The Daily Update: Qatar Economic Forum
Please see the below article from EPIC Investment Partners providing a Daily Update regarding the Qatar Economic Forum. Received this morning 25/05/2023.
With over 2,000 participants expected to attend the Qatar Economic Forum, half of which are expected to come from overseas, Qatar looks to be placed firmly on the global stage. Topics including, but not limited to, inflation, investing in emerging markets, energy transformation, trade, AI, sports events and geopolitics, all in the name of economic growth, are all expected to be discussed and debated.
Having been very active in the credit space over the past couple years, the nation’s wealth fund CEO Mansoor Al Mahmoud said Qatar Investment Authority is “keen to do more as companies with good business models struggle with the double whammy of interest rates and low liquidity”. He added that traditionally such liquid investment institutions have a “very long-term risk” appetite for such investments, adding that “for the next one year … the credit space is an interesting place to deploy some investments.”
Al-Kaabi, the nation’s minister for Energy Affairs and CEO of Qatar Energy, once again reiterated his concerns over shortages in oil and gas supplies amid the global push toward greener energy sources. He highlighted Europe in particular, saying it managed its energy conundrum due to mild weather and slow economic expansion, but warned “only a warm winter can save Europe this year”. He stated that the lack of future investment in gas and oil, the fuels required for the energy transition, will create shortages in both, as resources are deployed elsewhere in the “aggressive” green energy push. He noted the G7’s call for more LNG to be supplied globally, adding that Qatar currently produces 77million tonnes of LNG a year with an aim to increase that to 126mtpa in-line with contracts that have been awarded. He added that they can do more.
Meanwhile, Saudi Arabia’s Energy Minister once again warned oil speculators to watch out, and economist Nouriel Roubini discussed his concerns over market confidence if the US debt ceiling debate continues to drag on. The IMF Chief Kristalina Georgieva echoed our sentiment of a resolution to the debt ceiling: “History tells us that the US will wrestle with this notion of default but come the 11th hour it gets resolved”.
We will continue to monitor key events from the forum this week as keen investors in Qatar’s AA/AA- sovereign and quasi-sovereign debt, which our proprietary models highlight as “wealthy”, “undervalued” bonds.
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Alex Clare
25/05/2023