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Qatar and Japan Strengthen Ties with $2.5 Billion Private Equity Fund

Prime Highlights:

  • Qatar and Japan have launched a $2.5 billion private equity fund, marking Qatar’s first investment in Japan.
  • Around 30 Japanese companies operate in Qatar, mainly in oil, gas, and infrastructure, with LNG deals strengthening ties.

Key Facts:

  • The fund, OQCI Fund LP, will have QIA contributing $1 billion (40%) and ORIX 60%.
  • Investments from the fund will focus on corporate transfers, privatizations, and spin-offs, with each investment reaching up to 30 billion yen ($200 million).

Background:

Qatar and Japan have started a $2.5 billion fund, Qatar’s first investment in Japan. By 2024, about 30 Japanese companies operated in Qatar, mainly in oil, gas, and infrastructure, with LNG deals boosting ties.

QIA currently holds about 100 billion yen in Japanese investments, including a 5% stake in Kokusai Electric and residential properties in major cities.

QIA CEO Mohammed bin Saif Al-Sowaidi said Japan is strategically important for the fund and called the partnership a “unique opportunity” to work with leading Japanese companies. He also noted this is ORIX’s first international partnership in its 60-year history.

ORIX President and CEO Makoto Inoue described the partnership as “a natural next step” in leveraging private equity expertise to enhance the value of high-growth Japanese companies. He added that the collaboration will also contribute to Japan’s broader industrial development.

The fund will be managed by OQCI GP Ltd as the general partner, while QIA and ORIX will serve as limited partners. ORIX will manage finding investments, supporting companies after investment, and providing advice for the fund’s portfolio.

This fund is Qatar’s first private equity investment focused only on Japan, and the first time an international investor has funded a domestic Japanese private equity initiative. It shows stronger economic ties and opens the door for future collaboration between the two countries.