Qatar Investment Authority (QIA), a US$580 billion sovereign wealth fund, has set up a dedicated division to manage its domestic investments as the Gulf state seeks to strengthen local companies and attract more private capital.

The move creates a clearer distinction between QIA’s domestic investments and its extensive overseas portfolio, the wealth fund says in a statement.

Called Doha Investment, the division will initially oversee 45 state-owned enterprises representing about one-third of QIA’s total assets.

Its mandate includes strengthening existing national companies, creating new businesses and supporting privatisation, while encouraging greater private sector participation and attracting foreign capital and expertise.

Sheikh Faisal Thani Al Thani, Qatar’s commerce and industry minister, has been appointed as managing director and vice chairman of Doha Investment.

Established in 2005, QIA invests Qatar’s hydrocarbon wealth across global markets and asset classes.