Santiago Principles Self-Assessment

Qatar Investment Authority

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The QIA was established by Amiri Decision No. (22) of 2005 of the State of Qatar (the QIA Constitution). As such, the QIA is a specially-created statutory entity, wholly-owned by the Government of the State of Qatar, with a Board of Directors, a chairman, a chief executive officer, and an executive management team.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

The governing body of QIA is its Board of Directors, which is responsible, with the help of its two committees, the Board Investment Committee and the Board Audit Committee, for implementing investment strategies, delegating responsibilities, appointing and removing the SWF management. Business decisions are the sole responsibility of the QIA Board and QIA’s executive management. Pursuant to Article (7) of the QIA Constitution, QIA, “shall be managed by a Board of Directors which shall consist of a Chairman and Deputy Chairman and a number of members to be appointed by the Decision of the Emir ...”

QIA takes the execution of effective corporate governance very seriously.  QIA operates within a full set of governance policies and procedures. The QIA Board of Directors (the QIA Board) has adopted group governance standards governing all QIA Controlled Entities (as defined below), including those entities, managed directly or indirectly by QIA, as well as entities that are self-managed.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

QIA seeks to achieve real long-term investment returns without exposing itself to undue levels of risk. QIA benefits from significant positive cash flow and has no liabilities. Certain investments, for example in funds or real estate, may involve leverage at the fund level, as determined by the fund manager. Ordinarily, QIA’s positive cash flow allows it to operate without engaging in leverage.

QIA manages its investments with a blend of internal and external investment management resources QIA uses its internal investment management resources in areas where it has particular expertise; otherwise, it will use external investment management resources. QIA is actively developing its internal investment management resources further.

A new publicly available Annual Review highlights the investment strategy of QIA (to be issued soon).