Qatar using oil bonanza to buy the dip in tech companies

The $450 billion Qatar Investment Authority, is in the midst of a cash bonanza thanks to the soaring price of oil. So, what does the world’s richest country’s sovereign wealth fund do with all this extra capital?

Buy the dip in tech it seems.

Speaking at the Qatar Economic Forum overnight, the Authority’s CEO, Mansoor Bin Ibrahim Al-Mahmood, admitted the global sell off in tech companies has come at an opportune time for the nation.

“We are investing on this (technology) in the U.S. and Asia and we have noticed activity in Europe in this sector,” said Al Mahood.

“It is an opportunity (the sell off), but this time is a time of being cautious, monitoring the situation, but we know that this will bring an opportunity to the market to make acquisitions.”

Qatar’s sovereign wealth fund is invested across a diverse set of asset classes, but it has been increasing its focus on investments in the technology sector since 2018.

One of the highest profile tech deals Qatar is involved with right now, is Elon Musk’s Twitter takeover.

Qatar still backing Musk

The Qatar Investment Authority is one of 18 investors financially backing Elon Musk in the takeover, committing $375 million towards the $44 billion deal, should it go ahead.

The drawn-out buyout cleared another major hurdle this week after the Twitter board voted unanimously to support the offer from Musk. However, the tech billionaire is still voicing concerns about the number of fake Twitter users.

Al-Mahmood was asked about the situation at the Forum.

“As you know I am under restriction right now as the transaction is in progress, but we believe in Elon’s leadership and that’s why we have committed to this transaction,” he said.

… And also backing blockchain

Another point of interest during Al-Mahmood’s Q&A at the Forum was his support for the development of blockchain technology.

He confirmed it is an area Qatar remains keen to invest in, despite the recent cryptocurrency volatility.

“Crypto no, blockchain yes,” he said.

“We have a clear view on this and our team in the technology space has been exploring opportunities in the blockchain… In the U.S. and elsewhere. This is a space we want to be in, not the currency itself.”