Qatar Investment Fund (QIF), the London-listed fund established to invest in opportunities in Qatar and the Gulf Co-operation Council (GCC) region, has announced about 22% returns to its shareholders for the year ended June 30, 2014.
The fund’s net asset value growth compares with 23.9% rise in the Qatari stock market and 11.7% in the MSCI Emerging Markets Index.
“The Qatari economy continues to forge ahead with encouraging growth in the non-hydrocarbon Qatari economy, supportive demographics, and expansionary fiscal spending,” according to Nick Wilson, chairman of the QIF.
Finding that the non-oil and gas sector of the economy is growing fast, QIF said it expanded 11.5% in the first quarter compared to 2013, with growth again expected to be in the double-digits in 2015.
“Combined with Qatar’s upgrade into the MSCI Emerging Markets index this year, the company is well positioned to gain from the growth behind Qatar’s vigorous economy,” Wilson said.
The board has proposed to pay a raised dividend of 3.5 cents per ordinary share (2013: 3.2c per share).
“Shareholders again enjoyed a very good return during the year.
The QIF share price rose 25.9% in the year, from $1.020 to $1.285. Including the 3.2c dividend, the total shareholder return was 29.1%, compared to 19.3% last year,” he added.
Near to long-term growth prospects should remain healthy, driven by a strong infrastructure development pipeline, increased government spending and a growing population, QIF said, adding an increase in many Qatari companies’ foreign ownership limit from 25% to 49% should have a positive impact on Qatar’s overall weight in the MSCI Emerging Markets Index.
Qatar’s economic growth continued in the first quarter of 2014, with gross domestic product (GDP) rising 6.2% against the same period in 2013. Qatar’s GDP is forecast to grow 6.3% in 2014 and 7.8% in 2015.