DOHA: There is concern in Qatar, which is a major investor in US and European assets, that haphazard attempts by countries to shore up their economies could weaken the dollar and the euro.
The Prime Minister and Foreign Minister, H E Sheikh Hamad bin Jassem bin Jabor Al Thani who also holds the foreign affairs portfolio and heads the Qatar Investment Authority (QIA), the country’s sovereign wealth fund, hinted in an interview to a key international business TV channel that countries printing money without having a strategy could adversely impact its value.
The central banks were right to act to prevent worse crises, said the PM in an interview to CNBC which was aired last Friday. He, however, added: “With more printing money, without having a strategy, I believe the value of the money will go down very soon.”
He said the risk of further volatility in markets was making investors such as Qatar cautious.
The PM told CNBC: “What should happen is we should have a full package with a full strategy to solve the problems.”
QIA whose assets are worth billions of dollars is a key investor in the US and European countries.
“There are some questions with no answer up to now,” the Premier told CNBC. However, the PM added that Qatar would retain holdings of strategic stocks and buy when prices dropped, and that it would continue to make new investments in promising assets.
He said he was optimistic about the longer-term future of the banking industry, since better regulation and capital-raising would strengthen banks after some years.
He noted that QIA had a strategic stake in Credit Suisse , and owned about one percent of Bank of America and five percent of Santander Brasil, among other banks. “If there is some good opportunity, why not,” he said of QIA investing in crisis-hit Europe.
About the Xstrata bid, the Premier told CNBC: “We have no problem with the new price,” but added, “Other aspects (of the proposed deal) have to be studied.”
Asked about Qatar’s intentions towards AUX, the PM told CNBC: “We’re studying it. Still there is no commitment from our side.” Details of the proposal need to be presented to the board, he added without elaborating.
Meanwhile, figures released by the Qatar Statistics Authority (QSA) revealed yesterday that economic growth from a year earlier in inflation-adjusted terms was estimated at five percent during the second quarter (Q2) of this year.
Nominal gross domestic product (GDP) was estimated at QR173.36bn ($47.5bn) during Q2 of 2012, rising 11.9 percent over Q2 of last year. A highlight has been that sectors such as manufacturing, construction, transport and government services have given a double-digit push to the nominal GDP, the QSA said.
The Peninsula
