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DOHA: Assets under management in Qatar, sponsored by entities based in Qatar, increased 0.1 percent in 2012 H1, noted a Qatar Financial Centre (QFC) Authority-sponsored Asset Management Survey.
Net outflows from these funds are estimated at $6m. In 2011, assets under management in these funds rose by 11.5 percent. Net flows to these funds are estimated at $59.3m, the survey revealed.
In 2012 H1, MENA domiciled fund assets increased by 3 percent from end-2011 to $89.6bn.
There was an estimated $2.47bn in net inflows to these funds. The increase was primarily attributable to a $3.33bn increase in money market fund assets.
Trade finance funds saw net inflows of $564m. Equity fund assets fell by 2.9 percent, with net outflows of $590m. The survey noted that the largest 4 funds in MENA were money markets.
On the Fund trends in Qatar, the MENA Asset Management Survey 2012 said in 2011, assets under management in selected funds, including those domiciled abroad, rose by 11.5 percent. Net inflows to these funds are estimated at $59.3m.
Yousuf Al Jaida, Director of strategic Development, Asset Management QFCA said Qatar’s asset management industry is set to grow in the coming years.
The attractiveness of Qatar’s asset management platform is increasingly growing. The decision to co-invest $250m by the Qatar Investment Authority (QIA) with Barclays Natural Resource Investments (BNRI) is an indication. More recently, the creation of Aventicum Capital, the asset management joint venture between Credit Suisse and Qatar Holding, is another milestone that illustrates the opportunities prevalent in the region.
He said it will have one division based in Doha which will be licensed by the QFC Authority and focus on investment strategies in the Middle East, Turkey and other frontier market.
“Geographically, Qatar benefits from its location between the mature markets of the west, the emerging markets of the east and the increasing trade and capital flows between SAAAME (South America, Africa, Asia, Middle East) markets. Qatar is well positioned for firms looking to tap into the wider GCC region, which has a combined GDP of about $1.4 trillion,” said Al Jaida.
Shashank Srivastava, CEO of the QFC Authority, said: “The MENA Asset Management Survey 2012 is an invaluable and comprehensive source of current opinion and information on the mutual fund industry in our region and demonstrates the significant development potential of the industry for all market participants.
“We at the QFC Authority are strongly supporting this development and, in particular, the growth of Qatar and the QFC as a regional hub for asset management, offering firms one of the most business friendly tax environments, a legal system based on English common law, efficient administration and a robust regulatory regime.”