Let us examine what Qatar and the Qatari population owns in a real sense. Firstly, it is to be understood that the asset will always be there in London providing economic leverage to people and the public of the UK; and also collecting taxes from the owners.

The nature of the hospitality industry reveals that there cannot be a sale at a big premium and even if that can be done the amount collected in cash will be useless in Qatar as the Qataris will not be able to use this fund productively in their own country as they have no population and climate to enjoy the wealth.

The Qataris tried the same by having the FIFA World Cup; however, now 90 per cent of their stadiums are being wasted.

Though the money is available, people are not here to take advantage of that money. If so, the money is useless.

The other example is even clearer. These investment funds own a substantial part of Boeing. The company makes aeroplanes. What is the value of that investment? Is it the market capitalisation at the New York Stock Exchange? Theoretically, it is so; however, in effect, it is a piece of paper and a seat of Chairman on the Board.

The real assets of the company which are (a) technology, (b) manpower, (c) employment and social benefits, (d) intellectual property, etc, would always remain outside the control of these investment funds.

It is, therefore, important to see what real benefit is attained by ME investment funds by being the owner of a company like Boeing.

Whenever there will be a clash of interest in the political sense of ME countries with the west Boeing will not be there.

Even if we assume that over the time 100 per cent of pilots in Emirates would be Emaratis the real question will be ultimate beneficiaries of the facilities being provided by the airline.

This is a universal reality which proves that money, people and civilisation are linked to geography and demography. The value of an asset is only to the extent of its economic realisation.

So for the inevitable reasons the real usefulness of these assets only lies in countries which are climatically and geographically away from Qatar may be Europe, USA, China or India.

For Qatar and the Qataris the benefit can only be there when the asset exists outside Qatar and the Qataris enjoy the same there.

Except that it is useless for the person and the people who generated that or where it was generated.

Ultimately, it will end in banks lockers and economies and people of the west will be benefited.

In this situation the author will value the asset in a different form. As an accountant this valuation method may be called ‘Usefulness in the Country of Origin’ method.

This is an economic reality. In the author’s view that on this measure the value of this USD $ is not more than 10 per cent of the gross value and the remaining 90 percent benefit arising from such wealth will be for people and places different from where it is generated. This is called ‘Virtually Frozen Assets’.

The questions which Middle Eastern investment funds have to ask, ignoring the confusion created by accounting standards and traditional valuation methods, is whether this wealth would ever be useless for the people of their own country whilst living in their own country. Recently, the author visited Doha.

The taxi driver who was a Qatari informed him that almost 90 per cent of the Qataris spend most of their lives in the West.

This number is increasing. For the remaining parts they become a contributor and big spender for high streets in the West supporting their economies. This is a trap of crude capitalism.

One can buy Patek Philippe or Hermes to a limited extent as these commodities do not provide respect and honour which is given to an educated and civilised person in any western society.

The owner of Harrods, Muhammad Al Fayed, is an example. Thus in the end, the result is a farce.

This has happened by past royalties in Europe and Asia.

We should not forget three rich monarchs: the Nizam of Hyderabad (USD 2 billion in 1940), King Farouk of Egypt (USD 2.3 billion) and Reza Shah of Iran (USD 1 billion). Unlike these royalties the wealth referred to in above is not the personal wealth of royalties.

This is the wealth of state investment funds, etc., however, when the substance and utility is examined the result is almost the same.

The royalties referred above left the wealth which at that time was larger than anyone else’s.

This means that like past royalties these Middle Eastern countries are in a trap.

As of early 2026, reports indicate that Saudi Arabia has drastically scaled back — and in some respects, effectively stalled — The Line, the flagship 170-kilometre linear city project within the broader NEOM development project championed by Crown Prince Mohammed bin Salman (MBS).

The reason is not only the shortage of funds but the ultimate usefulness.

In the times to come AI will be for the people needing comfort. The Saudis are already living in comfort.

They want luxury, which is not the result of AI. Luxury can only be provided by the natural environment, which is available in abundance in Pakistan’s northern areas, on both sides of the Line of Control, or in Switzerland in Europe. Nature cannot be recreated by science.

Learning from history which is undeniable, it would be better for these funds to completely relook at their real balance sheet.

The answer lies in diversification of investment to places like Pakistan, Iran, Central Asia, China, India and others.

Furthermore, there should be investment in people of disadvantaged countries so that there is a positive political image in case of any political and social upheaval.

Economics and politics have never changed in the manner as has been predicted. So, whatever was taught in Harvard and Cambridge was made useless by one five-foot tall person by the name of Deng Xiaoping.

Pakistan has an opportunity of over USD 200 billion investment and will provide better results than anywhere else in the world. The only thing to change is the lens through which the future is seen; and a correct method of valuation of asset is adopted.

(Concluded)

Copyright Business Recorder, 2026

This article first appeared in the daily Business Recorder on April 6, 2026.