Analysis Real Estate Canary Wharf’s evolution is a nod to QIA change of strategy By Gavin Gibbon July 26, 2024, 4:12 AM Kiasm The former HSBC building, 8 Canada Square, will become a a mixed-use development designed by Kohn Pedersen Fox Futuristic plans for 8 Canada Square Qatar fund is growing force in tech 6th-largest wealth fund in world The futuristic designs for the former HSBC Holdings headquarters in London’s Canary Wharf may provide a glimpse into the strategy in recent years of one of its major shareholders – the Qatar Investment Authority. Reportedly a casualty of the Covid pandemic and subsequent shift to remote working, 8 Canada Square is to be turned into a mixed-use development, encompassing leisure, entertainment, education and office space. As this part of London’s dockland financial district continues to evolve, so too has the overall investment approach of QIA, the sixth-largest sovereign wealth fund in the world, which has changed from trophy assets to strategic investments. NewsletterGet the Best of AGBI delivered straight to your inbox every week With a population of almost 2.7 million, among the smallest in the Gulf Cooperation Council’s group of six countries, Qatar’s GDP is expected to increase by 4.5 percent this year to $244.7 billion, according to the latest IMF World Economic Outlook report. Under the chair of Sheikh Bandar bin Mohammed bin Saud Al-Thani (also Qatar’s central bank governor), QIA, which was founded in 2005 to help diversify the Gulf state’s economy, has an estimated $475 billion of assets under management. The fund was ranked 10th in the world in terms of spending in the first half of 2024 after investing nearly $2 billion, a report by the consultancy Global SWF revealed. Once a collector of so-called trophy assets, with investments in London Stock Exchange Group and Harrods department store among others, the QIA has become a growing force in the world of technology. Earlier this year, QIA announced plans to make an anchor investment in Ardian Semiconductor, a new entity established by the French private equity firm Ardian. “As a long-term, disciplined investor in technology, this intent to anchor this investment commitment also aligns with QIA’s efforts to work with diverse businesses at the forefront of innovation,” a statement from the fund said. Large deals drive Qatar and Kuwait real estate in Q2 ADIA considers $1bn funding in Nestlé ice cream ADQ: how Abu Dhabi’s ‘baby’ fund is finding its feet The move underscores the Gulf state’s bet on the crucial role of semiconductors in powering digital and green transformations in key areas such as artificial intelligence, mobility and consumer technology. The global semiconductor market was approximately $618 billion in 2022, and is projected to reach $1 trillion by 2030, according to an EY report. In May, QIA and Bpifrance announced plans to increase the size of their investment partnership by as much as €300 million ($324 million), marking a significant milestone in their collaborative efforts to drive economic growth and innovation in France. The two have ambitious plans to invest in semiconductors and quantum computing, as well as healthcare aerospace and the energy transition. The state’s sovereign fund last year acquired a 5 percent stake in Kokusai Electric Corp, a Japanese semiconductor manufacturer, worth ¥50 billion ($320 million). The fund’s investments in Japan have “more than doubled” after it opened an office in Singapore in 2021. “It’s a key market for us,” Abdulla Ali Al-Kuwari, head of QIA Advisory (Asia Pacific), told Nikkei, a financial daily in Japan. Domestic investments make up one third of QIA’s portfolio, according to Global SWF, with investments in the US (20 percent) and the rest of the world accounting for 45 percent.