(19 February 2008 – Global) Qatar has begun its planned $US15 billion investment into banks by buying shares in Credit Suisse.The market purchase of shares is still in progress, so Sheikh Hamad bin Jasim bin Jaber al-Thani, the state’s prime minister and chief executive of the Qatar Investment Authority (QIA), could not yet comment on the value of the investment. He could only confirm that the purchase had taken place.
Credit Suisse and Qatar have an ongoing relationship. The bank was the first European bank to get a licence for the Qatar Financial Centre. The QFC is a self-regulated business park designed to attract lenders to Qatar to diversify its economy away from oil and gas.
The plan for investment was revealed at the World Economic Forum in Davos this year, with Qatar focused on stocks hit by sub-prime credit write downs.
Qatar’s natural resources are the primary source of this wealth, with the QIA estimated to manage around $US60 billion.