June 17, 2024

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Any likely economic downturn will be ‘light’: Qatar Expenditure Authority CEO

The CEO of Qatar’s sovereign prosperity fund believes that if the globe sees a recession, it will be “light.”

Mounting fears of a looming economic downturn pushed U.S. stocks briefly into a bear market on Friday, as Covid-19 associated shutdowns in China, rising curiosity premiums and a charge of dwelling crisis impression trader sentiment. 

“The offer-off that we see (is) embedded in all of the bad scenarios that we are chatting about. So we are conversing about economic downturn, inflation and geopolitical troubles,” Qatar Expense Authority CEO Mansoor Al Mahmoud explained to CNBC’s Hadley Gamble at Davos.

The QIA, which manages $450 billion in assets, is rated as the world’s ninth-largest sovereign wealth fund, in accordance to the Sovereign Wealth Fund Institute.

Al Mahmoud reported that he is “considerably less pessimistic” regardless of the global economy’s present predicament as it recovers from the pandemic. “We are in improved form in terms of the banking sector that has a superior equilibrium sheet, we have very good liquidity,” the CEO added. “I am not declaring that we will not have a slowdown, I’m not saying that we could not have a economic downturn, but if we have a recession, it will be a gentle economic downturn.” 

Qatar aiding Europe’s strength changeover

As Germany seeks to wean itself off Russian power, Chancellor Olaf Scholz hailed Doha’s important position in Berlin’s transition, agreeing to an “energy partnership” immediately after the Qatari emir’s pay a visit to. Qatar is aiming to commence LNG deliveries by 2024.   

The QIA chief advised CNBC: “We can’t cease investing in Europe, we will aid them towards the changeover of strength. Of training course, during this 12 months, they could have difficulties, for the reason that the (strength) value is not serving to the development of Europe.”

He also hailed Germany’s press for renewable resources of power, saying “they are incredibly superior (in) their changeover.”   

Inspite of QIA’s dedication to Europe, the fund is not guaranteed if investments will see any rapid return with the present electricity disaster weighing on expansion. “I (am) genuinely bullish about Europe in about three to 5 many years,” Al Mahmoud explained.

A post-pandemic strategy