Any potential recession will be 'light,' Qatar Investment Authority CEO says 

1 month ago

A wide presumption of the skyline from the Doha Corniche connected March 31, 2022.

Nick Potts - Pa Images | Getty Images

The CEO of Qatar's sovereign wealthiness money believes that if the satellite sees a recession, it volition beryllium "light."

Rising fears of a looming recession pushed U.S. stocks concisely into a carnivore marketplace connected Friday, arsenic Covid-19 related shutdowns successful China, rising involvement rates and a outgo of surviving situation interaction capitalist sentiment. 

"The sell-off that we spot (is) embedded successful each of the atrocious scenarios that we are talking about. So we're talking astir recession, ostentation and geopolitical issues," Qatar Investment Authority CEO Mansoor Al Mahmoud told CNBC's Hadley Gamble at Davos.

The QIA, which manages $450 cardinal successful assets, is ranked arsenic the world's ninth-largest sovereign wealthiness fund, according to the Sovereign Wealth Fund Institute.

Al Mahmoud said that helium is "less pessimistic" contempt the planetary economy's existent concern arsenic it recovers from the pandemic. "We are successful amended signifier successful presumption of the banking assemblage that has a bully equilibrium sheet, we person bully liquidity," the CEO added. "I'm not saying that we volition not person a slowdown, I'm not saying that we mightiness not person a recession, but if we person a recession, it volition beryllium a airy recession." 

Qatar aiding Europe's vigor transition

As Germany seeks to wean itself disconnected Russian energy, Chancellor Olaf Scholz hailed Doha's important relation successful Berlin's transition, agreeing to an "energy partnership" aft the Qatari emir's visit. Qatar is aiming to commencement LNG deliveries by 2024.   

The QIA main told CNBC: "We cannot halt investing successful Europe, we volition assistance them toward the modulation of energy. Of course, during this year, they mightiness person difficulties, due to the fact that the (energy) terms is not helping the maturation of Europe."

He besides hailed Germany's propulsion for renewable sources of energy, saying "they are precise precocious (in) their transition."   

Despite QIA's committedness to Europe, the money isn't definite if investments volition spot immoderate contiguous instrumentality with the existent vigor situation weighing connected growth. "I (am) truly bullish astir Europe successful astir 3 to 5 years," Al Mahmoud said.

A post-pandemic strategy 

The QIA, erstwhile focused connected trophy assets similar property, including stakes successful the London Stock Exchange and Grosvenor House Hotel, has shifted its absorption post-pandemic and is investing much successful technology.

A subsidiary of the QIA is contributing $375 cardinal to Elon Musk's buyout of Twitter, according to authoritative documents published connected May 5. The takeover is presently connected hold. QIA's main couldn't remark connected the Twitter deal, but hailed Musk's leadership. 

The money besides has important tie-ups with Moscow. The QIA is reported to person $9 cardinal worthy of assets successful Russia with stakes successful St. Petersburg's airdrome and Russian vigor elephantine Rosneft.

Al Mahmoud told CNBC that the money is "divesting," adding that the QIA are successful "full compliance with planetary sanctions" and that "we person a smaller vulnerability successful Russia compared to the wide portfolio that we have." The fund, Al Mahmoud said, has nary plans to deploy much concern successful Russia.