Qatar and Switzerland are expected to announce the formation of an investment fund valued at EUR 400 million (USD 522 million) sometime in June, according to a source familiar with the project.
During a recent visit to Qatar, Filippo Lombardi, president of Switzerland's council of states, underscored plans to use the new fund in financing projects for specific sectors such as real estate, hospitality and banking.
"The first endeavor to be undertaken will be the purchase of a reputed hotel overlooking Lake Geneva," added Lombardi, without mentioning the actual name or value of the anticipated deal.
Qatar and Switzerland have been enjoying sound economic and investment ties, with Qatari investments in the Alpine country currently estimated at around USD 4.5 billion. These projects are primarily focused on the tourism, hospitality and banking sectors.
Qatar-based hotel investor and operator Katara Hospitality currently manages all the Gulf state's tourism investments in Switzerland, including several hotels in the cities of Bern, Lausanne and Lucerne. The LNG-rich nation also bought a 6.2% stake in Credit Suisse a few years ago and bought the bank's London unit for a total of USD 517 million.
Commercial trade between Qatar and Switzerland stands at USD 170 million annually and around 200 Swiss businessmen are currently involved in the Qatari market's economic activities.
Aside from Switzerland, Qatar's international interest includes shares in Australia-based Xstrata Mining Corporation valued at around USD 2.65 billion.
© Zawya 2013
