The Qatar Investment Authority (QIA) foresees a significant increase in US technology deals under a second Trump presidency. The presence of prominent tech figures like Elon Musk, Mark Zuckerberg, and Jeff Bezos at Trump’s inauguration suggests a supportive stance towards the industry, according to Mohammed Al Hardan, QIA’s head of technology, media, and telecommunications.
Table Content:
A Pro-Tech Environment
Speaking at the World Economic Forum in Davos, Al Hardan expressed optimism about the burgeoning tech landscape in the US. “I’ll be amazed if the environment is not pro tech,” he stated, adding that the current climate is “probably one of the best tech environments that we’ve ever seen in the US.”
Mohammed Al Hardan at WEF
The QIA, with $510 billion in assets under management, has already made substantial investments in US tech, participating in a $6 billion funding round for xAI last year. With Qatar’s expanding liquefied natural gas exports poised to further bolster the fund’s resources, the QIA is positioned for even greater investment capacity. The recent appointment of its former head of Americas as CEO further underscores its commitment to the region.
Capitalizing on AI Opportunities
Al Hardan highlighted the potential for investment in ventures similar to the $500 billion AI infrastructure initiative announced by SoftBank Group Corp., OpenAI, and Oracle Corp. “We have a funds team… to understand data centers and to review all these opportunities,” he confirmed, indicating a strong interest in such projects.
The substantial capital requirements of AI investments present compelling opportunities for well-funded entities like the QIA and other sovereign wealth funds. Al Hardan noted the unprecedented scale of funding rounds in the sector, with Series A and B rounds reaching multi-billion dollar levels.
QIA’s Expanding Investment Strategy
Established in 2005 to manage Qatar’s LNG revenue, the QIA has grown into the world’s eighth-largest sovereign wealth fund. The anticipated surge in state revenues from Qatar’s massive gas output expansion, projected to exceed $30 billion, coupled with reduced domestic spending post-2022 FIFA World Cup, will likely fuel significant growth for the fund.
In a separate interview, Qatar’s Finance Minister, Ali Ahmed Al-Kuwari, emphasized the QIA’s shift towards commercially driven investments, signifying a departure from its earlier focus on trophy assets. “We don’t take positions in companies just for the sake of the company… We do it so that it gives us the return,” Al-Kuwari affirmed.
Shifting Focus to the US
Moving away from its traditional emphasis on acquisitions like London’s Harrods department store, the QIA has increasingly directed investments towards technology and healthcare. The fund has prioritized US investments to rebalance its portfolio away from Europe, recognizing the strength of the US economy.
The QIA and other Middle Eastern sovereign wealth funds have become major players in global dealmaking. In 2024, five funds from Abu Dhabi, Qatar, and Saudi Arabia deployed $82 billion, representing over 60% of all sovereign wealth fund investments.
Conclusion: A Promising Outlook for US Tech
The QIA’s positive outlook on the US tech sector under the Trump administration, coupled with its significant financial resources and strategic investment approach, signals a potential surge in tech deal activity. The convergence of a favorable regulatory environment and the capital demands of emerging technologies like AI creates a fertile ground for substantial investments, positioning the QIA for continued growth and influence in the global tech landscape.
