2022 Event Highlights – Session Four – Where to Invest Right Now
Event Highlights
Where to Invest Right Now
Economies are trying to shift away from vulnerable products, markets and jobs toward income sources that are high-growth, low-emission, climate-resilient and poverty eradicating. Finance ministers show us the way.
Below are some highlights from the session.
Diversifying for 21st Century Prosperity
With Egypt, the world’s largest grain importer, losing the 80% it bought from Ukraine and Russia, and now paying double from other suppliers, the government is making concerted efforts to share the cost-of-living burdens. Yet, H.E. Dr. Mohamed Ahmed Maait, Minister of Finance, Arab Republic of Egypt, called for a global strategy. “It will not be one vision. Either we save the earth and the humans on this earth, or things will be accelerating and will be more difficult for all.”
H.E. Ali bin Ahmed Al-Kuwari, Minister of Finance, State of Qatar agreed, adding that an equalized economy will require more than “writing a check.” It will take the win-win of countries investing in each other. He called on international organizations, like the IMF and World Bank, to work on sweeping policies. “The situation is beyond the Russia-Ukraine war. It’s added to the disparity in logistics and energy that was happening before that,” he noted. On Qatar’s cash influx, Al-Kuwari detailed a very strict policy framework that considers various scenarios and a commitment to ESG and climate. “If the oil prices are $120 or $40, at the end of the day, the fiscal policy and the fiscal discipline is there, because our aim is sustainability.”
In Conversation With President Tokayev
Asked about the war, its ramifications and his insight into Vladimir Putin, H.E. Kassym-Jomart K. Tokayev, President of the Republic of Kazakhstan, said that as “a friend to both states,” his country could be a negotiator toward peace. Support is needed from the international community, which he described as split, and the UN Security Council, as “a sad story.” He supports not annexation, but a previous agreement where Ukraine was a non-nuclear, demilitarized state. “I think this kind of status of Ukraine was acceptable to Russia and the international community,” Tokayev said, adding that he told Putin in a phone call that he also supports Ukraine not joining NATO. On meeting with Putin, at a recent forum in St. Petersburg, he described him as “calm, self-conscious and self-confident.”
Tokayev spoke also on attempting to diversify their mostly Russian oil trade routes, claiming demand remains high, and on production capacities and OPEC, but stopped short of commenting on the effect of the BIden administration on oil supply. “I want to have a friendly and predictable relationship with the United States.”
In Conversation with H.E. Mansoor Bin Ebrahim Al-Mahmoud
With an oil windfall, Qatar is taking a broad look at investing, from its own infrastructure to global opportunities, according to H.E. Mansoor Bin Ebrahim Al-Mahmoud, CEO, Qatar Investment Authority. On their radar are tech companies, renewables, EVs and blockchain, no cryptocurrency. In the ventures space, Qatar is partnering with Rolls Royce on developing small modular reactors. “If it is successful, it would be an interesting space to roll it out to developing countries.”
He deferred to Elon Musk (interviewed earlier that day) for info on the Twitter deal, but said Qatar continues to have confidence in their commitment. In Russia, the status quo is being maintained on investments. “We are closely monitoring the situation and are in full compliance with international sanctions,” Al-Mahmoud stated.
The Inflation Test
“When the U.S. sneezes, the rest of the world gets a cold,” was how Nouriel Roubini, Chairman & CEO, Roubini Macro Associates, summed up his theory that inflation will spread. That said, he painted a bleeker picture for Europe and the UK, where the same pre-inflation factors are exacerbated by exposure from Russia and China, by way of energy and trade slowdowns. Detailing the multi-faceted shocks to economies around the world, Roubini said, “That’s why folks at the World Bank and IMF say for many emerging markets or poor countries this is not a recession, but a depression they have to worry about.”
H.E. Sheikh Bandar bin Mohammed bin Saoud Al-Thani, Governor, Qatar Central Bank spoke to varying circumstances that make it hard for policy-makers to take positions. Despite Qatar’s high inflation rate, he is confident that they are well-poised to fend off inflation, including a 10-year infrastructure investment toward hosting the World Cup and a diversity of major currencies in their World Bank portfolio. “It’s normal that interest rates would be higher right now.”
On cryptocurrency, Roubini explained why it’s not a real currency, adding that the space needs asset-based tokens. Al-Thani said Qatar is looking for the right platform to issue a Central Bank digital currency.
News Coverage: Kazinform
| AKI Press |
| Qatar Peninsula |
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