As a steady stream of Qatari economic figures show signs of slowing growth, Qatar's state investment vehicles are turning their vast capital reserves inwards.
Last month, the Qatar Investment Authority, which typically invests in assets overseas to prevent additional liquidity from gas receipts from flooding the local market, said it was preparing to buy into Qatar Insurance Company (QIC), a local firm.
The insurer said its board had approved the sale of 7,755,574 shares to Qatar Holding at an implied total cost of US$134.1 million (Dh492.5m), which it said would increase the firm's capital by $21.3m.
The move was made "to take advantage of the economic strength of Qatar Holding, as a strategic partner in strengthening investor confidence in the shares of QIC, strengthen its financial position to contribute its future plans, install its regional presence and confirm their survival in the competition between the major insurance companies at the regional and international levels," QIC said in a statement to the Qatar Exchange.
Gulf International Services, an oilfield services company, also agreed to allow the Qatari General Retirement and Pension Authority to take a 21.4 per cent stake in the company, increasing from a current 1.4 per cent through a purchase of shares from Qatar Petroleum.
Not all Qatari companies are seeking funding from the country's government investors. Industries Qatar and Qatar Cement have both upped their limits on share purchases by international investors during the past few months.
Signs of strain can be found across Qatar's economy, even if they are manageable for now. Loans at Qatari banks represented 112 per cent of deposits at the end of September. Although the rate has improved from a peak of 121.8 per cent in June, banks remain overextended and dependent on interbank lending. Equity outflows by international investors have totalled $588m so far this year, more than offsetting inflows into markets in the rest of the Middle East, says Deutsche Bank.
ghunter@thenational.ae
Top investing tips for UAE residents in 2021
Build an emergency fund: Make sure you have enough cash to cover six months of expenses as a buffer against unexpected problems before you begin investing, advises Steve Cronin, the founder of DeadSimpleSaving.com.
Think long-term: When you invest, you need to have a long-term mindset, so don’t worry about momentary ups and downs in the stock market.
Invest worldwide: Diversify your investments globally, ideally by way of a global stock index fund.
Is your money tied up: Avoid anything where you cannot get your money back in full within a month at any time without any penalty.
Skip past the promises: “If an investment product is offering more than 10 per cent return per year, it is either extremely risky or a scam,” Mr Cronin says.
Choose plans with low fees: Make sure that any funds you buy do not charge more than 1 per cent in fees, Mr Cronin says. “If you invest by yourself, you can easily stay below this figure.” Managed funds and commissionable investments often come with higher fees.
Be sceptical about recommendations: If someone suggests an investment to you, ask if they stand to gain, advises Mr Cronin. “If they are receiving commission, they are unlikely to recommend an investment that’s best for you.”
Get financially independent: Mr Cronin advises UAE residents to pursue financial independence. Start with a Google search and improve your knowledge via expat investing websites or Facebook groups such as SimplyFI.
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
A list of the animal rescue organisations in the UAE
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Liverpool's all-time goalscorers
Ian Rush 346
Roger Hunt 285
Mohamed Salah 250
Gordon Hodgson 241
Billy Liddell 228
