Qatar To Invest $1 Billion In Foreign Energy Infrastructure
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Qatar has vowed to invest close to $1 billion in foreign energy infrastructure assets, reported Reuters on Monday, through the creation of a new investment fund, which will be run by three state-owned entities.
Qatar has vowed to invest close to $1 billion in foreign energy infrastructure assets, reported Reuters on Monday, through the creation of a new investment fund, which will be run by three state-owned entities.
The new holding company, to be called Nebras Power, will be 60 percent owned by the Qatar Electricity and Water Co. (QEWC); while Qatar Petroleum International (QPI), the foreign investment arm of the state energy company, and Qatar Holding, a subsidiary of the Qatar Investment Authority, will each control 20 percent stakes.
The fund will invest outside Qatar “in the fields of power generation, water desalination and treatment, heating and cooling systems, provision of fuel as well as fuel loading and unloading equipment,” QEWC said in a statement, adding that their initial focus would be on projects in “the Middle East and parts of the Far East, including North Africa.”
“Its initial capital will be $1 billion, with the idea to provide power outside Qatar,” Qatari Energy Minister Mohammed Saleh al-Sada told a news conference.
[quote]“Nebras Power aims at becoming a global company and is all set to make the first steps to position itself as a leader in its area of activities at the regional and international levels,” al-Sada added, as cited by The Gulf Times.[/quote]Related: Qatar’s Movers and Shakers Stand in the Spotlight
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QEWC General Manager Fahad Hamad Al Mohannadi told Bloomberg that the new holding firm is likely to operate as a stand-alone from its investors. Additionally, Al Mohannadi believed that QEWC’s current foreign assets, will remain under the parent company control, while future expansion outside Qatar will be carried out by Nebras.
Meanwhile, the Financial Times revealed on Monday that the Qatar Investment Authority was also about to launch a multi-billion dollar push into the banking sector, by buying fresh stakes in Russia’s VTB and Germany’s Deutsche Bank. The investments would increase Qatar’s banking portfolio, which already includes stakes in western financial institutions such as Credit Suisse and Barclays.
According to The Gulf Times, the growing range of foreign investments have been down to the government’s plans to strengthen its ties with the rest of the world.
Additionally, the government also launched a $12 billion initial public offering of a government-linked investment fund in February that would give Qatari citizens the chance to benefit from the state’s overseas investment spree.
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[quote]The fund’s creation is “in line with the country’s strategy of diversifying its assets from energy and the Middle East, while at the same time extending its influence and brand,” said Gus Chehayeb, research director for the Middle East and North Africa at Exotix.[/quote]
