DOHA: Qatar’s sovereign wealth fund, with around $300 billion to its name, is shrugging off the country’s diplomatic crisis with its neighbours and planning to expand its holdings.

Its chief executive was quoted on Wednesday as saying there were no plans to liquidate foreign assets, as some investors had speculated, and that the fund would soon announce big new international investments.

“We have just completed a tour of several countries around the world and you will hear about significant investments soon,” Sheikh Abdullah bin Mohamed bin Saud al-Thani, who runs the Qatar Investment Authority (QIA) , told the Lusail newspaper.

Qatar’s economy has been under pressure since June 5 when Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Doha, accusing it of backing terrorism, a charge which Doha denies.

Banks from those states have pulled out deposits and loans from Qatar, prompting the QIA to deposit billions of dollars in local banks to prevent them from suffering funding squeezes.

Official data shows Qatar deposited $10.9bn in its banks during June, and commercial bankers believe it has probably deposited more money since then.

Sheikh Abdullah said the sanctions against Qatar had not affected the QIA’s investment strategy.

Published in Dawn, August 17th, 2017