Qatar’s proposed new $12bn semi-sovereign investment firm will not be Shari’a compliant, MEES learns. This will likely dampen local interest in the firm. Qatar hopes to attract $2.5bn in investment from Qatari businesses and financial institutions and at least $500mn from private Qatari citizens. The new firm, Doha Global Investment (DGI), is set make an initial public offering (IPO) and list on the Qatar Exchange in the coming 6-8 weeks.
Of the initial seed money for the firm, $3bn will come from Qatar Holding, an arm of the Qatar Investment Authority – the gas giant’s sovereign wealth fund (SWF). This sum, in addition to the funds to be raised in DGI’s IPO, will account for about half of the $12bn investment goal. DGI will raise the remaining $6bn in capital at an as yet underdetermined date; it is possible that the firm will turn to foreign investors to secure at least part of the cash. Husain al-‘Abd Allah, Vice Chairman of Qatar Holding, says that the new firm will target a range of investments, including real estate, bonds and equities. (CONTINUED - 301 WORDS)