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Qatar Sovereign Fund Plans to Expand Activities in Asia

The Qatari flag is seen at a park near Doha Corniche, in Doha, Qatar February 17, 2018. (Reuters)
The Qatari flag is seen at a park near Doha Corniche, in Doha, Qatar February 17, 2018. (Reuters)
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Qatar Sovereign Fund Plans to Expand Activities in Asia

The Qatari flag is seen at a park near Doha Corniche, in Doha, Qatar February 17, 2018. (Reuters)
The Qatari flag is seen at a park near Doha Corniche, in Doha, Qatar February 17, 2018. (Reuters)

Head of Asia-Pacific Advisory at the Qatar Investment Authority (QIA) Abdullah Al-Kuwari announced that the country's sovereign wealth fund is currently expanding its operations in Australia, South Korea, and Southeast Asia, according to a report by Reuters.

Speaking at the Milken Institute Asia Summit in Singapore, Al-Kuwari said QIA is identifying investment opportunities, including corporate spin-offs and acquisition deals in Japan, along with prospects in the technology sector in India.

The Qatar Investment Authority, one of the largest investors globally, manages assets estimated at $526 billion, as reported by the Sovereign Wealth Fund Institute.

Al-Kuwari indicated that the fund plans to increase its workforce in Australia and South Korea and has already started building its team in Japan, with plans to further expand. He emphasized Japan as a key market for QIA’s future focus.

The fund’s expansion in Asia, where it already holds stakes in the London Stock Exchange and Spain’s Iberdrola, aligns with its strategy to diversify investments beyond its traditional European and American markets.

In June, Reuters reported that QIA had agreed to acquire a 10% stake in China Asset Management, the second-largest mutual fund company in China.

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Fitch Revises Italy's Outlook to 'Positive' on Stronger Fiscal Performance

Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
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Fitch Revises Italy's Outlook to 'Positive' on Stronger Fiscal Performance

Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights

Global credit ratings agency Fitch on Friday revised its outlook on Italy to 'positive' from 'stable', citing recent improvements in the fiscal performance of the euro zone's third largest economy and its commitment to EU budget regulations.
The upgrade to the outlook is a boost to Prime Minister Giorgia Meloni's government and comes shortly after Rome reached an agreement with the European Commission on a seven-year budget adjustment, said Reuters.
"Italy's fiscal credibility has increased, and the 2025 budget underscores the government's commitment to EU fiscal rules," Fitch said in a statement.
The agency confirmed Italy's rating at 'BBB'.
In June, the Commission placed Italy and six other countries under a disciplinary procedure due to high budget deficits. Italy's 2023 shortfall came in at 7.2% of gross domestic product, the highest in the 20-nation euro zone.
However, last month the Italian government revised down its targets for the deficit this year and next, to 3.8% and 3.3% of GDP respectively, and said the deficit would fall below the EU’s 3% limit in 2026.
"The judgments of the ratings agencies are the result of the responsible actions of this government and they underscore Italy's credibility," Economy Minister Giancarlo Giorgetti said in a statement after Fitch's announcement.
Earlier on Friday, S&P Global confirmed its rating on Italy at 'BBB' and left the outlook at 'stable'.
RISING DEBT
Despite the narrowing annual budget deficits, Italy's debt, proportionally the second highest in the euro zone, is forecast by the government to climb from 134.8% of gross domestic product last year to 137.8% in 2026, before gradually declining.
The Treasury says the projected increase is due to costly home renovation incentives adopted during the COVID-19 pandemic, known as the Superbonus scheme.
The premium investors pay to hold Italian government bonds over top-rated German ones narrowed on Friday to around 116 basis points, the lowest level since end-2021.
Analysts said earlier this week that positive news from any of the ratings agencies due to review Italy could trigger a further narrowing of the yield spread against Germany.
Fitch said its revision to Italy's outlook was also driven by "signs of stronger potential growth and a more stable political context."
The Italian economy expanded by 0.7% in 2023, and most analysts expect a similar modest growth rate this year, slightly below the government's official 1% target.
Meloni, who took office two years ago, retains high approval ratings and opinion polls show her right-wing Brothers of Italy party is comfortably the largest in Italy, with popular support of almost 30%, up from the 26% it won at the 2022 election.
Italy faces further credit rating reviews by Moody's, DBRS and Scope Ratings over the next few weeks up to No. 29.