1 March 2016
MENA Fund Manager

Qatar Investment Fund sees NAV drop

The London Stock Exchange-listed Qatar Investment Fund has reported a 16.3% fall in NAV per share for the six months ended 31 December 2015.

The closed-end fund underperformed the Qatar Exchange, which fell by 14.5% over the same period.

Nicholas Wilson, chairman of Qatar Investment Fund, said: “Despite the wide-ranging impact of low oil prices on GCC economies, the Qatar market sell-off looks over-done with excessive pessimism priced in.

“Qatari equities are trading at a marked discount to their historical average. We remain optimistic about growth prospects in the medium-to-long term.”

Wilson said: “The fall in oil and gas prices will continue to impact the Qatari economy as certain lower priority projects may be deferred. However we expect economic growth will continue at over 6% in the coming years, the highest in the GCC region.

“Qatar is the world’s largest exporter of liquid natural gas and although lower prices have been negotiated, Qatar is defending its market share. The government’s diversification policies in recent years have put Qatar in a strong position relative to other Gulf countries.

He added: “Over 60% of GDP is currently generated by the non-hydrocarbon sector. Further population growth, improving demographics and an extensive infrastructure pipeline should fuel continued growth.”