Qatar, Abu Dhabi confirm wealth fund

Sovereign wealth fund announces intention for $2bn finance for hyrdocarbon industries in UAE.
Qatar, Abu Dhabi confirm wealth fund
By John Irish
Thu 27 Mar 2008 12:28 PM

Qatar's sovereign wealth fund said on Thursday it agreed with Abu Dhabi's International Petroleum Investment to set up a $2 billion fund to finance acquistions in oil, petrochemicals and other industries.

IPIC Managing Director Khadem Al-Qubaisi told Reuters on Tuesday each group would initially invest $1 billion in the fund, and target energy and other industries starting from about September.

"Both Qatar and the United Arab Emirates are focused on the long term growth of our states ... leveraging our combined investment expertise, we will target attractive opportunities on a global basis," Qatar Investment Authority (QIA) Executive Board Member Hussain Al-Abdulla said in Thursday's statement.

The QIA last year set up two $1 billion funds, one with Dubai Group - owned by the ruler of Dubai - and another with the Indonesian government.

The QIA manages assets worth about $60 billion, according to Standard Chartered.

IPIC is an investment vehicle for the government of Abu Dhabi, which controls more than 90% of the UAE's oil reserves.

The joint fund will seek opportunities where it can make money and add value, Qubaisi said, without being more specific. (Reuters)

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