers, and significantly reduced its reliance upon external parties.
9 10 Building the Future with Global Vision Governance Framework
11 Governance Framework
LEGAL FRAMEWORK The Board provides strategic CEO QIA is a Qatar-headquartered guidance for QIA and monitors The QIA CEO is responsible governmental authority that the QIA Executive Management. for executing and overseeing has a legal identity and an The QIA Chief Executive Officer, investment strategies. He is independent budget. It was together with the Management also responsible for the day- established by an Emiri Decision Team, is responsible for the to-day management of QIA. in 2005, with a constitution that day-to-day management of QIA. The CEO is supported by the defines the basis and principles Business decisions are the sole Management Team, consisting for the governance framework. responsibility of the QIA Board and of QIA’s senior leaders. QIA’s Executive Management. QIA’s governance framework Group Internal Audit department establishes a clear separation The State Audit Bureau and an QIA’s Group Internal Audit of roles between the Supreme external auditor monitor and department assists QIA in its Council for Economic Affairs audit QIA’s accounts. oversight responsibilities. and Investment (SCEAI) as the Specifically, the department GOVERNANCE representative of the owner reports directly to the Board’s Audit (the Government of the State Board of Directors Committee and is charged with: of Qatar), the QIA Board of Under the Chairmanship of • Providing an independent Directors (‘Board’), and QIA H.H. Sheikh Abdullah Bin Hamad perspective on key elements of Executive Management. The Bin Khalifa Al-Thani, the Board QIA’s internal controls systems QIA Constitution ensures the is composed of distinguished independence of QIA decisions Qatari leaders. • Ensuring that all policies and procedures are in place, up to and investments from any The Board’s key responsibilities date, and adequately followed political influence of the Qatari include: Government. The SCEAI, which and implemented • Overseeing adherence to is chaired by H.H. the Emir, INVESTMENT GOVERNANCE approves the investment policy investment and risk regulations, We have established a robust and strategy; assigns funds; and policies and limits investment governance approves the budget, in addition • Reviewing and approving framework in line with global to certain QIA regulations. major investment decisions best practices. Our investment above the CEO’s investment The QIA Board is appointed by governance is based on the approval authority H.H. the Emir, the Chairman of QIA Constitution, the approved SCEAI, and is responsible for the • Reviewing and evaluating Investment Policy and the implementation of QIA’s mission investment performance Investment Strategy, and consists and vision. • Appointing the Executive Team of three levels:
12 Building the Future with Global Vision Board Investment Committee (BIC) QIA Governance Framework Overview • Reviews and approves major investment decisions Supreme Council for Economic Affairs and Investment (SCEAI) above the CEO’s investment • Approves QIA’s investment policy, strategy and plans approval authority • Assigns funds to QIA • Reviews investment policies, • Approves QIA’s budget strategy and plans • Receives QIA reports • Reviews and evaluates investment performance and risks QIA Board of Directors • Oversees adherence to • Responsible for the implementation of QIA’s mission and vision investment policies, limits • Provides strategic guidance to QIA and regulations • Monitors QIA’s Executive Management • Oversees the implementation • Approves important regulations and governance policies of approved investment objectives and strategies CEO Board Committees • Implements QIA’s investment The Board has two committees: the Investment Committee strategy and the Audit Committee. Their main roles and responsibilities are prescribed by their approved Charters. • Performs day-to-day investment oversight and operational execution QIA CEO • Approves transactions • The CEO, within the framework of the general policy within the CEO’s investment of QIA, implements and manages QIA’s technical, approval authority administrative, financial and legal affairs Management Investment • Responsible for day-to-day management of QIA Committee (MIC) • Executes QIA’s investment strategies and plans • Reviews investment proposals and makes recommendations to the CEO in compliance with the MIC Charter, Process and Procedures • Chaired by the CEO and with the participation of senior QIA executives
13 14 Building the Future with Global Vision Human Capital: Culture & Talent
As QIA transforms to face the significant strategic and organisational changes ahead, our people remain our first priority.
15 Human Capital: Culture & Talent
As QIA transforms to face the QIA aims to deliver world-class In line with our 2015 strategy, we significant strategic and standards in attracting, continue to work on delivering organisational changes ahead, developing and retaining top stability across the organisation, our people remain our first priority. talent. We devote considerable using well-established measures We recognise how important resources to the recruitment, for retention, professional it is to focus not only on our core training and development of development and long-term business, but also on building Qatari nationals. QIA is proud of career progression. internal capabilities for driving its diversity, which not only helps change and achieving our to foster a highly collaborative HOW WE INVEST IN OUR PEOPLE strategic objectives. and collegial environment, but QIA recognises that the future also provides a varied range of success and economic prosperity Our Human Capital department insights and contributions. of Qatar depends on the ability has implemented a number of its people to compete at an of best-in-class human resources A key part of building for the future international level. This is why our practices. These include the is building the right teams. We organisation is committed to introduction of a performance are committed to two principles: excellence in people selection and talent management increasing the proportion and and development. This framework for driving continuous seniority of Qatari nationals in our commitment enables us to improvements and development, workforce, while attracting the maintain our position as a global promoting Qatarisation, very best international talent for investor, as well as to uphold the and supporting career and specialised roles. On both counts, first pillar of Qatar National Vision succession planning. we are extremely proud of our 2030 – Human Development. achievements to date. Our people QATARISATION Our planned expansion of the Our people are an integral part The Human Capital department’s past two years has led to of our success. QIA employs more mission is to develop our local sustained growth in our talent than 300 professionals from more talent to take on roles as leaders pool, demonstrating our success than 40 different countries. Our of tomorrow, by offering them a in attracting both Qatari and team combines Qatari and global learning experience with global world-class talent. At the international talent, uniting as exposure to industry best practices. same time, the proportion of a single integrated organisation. We aim to develop excellent individuals with long tenure people skills across our business. continues to grow, confirming QIA’s ability to retain top talent.
16 Building the Future with Global Vision Employees Split by Nationality Employees Split by Tenure As at December 2015 As at December 2015
37 % 41% QIA employs more than 300 professionals from more than 40 different countries. Qatar 37% More than five years 41% Asia/Pacific 26% Between two and five years 35% Europe 16% Less than two years 24% Middle East and Africa 16% Americas 5%
Our Qatarisation programme seeks TAMAYZ is targeted at our All three development to grow our talent pool of Qatari professionals who are at their programmes call for the national employees, by attracting mid-career stage. It provides achievement of QIA values the right candidates and providing focused career development and principles of: them with meaningful career plans, supported by internal Integrity opportunities through three coaching and best-in-class stages of development: learning solutions, with special We apply the highest ethical, emphasis on practical moral and professional standards • Hiring new Graduate experience and leadership skills. of conduct in all our undertakings. Developees under our BEDAYA Development Programme. • QEYADA is the new QIA Mission focus BEDAYA is the QIA Graduate Leadership Development We have a noble mission on Programme for attracting local Programme for strengthening behalf of the Qatari people. talent and providing the best the leadership capability of In executing our day-to-day practical introduction to senior Qatari and high-potential responsibilities, we are all firmly investments. Our unique employees. It focuses on driving focused on this mission. graduate programme focuses an engaged and strong Entrepreneurialism not only on professional performance culture. This new We believe in the power of qualifications and theoretical programme will also identify entrepreneurialism, and continue courses, but also on practical potential successors, and to encourage initiative and experience through a simulated conducts executive assessments a flexible approach even investment environment, and against QIA leadership as our organisation grows international exposure to leading competencies with a focus on and institutionalises. investment analyst programmes thinking and acting globally, and training opportunities with leading change by example Excellence QIA investment affiliates. and implementing a strategic We strive for excellence in all approach to business. aspects of our undertakings. • Preparing experienced Qatari Nationals to occupy mid- Under QEYADA and our Respect for people career-level and leadership strategic succession planning, We recognise that people are positions through our TAMAYZ we identify and develop our most valuable asset, and Development Plan. TAMAYZ internal candidates who we seek to create a respectful provides our local talent have the potential to fill key workplace free of harassment with the opportunity to build leadership positions within the or intimidation. and strengthen specific organisation. Our aim is to competencies, both functional create a leadership pipeline and behavioural, for progressing that contributes to Qatarisation their career at QIA and emerging and ensures business continuity, as leaders of tomorrow. as well as growth and retention of local talent.
17 18 Building the Future with Global Vision Our Strategy
QIA’s strategy aims to increase the diversification of the investment portfolio and broaden the investment approaches that QIA pursues.
19 Our Strategy
QIA STRATEGY The strategy is based on QIA aims to achieve this through QIA reviews its strategy regularly, three pillars: allocations to indexed portfolios, with a stronger focus on unlisted basing its review on the direction Alignment of risk-return private equity, direct real estate of the Board, the wider expectations with the mandate macroeconomic landscape, of a savings fund and infrastructure, and the and its ongoing analysis of addition of fixed income and In order to translate the QIA vision economic opportunities and credit to QIA’s portfolio. During into a consistent strategy, the potential investments. the strategic review process, QIA Board defined a new long- concentrated positions were term risk tolerance limit and In 2015, QIA developed a new reviewed and additional sectors formulated a sustainable risk/ strategy designed to build with specialised teams were return expectation that puts on its successful track record added to support this wealth preservation at the top and also to reflect the shifting diversification process. macroeconomic realities. In of the agenda. particular, QIA recognised that The second is increased The risk tolerance is aligned with low growth, low interest rates, geographical diversification. This the long-term characteristics of partially inflated asset prices, an involves QIA taking on a larger a global 60% Equity/40% Fixed abundance of liquidity in the exposure to the US, as the world’s Income portfolio. QIA believes market, and strong competition largest capital market, over the this approach strikes the correct for investment opportunities from next few years. To support the balance that will enable it to other investors defined the business build-up in the US, in pursue sustainable growth and contemporary global economic August 2015 QIA set up the Qatar also preserve the long-term value environment. These realities Investment Authority Advisory of Qatar’s reserves. necessitated a review of the (USA) in New York as a wholly existing investment approach Increased diversification owned subsidiary of Qatar and portfolio. of the portfolio Investment Authority. The primary Alongside the realignment of risk role of this subsidiary is to QIA’s new strategy aims to and reward, the new strategy strengthen partnerships, and increase the diversification of the looks to diversify QIA’s portfolio. provide investment research and investment portfolio and broaden There are two main elements to advisory services in relation to the investment approaches that this approach. existing and potential investments QIA pursues. It also seeks to in North America. stabilise QIA as an organisation The first is increased asset class after a rapid growth phase, both diversification, which is designed in assets and in people. to balance the portfolio and reduce volatility.
20 Building the Future with Global Vision Diversification of investment • Realising a number of Performance benchmarks approaches investments in geographies, and hurdle rates for each The third pillar requires QIA sectors and asset classes investment portfolio to work with its network of aligned with the new strategy. Internally, all strategies and international partners in order • Strengthening its partnerships sectors are assessed against to diversify its investment and realising co-investments, a consistent set of benchmarks approaches. QIA is a lean particularly in real estate and hurdle rates to measure the organisation and leverages a and infrastructure, in 2015 and investment performance of the broad set of external sourcing into 2016. different teams. The teams are and deployment options. • Focusing its internal capabilities typically assessed on a multi-year Moving forward, QIA will prioritise by re-invigorating the Human performance basis. investing alongside a set of Capital department. Process, Technology and strategic partners and creating • Introducing a consistent set of People Metrics co-investment opportunities with Strategic Scorecards and KPIs To ensure alignment of the leading fund managers, large to align the organisation with its organisation to the new strategy, SWFs and institutional investors. strategic goals. QIA has adopted additional QIA is confident that this refined strategic KPIs to measure QIA has integrated Strategic strategy provides it with a clear departmental performance. Scorecards into its performance path for development and a strong management system. All strategic foundation for future growth. objectives are cascaded down STRATEGY IMPLEMENTATION and form part of the annual In implementing the new strategy, performance evaluation. QIA has made significant progress The strategic KPIs are defined across a number of key areas. on three levels: This includes: Long-term target at • Aligning the organisation to the a Total Fund level new strategy by appointing QIA has adopted a 10-year rolling a Head of Active Investments real return target, corresponding for listed and unlisted equities, to a risk premium over a global and adding Heads of Fixed consumer price index (inflation). Income and Index Investments to the team.
21 Our Strategy continued
It has been a turbulent year in the financial markets. Central bank decisions, falling commodity prices, the fear of contagion from a slowdown in China’s economic growth, and the result of the UK referendum on EU membership have captured the headlines and resulted in volatile and mixed returns across asset classes.
MARKET REVIEW: In addition to the supply and 1. The market’s immediate JUNE 2015 TO JUNE 2016 demand imbalance, commodity reaction was one of surprise. This period of turbulence began prices also faced headwinds The majority of market during the second half of 2015 from a strong US currency. The participants had expected with Greece defaulting on its US dollar strengthened during the UK to remain within the EU. debt to the International the period leading up to the US 2. Consensus is building among Monetary Fund. Global equities Federal Reserve’s decision in economists that the UK will subsequently fell during Q3 2015, December to raise interest rates, enter a technical recession compounded by concerns making the US the first major and that Europe will also regarding the slowdown in the economy to raise interest rates experience some degree of Chinese economy and the since the onset of the global negative growth in the near potential impact on global financial crisis in 2008. to medium term. growth. After an impressive After hitting a low point in 3. The full political and economic two-year rally, Chinese equities February 2016, Chinese equities, implications will take time to fell over 50% during the latter half oil prices and global markets fully materialise, and even of 2015 and early 2016. The staged a rebound in the second more time to resolve. Chinese authorities responded to half of Q1 2016. Risk assets were these market events with a 4. Uncertainty is likely to result further boosted in March when combination of currency policies, in more frequent and more the European Central Bank equity market circuit-breakers, sustained periods of volatility announced that it would expand banking reserve requirements, in the near to medium term. its asset purchase programme and lower lending rates to calm 5. The long-term economic to include corporate bonds. investors’ nerves. fundamentals of both the UK However, the relative calm was and Europe should provide Over the same time period, short-lived as the UK’s decision opportunities for investors with the commodities markets to leave the European Union a long-term investment horizon. experienced a similar level prompted a flight to quality that of volatility. Oil prices plunged caused equities and bond yields to their lowest level since the to fall sharply, and the US dollar global financial crisis, driven to strengthen. by rising supply, alternative fuel The markets are still digesting the sources and waning global implications of the UK’s exit from demand, again connected Europe, and indeed there are to the slowdown in Chinese still many uncertainties in terms economic growth. of how the process will evolve. However, the following observations can be made:
22 Building the Future with Global Vision We expect the global financial markets to be driven by three major themes: • Increased volatility due to geopolitical events • Sustained monetary stimulus • Quest for yield and returns
Increased volatility due to This prolonged period of geopolitical events monetary stimulus, coupled We believe that investors will with structural reforms being turn their attention away from implemented in China and shorter-term considerations such Brazil, is likely to produce new as the US presidential election, opportunities for investors with to longer-term variables such as the ability to withstand periods the strength of the consumer, the of short-term market volatility. business cycle, and the evolving MARKET OUTLOOK Quest for yield and returns geopolitical landscape. As such, We expect the global financial the low level of productivity The low absolute level of interest markets to be driven by three growth globally, dwindling rates and flat yield curve will major themes: corporate profitability, and the force investors to seek income- decline in global trade are likely to producing assets. While risk assets • Increased volatility due have undoubtedly benefited to geopolitical events have a larger impact on financial asset valuations going forward from monetary stimulus, we • Sustained monetary stimulus and drive increased volatility. believe that most real economies • Quest for yield and returns will require fiscal policy or Sustained monetary stimulus external investment support While the Federal Reserve was if they are to return to their the first major central bank to potential growth rates. We raise interest rates, the Bank of expect these pressures to remain Japan and European Central for the foreseeable future, which Bank are expected to maintain can lead to opportunities for their easing bias and keep longer-term investors, such as interest rates in negative territory sovereign wealth funds, to for the foreseeable future, in their capture the illiquidity premium ongoing efforts to stimulate associated with long-term economic growth. The UK’s investments such as infrastructure decision to leave the EU only and real estate. increases the chances of further In summary, we believe these stimulus from the ECB, while in themes will continue to create the US we expect policymakers opportunities for long-term to pause the rate normalisation disciplined investors. process amid fresh concerns over the strength and sustainability of global economic growth.
23 24 Building the Future with Global Vision Investment Approach
25 Investment Approach
QIA’s success is built upon three key factors: • A strong talent pool • Adherence to a robust decision-making process • Pursuing clear investment objectives
While QIA continued to refine Our approach enables us to and adapt its strategy in 2015, execute investments in a skilful at its core it retains a clear and timely manner, deploying investment philosophy and our flexibility and dynamism approach. This approach to take advantage of market understands that QIA’s success opportunities and trends. is built upon three key factors: Prudent balance of risk and return • A strong talent pool Our approach is based on • Adherence to a robust prudent risk management. decision-making process Our objective is to achieve a • Pursuing clear investment sustainable rate of return within objectives levels of risk defined by the SCEAI and QIA’s Board. Similarly, all our OUR INVESTMENT APPROACH investments undergo a rigorous QIA has developed and refined legal and compliance process. its investment approach since Financially driven objectives its inception. We constantly Our portfolio reflects our adapt our approach to global investment mandate market circumstances to reflect of purely economic and the following principles. financial objectives. Long-term and strategic Our portfolio is intended to preserve and enhance value over the long term for generations to come. It is therefore not exposed to conventional short-term performance measures.
26 Building the Future with Global Vision We invest globally, directly or through funds, in the following asset classes: QIA Asset Classes (Examples)
Listed Equities/Private Equity Credit/Fixed Income
• Publicly traded equities • Treasuries
• Equity derivatives • (Structured) credit products
• Equity funds • Fixed income funds
• Index products
• Private equity
• Unlisted equity
• Private equity funds
Real Estate Multi-strategy
• Commercial real estate • Alternative strategies with limited correlation to other asset classes in the portfolio – often • Residential real estate invested through hedge funds, for example: - CTA/Macro strategies • Real estate funds - Long-short strategies
27 Investment Approach continued
Our investment process is designed to focus on ‘the deals that matter’. It ensures a significant throughput capacity for direct deals and speed of decision- making, but also a consistent quality of independent challenge and diligence for every deal.
OUR INVESTMENT PROCESS Origination Most of our investments are Our teams originate deals from made through direct investment multiple sources. These include teams, which are organised proprietary sources, both in-house along global industry sectors and through strategic partnerships, for Equities/Private Equity as well as a network of leading investments. In addition, Fund institutions and partners. Examples investment teams invest in are investment banks, private third-party funds across all asset equity funds, governments, and classes (including Alternatives other sovereign wealth funds. and Hedge Funds), to access Evaluation investment themes or strategies otherwise not readily available, Deal evaluation is at the core and also to generate co- of what we do. We conduct investments with leading thorough multi-stage evaluations institutions around the world. that include financial and legal due diligence. All investments Our investment process is are discussed and evaluated designed to focus on ‘the deals by the Management Investment that matter’. It ensures a Committee. When pre-screening significant throughput capacity potential investments, we for direct deals and speed of conduct a consistent set of decision-making, but also a analyses to assess whether the consistent quality of independent deal should enter the pipeline. challenge and diligence for every deal. To allow us to grow The key parameters of the the QIA portfolio at the required evaluations include: rate, we typically aim for large- • Financial and legal ticket investments in established due diligence companies or companies at a • Investment thesis mature development stage. • Risk assessment We follow a rigorous four-stage approach for each investment, be it a direct investment or a fund investment.
28 Building the Future with Global Vision Execution QIA also exercises its shareholder Once approved, investments are rights and is represented at executed by the Capital Markets shareholders’ meetings where it and/or M&A teams, who has significant stakes. The same specialise in negotiating complex diligence is applied to our deals, running longer timed asset- investments in third-party funds: purchase programmes, and just as we select external hedging risks where appropriate. managers using a thorough investment process, we also Active portfolio management/ continue to manage and monitor value creation them in this way. We manage our portfolio actively to create value with a blend of resources: internal for areas where we have deep expertise, and external where we can benefit from bringing in outside expertise. We frequently assess the performance of our portfolio against the initial investment thesis and benchmarks.
Investment process
Active portfolio Origination Evaluation Execution management/ Value creation
29 30 Building the Future with Global Vision Risk Management
31 Risk Management
The investment objectives and risk tolerances for the investment portfolio are as defined by QIA’s Board under the supervision of the SCEAI.
We manage our portfolio within RISK MANAGEMENT FRAMEWORK the levels of risk defined by SCEAI The risks to which QIA is exposed and QIA’s Board. can be categorised into Investment and Operational risks. RISK GOVERNANCE Our Risk Management Framework QIA has implemented provides a structure for the a comprehensive Risk identification, management and Management Framework. reporting of these risks. The investment objectives and INVESTMENT RISKS risk tolerances for the investment Our Investment Risks can be portfolio are as defined by QIA’s classified as follows: Board under the supervision of the SCEAI. The Board has defined • Market Risk investment return objectives, • Credit Risk in addition to a risk appetite • Liquidity Risk statement that sets out both the types and level of risk that the Our approach for managing Board is willing to accept in these risks is detailed below. pursuit of these return objectives. QIA manages the investments in the portfolio within risk limits that are consistent with the overall risk appetite set out by the Board.
QIA Risk Management Framework Investment Risks Operational Risks Market Risk Human Resource Risk Process Risk Credit Risk Systems Risk Regulatory Risk Reputational and Liquidity Risk External Events Strategic Risk
32 Building the Future with Global Vision For the QIA, the main components of market risk are movements in equity prices, interest rates and exchange rates.
Market Risk Credit Risk OPERATIONAL RISK Market risk is defined as the Credit risk is defined as the risk of Operational risk is defined as potential for investment losses losses stemming from the default the risk of losses resulting from stemming from adverse or credit downgrade of a inadequate or failed business movements in market prices. For counterparty. QIA can be processes, people and systems, the QIA, the main components exposed to counterparty credit or from external events impacting of market risk are movements in risk through its investment an organisation’s operations. Our equity prices, interest rates and activities in treasury operations, Risk Management team operates exchange rates. derivatives hedging or trading, as in accordance with international well as through direct investment standards, as well as local We assess market risk by using in debt and debt-like instruments. requirements of the multiple several measures, including jurisdictions in which we operate. value-at-risk metrics and stress QIA trades only with financially QIA has strong controls in place testing. On a daily basis we also sound counterparties after a to minimise operational risks: monitor trading positions, market detailed and specific selection exposures and profit and loss. The and approval process. We • Investment and Operating Risk Management department monitor counterparty exposures Teams are required to identify, ensures that Investment Teams on a daily basis against approved manage and report are informed of the risk profiles limits and, where appropriate, we Operational Risk events within of their respective portfolios on implement netting agreements their areas of responsibility a regular basis. and apply collateral or other • Risk Management department credit enhancements to mitigate records, investigates and credit risk. assesses operational risk events Liquidity Risk to avoid recurrence Liquidity risk arises in two situations: • We ensure business continuity asset liquidity and funding plans are in place and tested liquidity. Asset liquidity risk is the to ensure QIA is resilient in the inability to sell a position that is event of natural disasters or large relative to the volume other business interruptions traded in a given market. Funding liquidity risk is the risk of being unable to fund an investment in time, in the required currency. We closely monitor our investments in less liquid assets and prepare forecasts of short-term cash requirements on an ongoing basis, to ensure that cash is available as and when required.
33 34 Building the Future with Global Vision Our Portfolio
35 Our Portfolio
INTERNATIONAL PORTFOLIO Listed Equities/Private Equity Real Estate may constitute up QIA has built a diversified and remains the most important asset to 25% of the portfolio in the long global investment portfolio for class and may constitute up to term. It increases diversification the benefit of the State of Qatar. 80% of the portfolio. For example, and adds income yield. For We aim to generate sustainable we have successful flagship example, QIA has invested in returns and maintain resilience investments in entities such as Canary Wharf in London, and against adverse market cycles Volkswagen, Barclays, Credit recently acquired the Asia and volatility. Suisse, and Harrods. QIA also Square Tower 1 in Singapore. invests selectively in equity Multi-strategy investments, for We continually review our index-tracking strategies, to example in absolute return or investment strategy, to take into effectively complement the macro strategies, help to diversify account ever-changing market active equity investment portfolio the portfolio by investing in conditions and developing trends, and achieve efficient access to portfolios with limited correlation and also to identify and take global financial markets. advantage of new opportunities. to our other asset classes. These QIA translates its long-term Credit/Fixed Income investments strategies may constitute up to objectives into a high-level asset add diversification, liquidity, and 5% of the portfolio. allocation, as illustrated in the income yield to the portfolio. The below graph, but explicitly retains asset class may constitute the ability to allocate assets between 10% and 25% depending dynamically and flexibly. This on the overall portfolio composition enables us to identify a broader and market conditions. set of opportunities, and to make bold and intelligent investments.
QIA translates its Long-term asset class ranges* long-term objectives Listed Equities/ 50-80% into a high-level asset Private Equity allocation, as illustrated Credit/ 10-25% in the graph, but Fixed Income explicitly retains the ability to allocate Real Estate 15-25% assets dynamically and flexibly. Multi-strategy 0-5%
* Does not add up to 100% as allocations within asset class ranges fluctuate.
36 Building the Future with Global Vision Direct Investments Map (Selected)
Jordan Bahrain Egypt UAE
United Kingdom Qatar Poland Germany Saudi Arabia
Oman Luxembourg
France Switzerland Spain
Italy
Portugal
Canada Russia
Ukraine
USA Japan
South Korea India
Taiwan Singapore Morocco
Algeria Malaysia Indonesia
Brazil
South Africa Austraila
37 Our Portfolio continued
QIA plays an important role in the local economy in Qatar. We are the majority shareholder or sole owner of a number of leading Qatari companies.
QATAR INVESTMENTS QIA aims to ensure the alignment QIA plays an important role in the of all subsidiaries in terms of value local economy in Qatar. We are creation and risk management the majority shareholder or sole practices through clear owner of a number of leading governance principles and Qatari companies, many of policies. We also support their which have developed world- growth through our global sector class expertise and global reach, expertise; offer the support of our extending their operations and highly qualified Legal, M&A, business interests outside of Strategy, and Capital Markets Qatar. It is our objective to teams; and enable access to our support the development network of international partners. of these companies into international champions, and so further contribute to the fund’s performance and the diversification of the State of Qatar’s sources of wealth.
38 Building the Future with Global Vision including a 35% stake in the Jordan- QNB Capital has one of the best based Housing Bank for Trade and corporate finance teams in the Finance (HBTF), 40% in Commercial GCC region, offering extensive Bank International (CBI) based in transaction experience and in- the United Arab Emirates (UAE), depth advisory – including mergers 99.96% of QNB Tunisia, 51% in the and acquisitions, equity and debt Iraqi-based Al-Mansour Investment capital markets, and project Qatar National Bank (QNB) Bank, 49% of the Libyan-based financing advisory. The Group also Qatar National Bank S.A.Q (QNB Bank of Commerce & offers brokerage services through its Group) was established in 1964 as Development, and a 20% stake in subsidiary, QNB Financial Services the country’s first Qatari-owned Al Jazeera Finance Company in (QNB FS), the first independently commercial bank, with an Doha. QNB Group also retains a regulated licensed brokerage ownership structure split between 51% stake in QNB-Syria, and an company launched by a bank in the Qatar Investment Authority 82.59% stake in QNB Indonesia. Qatar. QNB FS offers a multi-market, (50%) and the other 50% held by multi-currency trading platform with The Group’s presence through members of the public. access to several markets. its subsidiaries and associate QNB Group has steadily grown to companies now extends to Based on the Group’s consistent be the biggest bank in Qatar, and more than 30 countries across strong financial performance and its a leading financial institution in the three continents, providing a expanding international presence, Middle East and Africa region. comprehensive range of advanced QNB is currently ranked as the most products and services. The total valuable bank brand in the Middle The Group has recently completed number of employees is more than East and Africa, according to Brand the acquisition of a 99.81% stake 27,300, operating through more than Finance magazine. in Turkey’s Finansbank A.S., the 1,200 locations, with an ATM network fifth-largest privately owned of more than 4,300 machines. Bloomberg Markets, the leading universal bank in Turkey by total provider of business, financial, and assets, customer deposits, and QNB Group has maintained its economic news, has been ranking loans. QNB owns a 20% stake (both position as one of the highest-rated QNB as ‘One of the World’s ordinary and QNB convertible regional banks from leading credit Strongest Banks’ since 2013. preference shares) in Ecobank rating agencies including Standard Global Finance magazine ranked Transnational Incorporated & Poor’s (A+), Moody’s (Aa3), Fitch QNB as ‘One of The Top 50 Safest (Ecobank), the leading pan- (AA–), and Capital Intelligence Banks in the World’ in 2013. For two African bank. In 2013, the Group (AA–). The Bank has also been the consecutive years, 2014 and 2015, successfully completed the recipient of many awards from the Bank was recognised as ‘Best acquisition of a controlling stake leading international specialised Bank in The Middle East’ by in the second-largest private bank financial publications. Euromoney magazine. in Egypt, QNB ALAHLI (QNBAA), The Group provides an array amounting to 97.12%. of investment banking services QNB Group has an active community support programme The Group has also extended its through its subsidiary, QNB Capital, and sponsors various social, regional reach by acquiring stakes to corporate, government and educational and sporting events. in various financial institutions, institutional clients, within Qatar and globally.
39 Our Portfolio continued
Ooredoo’s journey started in As a community-focused 1987, but its international company, Ooredoo is guided expansion began in 2006 with the by its vision of enriching people’s acquisition of Wataniya Group. lives, and its belief that it can Since then international stimulate human growth by acquisitions, strong organic leveraging communications to growth, prudent investments, the help people achieve their full Ooredoo (Qatar Telecom) hard work of our team in all our potential. Ooredoo has a Ooredoo is a leading markets, and the growth and presence in markets such as international communications loyalty of our customers have Qatar, Kuwait, Oman, Algeria, company delivering mobile, combined to make us one of the Tunisia, Iraq, Palestine, the fixed, broadband internet, and world’s most exciting Maldives, Myanmar and corporate managed services communications companies. Indonesia. The company was tailored to the needs of named ‘Best Mobile Operator The company’s future strategy consumers and businesses across of the Year’ at the World will be based on three pillars: markets in the Middle East, Communication Awards 2013. North Africa and Southeast Asia, • Disciplined investments focused serving 114 million customers in Ooredoo Group focuses on on delivering strategic and markets such as Qatar, Kuwait, three business lines (Consumer financial benefits Oman, Algeria, Tunisia, Iraq, Mobile, Consumer Broadband, Palestine, the Maldives and • Focus on increasing revenues and Enterprise) across three Indonesia. Ooredoo’s assets are from broadband data besides geographies (Middle East, North well balanced and diversified, voice growth, taking Africa, and South-East Asia). with Qatar representing less than advantage of a high-quality Our strategic priorities include 20% of Group revenues. customer experience Convergence, Network • Improving performance by Consolidation, and Efficiency identifying synergies across the across the Group. Group, product development, and innovation and cost control
40 Building the Future with Global Vision Qatar Airways is continually Since its launch in 1997, Qatar improving its impact on the Airways has earned many awards environment, and actively and accolades, becoming one participates in aviation’s approach of an elite group of airlines to tackling climate change. With worldwide to have earned a more than 330 new aircraft on 5-star rating by Skytrax. Voted order, a further investment of US$70 Airline of the Year by Skytrax in Qatar Airways billion is being made to ensure 2011, 2012, and most recently in As a global airline leader, Qatar that Qatar Airways continues 2015, Qatar Airways has won the Airways has built a worldwide to operate a fuel-efficient fleet. confidence of the travelling network based on key business This investment underpins its public. and leisure destinations across commitment to the environment Qatar Airways has accomplished Europe, Middle East, Africa, Asia and ensures a first-class travel these goals by focusing on the Pacific, North America, and South experience for its customers. America, with scheduled flights details – how it runs the business, operating to and from its hub in As a member of oneworld, and how you experience Doha. Qatar Airways has Qatar Airways works with partner the airline. airlines to achieve even more achieved a significant route Qatar Airways’ goal is to be efficient air travel. This includes expansion, averaging double- everybody’s airline of choice, supporting Air Traffic Control digit growth year-to-year and offering the flights they want authorities to move towards flying one of the most modern to the destinations they need. more efficient airspace aircraft fleets in the skies today. That drives this team of 40,000 management, and collaborating professionals every day, and will Qatar Airways is one of the to enable passengers to use continue to motivate them to youngest global airlines to serve e-tickets throughout their global make Qatar Airways everybody’s all six continents, and, thanks to journey, to reduce the printing preferred airline. its customers’ response to its of paper tickets. offerings, Qatar Airways is also the fastest-growing airline in the One of Qatar Airways’ many world. Qatar Airways connects social initiatives is ‘Educate A more than 150 destinations on Child’, a programme of Education the map every day, with a fleet Above All, a global initiative of 179 of the latest-generation launched by Her Highness Sheikha aircraft, and an unrivalled level of Moza bint Nasser of Qatar, which service from its home and hub, aims to significantly reduce the the state-of-the-art Hamad numbers of children worldwide International Airport in Doha, who are missing out on their right State of Qatar. to education.
41 Our Portfolio continued
The Lusail Real Estate Some of the most successful Development Company was and coveted international established in September 2008 projects include: with a dedication to the • Chelsea Barracks development, construction and ongoing operations of the • US Embassy, London visionary Lusail City development. • City Center, Washington D.C. Qatari Diar • Sea Pearl Ataköy, Istanbul Qatari Diar Real Estate Company In November 2009, Qatari Diar was established in 2005 by the reached another significant • City Gate, Egypt Qatar Investment Authority, the milestone in its history with the As of January 2012, Qatari Diar is sovereign wealth fund of the establishment of the Qatar capitalised at US$4 billion. It has State of Qatar. Headquartered Railways Development more than 49 projects under northeast of capital Doha on the Company. The company was development or planning in coast of the Arabian Gulf, Qatari created to bring Qatar’s vision Qatar and in 29 countries around Diar was entrusted to support for developing Qatar’s extensive the world, with a combined value Qatar’s growing economy and national railway network, and of over US$35 billion. to coordinate the country’s real the region’s first fully integrated estate development priorities. railway system, to life. The company’s first project, Lusail Parallel to its significant City, was launched in December infrastructure developments 2005 and quickly went on to within Qatar, the company gain tremendous praise for its has been committed since its innovative approach to real founding to bringing the Qatari estate. The progressive, self- Diar vision, one for real estate contained city is the largest single that improves quality of life and development to be undertaken contributes to the community, in the State of Qatar, and onto the international stage. although it is currently under Today, Qatari Diar has established construction, Lusail already itself as one of the world’s most signifies Qatar’s progress on a trusted and respected real estate grand scale, reflecting the vision companies because of its and quality that have become commitment to quality, local synonymous with Qatari Diar. community, partnership, and hallmark sustainability.
42 Building the Future with Global Vision QSE operates in a variety of In 2015, more than 2,500 people economic sectors such as comprising public investors, banking, real estate, industrials, university and school students, and other sectors. Based on this, and brokerage and corporate QSE constitutes the best place employees benefited from for investors, providing them investment awareness with a variety of investment programmes. As part of QSE’s Qatar Stock Exchange products and tools and allowing strategic objectives and social Active since 1997, the primary aim them to develop their savings responsibility activities, we are of the Qatar Stock Exchange is while also contributing to the keen to educate citizens and to support Qatar’s economy by national economy. residents about every new giving investors a platform through product or service introduced in The agreement with NYSE Euronext which they can trade fairly and the market. For this purpose, the marks the beginning of a new era efficiently. The Exchange is part Exchange continued to hold for the Qatar Stock Exchange. of a comprehensive national free educational workshops The partnership will help establish strategy that aims to establish and awareness sessions in English the Qatar Stock Exchange as a Qatar as a world-class and Arabic, covering various world-class international market, international market. It will specialised topics of interest and reinforce the country’s reinforce the country’s position related to new initiatives and position as a regional financial as a regional financing centre by products. Some of these sessions centre with the introduction to introducing new trading products, were held independently, Doha of new trading products, technology, and international and others were held in technology, and international investors and issuers to Doha. collaboration with the best local investors and issuers. QSE is an important contributor to educational institutions. the diversification of the economy. As part of QSE’s brand awareness It is used for allocating capital efforts, the successful hosting of to business and government its WFE 55th General Assembly projects, and for capital and Annual Meeting in Doha was formation by providing liquidity one of the major achievements to existing companies. It is also in 2015. The hosting of this major a platform for the Government’s international event, which is the privatisation programme, and first of its kind in the region, reflects helps to develop SMEs through the international recognition of the the QSE Venture Market. advanced level and remarkable developments achieved by Qatar’s capital markets.
43 Our Portfolio continued
While it partners with some of Katara was also named the the finest hotel management Middle East Leading Tourism companies, Katara Hospitality Development Project for the operates owned and non-owned iconic Katara Towers hotels through its standalone development in Marina District of operating arm. Katara Hospitality Doha’s Lusail City. On a regional has gained global recognition scale, Katara Hospitality has Katara Hospitality for the contributions it has made been recognised as the Katara Hospitality is a global to the Qatari and international Hospitality Company of the Year hotel owner, developer, and hospitality landscapes. at the fifth Arabian Business Qatar operator based in Qatar. With Awards, and the 2014 Hospitality Some of the hotels owned more than 45 years’ experience Achiever at the Inaugural Qatar by Katara include: in the industry, Katara Hospitality Enterprise Agility Awards. actively pursues its strategic • The Westin Excelsior Rome expansion plans by investing in peerless hotels in Qatar, while • The Savoy, a Fairmont growing its collection of iconic Managed Hotel properties in key international • InterContinental Carlton markets. Katara Hospitality has 35 Cannes properties in operation or under • Royal Savoy Lausanne development in its portfolio. • The Peninsula Paris As the country’s flagship • Le Royal Monceau – hospitality organisation, Katara Raffles Paris Hospitality supports Qatar’s • Excelsior Hotel Gallia – a Luxury long-term economic vision. Collection Hotel Milan Katara Hospitality currently owns • Raffles Hotel Singapore properties spread across three continents in Qatar, Egypt, • The Ritz-Carlton Doha Morocco, UK, France, Germany, • Sheraton Doha Italy, Spain, Switzerland, The The World Travel Awards have Netherlands, Singapore, and named it the World’s Leading Thailand. Hospitality Company for two years running, as well as the Middle East’s Leading Hospitality Development Company for the second consecutive year in 2015.
44 Building the Future with Global Vision Mowasalat is committed to developing sustainable and efficient transport systems, and obtaining better mobility for all citizens by preparing drivers of tomorrow through training and development programmes. Mowasalat Mowasalat, popularly known Mowasalat has developed a as ‘the Transport Company’ in highly efficient transport system Qatar, started its activities by and improved capacity to providing land transport services provide high-class quality and solutions in October 2004. services. Mowasalat is immersing Mowasalat has widened its reach quality, health, safety and by offering several solutions to environmental issues in the fulfil a variety of requirements by culture and values of the providing Airport Taxi, Standard company, and managing these Taxi, VIP Limousine, Standard elements as an integral part Limousine, Public Bus Service, of their work. School Bus Service, and Private Hire Bus and Coach Services.
45 Our Portfolio continued
Committed to promoting the warmth and generosity of authentic Arabian hospitality to the world, Al Rayyan blends modern design, strategic innovation and deep-rooted heritage to craft unique and Al Rayyan Hospitality memorable destinations across Al Rayyan has developed an its growing portfolio of world-class illustrious collection of luxurious boutique hotels and resorts. properties in Qatar and the UK, including the historic Souq Waqif Over the coming years, Al Rayyan Boutique Hotels in the heart of will expand its portfolio with the Doha; Banana Island Resort Doha launch of a range of exciting on an island off the Doha coast; new projects, including the Salwa and the Adria Boutique Hotel in Beach Resort, set on 3 million the Royal Borough of Kensington square metres of prime coastline in central London. in southwest Qatar, and Al Messila Resort & Spa, surrounded by 33 acres of lush landscaping in central Doha.
46 Building the Future with Global Vision Hassad’s vision and mission is to be a leading global provider of high-quality food products, and to own, develop and operate efficient, profitable and growth- orientated global business brands that contribute to the Hassad Food welfare of Qatar and other Established in 2008, Hassad Food societies, using efficient is Qatar’s premier investor in the technology in harmony with food and agri-business sectors. It the environment, and adhering is entrusted with supporting the to the highest standards of needs of Qatar’s growing corporate social responsibility. economy, while at the same time realising profitable and Hassad operates a successful sustainable business objectives. and sustainable long-term investment and operational Hassad Food has diverse vertical model, while catering for investments in Qatar, Australia, immediate market requirements. Pakistan and Oman, with It is committed to promoting a potential future investments in better quality of life, providing Asia, Africa, Europe, and North employment opportunities, and and South America. achieving long-term economic Through its various subsidiaries, goals for the people of Qatar Hassad produces 8000 tons of and the communities they serve green fodder, 3 million cut and invest in. flowers, 100 tons of chemical- free vegetables, 179,000 tons of grains, and 250,000 heads of sheep each year.
47 Qatar Investment Authority P.O.Box 23224, Doha, Qatar Tel. +974 4499 5900 Email: [email protected] www.qia.qa