SME4Labour and Embassy of the State of Qatar in London Fringe: The National Wealth Fund and the future of global investment in the UK

This event, chaired by Yasmin Qureshi MP (Bolton South and Walkden), focused on the creation and purpose of the UK National Wealth Fund. It featured speakers from Qatari investment circles, UK Parliament, and experts in finance, addressing the fund's objectives, how to attract investment, and its role in promoting economic growth. The event centered around how the fund will be used to support the UK's infrastructure, renewable energy, and broader economic strategy, while drawing insights from other successful sovereign wealth funds. Key Takeaways:

• The UK National Wealth Fund is designed to support growth, infrastructure, and green sectors by attracting private investment.
• Lessons from sovereign wealth funds, like Qatar’s, emphasize long-term stability, talent attraction, and sustainable investments.
• The fund seeks to create an inclusive strategy that balances ethical considerations, regional growth, and opportunities for innovation and technology development

Panel Highlights and Key Topics

1. Introduction and UK National Wealth Fund Context:
   • Yasmin Qureshi MP introduced the session, highlighting the UK's commitment to creating a National Wealth Fund to boost long-term growth and prosperity by attracting private investment into infrastructure.
   • The session emphasized how the fund aims to support sectors like manufacturing, renewable energy, green steel, and hydrogen while drawing parallels to successful sovereign wealth funds, like Qatar’s.
2. Ambassador's Insights on Sovereign Wealth Funds:
   • Sheikh Abdulla bin Mohammed bin Saud Al Thani shared insights on managing a sovereign wealth fund based on Qatar's experience. He emphasized the importance of setting clear strategies for such a fund—whether for economic stability, growth, or future generations.
   • The ambassador noted that Qatar’s wealth fund focuses on investing the surplus from oil revenues to ensure future generations maintain a similar standard of living and to diversify the economy.
3. UK’s Strategy for the National Wealth Fund:
   • Dr. Jeevun Sandher MP linked the National Wealth Fund to the UK's new industrial strategy aimed at transformative growth. He pointed to how other nations, particularly the US, are leading the way in regional economic development through strategic sector investments and how the UK seeks to emulate this.
   • Hydrogen was highlighted as a critical sector for green transition, with £500 million already committed to it through the fund. Dr. Sandher emphasized that hydrogen is key not just for clean energy but also for agriculture, as it's necessary for producing ammonia for fertilizer.
4. Qatar’s Approach to Investment and Economic Growth:
   • Fahad Ali Al Kuwari spoke about Invest Qatar’s role in attracting foreign direct investment and diversifying Qatar’s economy. Post-World Cup, Qatar has significant infrastructure that can accommodate a doubling of its population, with the aim of growing sustainably through talent attraction.
   • Al Kuwari explained that Qatar’s investment strategy favors sectors that match the country’s strengths, like logistics, manufacturing, and tourism, while shying away from high-pollution activities and low-skilled labor sectors.
5. The UK’s Focus on Regional and International Collaboration:
   • Allan Gemmell MP emphasized the UK government's commitment to long-term international relationships and attracting investment, aiming to leverage partnerships to support small and medium-sized businesses. He mentioned the recent Tata investment in a gigafactory as an example of the UK’s growing appeal for large international investors.
   • He noted that the new UK government’s focus on stability and predictability is crucial to fostering an environment that encourages inward investment and confidence among international partners.
6. Growth and Governance of the National Wealth Fund:
   • The Rt Hon Liam Byrne MP discussed the potential for the National Wealth Fund to consolidate a variety of assets from different parts of government. He pointed out that the UK previously missed the opportunity to create a sovereign wealth fund from North Sea oil revenues, contrasting this with Norway’s successful model.
   • Byrne outlined that decisions around the fund's growth would focus on where the money comes from, the types of investments it will make, and how dividends would be used—suggesting a £200 billion fund could yield significant dividends for future generations.
7. Investment Strategy and Ethical Considerations:
   • The panel agreed that the National Wealth Fund should include a mix of risk levels in its investments, spanning stable assets like social housing to riskier opportunities like funding for business scale-ups. There was a call for local and regional investment frameworks, similar to German "Sparkassen" banks, that can align with economic goals and support SMEs.
   • Ethical investment principles were also highlighted, emphasizing that the UK’s approach should be about building long-term sustainability rather than seeking short-term gains.
8. Q&A Session and Audience Engagement:
   • Audience questions addressed how investors can interface with the National Wealth Fund, opportunities for green and ethical investments, and ensuring the fund aligns with leveling-up objectives and regional development.
   • Fahad Ali Al Kuwari reiterated Qatar's focus on investments that bring in talent and provide sustainable growth. The conversation touched on how investments need to align with a country's needs and long-term strategies.
9. Learning from International Models and Policy Implementation:
   • Panelists discussed lessons from other sovereign wealth funds, like Qatar's focus on long-term stability and sustainability. The UK aims to apply these principles by creating a fund that supports national champions and strategic sectors, helping drive growth through export potential and technological advancement.
   • The UK National Wealth Fund is designed to enhance economic activity and infrastructure, with a focus on supporting high-return sectors, advancing technology, and aligning with the government’s industrial strategy.

Conclusion The panel highlighted the importance of the UK’s National Wealth Fund as a tool for economic growth, international investment, and regional development. Key takeaways included the need for long-term strategies, ethical and green investments, and creating sustainable infrastructure to support growth and technological advancement. The fund aims to attract private sector partnerships, support strategic industries like hydrogen, and provide opportunities for both regional and national economic transformation. Panelists:

• Sheikh Abdulla bin Mohammed bin Saud Al Thani – Qatari Ambassador
• Fahad Ali Al Kuwari – Senior Manager, Investor Relations at Invest Qatar
• Dr. Jeevun Sandher MP – MP for Loughborough
• Claire Hughes MP – MP for Bangor Aberconwy
• Allan Gemmell – MP for Central Ayrshire
• The Rt Hon Liam Byrne – MP for Birmingham Hodge Hill and Solihull North
• Chair: Yasmin Qureshi MP – MP for Bolton South and Walkden