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is qatar taking on the world?
Mohammed Al-Fayed sold Harrods store to Qatar Holdings for QR8.4 billion in 2010.
considerable funds”. Apart from its acquisitions through QH, the government too has entered into a number of investment agreements with European governments. European Governments have been wooing Qatari investment because of the economic turmoil in their region. Qatar’s recent commitments in Europe include a probable £10 billion in various projects, a Euro 300 million Euro Joint venture investment in French SMEs and a Euro 2 billion JV to invest in companies that make luxury products. Its use of cash has not always been met with open arms. The huge sums involved have raised questions about Qatar’s intentions. Qatar has targeted prime properties and spent huge sums to acquire them leading to accusations of buying up Europe and creating “luxury ghettos”. When Qatar announced an investment in French suburbs dominated by Muslim immigrants, it was even blamed for harbouring religious intentions. Reacting to the media criticism, French Minister for Foreign Trade Nicole Bricq, in her interaction with Qatari media clarified that “Qatari investments are and will be welcomed in France. We will not listen to any sort of unfounded criticism. We are keen on doing business with Qatar.” Media and football interests Al Jazeera has evolved into a great media tool for the nation and has been instrumental in projecting Arab states on the world
stage. In a surprise move the news network entered America by taking over Current TV for QR1,820 million ($500 million) in January this year. “The news network’s expansion plan in the United States can be seen as the Qatari leadership’s desire to propagate a Qatari-sponsored narrative of events in the Middle East and elsewhere,” says Abhishek Bhaya. The network has also been active in the sports rights market. Al Jazeera owns television rights for a number of French football league matches. Qatar has been actively involved with soccer ever since it won the rights to host the World Cup 2022. QHbought the troubled Paris Saint-Germain and Qatar Airways’ logo will now appear on Barcelona FC t-shirts. These moves project Qatar as an international brand, and also helps identifying the country with sports. “There is a collective sense of pride among the soccer-crazy GCC-nationals over Qatar’s winning the bid to host the FIFA World Cup in 2022. Hosting the world’s biggest sporting event is seen as gaining global prestige not only for Qatar but for the neighbouring Gulf nations as well,” says Bhaya. QIA – an integral arm QIA, through its investment arm QH have assets worth approximately $115 billion according to a data compiled by the Sovereign Wealth Fund Institute. It is the 12th-largest sovereign wealth fund in the world according to Sovereign Wealth Fund Institute.
From a keen European focus, it is now spreading its interests across the globe into Southeast Asian economies and Africa. Its interests in South Asia include a $10 billion investment in a petrochemical facility in Malaysia (including s $5 billion petrochemical project); a 22% stake in CITIC Capital Holdings, one of China’s top investment funds; and joint investment commitments with Korea. QH has also received the Qualified Foreign Institutional Investor (QFII) licence from China that gives the country access into Chinese stock and bond markets. Europe continues to be on its radar as is evident in BAA, and its interest in French SME's and Italian product companies. “QIA believes the assets are perhaps valued at a price below their actual worth and with margin for profit and consistent future growth,” says David Russell, CEO, Guardian Wealth Management Qatar. Bentley agrees that QIA, like most sovereign wealth funds, is only interested in proven and/or long-term assets. “That is why it was a joint bidder (unsuccessfully as it turned out) for a stake in Turkey’s TAV, which has a good chance of getting the contract to build and operate the new Istanbul airport which is intended to be the biggest in the world,” says Bentley. In a hurry to secure its future before its formidable gas fortunes dwindle, Qatar is spreading its tenets far and wide.
By Sowmya Sundar