QIA focuses on building local expertise in APAC expansion

Qatar Investment Authority (QIA) is aggressively expanding its presence in the Asia Pacific region, according to Abdulla Al-Kuwari, Head of QIA Advisory (Asia Pacific).

The $510 billion sovereign wealth fund’s approach to Asia is focused on technology investments, particularly in India and Australia, maintaining a strong presence in infrastructure and fostering long-term partnerships and local expertise across diverse regional markets, Al-Kuwari explained during an appearance at the Milken Institute's 11th Annual Asia Summit in Singapore.

"In 2017-18, we reviewed our portfolio and decided to expand beyond our large European holdings into the US and Asia,” said Al-Kuwari. This decision led to the establishment of a New York office, which proved highly successful over four years, he said.

Building on its success, QIA turned its attention to Asia in 2021, applying the same model in opening its Singapore office. The outpost was primarily geared toward establishing a local presence and market knowledge.

"The difference between Asia and the US is that US is one country. Asia is many, many countries that you actually have to follow. Every market is very different. Even within Southeast Asia, every market is very, very different," he said.

To address this complexity, QIA adopted a methodical approach.

"We started with China, India, Japan. We hired local people from those markets [which] basically complements the work that we have back in HQ,” he said.

This strategy of combining local expertise with global perspectives has proven critical to the SWF’s success in the region.

"Right now, we're actually in the middle of expanding into Australia and Korea and Southeast Asia. So for Australia and Korea, we're going to start hiring people in the same way, from those local markets, who have local expertise, and try to find the right opportunities in all those markets," he said.

BUILDING PARTNERSHIPS

Beyond establishing a presence, QIA will continue to build relationships and to understand the nuances within each market.

Al-Kuwari noted that Asia isn't short of capital, so the fund's strategy focuses on building its brand in the region and on showcasing how QIA can help local businesses expand globally by leveraging its extensive portfolio and connections in the Middle East.

This collaborative approach aims to create win-win situations for both QIA and its investment partners.

"Our job is to invest, basically, for the future generation of Qatar. We come in as a long-term capital provider. We will invest with them, whether it's listed, private pre-IPO, and we remain as an investor that supports that company, as long as we, believe in the company and the management," he said.

By taking a measured, market-specific approach and focusing on long-term partnerships, the sovereign fund is steadily strengthening its position in the Asian market while supporting economic growth across the diverse region, he said.

INDIA TECH

Asia's growing role as tech innovator and exporter, not just a consumer, has been on QIA’s radar.

"We're focusing on technology companies in India that are selling not just to the Indian market, but also to the US market. We see a big trend there," Al-Kuwari said.

India's tech sector has been a particular area of interest for QIA due to its having both skilled talent and cost-effectiveness. These advantages position Indian tech companies to potentially disrupt global markets, making them attractive investment targets, he said.

"It's a country that has probably some of the best talent in the world, and the cost for that is much, much different from the rest of the world,” Al-Kuwari noted. “It's just an obvious competitive advantage that they have.”

The fund’s tech investments haven’t been limited to startups or pure-play tech companies. QIA also has an interest in established companies that are leveraging technology to transform their businesses and achieving significant growth.

"Last year we made probably one of our big investments here, which was a billion dollars in Reliance Retail Venture,” Al-Kuwari said. “[It] is combining all the retail businesses that they have in Reliance and using the technology that they have to be able to leverage and grow – so big focus for us."

INFRASTRUCTURE & GROWTH

Infrastructure investments also play a crucial role in QIA’s Asia strategy, providing stable, long-term returns and positioning the SWF as a key player in the region's economic development.

These investments span various essential services across different Asian markets, said Al-Kuwari.

"Infrastructure is one of our biggest portfolios here in the region, whether it's airports like Sydney in Australia, and whether it's electricity companies like Hong Kong Electric that we have in Hong Kong, it's definitely a key focus for us," he said.

The fund seeks assets that are not only critical to a country's economy but also have the potential for long-term value appreciation.

"Basically we identify the best performing assets, things that will always remain strong,” said Al-Kuwari.

“People always need to buy electricity. People always need to travel. So we find that theme, we define a target, and we try to work with the management or with the seller to be able to be part of that investment," he said.