This event, chaired by Yasmin Qureshi MP (Bolton South and Walkden), focused on the creation and purpose of the UK National Wealth Fund. It featured speakers from Qatari investment circles, UK Parliament, and experts in finance, addressing the fund’s objectives, how to attract investment, and its role in promoting economic growth. The event centered around how the fund will be used to support the UK’s infrastructure, renewable energy, and broader economic strategy, while drawing insights from other successful sovereign wealth funds.
Introduction and UK National Wealth Fund Context:
Yasmin Qureshi MP introduced the session, highlighting the UK’s commitment to creating a National Wealth Fund to boost long-term growth and prosperity by attracting private investment into infrastructure.
The session emphasized how the fund aims to support sectors like manufacturing, renewable energy, green steel, and hydrogen while drawing parallels to successful sovereign wealth funds, like Qatar’s.
Ambassador’s Insights on Sovereign Wealth Funds:
Sheikh Abdulla bin Mohammed bin Saud Al Thani shared insights on managing a sovereign wealth fund based on Qatar’s experience. He emphasized the importance of setting clear strategies for such a fund—whether for economic stability, growth, or future generations.
The ambassador noted that Qatar’s wealth fund focuses on investing the surplus from oil revenues to ensure future generations maintain a similar standard of living and to diversify the economy.
UK’s Strategy for the National Wealth Fund:
Dr. Jeevun Sandher MP linked the National Wealth Fund to the UK’s new industrial strategy aimed at transformative growth. He pointed to how other nations, particularly the US, are leading the way in regional economic development through strategic sector investments and how the UK seeks to emulate this.
Hydrogen was highlighted as a critical sector for green transition, with £500 million already committed to it through the fund. Dr. Sandher emphasized that hydrogen is key not just for clean energy but also for agriculture, as it’s necessary for producing ammonia for fertilizer.
Qatar’s Approach to Investment and Economic Growth:
Fahad Ali Al Kuwari spoke about Invest Qatar’s role in attracting foreign direct investment and diversifying Qatar’s economy. Post-World Cup, Qatar has significant infrastructure that can accommodate a doubling of its population, with the aim of growing sustainably through talent attraction.
Al Kuwari explained that Qatar’s investment strategy favors sectors that match the country’s strengths, like logistics, manufacturing, and tourism, while shying away from high-pollution activities and low-skilled labor sectors.
The UK’s Focus on Regional and International Collaboration:
Allan Gemmell MP emphasized the UK government’s commitment to long-term international relationships and attracting investment, aiming to leverage partnerships to support small and medium-sized businesses. He mentioned the recent Tata investment in a gigafactory as an example of the UK’s growing appeal for large international investors.
He noted that the new UK government’s focus on stability and predictability is crucial to fostering an environment that encourages inward investment and confidence among international partners.
Growth and Governance of the National Wealth Fund:
The Rt Hon Liam Byrne MP discussed the potential for the National Wealth Fund to consolidate a variety of assets from different parts of government. He pointed out that the UK previously missed the opportunity to create a sovereign wealth fund from North Sea oil revenues, contrasting this with Norway’s successful model.
Byrne outlined that decisions around the fund’s growth would focus on where the money comes from, the types of investments it will make, and how dividends would be used—suggesting a £200 billion fund could yield significant dividends for future generations.
Investment Strategy and Ethical Considerations:
The panel agreed that the National Wealth Fund should include a mix of risk levels in its investments, spanning stable assets like social housing to riskier opportunities like funding for business scale-ups. There was a call for local and regional investment frameworks, similar to German “Sparkassen” banks, that can align with economic goals and support SMEs.
Ethical investment principles were also highlighted, emphasizing that the UK’s approach should be about building long-term sustainability rather than seeking short-term gains.
Panelists:
Sheikh Abdulla bin Mohammed bin Saud Al Thani – Qatari Ambassador
Fahad Ali Al Kuwari – Senior Manager, Investor Relations at Invest Qatar
Dr. Jeevun Sandher MP – MP for Loughborough
Claire Hughes MP – MP for Bangor Aberconwy
Allan Gemmell – MP for Central Ayrshire
The Rt Hon Liam Byrne – MP for Birmingham Hodge Hill and Solihull North
Chair: Yasmin Qureshi MP – MP for Bolton South and Walkden