Qatar is one of the world’s fastest growing economies. From 2005 to 2010, GDP growth averaged 16%, and the IMF forecasts Qatar’s real GDP growth will be 18.7% in 2011. The Qatar stock market is currently trading on about 10x 2012E earnings and a dividend yield of about 4.4%, which IMO are attractive for the economy's prospects. The prospects for LNG prices are clearly important to the economy, but I don't see that as a problem at the moment.
http://www.ft.com/intl/cms/s/2/a1cb02ae-f9a1-11e0-a805-00144feab49a.html#axzz1ck8x8uDA or google "Qatar market looks a quality play"
The Qatar Investment Fund QIF is a London main market-listed fund currently priced at about US$0.85, with NAV on 1 Nov 2011 of US$1.03, a discount of about 17% which is slightly greater than the recent average. It owns about 17 holdings, of which 16 are quoted in Doha and 1 in Muscat.
Like many emerging market funds, at about 57% it is overweight financials, but I don't see that as a problem in the Qatar context.
I think of it as a very long term emerging markets holding, occupying the same role in my portfolio as such favourites as Templeton Emerging Markets IT. Arguably a diversified play on the Qatar economy will outperform both global and emerging market indices, whilst probably being fairly uncorrelated.
Filed Under: Emerging Markets,