The Qatar Investment Authority (QIA) views Japan as a pivotal market, actively seeking new opportunities in the region, according to a report by Nikkei Asia, citing Abdulla Ali Al-Kuwari, head of Asia-Pacific investments for the fund.
Since opening a Singapore office in 2021 to expand in East Asia, QIA “has more than doubled its investments in Japan,” Kuwari stated in an interview. QIA, established in 2005, is one of the leading sovereign wealth funds in West Asia, managing an estimated $500 billion in assets.
QIA’s investments in Japan accelerated post-2020, with several hundred billion yen invested to date, including a 5 percent stake in chipmaking equipment supplier Kokusai Electric worth about 50 billion yen.
“It’s a key market for us,” said Kuwari, emphasising his frequent visits to Japan. He did not disclose specific investment targets but noted that QIA has a dedicated and expanding team for Japan.
Kuwari described QIA’s investment approach as “agnostic” regarding the size of individual investments, focusing on opportunities instead. He highlighted a recent $1 billion investment in India’s Reliance Retail Ventures.
Besides semiconductors, QIA sees potential in Japan’s manufacturing and real estate sectors, while keeping an eye on the financial institutions sector due to ongoing discussions about interest rates.
Japan constitutes about 4 percent of global GDP and 5 percent of the MSCI ACWI Index. To align Japanese stock holdings with this ratio, QIA would need investments totalling 3 trillion to 4 trillion yen.
QIA was founded to diversify Qatar’s economy and reduce its reliance on liquefied natural gas and oil. It provided crucial capital following the 2008 financial crisis and remains a significant shareholder in UK bank Barclays and was a major investor in Credit Suisse.
Kuwari outlined QIA’s three main investment principles: “How to be long-term investors, how to be financial investors and not operators. And finally, how to find the partners that we have.”
