Qatar Investment Authority Review 2016 2016_0.pdf · of Qatar Airways. H.E. Sheikh Abdullah Bin...

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QIA Review 2016

Contents

2 4 6 8 10

Letter from our Chairman

Letter from our CEO

Our Board Members and Executive Management

Governance Framework

Legal FrameworkGovernanceInvestment Governance

QIA at a Glance

Our MissionOur VisionOur History

Building the Future with Global Vision

14 18 24 30 34

Our Strategy

QIA StrategyStrategy ImplementationMarket Review and Outlook

Investment Approach

Our Investment Approach Our Investment Process

Risk Management

Risk GovernanceRisk Management Framework

Our Portfolio

International PortfolioQatar Investments

Human Capital: Culture & Talent

How we invest in our peopleQatarisation

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, At Qatar Investment Authority, we are very conscious of our responsibilities to the people of the State of Qatar and also to future generations. 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.

Applying this long-term perspective is an essential part of our role as a world-class investor. It means being able to look beyond short-term turbulence and market trends, and consider deeper issues of sustainable value and growth. This thinking is a key part of our investment philosophy, which sees us spread our risk across different asset classes and geographies, so that we are diversified and able to secure the legacy of the nation.

Our philosophy ensures that we are ready to adapt and change 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.

Over the past few years, we have adapted our strategy to reflect contemporary macroeconomic trends, which include low global growth, low energy prices, and strong competition for viable investment opportunities from other institutions. We have focused on wealth preservation and increased diversification, because we see these two areas as critical for ensuring that we excel in our role as a core component of the State of Qatar’s long-term growth strategy.

We will continue to refine and enhance this approach, in order to be as successful a global investor as we can be. By doing this, we aim to build a bright future with global vision, and live up to the trust placed in us by the State of Qatar and its people.

Abdullah Bin Hamad Bin Khalifa Al-ThaniChairman

3

As an organisation, we are deeply aware of our role in contributing to the diversification and evolution of Qatar’s economy, and also in ensuring that sufficient reserves are available in the future to enable the people to pursue their aspirations.

As such, I would like to cover four key areas of focus for QIA in this introduction. These are: our role in the development of the State of Qatar; our role as a global investor; the steps we are taking to build a world-class organisation; and the programmes we are introducing to develop the Qatari talent of the future.

In all of these areas, we continue to pursue excellence in order to build for the future.

Our role for the State of Qatar It is worth stressing that the past decade has been one of almost unmatched growth and development for the State of Qatar. As a nation, we have pursued projects and launched new initiatives that would have been practically unthinkable just a single generation ago.

Importantly, our nation has taken significant steps to diversify its economy away from the oil and gas sector. Recognising the incredible opportunities that Qatar’s energy reserves offer, but also recognising that these are ultimately finite resources, the country has used the funds generated by these sectors to invest in our most valuable and sustainable asset – the people of Qatar. New industries continue to develop in Qatar, and concurrently a number of Qatari enterprises have emerged as true global leaders in the banking, aviation, communication, real estate, and hospitality sectors.

QIA has a clear and defined role in this diversification process, both through our role as a shareholder in leading companies, and as an organisation that is driving the development of world-class national talent.

Letter from our CEO

QIA is entrusted with contributing to the long-term prosperity of the State, enabling it to realise future opportunities, and providing for expenditures such as education and healthcare.

Dear Stakeholders, On behalf of Qatar Investment Authority, it is my pleasure to present this inaugural review to you. We are proud of the progress we have made and the story we have to tell. This review provides insight into QIA’s role, strategy and achievements, in addition to outlining the steps we have taken over the last year to ensure that we continue on our successful development path. As our Chairman has outlined, every investment decision that QIA makes is shaped by our responsibility to the people of Qatar.


QIA is entrusted with contributing to the long-term prosperity of the State, enabling it to realise future opportunities and providing for expenditures such as education and healthcare. Additionally, QIA acts as a reserve fund with the capacity to provide support for the State in case of extreme emergency.

By taking on this role – as both supporter of diversification and guardian of long-term economic stability – we provide the State of Qatar with a key asset in its long-term strategy for growth.

Our role as a global investor In addition to our involvement in Qatar’s economy, we are building a diversified and global investment portfolio for the benefit of the State. We aim to generate sustainable returns and maintain resilience against adverse market cycles and volatility.

We operate as a multinational investor with a global perspective. We draw on comprehensive sector insight and the analysis of our investment specialists to identify opportunities. We invest in the very best, in a wide range of asset classes and regions, stand-alone and also in partnerships, joint ventures and co-investments with leading institutions around the world.

Our portfolio has a long-term perspective and a prudent risk-return profile, in line with our institution’s objective of ‘Building the Future with Global Vision’.

Our track record of investment to date demonstrates the breadth of our ambition, and our willingness to invest for the long term.

As you will see in this review, our successful flagship investments have generated international attention, but have also positioned us well for future growth, in spite of the uncertainties of the global economy.

Our organisation Since the formal establishment of QIA in 2005, we have strived to create and nurture an institution built on excellence.

Our people are an integral part of our success, and we continuously seek to secure the very best local and international talent with the right skills and capabilities.

Although our activity has grown, we remain a lean and nimble organisation, which is able to combine international best practice in investment execution and risk management with a dynamic, collaborative and proactive style. We devote time and effort to refining our processes, and have invested in world-class systems to support our work. We intend to maintain this approach, as constant improvement is intrinsic to our culture.

As this review outlines in depth, we invested significant time and resource in 2015 to developing our human resources, including a far-reaching organisational transformation programme and a number of Qatarisation initiatives.

As a result, we have inculcated an international business culture that supports and extends our global reach. Our teams are active in major financial centres, from London to New York, and Beijing to Paris. Most recently, we set up the Qatar Investment Authority Advisory (USA) in New 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.

Developing Qatari leaders Building for the future also means developing talent in Qatar. We have recruited numerous Qatari nationals, and we are building a strong pool of Qatari trainees across the organisation. We are committed to supporting future Qatari leaders and to helping young Qatari talent achieve their potential. For this reason, we have developed a state-of-the-art development programme, outlined in this review, including dedicated graduate recruitment, career development and leadership programmes.

In conclusion, QIA continues to grow and develop, just as the State of Qatar continues to strengthen and diversify. We are taking all necessary measures to ensure that we continue to live up to our responsibilities and to the trust placed in us by the leadership of Qatar.

I would like to thank H.H. Sheikh Tamim Bin Hamad Bin Khalifa Al-Thani, Emir of the State of Qatar, for his vision and clear-sighted direction. I would also like to thank our Chairman, H.H. Sheikh Abdullah Bin Hamad Bin Khalifa Al-Thani and our distinguished Board of Directors for their wise guidance and support. Everything QIA achieves is made possible by their contribution.

Finally, I would like to extend my gratitude to all our employees – they have helped create the modern, dynamic, global and world-class institution that Qatar Investment Authority is today.

Abdulla Bin Mohammed Bin Saud Al-ThaniChief Executive Officer

We invest in the very best, in a wide range of asset classes and regions, stand-alone and also in partnerships, joint ventures and co-investments with leading institutions around the world.

Our people are an integral part of our success and we continuously seek to secure the very best local and international talent with the right skills and capabilities.

5

Our Board Members and Executive Management

OUR BOARD MEMBERS

H.H. Sheikh Abdullah Bin Hamad Bin Khalifa Al-ThaniChairman

His Highness Sheikh Abdullah Bin Hamad Bin Khalifa Al-Thani is the Deputy Emir of the State of Qatar and Chairman of QIA.

H.E. Sheikh Ahmed Bin Jassim Bin Mohamed Al-ThaniVice Chairman

His Excellency Sheikh Ahmed Bin Jassim Al Thani is the Minister of Economy and Commerce for the State of Qatar. In addition, His Excellency serves as the Chairman of Qatar Stock Exchange, Enterprise Qatar and the Economic Zones Company. He is responsible for the General Supervision of Qatar Tourism Authority, and is the Deputy Chairman of the Qatar Financial Centre Authority and Vice Chairman of the Qatar Investment Authority.

H.E. Ali Sharif Al-EmadiMember

His Excellency Ali Sharif Al-Emadi is the Minister of Finance for the State of Qatar. In addition, His Excellency serves as a Member and Secretary General of the Supreme Council of Economic Affairs and Investment; Chairman of Qatar National Bank (QNB Group); and President of the Executive Board of Qatar Airways.

H.E. Sheikh Abdullah Bin Saoud Al-ThaniMember

His Excellency Sheikh Abdulla Bin Saoud Al-Thani is the Governor of Qatar Central Bank. He is a member of the Islamic Financial Services Board and the International Islamic Liquidity Management Corporation. He serves as the Chairman of the Board of Directors of Qatar Development Bank and is a member of the Board of Directors of the Supreme Council for Economic Affairs and Investment. He is also the Chairman of the Governors of the GCC Monetary Agencies and Central Banks Committee.


H.E. Dr Hussain Ali Al AbdullaMember

Dr Hussain Al Abdulla is a Minister of State and Board Member of Qatar Investment Authority. He is also a member of Qatar’s Supreme Council for Economic Affairs and Investment. He is Chairman and Managing Director of Masraf Al Rayan, Qatar; a Board Director of Gulf Investment Corporation, Kuwait; a Board Director of Volkswagen, Germany; and Chairman of Kirnaf Instalment & Investment, Saudi Arabia.

H.E. Nasser Bin Ghanim Al-KhulaifiMember

H.E. Nasser Bin Ghanim Al-Khulaifi is Chairman and Chief Executive Officer of beIN Media Group. He is also Chairman of QSI, the owner of Paris Saint-Germain Football Club. A former ATP-ranked tennis player, His Excellency is also President of the Qatar Tennis Federation and Vice President of the Asian Tennis Federation for West Asia.

Mr Saad Sherida S J Al-KaabiMember

Eng. Saad Sherida S J Al-Kaabi is the President and CEO of Qatar Petroleum (QP). He has represented QP on boards and committees for oil and gas developments inside and outside of Qatar.

H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani Chief Executive Officer

H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani is the Chief Executive Officer of Qatar Investment Authority. He is a Minister of State and a member of the Supreme Council for Economic Affairs and Investment, and Chairman of the Board of Directors of Ooredoo Group. His Excellency is also a board member of the IFSWF (International Forum of Sovereign Wealth Funds).

EXECUTIVE MANAGEMENT

7

QIA at a Glance

1. OUR MISSION

QIA’s mission is to secure the financial prosperity of Qatar’s future generations by:• Preserving and enhancing the long-

term value of Qatar’s funds• Supporting the development of

a competitive Qatari economy, facilitating economic diversification and developing local talent

3. OUR HISTORY

The story of QIA, since its establishment in 2005, is very much the story of Qatar’s development over the past decade. It is a story that reflects the nation’s traditions of far-sighted leadership, prudent stewardship of resources, and a willingness to seize opportunities for growth when they present themselves to benefit the people of Qatar.

Our origins can be traced back to 2000, when the Supreme Council for the Investment of State Reserves was established with the objective of investing Qatar’s surplus revenues.

As Qatar continued to see increasing returns from its investment in oil, gas and related industries, in particular the development of the North Field, the largest non-associated natural gas field in the world, Qatar’s leaders recognised that the revenues generated presented a once-in-a-generation opportunity to create an endowment for the future.

This far-sighted approach led to the formal establishment of QIA in 2005. QIA’s mission was to develop, invest and manage the State Reserve funds and other property assigned to it by the Supreme Council for Economic Affairs and Investment (SCEAI). This began our Foundation Phase (2005-2008).

QIA started its investment operations in 2006. The Board established a structured asset allocation for asset classes and geographies. At that time, QIA had started building internal investment capabilities and was largely reliant on external parties for all investments. Investments were primarily made into third-party managed funds in Private Equity, Listed Equities, Hedge Funds, and also directly into Real Estate. QIA participated selectively in ‘special situation’ direct investments, advised by and executed through external managers.

Foundation Phase2005-2008

2. OUR VISION

Our vision is to be recognised as a world-class investment institution and to become the preferred partner of choice for investors, financiers and our stakeholders.


In 2009, against the backdrop of the global financial crisis, the Board decided to move to a direct investment approach with particular focus on individual asset selection. This saw QIA enter a new phase of development: the Strategic Growth Phase (2009-2014).

Investments were made by combining readily available funds, a high risk tolerance, and a fast decision-making process together with superior analytics and negotiation skills to create value.

The move towards a more dynamic investment strategy was supported by the development of strong internal capabilities, as QIA brought in and trained a new generation of investment experts and deal-makers, and significantly reduced its reliance upon external parties.

Throughout this phase, QIA’s investment approach focused mainly on pursuing strategic opportunities in high-quality European equities and real estate assets with significant upside potential. During the period, QIA made successful flagship investments in entities such as Volkswagen, Barclays, Credit Suisse, and Harrods, building an impressive global portfolio and establishing itself as a world-class investment institution.

Under the leadership of our CEO, H.E. Sheikh Abdulla Bin Mohammed Bin Saud Al-Thani, who was appointed in December 2014, QIA has further evolved its strategy to diversify and stabilise the portfolio. The strategy was approved by the Board in May 2015, as QIA embarked on the Diversification and Stabilisation Phase (2015 to today).

At the heart of this evolution in QIA’s strategy is the recognition that, after a period of rapid growth, a period of stabilisation and consolidation is required as QIA reviews its existing assets and approach. In parallel, given the changing macroeconomic conditions, QIA will work to diversify its investment portfolio and broaden its investment approach.

Diversification and Stabilisation Phase2015 to today

Strategic Growth Phase2009-2014

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LEGAL FRAMEWORKQIA is a Qatar-headquartered governmental authority that has a legal identity and an independent budget. It was established by an Emiri Decision in 2005, with a constitution that defines the basis and principles for the governance framework.

QIA’s governance framework establishes a clear separation of roles between the Supreme Council for Economic Affairs and Investment (SCEAI) as the representative of the owner (the Government of the State of Qatar), the QIA Board of Directors (‘Board’), and QIA Executive Management. The QIA Constitution ensures the independence of QIA decisions and investments from any political influence of the Qatari Government. The SCEAI, which is chaired by H.H. the Emir, approves the investment policy and strategy; assigns funds; and approves the budget, in addition to certain QIA regulations.

The QIA Board is appointed by H.H. the Emir, the Chairman of SCEAI, and is responsible for the implementation of QIA’s mission and vision.

The Board provides strategic guidance for QIA and monitors the QIA Executive Management. The QIA Chief Executive Officer, together with the Management Team, is responsible for the day-to-day management of QIA. Business decisions are the sole responsibility of the QIA Board and QIA’s Executive Management.

The State Audit Bureau and an external auditor monitor and audit QIA’s accounts.

GOVERNANCEBoard of DirectorsUnder the Chairmanship of H.H. Sheikh Abdullah Bin Hamad Bin Khalifa Al-Thani, the Board is composed of distinguished Qatari leaders.

The Board’s key responsibilities include:

• Overseeing adherence to investment and risk regulations, policies and limits

• Reviewing and approving major investment decisions above the CEO’s investment approval authority

• Reviewing and evaluating investment performance

• Appointing the Executive Team

CEOThe QIA CEO is responsible for executing and overseeing investment strategies. He is also responsible for the day- to-day management of QIA. The CEO is supported by the Management Team, consisting of QIA’s senior leaders.

Group Internal Audit departmentQIA’s Group Internal Audit department assists QIA in its oversight responsibilities. Specifically, the department reports directly to the Board’s Audit Committee and is charged with:

• Providing an independent perspective on key elements of QIA’s internal controls systems

• Ensuring that all policies and procedures are in place, up to date, and adequately followed and implemented

INVESTMENT GOVERNANCEWe have established a robust investment governance framework in line with global best practices. Our investment governance is based on the QIA Constitution, the approved Investment Policy and the Investment Strategy, and consists of three levels:


Board Investment Committee (BIC) • Reviews and approves

major investment decisions above the CEO’s investment approval authority

• Reviews investment policies, strategy and plans

• Reviews and evaluates investment performance and risks

• Oversees adherence to investment policies, limits and regulations

• Oversees the implementation of approved investment objectives and strategies

CEO• Implements QIA’s investment

strategy• Performs day-to-day

investment oversight and operational execution

• Approves transactions within the CEO’s investment approval authority

Management Investment Committee (MIC)• 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

QIA Governance Framework Overview

Supreme Council for Economic Affairs and Investment (SCEAI)• Approves QIA’s investment policy, strategy and plans• Assigns funds to QIA• Approves QIA’s budget• Receives QIA reports

QIA Board of Directors• Responsible for the implementation of QIA’s mission and vision• Provides strategic guidance to QIA• Monitors QIA’s Executive Management• Approves important regulations and governance policies

Board Committees The Board has two committees: the Investment Committee and the Audit Committee. Their main roles and responsibilities are prescribed by their approved Charters.

QIA CEO• The CEO, within the framework of the general policy

of QIA, implements and manages QIA’s technical, administrative, financial and legal affairs

• Responsible for day-to-day management of QIA• Executes QIA’s investment strategies and plans

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As QIA transforms to face the significant strategic and organisational changes ahead, our people remain our first priority.


15

As QIA transforms to face the significant strategic and organisational changes ahead, our people remain our first priority. We recognise how important it is to focus not only on our core business, but also on building internal capabilities for driving change and achieving our strategic objectives.

Our Human Capital department has implemented a number of best-in-class human resources practices. These include the introduction of a performance and talent management framework for driving continuous improvements and development, promoting Qatarisation, and supporting career and succession planning.

Our peopleOur people are an integral part of our success. QIA employs more than 300 professionals from more than 40 different countries. Our team combines Qatari and international talent, uniting as a single integrated organisation.

QIA aims to deliver world-class standards in attracting, developing and retaining top talent. We devote considerable resources to the recruitment, training and development of Qatari nationals. QIA is proud of its diversity, which not only helps to foster a highly collaborative and collegial environment, but also provides a varied range of insights and contributions.

A key part of building for the future is building the right teams. We are committed to two principles: increasing the proportion and seniority of Qatari nationals in our workforce, while attracting the very best international talent for specialised roles. On both counts, we are extremely proud of our achievements to date.

Our planned expansion of the past two years has led to sustained growth in our talent pool, demonstrating our success in attracting both Qatari and global world-class talent. At the same time, the proportion of individuals with long tenure continues to grow, confirming QIA’s ability to retain top talent.

In line with our 2015 strategy, we continue to work on delivering stability across the organisation, using well-established measures for retention, professional development and long-term career progression.

HOW WE INVEST IN OUR PEOPLEQIA recognises that the future success and economic prosperity of Qatar depends on the ability of its people to compete at an international level. This is why our organisation is committed to excellence in people selection and development. This commitment enables us to maintain our position as a global investor, as well as to uphold the first pillar of Qatar National Vision 2030 – Human Development.

QATARISATIONThe Human Capital department’s mission is to develop our local talent to take on roles as leaders of tomorrow, by offering them a global learning experience with exposure to industry best practices. We aim to develop excellent people skills across our business.



Our Qatarisation programme seeks to grow our talent pool of Qatari national employees, by attracting the right candidates and providing them with meaningful career opportunities through three stages of development:

• Hiring new Graduate Developees under our BEDAYA Development Programme. BEDAYA is the QIA Graduate Programme for attracting local talent and providing the best practical introduction to investments. Our unique graduate programme focuses not only on professional qualifications and theoretical courses, but also on practical experience through a simulated investment environment, and international exposure to leading investment analyst programmes and training opportunities with QIA investment affiliates.

• Preparing experienced Qatari Nationals to occupy mid-career-level and leadership positions through our TAMAYZ Development Plan. TAMAYZ provides our local talent with the opportunity to build and strengthen specific competencies, both functional and behavioural, for progressing their career at QIA and emerging as leaders of tomorrow.

TAMAYZ is targeted at our professionals who are at their mid-career stage. It provides focused career development plans, supported by internal coaching and best-in-class learning solutions, with special emphasis on practical experience and leadership skills.

• QEYADA is the new QIA Leadership Development Programme for strengthening the leadership capability of senior Qatari and high-potential employees. It focuses on driving an engaged and strong performance culture. This new programme will also identify potential successors, and conducts executive assessments against QIA leadership competencies with a focus on thinking and acting globally, leading change by example and implementing a strategic approach to business.

Under QEYADA and our strategic succession planning, we identify and develop internal candidates who have the potential to fill key leadership positions within the organisation. Our aim is to create a leadership pipeline that contributes to Qatarisation and ensures business continuity, as well as growth and retention of local talent.

All three development programmes call for the achievement of QIA values and principles of:

IntegrityWe apply the highest ethical, moral and professional standards of conduct in all our undertakings.

Mission focusWe have a noble mission on behalf of the Qatari people. In executing our day-to-day responsibilities, we are all firmly focused on this mission.

EntrepreneurialismWe believe in the power of entrepreneurialism, and continue to encourage initiative and a flexible approach even as our organisation grows and institutionalises.

ExcellenceWe strive for excellence in all aspects of our undertakings.

Respect for peopleWe recognise that people are our most valuable asset, and we seek to create a respectful workplace free of harassment or intimidation.

QIA employs more than 300 professionals from more than 40 different countries. Qatar 37%

Asia/Pacific 26% Europe 16% Middle East and Africa 16% Americas 5%

Employees Split by Nationality As at December 2015

More than five years 41% Between two and five years 35% Less than two years 24%

Employees Split by Tenure As at December 2015

37 % 41 %

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QIA’s strategy aims to increase the diversification of the investment portfolio and broaden the investment approaches that QIA pursues.

Our Strategy

19

QIA STRATEGY QIA reviews its strategy regularly, basing its review on the direction of the Board, the wider macroeconomic landscape, and its ongoing analysis of economic opportunities and potential investments.

In 2015, QIA developed a new strategy designed to build on its successful track record and also to reflect the shifting macroeconomic realities. In particular, QIA recognised that low growth, low interest rates, partially inflated asset prices, an abundance of liquidity in the market, and strong competition for investment opportunities from other investors defined the contemporary global economic environment. These realities necessitated a review of the existing investment approach and portfolio.

QIA’s new strategy aims to increase the diversification of the investment portfolio and broaden the investment approaches that QIA pursues. It also seeks to stabilise QIA as an organisation after a rapid growth phase, both in assets and in people.

The strategy is based on three pillars:

Alignment of risk-return expectations with the mandate of a savings fund In order to translate the QIA vision into a consistent strategy, the QIA Board defined a new long-term risk tolerance limit and formulated a sustainable risk/return expectation that puts wealth preservation at the top of the agenda.

The risk tolerance is aligned with the long-term characteristics of a global 60% Equity/40% Fixed Income portfolio. QIA believes this approach strikes the correct balance that will enable it to pursue sustainable growth and also preserve the long-term value of Qatar’s reserves.

Increased diversification of the portfolioAlongside the realignment of risk and reward, the new strategy looks to diversify QIA’s portfolio. There are two main elements to this approach.

The first is increased asset class diversification, which is designed to balance the portfolio and reduce volatility.

QIA aims to achieve this through allocations to indexed portfolios, with a stronger focus on unlisted private equity, direct real estate and infrastructure, and the addition of fixed income and credit to QIA’s portfolio. During the strategic review process, concentrated positions were reviewed and additional sectors with specialised teams were added to support this diversification process.

The second is increased geographical diversification. This involves QIA taking on a larger exposure to the US, as the world’s largest capital market, over the next few years. To support the business build-up in the US, in August 2015 QIA set up the Qatar Investment Authority Advisory (USA) in New York as a wholly owned subsidiary of Qatar Investment Authority. The primary role of this subsidiary is to strengthen partnerships, and provide investment research and advisory services in relation to existing and potential investments in North America.

Our Strategy


Diversification of investment approachesThe third pillar requires QIA to work with its network of international partners in order to diversify its investment approaches. QIA is a lean organisation and leverages a broad set of external sourcing and deployment options. Moving forward, QIA will prioritise investing alongside a set of strategic partners and creating co-investment opportunities with leading fund managers, large SWFs and institutional investors.

QIA is confident that this refined strategy provides it with a clear path for development and a strong foundation for future growth.

STRATEGY IMPLEMENTATION In implementing the new strategy, QIA has made significant progress across a number of key areas. This includes:

• Aligning the organisation to the new strategy by appointing a Head of Active Investments for listed and unlisted equities, and adding Heads of Fixed Income and Index Investments to the team.

• Realising a number of investments in geographies, sectors and asset classes aligned with the new strategy.

• Strengthening its partnerships and realising co-investments, particularly in real estate and infrastructure, in 2015 and into 2016.

• Focusing its internal capabilities by re-invigorating the Human Capital department.

• Introducing a consistent set of Strategic Scorecards and KPIs to align the organisation with its strategic goals.

QIA has integrated Strategic Scorecards into its performance management system. All strategic objectives are cascaded down and form part of the annual performance evaluation.

The strategic KPIs are defined on three levels:

Long-term target at a Total Fund level QIA has adopted a 10-year rolling real return target, corresponding to a risk premium over a global consumer price index (inflation).

Performance benchmarks and hurdle rates for each investment portfolio Internally, all strategies and sectors are assessed against a consistent set of benchmarks and hurdle rates to measure the investment performance of the different teams. The teams are typically assessed on a multi-year performance basis.

Process, Technology and People Metrics To ensure alignment of the organisation to the new strategy, QIA has adopted additional strategic KPIs to measure departmental performance.

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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: JUNE 2015 TO JUNE 2016 This period of turbulence began during the second half of 2015 with Greece defaulting on its debt to the International Monetary Fund. Global equities subsequently fell during Q3 2015, compounded by concerns regarding the slowdown in the Chinese economy and the potential impact on global growth. After an impressive two-year rally, Chinese equities fell over 50% during the latter half of 2015 and early 2016. The Chinese authorities responded to these market events with a combination of currency policies, equity market circuit-breakers, banking reserve requirements, and lower lending rates to calm investors’ nerves.

Over the same time period, the commodities markets experienced a similar level of volatility. Oil prices plunged to their lowest level since the global financial crisis, driven by rising supply, alternative fuel sources and waning global demand, again connected to the slowdown in Chinese economic growth.

In addition to the supply and demand imbalance, commodity prices also faced headwinds from a strong US currency. The US dollar strengthened during the period leading up to the US Federal Reserve’s decision in December to raise interest rates, making the US the first major economy to raise interest rates since the onset of the global financial crisis in 2008.

After hitting a low point in February 2016, Chinese equities, oil prices and global markets staged a rebound in the second half of Q1 2016. Risk assets were further boosted in March when the European Central Bank announced that it would expand its asset purchase programme to include corporate bonds. However, the relative calm was short-lived as the UK’s decision to leave the European Union prompted a flight to quality that caused equities and bond yields to fall sharply, and the US dollar to strengthen.

The markets are still digesting the implications of the UK’s exit from Europe, and indeed there are still many uncertainties in terms of how the process will evolve. However, the following observations can be made:

1. The market’s immediate reaction was one of surprise. The majority of market participants had expected the UK to remain within the EU.

2. Consensus is building among economists that the UK will enter a technical recession and that Europe will also experience some degree of negative growth in the near to medium term.

3. The full political and economic implications will take time to fully materialise, and even more time to resolve.

4. Uncertainty is likely to result in more frequent and more sustained periods of volatility in the near to medium term.

5. The long-term economic fundamentals of both the UK and Europe should provide opportunities for investors with a long-term investment horizon.

Our Strategy continued


MARKET OUTLOOKWe 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 geopolitical events We believe that investors will turn their attention away from shorter-term considerations such as the US presidential election, to longer-term variables such as the strength of the consumer, the business cycle, and the evolving geopolitical landscape. As such, the low level of productivity growth globally, dwindling corporate profitability, and the decline in global trade are likely to have a larger impact on financial asset valuations going forward and drive increased volatility.

Sustained monetary stimulusWhile the Federal Reserve was the first major central bank to raise interest rates, the Bank of Japan and European Central Bank are expected to maintain their easing bias and keep interest rates in negative territory for the foreseeable future, in their ongoing efforts to stimulate economic growth. The UK’s decision to leave the EU only increases the chances of further stimulus from the ECB, while in the US we expect policymakers to pause the rate normalisation process amid fresh concerns over the strength and sustainability of global economic growth.

This prolonged period of monetary stimulus, coupled with structural reforms being implemented in China and Brazil, is likely to produce new opportunities for investors with the ability to withstand periods of short-term market volatility.

Quest for yield and returnsThe low absolute level of interest rates and flat yield curve will force investors to seek income-producing assets. While risk assets have undoubtedly benefited from monetary stimulus, we believe that most real economies will require fiscal policy or external investment support if they are to return to their potential growth rates. We expect these pressures to remain for the foreseeable future, which can lead to opportunities for longer-term investors, such as sovereign wealth funds, to capture the illiquidity premium associated with long-term investments such as infrastructure and real estate.

In summary, we believe these themes will continue to create opportunities for long-term disciplined investors.

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

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Investment Approach

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QIA’s success is built upon three key factors: • A strong talent pool• Adherence to a robust decision-making process• Pursuing clear investment objectives

Investment Approach

While QIA continued to refine and adapt its strategy in 2015, at its core it retains a clear investment philosophy and approach. This approach understands that QIA’s success is built upon three key factors:

• A strong talent pool• Adherence to a robust

decision-making process• Pursuing clear investment

objectives

OUR INVESTMENT APPROACHQIA has developed and refined its investment approach since its inception. We constantly adapt our approach to global market circumstances to reflect the following principles.

Long-term and strategicOur 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.

Our approach enables us to execute investments in a skilful and timely manner, deploying our flexibility and dynamism to take advantage of market opportunities and trends.

Prudent balance of risk and returnOur approach is based on prudent risk management. Our objective is to achieve a sustainable rate of return within levels of risk defined by the SCEAI and QIA’s Board. Similarly, all our investments undergo a rigorous legal and compliance process.

Financially driven objectivesOur portfolio reflects our investment mandate of purely economic and financial objectives.


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 invested through hedge funds, for example:

- CTA/Macro strategies - Long-short strategies

• Residential real estate

• Real estate funds

We invest globally, directly or through funds, in the following asset classes:

QIA Asset Classes (Examples)

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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 PROCESSMost of our investments are made through direct investment teams, which are organised along global industry sectors for Equities/Private Equity investments. In addition, Fund investment teams invest in third-party funds across all asset classes (including Alternatives and Hedge Funds), to access investment themes or strategies otherwise not readily available, and also to generate co-investments with leading institutions around the world.

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. To allow us to grow the QIA portfolio at the required rate, we typically aim for large-ticket investments in established companies or companies at a mature development stage.

We follow a rigorous four-stage approach for each investment, be it a direct investment or a fund investment.

OriginationOur teams originate deals from multiple sources. These include proprietary sources, both in-house and through strategic partnerships, as well as a network of leading institutions and partners. Examples are investment banks, private equity funds, governments, and other sovereign wealth funds.

EvaluationDeal evaluation is at the core of what we do. We conduct thorough multi-stage evaluations that include financial and legal due diligence. All investments are discussed and evaluated by the Management Investment Committee. When pre-screening potential investments, we conduct a consistent set of analyses to assess whether the deal should enter the pipeline.

The key parameters of the evaluations include:

• Financial and legal due diligence

• Investment thesis• Risk assessment

Investment Approach continued


ExecutionOnce approved, investments are executed by the Capital Markets and/or M&A teams, who specialise in negotiating complex deals, running longer timed asset-purchase programmes, and hedging risks where appropriate.

Active portfolio management/ value creationWe 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.

QIA also exercises its shareholder rights and is represented at shareholders’ meetings where it has significant stakes. The same diligence is applied to our investments in third-party funds: just as we select external managers using a thorough investment process, we also continue to manage and monitor them in this way.

Investment process

Evaluation ExecutionActive portfolio management/ Value creation

Origination

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Risk Management

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Risk Management

We manage our portfolio within the levels of risk defined by SCEAI and QIA’s Board.

RISK GOVERNANCEQIA has implemented a comprehensive Risk Management Framework.

The investment objectives and risk tolerances for the investment portfolio are as defined by QIA’s Board under the supervision of the SCEAI. The Board has defined investment return objectives, in addition to a risk appetite statement that sets out both the types and level of risk that the Board is willing to accept in 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.

RISK MANAGEMENT FRAMEWORKThe risks to which QIA is exposed can be categorised into Investment and Operational risks. Our Risk Management Framework provides a structure for the identification, management and reporting of these risks.

INVESTMENT RISKSOur Investment Risks can be classified as follows:

• Market Risk• Credit Risk• Liquidity Risk

Our approach for managing these risks is detailed below.

The investment objectives and risk tolerances for the investment portfolio are as defined by QIA’s Board under the supervision of the SCEAI.

QIA Risk Management Framework

Investment Risks Operational Risks

Market Risk Human Resource Risk Process Risk

Credit Risk Systems Risk Regulatory Risk

Liquidity Risk Reputational and Strategic Risk External Events


Market RiskMarket risk is defined as the potential for investment losses stemming from adverse movements in market prices. For the QIA, the main components of market risk are movements in equity prices, interest rates and exchange rates.

We assess market risk by using several measures, including value-at-risk metrics and stress testing. On a daily basis we also monitor trading positions, market exposures and profit and loss. The Risk Management department ensures that Investment Teams are informed of the risk profiles of their respective portfolios on a regular basis.

Credit RiskCredit risk is defined as the risk of losses stemming from the default or credit downgrade of a counterparty. QIA can be exposed to counterparty credit risk through its investment activities in treasury operations, derivatives hedging or trading, as well as through direct investment in debt and debt-like instruments.

QIA trades only with financially sound counterparties after a detailed and specific selection and approval process. We monitor counterparty exposures on a daily basis against approved limits and, where appropriate, we implement netting agreements and apply collateral or other credit enhancements to mitigate credit risk.

Liquidity RiskLiquidity risk arises in two situations: asset liquidity and funding liquidity. Asset liquidity risk is the inability to sell a position that is large relative to the volume 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.

OPERATIONAL RISKOperational risk is defined as the risk of losses resulting from inadequate or failed business processes, people and systems, or from external events impacting an organisation’s operations. Our Risk Management team operates in accordance with international standards, as well as local requirements of the multiple jurisdictions in which we operate. QIA has strong controls in place to minimise operational risks:

• Investment and Operating Teams are required to identify, manage and report Operational Risk events within their areas of responsibility

• Risk Management department records, investigates and assesses operational risk events to avoid recurrence

• We ensure business continuity plans are in place and tested to ensure QIA is resilient in the event of natural disasters or other business interruptions

For the QIA, the main components of market risk are movements in equity prices, interest rates and exchange rates.

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Our Portfolio

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INTERNATIONAL PORTFOLIOQIA has built a diversified and global investment portfolio for the benefit of the State of Qatar. We aim to generate sustainable returns and maintain resilience against adverse market cycles and volatility.

We continually review our investment strategy, to take into account ever-changing market conditions and developing trends, and also to identify and take advantage of new opportunities. QIA translates its long-term objectives into a high-level asset allocation, as illustrated in the below graph, but explicitly retains the ability to allocate assets dynamically and flexibly. This enables us to identify a broader set of opportunities, and to make bold and intelligent investments.

Listed Equities/Private Equity remains the most important asset class and may constitute up to 80% of the portfolio. For example, we have successful flagship investments in entities such as Volkswagen, Barclays, Credit Suisse, and Harrods. QIA also invests selectively in equity index-tracking strategies, to effectively complement the active equity investment portfolio and achieve efficient access to global financial markets.

Credit/Fixed Income investments add diversification, liquidity, and income yield to the portfolio. The asset class may constitute between 10% and 25% depending on the overall portfolio composition and market conditions.

Real Estate may constitute up to 25% of the portfolio in the long term. It increases diversification and adds income yield. For example, QIA has invested in Canary Wharf in London, and recently acquired the Asia Square Tower 1 in Singapore.

Multi-strategy investments, for example in absolute return or macro strategies, help to diversify the portfolio by investing in portfolios with limited correlation to our other asset classes. These strategies may constitute up to 5% of the portfolio.

Our Portfolio

QIA translates its long-term objectives into a high-level asset allocation, as illustrated in the graph, but explicitly retains the ability to allocate assets dynamically and flexibly.

* Does not add up to 100% as allocations within asset class ranges fluctuate.

Long-term asset class ranges*

50-80%Listed Equities/ Private Equity

Credit/ Fixed Income

10-25%

Real Estate 15-25%

Multi-strategy 0-5%


Direct Investments Map (Selected)

Algeria

Russia

Singapore

Malaysia

India

Austraila

Indonesia

Taiwan

Canada

USA

Brazil

Japan

Ukraine

South Africa

South Korea

Portugal

Switzerland

Luxembourg

Italy

Germany

Spain

United Kingdom

France

Poland

Jordan

Egypt

Bahrain

UAE

Saudi Arabia

Oman

Qatar

Morocco

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QATAR INVESTMENTS 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, many of which have developed world-class expertise and global reach, extending their operations and business interests outside of Qatar. It is our objective to support the development 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.

QIA aims to ensure the alignment of all subsidiaries in terms of value creation and risk management practices through clear governance principles and policies. We also support their growth through our global sector expertise; offer the support of our highly qualified Legal, M&A, Strategy, and Capital Markets teams; and enable access to our network of international partners.

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.

Our Portfolio continued


Qatar National Bank (QNB) Qatar National Bank S.A.Q (QNB Group) was established in 1964 as the country’s first Qatari-owned commercial bank, with an ownership structure split between the Qatar Investment Authority (50%) and the other 50% held by members of the public.

QNB Group has steadily grown to be the biggest bank in Qatar, and a leading financial institution in the Middle East and Africa region.

The Group has recently completed the acquisition of a 99.81% stake in Turkey’s Finansbank A.S., the fifth-largest privately owned universal bank in Turkey by total assets, customer deposits, and loans. QNB owns a 20% stake (both ordinary and QNB convertible preference shares) in Ecobank Transnational Incorporated (Ecobank), the leading pan-African bank. In 2013, the Group successfully completed the acquisition of a controlling stake in the second-largest private bank in Egypt, QNB ALAHLI (QNBAA), amounting to 97.12%.

The Group has also extended its regional reach by acquiring stakes in various financial institutions,

including a 35% stake in the Jordan-based Housing Bank for Trade and Finance (HBTF), 40% in Commercial Bank International (CBI) based in the United Arab Emirates (UAE), 99.96% of QNB Tunisia, 51% in the Iraqi-based Al-Mansour Investment Bank, 49% of the Libyan-based Bank of Commerce & Development, and a 20% stake in Al Jazeera Finance Company in Doha. QNB Group also retains a 51% stake in QNB-Syria, and an 82.59% stake in QNB Indonesia.

The Group’s presence through its subsidiaries and associate companies now extends to more than 30 countries across three continents, providing a comprehensive range of advanced products and services. The total number of employees is more than 27,300, operating through more than 1,200 locations, with an ATM network of more than 4,300 machines.

QNB Group has maintained its position as one of the highest-rated regional banks from leading credit rating agencies including Standard & Poor’s (A+), Moody’s (Aa3), Fitch (AA–), and Capital Intelligence (AA–). The Bank has also been the recipient of many awards from leading international specialised financial publications.

The Group provides an array of investment banking services through its subsidiary, QNB Capital, to corporate, government and institutional clients, within Qatar and globally.

QNB Capital has one of the best corporate finance teams in the GCC region, offering extensive transaction experience and in-depth advisory – including mergers and acquisitions, equity and debt capital markets, and project financing advisory. The Group also offers brokerage services through its subsidiary, QNB Financial Services (QNB FS), the first independently regulated licensed brokerage company launched by a bank in Qatar. QNB FS offers a multi-market, multi-currency trading platform with access to several markets.

Based on the Group’s consistent strong financial performance and its expanding international presence, QNB is currently ranked as the most valuable bank brand in the Middle East and Africa, according to Brand Finance magazine.

Bloomberg Markets, the leading provider of business, financial, and economic news, has been ranking QNB as ‘One of the World’s Strongest Banks’ since 2013.

Global Finance magazine ranked QNB as ‘One of The Top 50 Safest Banks in the World’ in 2013. For two consecutive years, 2014 and 2015, the Bank was recognised as ‘Best Bank in The Middle East’ by Euromoney magazine.

QNB Group has an active community support programme and sponsors various social, educational and sporting events.

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Ooredoo (Qatar Telecom)Ooredoo is a leading international communications company delivering mobile, fixed, broadband internet, and corporate managed services tailored to the needs of consumers and businesses across markets in the Middle East, North Africa and Southeast Asia, serving 114 million customers in markets such as Qatar, Kuwait, Oman, Algeria, Tunisia, Iraq, Palestine, the Maldives and Indonesia. Ooredoo’s assets are well balanced and diversified, with Qatar representing less than 20% of Group revenues.

Ooredoo’s journey started in 1987, but its international expansion began in 2006 with the acquisition of Wataniya Group. Since then international acquisitions, strong organic growth, prudent investments, the hard work of our team in all our markets, and the growth and loyalty of our customers have combined to make us one of the world’s most exciting communications companies.

The company’s future strategy will be based on three pillars:

• Disciplined investments focused on delivering strategic and financial benefits

• Focus on increasing revenues from broadband data besides voice growth, taking advantage of a high-quality customer experience

• Improving performance by identifying synergies across the Group, product development, and innovation and cost control

As a community-focused company, Ooredoo is guided by its vision of enriching people’s lives, and its belief that it can stimulate human growth by leveraging communications to help people achieve their full potential. Ooredoo has a presence in markets such as Qatar, Kuwait, Oman, Algeria, Tunisia, Iraq, Palestine, the Maldives, Myanmar and Indonesia. The company was named ‘Best Mobile Operator of the Year’ at the World Communication Awards 2013.

Ooredoo Group focuses on three business lines (Consumer Mobile, Consumer Broadband, and Enterprise) across three geographies (Middle East, North Africa, and South-East Asia). Our strategic priorities include Convergence, Network Consolidation, and Efficiency across the Group.


Qatar AirwaysAs a global airline leader, Qatar Airways has built a worldwide network based on key business and leisure destinations across Europe, Middle East, Africa, Asia Pacific, North America, and South America, with scheduled flights operating to and from its hub in Doha. Qatar Airways has achieved a significant route expansion, averaging double-digit growth year-to-year and flying one of the most modern aircraft fleets in the skies today.

Qatar Airways is one of the youngest global airlines to serve all six continents, and, thanks to its customers’ response to its offerings, Qatar Airways is also the fastest-growing airline in the world. Qatar Airways connects more than 150 destinations on the map every day, with a fleet of 179 of the latest-generation aircraft, and an unrivalled level of service from its home and hub, the state-of-the-art Hamad International Airport in Doha, State of Qatar.

Qatar Airways is continually improving its impact on the environment, and actively participates in aviation’s approach to tackling climate change. With more than 330 new aircraft on order, a further investment of US$70 billion is being made to ensure that Qatar Airways continues to operate a fuel-efficient fleet. This investment underpins its commitment to the environment and ensures a first-class travel experience for its customers.

As a member of oneworld, Qatar Airways works with partner airlines to achieve even more efficient air travel. This includes supporting Air Traffic Control authorities to move towards more efficient airspace management, and collaborating to enable passengers to use e-tickets throughout their global journey, to reduce the printing of paper tickets.

One of Qatar Airways’ many social initiatives is ‘Educate A Child’, a programme of Education Above All, a global initiative launched by Her Highness Sheikha Moza bint Nasser of Qatar, which aims to significantly reduce the numbers of children worldwide who are missing out on their right to education.

Since its launch in 1997, Qatar Airways has earned many awards and accolades, becoming one of an elite group of airlines worldwide to have earned a 5-star rating by Skytrax. Voted Airline of the Year by Skytrax in 2011, 2012, and most recently in 2015, Qatar Airways has won the confidence of the travelling public.

Qatar Airways has accomplished these goals by focusing on the details – how it runs the business, and how you experience the airline.

Qatar Airways’ goal is to be everybody’s airline of choice, offering the flights they want to the destinations they need. That drives this team of 40,000 professionals every day, and will continue to motivate them to make Qatar Airways everybody’s preferred airline.

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Qatari DiarQatari Diar Real Estate Company was established in 2005 by the Qatar Investment Authority, the sovereign wealth fund of the State of Qatar. Headquartered northeast of capital Doha on the coast of the Arabian Gulf, Qatari Diar was entrusted to support Qatar’s growing economy and to coordinate the country’s real estate development priorities.

The company’s first project, Lusail City, was launched in December 2005 and quickly went on to gain tremendous praise for its innovative approach to real estate. The progressive, self-contained city is the largest single development to be undertaken in the State of Qatar, and although it is currently under construction, Lusail already signifies Qatar’s progress on a grand scale, reflecting the vision and quality that have become synonymous with Qatari Diar.

The Lusail Real Estate Development Company was established in September 2008 with a dedication to the development, construction and ongoing operations of the visionary Lusail City development.

In November 2009, Qatari Diar reached another significant milestone in its history with the establishment of the Qatar Railways Development Company. The company was created to bring Qatar’s vision for developing Qatar’s extensive national railway network, and the region’s first fully integrated railway system, to life.

Parallel to its significant infrastructure developments within Qatar, the company has been committed since its founding to bringing the Qatari Diar vision, one for real estate that improves quality of life and contributes to the community, onto the international stage. Today, Qatari Diar has established itself as one of the world’s most trusted and respected real estate companies because of its commitment to quality, local community, partnership, and hallmark sustainability.

Some of the most successful and coveted international projects include:

• Chelsea Barracks• US Embassy, London• City Center, Washington D.C.• Sea Pearl Ataköy, Istanbul • City Gate, Egypt

As of January 2012, Qatari Diar is capitalised at US$4 billion. It has more than 49 projects under development or planning in Qatar and in 29 countries around the world, with a combined value of over US$35 billion.


Qatar Stock ExchangeActive since 1997, the primary aim of the Qatar Stock Exchange is to support Qatar’s economy by giving investors a platform through which they can trade fairly and efficiently. The Exchange is part of a comprehensive national strategy that aims to establish Qatar as a world-class international market. It will reinforce the country’s position as a regional financing centre by introducing new trading products, technology, and international investors and issuers to Doha.

QSE is an important contributor to the diversification of the economy. It is used for allocating capital to business and government projects, and for capital formation by providing liquidity to existing companies. It is also a platform for the Government’s privatisation programme, and helps to develop SMEs through the QSE Venture Market.

QSE operates in a variety of economic sectors such as banking, real estate, industrials, and other sectors. Based on this, QSE constitutes the best place for investors, providing them with a variety of investment products and tools and allowing them to develop their savings while also contributing to the national economy.

The agreement with NYSE Euronext marks the beginning of a new era for the Qatar Stock Exchange. The partnership will help establish the Qatar Stock Exchange as a world-class international market, and reinforce the country’s position as a regional financial centre with the introduction to Doha of new trading products, technology, and international investors and issuers.

As part of QSE’s brand awareness efforts, the successful hosting of its WFE 55th General Assembly and Annual Meeting in Doha was one of the major achievements in 2015. The hosting of this major international event, which is the first of its kind in the region, reflects the international recognition of the advanced level and remarkable developments achieved by Qatar’s capital markets.

In 2015, more than 2,500 people comprising public investors, university and school students, and brokerage and corporate employees benefited from investment awareness programmes. As part of QSE’s strategic objectives and social responsibility activities, we are keen to educate citizens and residents about every new product or service introduced in the market. For this purpose, the Exchange continued to hold free educational workshops and awareness sessions in English and Arabic, covering various specialised topics of interest related to new initiatives and products. Some of these sessions were held independently, and others were held in collaboration with the best local educational institutions.

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Katara Hospitality Katara Hospitality is a global hotel owner, developer, and operator based in Qatar. With more than 45 years’ experience in the industry, Katara Hospitality actively pursues its strategic expansion plans by investing in peerless hotels in Qatar, while growing its collection of iconic properties in key international markets. Katara Hospitality has 35 properties in operation or under development in its portfolio.

As the country’s flagship hospitality organisation, Katara Hospitality supports Qatar’s long-term economic vision. Katara Hospitality currently owns properties spread across three continents in Qatar, Egypt, Morocco, UK, France, Germany, Italy, Spain, Switzerland, The Netherlands, Singapore, and Thailand.

While it partners with some of the finest hotel management companies, Katara Hospitality operates owned and non-owned hotels through its standalone operating arm. Katara Hospitality has gained global recognition for the contributions it has made to the Qatari and international hospitality landscapes.

Some of the hotels owned by Katara include:

• The Westin Excelsior Rome• The Savoy, a Fairmont

Managed Hotel• InterContinental Carlton

Cannes• Royal Savoy Lausanne• The Peninsula Paris• Le Royal Monceau –

Raffles Paris • Excelsior Hotel Gallia – a Luxury

Collection Hotel Milan• Raffles Hotel Singapore• The Ritz-Carlton Doha• Sheraton Doha

The World Travel Awards have named it the World’s Leading Hospitality Company for two years running, as well as the Middle East’s Leading Hospitality Development Company for the second consecutive year in 2015.

Katara was also named the Middle East Leading Tourism Development Project for the iconic Katara Towers development in Marina District of Doha’s Lusail City. On a regional scale, Katara Hospitality has been recognised as the Hospitality Company of the Year at the fifth Arabian Business Qatar Awards, and the 2014 Hospitality Achiever at the Inaugural Qatar Enterprise Agility Awards.


MowasalatMowasalat, popularly known as ‘the Transport Company’ in Qatar, started its activities by providing land transport services and solutions in October 2004. Mowasalat has widened its reach by offering several solutions to fulfil a variety of requirements by providing Airport Taxi, Standard Taxi, VIP Limousine, Standard Limousine, Public Bus Service, School Bus Service, and Private Hire Bus and Coach Services.

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 has developed a highly efficient transport system and improved capacity to provide high-class quality services. Mowasalat is immersing quality, health, safety and environmental issues in the culture and values of the company, and managing these elements as an integral part of their work.

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Al Rayyan Hospitality

Al Rayyan has developed an illustrious collection of luxurious properties in Qatar and the UK, including the historic Souq Waqif Boutique Hotels in the heart of Doha; Banana Island Resort Doha on an island off the Doha coast; and the Adria Boutique Hotel in the Royal Borough of Kensington in central London.

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 memorable destinations across its growing portfolio of world-class boutique hotels and resorts.

Over the coming years, Al Rayyan will expand its portfolio with the launch of a range of exciting new projects, including the Salwa Beach Resort, set on 3 million square metres of prime coastline in southwest Qatar, and Al Messila Resort & Spa, surrounded by 33 acres of lush landscaping in central Doha.


Hassad FoodEstablished in 2008, Hassad Food is Qatar’s premier investor in the food and agri-business sectors. It is entrusted with supporting the needs of Qatar’s growing economy, while at the same time realising profitable and sustainable business objectives.

Hassad Food has diverse vertical investments in Qatar, Australia, Pakistan and Oman, with potential future investments in Asia, Africa, Europe, and North and South America.

Through its various subsidiaries, Hassad produces 8000 tons of green fodder, 3 million cut flowers, 100 tons of chemical-free vegetables, 179,000 tons of grains, and 250,000 heads of sheep each year.

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 welfare of Qatar and other societies, using efficient technology in harmony with the environment, and adhering to the highest standards of corporate social responsibility.

Hassad operates a successful and sustainable long-term investment and operational model, while catering for immediate market requirements. It is committed to promoting a better quality of life, providing employment opportunities, and achieving long-term economic goals for the people of Qatar and the communities they serve and invest in.

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Qatar Investment AuthorityP.O.Box 23224, Doha, Qatar Tel. +974 4499 5900 Email: [email protected]

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