Doha: Qatar yesterday said it would invest ¤300m in Spanish banks besides seeking tie-ups with Spain in several other investments.
"We discussed details of Memorandum of Understanding on investment in infrastructure in Spain and Qatar's investment interests in other fields, especially in Spanish banks. There is a commitment in principle that Qatar is investing ¤300m to these banks as capital," said the Prime Minister and Foreign Minister
H E Sheikh Hamad bin Jassem bin Jabor Al Thani addressing a joint press conference with his Spanish counterpart José Luis Rodríguez Zapatero.
"We have confidence in the Spanish economy, the government has taken many positive steps. In the next 10 days to two weeks there may be some more (investment announcements)," said Qatar's Prime Minster.
He also said that Qatar was seeking to invest in Spain's energy and telecom sector. The Prime Minister further confirmed that the Emir H H Sheikh Hamad bin Khalifa Al Thani, will visit Spain in April to enhance the relations between the two countries.
In response Zapatero said: "This will be an important step forward for the Spanish economy and will consolidate confidence."
"Now we are carrying reforms in the economy and these Qatari investments will play crucial role in the strength of our economy," Zapatero added.
Earlier both Prime Ministers witnessed the signing of a memorandum of understanding (MoU) between Qatari Diar Real Estate Investment Company and Spain regarding investment in infrastructure and transport. The MoU was signed by Mohamed Ali Al Hedfa, Executive Chief of Diar Group and Juan Jose Santos-Aguado, Spanish ambassador to Qatar.
Qatar and Spain have also worked recently on expanding ties which will witness a further boost through the Qatari investments in Spain and more Spanish companies in Qatar operating in the construction and energy fields.
The Prime Minister also said yesterday that Qatar hopes a merger between German builder Hochtief and Spanish construction and services group ACS will be "friendly".
"We are hoping for goodwill that the merger will be friendly. We don't believe in a hostile takeover," Sheikh Hamad bin Jassem said.
Qatar agreed to buy a 9.1 percent stake in Hochtief for ¤400m, adding muscle to the No.1 German builder's fight against a hostile takeover approach from rival ACS in December.
Meanwhile, Swiss-based Glencore is priming analysts with in-depth briefings on its business ahead of a possible mega-float which could involve Qatar taking a stake in the world's largest commodities trader.
If it goes ahead, an initial public offering (IPO) of privately held Glencore could value the company at as much as $60bn according to Liberum Capital estimates, making it one of Europe's biggest listings ever.
Qatar, one of the sovereign wealth funds flagged as a possible "cornerstone" shareholder, is considering investing in Glencore, the Prime Minister said yesterday.
"We are studying the matter at the moment. I believe we will have a meeting here in Doha in the next two days," Sheikh Hamad bin Jassem said.
A public listing would allow Glencore, a partnership, to keep growing even if its partners wish to leave.
It would bolster the Swiss-based trader's balance sheet, reassuring credit-rating firms, and allow it to make major acquisitions using shares as payment.
© The Peninsula 2011
