mazin--tell that to the two-thirds of citizens suffering from crippling personal debts.
klaatu--lots of liquidity indeed. The test is if they can diversify before the LNG runs out, more deposits are found elsewhere, or alternative energy makes LNG irrelevant. But as I said, still an incredibly vulnerable economy. Look at Nauru. So far I would say the diversification process has been going OK. The land investments have mostly been in unstable countries that could simply nationalize it on a whim; the property investments in Europe have been largely in high-end money losers, which means bargain prices but at a risk of hemorrhaging money just like the old owners.
The problem is that Qatar cannot buy the things it wants/should, because countries like the US won't let Qatar buy things like utility companies, etc. They are trying to by stakes in UK banks, but that will be curtailed just like land purchases in Australia soon will be. In other words the West is happy for Qatar to buy the milk but they aren't about to let it buy a controlling interest in the cow. This is probably the biggest problem Qatar's diversification efforts face--that and whimsical desires to buy Western icons like the Savoy.
mazin--tell that to the two-thirds of citizens suffering from crippling personal debts.
klaatu--lots of liquidity indeed. The test is if they can diversify before the LNG runs out, more deposits are found elsewhere, or alternative energy makes LNG irrelevant. But as I said, still an incredibly vulnerable economy. Look at Nauru. So far I would say the diversification process has been going OK. The land investments have mostly been in unstable countries that could simply nationalize it on a whim; the property investments in Europe have been largely in high-end money losers, which means bargain prices but at a risk of hemorrhaging money just like the old owners.
The problem is that Qatar cannot buy the things it wants/should, because countries like the US won't let Qatar buy things like utility companies, etc. They are trying to by stakes in UK banks, but that will be curtailed just like land purchases in Australia soon will be. In other words the West is happy for Qatar to buy the milk but they aren't about to let it buy a controlling interest in the cow. This is probably the biggest problem Qatar's diversification efforts face--that and whimsical desires to buy Western icons like the Savoy.