Qatar fund pledges $500 billion for US investments

Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), plans to invest an additional $500 billion in the US over the next decade.

Mohammed Al Sowaidi, the Chairman of QIA, helped establish the institution’s presence in the US and explore opportunities there for many years.

Now, as the head of the $524 billion state-backed entity, he is pledging to invest an amount close to the fund’s current size as part of the Gulf country’s significant commitment.

Speaking to Bloomberg, Al Sowaidi stated that the new investments will target areas traditionally favored by the fund, such as artificial intelligence, data centers, and healthcare, while also aligning with President Donald Trump’s agenda of reindustrializing the US.

The $500 billion constitutes nearly half of Qatar’s total commitment of $1.2 trillion made during Trump’s visit this week.

“We are not divesting from other markets; we are increasing our presence in the US,” Al Sowaidi said, adding that the current US policy environment offers a “more promising direction” for long-term capital.

QIA is not the only institution in the Middle East pursuing an aggressive, US-focused investment strategy. Saudi Arabia’s Public Investment Fund, state institutions in the United Arab Emirates, and the Kuwait Investment Authority are also planning to invest billions of dollars in similar sectors. This could lead to increased competition for the same deals and a higher risk of overpaying for assets.

Middle Eastern sovereign wealth funds control $4 trillion in assets. The Abu Dhabi Investment Authority ranks first, followed by the Kuwait and Saudi Arabian investment authorities. QIA is ranked fourth in this list.

Al Sowaidi took over as CEO last year during a significant period for the fund, a time when billions of dollars are expected to flow into the treasury with the expansion of the country’s natural gas projects.

Anticipating new capital inflows, Al Sowaidi plans for the fund to provide capital to large companies, acquire stakes in publicly traded companies, and prioritize larger deals.

This marks a departure from QIA’s recent focus on smaller venture capital deals. Nevertheless, Al Sowaidi said this move is not a “real strategic change or transformation,” but rather an “further evolution” of the fund’s approach to keep pace with rapid global change.

QIA is already the world’s eighth-largest sovereign wealth fund and owns a number of high-profile assets, such as the Harrods department store and the Shard skyscraper in London.

Al Sowaidi joined QIA in 2010 under the leadership of former Prime Minister Sheikh Hamad bin Jassim bin Jaber Al Thani, who is considered one of the Middle East’s most recognized investors.

Sheikh Hamad was succeeded at QIA by Ahmed Al-Sayed, who helped facilitate many large deals, including Glencore’s acquisition of Xstrata for $29 billion.

Al Sowaidi, on the other hand, spent his early career in America, where he helped establish the US office and eventually became the head of investments for the region.

Holding bachelor’s degrees in finance and statistics from the University of Missouri, Al Sowaidi held positions such as head of private equity funds and head of the QIA Advisory office in New York.

At that time, QIA was known for acquiring stakes in prominent companies like Barclays and Credit Suisse.

Al Sowaidi said the fund typically acquires minority stakes in successful businesses, and transaction size varies greatly depending on the asset class.

“In publicly traded stocks, we can make large investments. In the private equity space, we can do multi-billion dollar transactions, but we can also maintain our agility, especially in sectors like technology or healthcare,” the executive said.