Qatar accumulates UBS stake
Qatar is accumulating shares in Credit Suisse Group and plans to spend as much as $15 billion on European and US bank stocks over the next year, the Gulf state's prime minister said in an interview.
"We have a relation with Credit Suisse and we bought some of the stock from the market, actually, but I cannot say what percentage because still we are in the process," said Sheikh Hamad bin Jasim bin Jaber al-Thani.
Persian Gulf sovereign wealth funds, whose coffers are swelling from near-record oil prices, and counterparts in Asia have been snapping up stakes in banks battered by US subprime mortgage losses. Citigroup Inc received $14.5 billion from investors including Singapore and Kuwait since mid-December.
"Subprime losses are clearly not confined to US banks and European banks are seeking funding," said Giyas Gokkent, head of research at National Bank of Abu Dhabi PJSC. "Gulf funds have surpluses to spend and are looking for long-term appreciation. If investments help develop their domestic financial markets too, so much the better."
Agencies
(China Daily 02/19/2008 page17)
