Qatar’s sovereign wealth fund bet big on Reliance Retail; Here’s why?
Reliance Retail, led by Mukesh Ambani, is expected to get a $1 billion investment from Qatar’s $100 billion sovereign wealth fund, as reported by the Financial Times.
Here’s some big news for you! Mukesh Ambani’s Reliance Retail, one of India’s top retail giants, is set to receive a whopping $1 billion investment from Qatar’s sovereign wealth fund, which is valued at $100 billion, according to a recent report by the Financial Times.
This development is not just a significant win for Reliance Retail, but it also underscores the increasing interest of Gulf investors in India’s fast-paced growing economy.
Reliance Industries Announced Qatar’s Investment Authority (QIA)
Reliance Industries, on Wednesday, announced that the $450 billion Qatar Investment Authority (QIA) is all set to acquire a 0.99 percent stake in Reliance Retail Ventures Limited (RRVL).
The QIA’s CEO, Mansoor Ebrahim al-Mahmoud, was quoted by the Financial Times stating, “QIA is committed to supporting innovative companies with high growth potential in India’s fast-growing retail market.”
He further added that Reliance Retail now forms part of the fund’s “growing and diverse portfolio of investments in India.”
Notably, Qatar’s sovereign wealth fund, known for its investment in Indian start-ups like online restaurant operator Rebel Foods and delivery group Swiggy, is making one of its largest investments in Indian retail with this move. The Financial Times had reported last month that Qatar was exploring this investment opportunity.
This investment follows a series of transactions by the QIA in India. Market records reveal that a fully owned subsidiary of the fund invested $474 million this month in Gautam Adani’s renewable energy company, Adani Green Energy, acquiring nearly a 3% stake.
Getting to know the Qatar Investment Authority
Established in 2005, the Qatar Investment Authority (QIA) was created with the aim of bolstering the country’s economy through diversification of assets. With over 30 years of investment history, Qatar’s growing portfolio of long-term strategic investments acts as a supplement to the state’s natural resource wealth. Headquartered in Doha, the QIA operates at the pinnacle of international investment and adheres to the most stringent financial and commercial requirements, making it a world-class investor.
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