Dubai: The potential for money from the Gulf’s sovereign wealth funds is driving up share prices in the UK and the US.
Speculation that the Qatar Investment Authority (QIA) may be interested in increasing its 27 per cent stake in J Sainsbury Plc led to shares in the UKs third largest supermarket chain climb 4.9 percent to 344.3 pence, according to Bloomberg.
“I am not surprised by the rumours, Qatar as much as other countries in the region, including Saudi Arabia, Libya et al are fishing for opportunities in the likes of Europe and the US,” said Saud Masud, head of research and senior analyst at UBS Middle East.
The QIA, via its investment arm Qatar Holding only recently snapped up Harrods and its real estate arm Qatari Diar bought the US Embassy in London’s Mayfair.
The Abu Dhabi Investment Authority’s portfolio in London includes the ExCel exhibition centre run under the Abu Dhabi National Exhibitions Company (ADNEC), which it only recently expanded at the tune of nearly Dh1 billion.
Sovereign wealth funds are long term investors and will invest when a decent size deal fits the bill, Masud said.
