DUBAI: Qatar’s sovereign wealth fund has not been liquidating foreign assets to support the Gulf state’s banking system since other Arab countries imposed an embargo on Qatar last June, according to the fund’s chief executive.

The embargo caused heavy outflows of deposits from Qatari banks in the initial months, and central bank data shows government bodies protected the banks by depositing about $30 billion in them between June and December.

Outflows have now essentially ceased, removing the need for a government support operation, but bankers said much or most of the emergency deposits in banks last year came from the QIA.

However, Sheikh Abdullah bin Mohamed bin Saud al-Thani, who runs the Qatar Investment Authority (QIA), said the fund, with assets unofficially estimated at about $300bn, did not need to sell foreign assets to raise cash, and indeed was about to announce “the deal of a lifetime”.

“How can I liquidate assets — as they speculate — and at the same time I keep buying others,” he was quoted as telling the Lusail newspaper.

“Two days ago, we signed a deal in Miami and we will announce it in the next few days,” he added without elaborating.

Sheikh Abdullah said the QIA had a privileged position in global markets and would keep investing around the world.

Published in Dawn, April 17th, 2018