Qatar’s 2014 overseas investments

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In the first half of 2014, the total value of Qatari deals and investments conducted abroad crossed the US 10 billion mark, covering 11 countries around the world. Qatar’s investment policy relies on adopting investment opportunities with least risk and maximum profit.

Britain, France, and Germany attract Qatari investments valued at US 83 bn (QR 302 bn). With US 40 bn worth of investments, Britain is the top destination for Qatari investments, followed by France with US 25 bn worth of Qatari investments, and Germany with investments more than US 18 bn.

Germany

Deutsche Bank attempted to raise EUR 8 bn (US 11 bn) in new capital, with Qatar taking part as a main investor, in a bid by Germany’s largest bank to end questions about its capital position. The bank had already raised EUR 10.2 bn in equity in 2010 and EUR 3 bn in 2013, but it had failed to assuage investor concerns about its capital position as it faces increased regulatory demands.

Banks throughout Europe are getting rid of risky investments and raising new financial buffers to meet new regulatory standards with the sole purpose of strengthening the banking system.

“These measures will substantially increase the bank’s capital ratio, provide a buffer for future regulatory requirements, and support targeted business growth,” Deutsche Bank stated in a statement.

Spain

Qatar increased its share in Spanish real estate company Colonial to 416 mn shares, 13.1 percent of the stake. By this deal, Qatar supports Colonial’s capital with around EUR 1.3 bn. The deal made Qatar the second largest shareholder in the listed Spanish company after Villar Mir which has previously injected fresh capital to the ailing company in order to allow it to cut in debt and welcome new stakeholders. After the capital enlargement, the following Colonial investors hold as follows: Coral Partners 9.48 percent, Santo Domingo 7.5 percent, MoraBank 7.05 percent.

Britain

British company Heritage oil sold 80 percent stake to Al Mirqab Capital for US 1.55 bn. Analysts say that this deal will have a positive impact on oil exploration and production. Al Mirqab is keen on Heritage’s growing oil production in Nigeria.

In addition to stakes in onshore oil fields in Nigeria, Heritage also holds exploration rights in Papua New Guinea. Tony Buckingham, founder and chief executive officer, retains a 20 percent holding and serve as an adviser for at least five years.

Brazil

In January, Qatar Petroleum International bought a 23 percent stake in Parque das Conchas off the coast of Brazil from Shell for around US 1 bn. The deal is the second largest in the history of Shell and the oilfield is one of the biggest Brazilian oilfields as it consists of five connected fields. Left with a 50 percent interest, Shell will continue to operate the 50,000 barrels of oil per day project.

USA

American Express recently entered into an agreement to create joint venture and share ownership of its Global Business Travel division with an investor group, including Qatar Investment Authority for US 900 mn.

Germany

Qatar bought a stake in German solar panel Company SolarWorld, which expects to achieve more than EUR 1 bn profit by 2016 after expected losses of EUR 36 mn this year.

Morocco

Qatar invested US 566 mn in state-backed Moroccan venture Wessal Capital, which attempts to achieve a number of industrial, tourism and entertainment projects in Morocco’s economic capital. The project’s total investments are valued at US 3.4 bn.

Switzerland

Katara hospitality invested EUR 400 mn (US 546 mn) in luxurious hotels and resorts on the banks of lake Lucerne. The first construction phase, the “Waldhotel” with 160 rooms and suites, will begin in 2017.

French real estate

Qatar sovereign wealth enterprise bought an 8.55 percent stake of French real estate company Lyonnaise. 53.1 percent of Lyonnaise belongs to Colonial real estate.

Canada

Qatar Petroleum International bought 40 percent of Centrica’s natural gas projects in Canada for US 180 mn. It is worth mentioning that Qatar Petroleum International signed a memorandum of understanding in December 2011 to promote investments in the energy sector.

Jordan

Qatari investors have announced a medical tourism project in the Dead Sea, valued at US 50 mn. The project is expected to provide 400 job opportunities.

Russia

The Qatar Investment Authority is allocating US 2 billion to Russia via joint investments with state-backed private equity fund the Russian Direct Investment Fund, Kirill Dmitriev, the CEO of Russia’s fund said on Friday.

With a US 10 bn capital, the Russian investment fund attracts foreign capital to invest in Russia in joint ventures with the state.

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