Qatar sets up billion dollar energy fund

0
2187
Spread the love
Qatar sets up billion dollar energy fund
Qatar Petroleum’s Al-Shaheen CDM Project is the first of its kind in the Middle East petroleum industry.

Three Qatari government-owned companies have decided to set up a USD 1 billion fund to invest in overseas energy infrastructure projects.

An official announcement by Qatar Electricity and Water Company (QEWC) reveals that it would establish the fund in collaboration with Qatar Petroleum International and Qatar Holding, the Arab states’ sovereign wealth fund, which is aggressively seeking acquisition targets globally. The statement claims that the fund will invest in overseas markets; “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.”

The new company will be called Nebras Power, owned 60 percent by QEWC, 20 percent by QPI, and 20 percent by Qatar Holding.

“It’s initial capital will be USD 1 billion, with the idea to provide power outside Qatar. We will focus on the Middle East and parts of the Far East, including North Africa, where we feel there are opportunities for investment. This will include both greenfield and existing projects.” — Qatari Energy Minister Mohammed Saleh al-Sada

On the back of rising oil prices, Qatar boasts one of the highest per capita incomes in the world. While Qatar is smaller than Belgium, the Gulf state has vowed to increase its global influence and become a dominant player in the world’s political and economic arena.

In recent years, gas-rich Qatar has bought several British assets including 80 percent of Western Europe’s tallest building, The Shard, Harrods, and the US embassy building. Qatar is also funding the redevelopment of the 3 billion pounds Chelsea Barracks housing project. During the peak of banking turmoil, the Gulf state bailed-out Barclays and emerged as its biggest shareholder. Some other high-profile assets grabbed by Qatar include French soccer club Paris Saint-Germain, German sports-car maker Porsche and Swiss lender Credit Suisse.

These ownerships have been led by the Qatar Investment Authority (QIA), a sovereign wealth fund with tens of billions of pounds in assets and a global reach.

Facebook Comments