Santiago Principles Self-Assessment

Qatar Investment Authority

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  • Pillar 1: Legal
  • Pillar 2: Institutional
  • Pillar 3: Investment
Principle 1

1. The legal framework for the SWF should be sound and support its effective operation and the achievement of its stated objective(s).

1.1. The legal framework for the SWF should ensure legal soundness of the SWF and its transactions.

1.2. The key features of the SWF’s legal basis and structure, as well as the legal relationship between the SWF and other state bodies, should be publicly disclosed.

The Qatar Investment Authority (“QIA”) was established by Amiri Decision of the State of Qatar (“State”) No. (22) of the year 2005 amended by Amiri Decision No. (73) of the year 2013
(“QIA Constitution”). As such, the QIA has a separate juridical personality, wholly owned bythe Government of the State of Qatar (“Government”), with a Board of Directors (“Board”), a
Chairman, a Chief Executive Officer, and an executive management team.

QIA reports to the Supreme Council for Economic Affairs and Investments (“Supreme Council”), the highest decision making body concerning Energy, Investment and Economy in
Qatar. The Supreme Council, which is Chaired by His Highness the Amir of the State of Qatar, approves investment strategy, assigns funds and approves the budget as well as certain QIA
Regulations.

Principle 6

6. The governance framework for the SWF should be sound and establish a clear and effective division of roles and responsibilities in order to facilitate accountability and operational independence in the management of the SWF to pursue its objectives.

The governing body of QIA is its Board, which is responsible, with the help of its committees, including the Board Investment Committee and the Board Audit Committee, for implementing investment strategies, delegating responsibilities, appointing and removing the QIA management. Business decisions are the sole responsibility of the QIA Board and QIA’s executive management. Pursuant to Article (7) of the QIA Constitution, QIA “shall be managed by a Board of Directors which shall consist of a Chairman and Deputy Chairman and a number of members to be appointed by the Decision of the Amir ...” QIA takes the execution of effective corporate governance very seriously. QIA operates within a full set of Governance Policies and Procedures.

The QIA Board has adopted group governance standards governing all QIA controlled entities, including those entities managed directly or indirectly by QIA, as well as entities that are self-managed. Within the Legal Department, the Governance Unit is responsible for establishing, managing and overseeing the good corporate governance framework of QIA in accordance with the best international standards. QIA implements the integrated governance project of QIA, a project of extended and continuous work aiming at establishing the QIA commitment to global principles of sovereign wealth funds, in particular the Santiago Principles and the rules of good governance. Governance system in QIA aims to guide and control works of QIA to distribute rights and responsibilities among different departments and units, determine the rules and procedures to make decisions related to QIA and ensure that the concerned departments of QIA, through good governance, provide an integrated structure through which the objectives of QIA, the means to achieve those objectives, and performance monitoring are implemented.

Principle 18

18. The SWF’s investment policy should be clear and consistent with its defined objectives, risk tolerance, and investment strategy, as set by the owner or the governing body(ies), and be based on sound portfolio management principles.

18.1. The investment policy should guide the SWF’s financial risk exposures and the possible use of leverage.

18.2. The investment policy should address the extent to which internal and/or external investment managers are used, the range of their activities and authority, and the process by which they are selected and their performance monitored.

18.3. A description of the investment policy of the SWF should be publicly disclosed.

QIA Board and the Supreme Council approved the QIA investment policy in accordance with QIA’s objectives prescribed by the Constitution. As per the QIA investment policy, QIA seeks to achieve real long-term investment returns without exposing itself to undue levels of risk. QIA benefits from significant positive cash flow and has no liabilities at portfolio level. Certain investments, for example in funds or real estate, may involve leverage at the fund level or investmentslevel, as determined by the fund manager or portfolio manager.

Ordinarily, QIA’s positive cash flow allows it to operate without engaging in leverage. QIA manages its investments with a blend of internal and external investment management resources. QIA utilizes its internal investment management resources in areas where it has particular expertise; otherwise, it will use external investment management resources. QIA is actively engaged in further developing its internal investment management resources. The main elements of QIA’s investment policy is available on the QIA’s website. Please see the reply above on GAPP 17 concerning the functions of the newly established Corporate Communications team within QIA.