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Qatar acquires stake in German construction company 9, December 2010

Posted by thegulfblog.com in Qatar.
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Qatar is to acquire a 9% stake in Hochtief, a German construction company that was under threat of a hostile takeover by their Spanish arch rival ACS.

Currently, Hochtief has significant work in Qatar and with the World Cup to host, clearly, this business relationship is going to be busy for a decade or so.

It is intelligent and in keeping with Qatar’s plans to attempt to keep as much of the money that it will spend – the reputed $50billion – in Qatar. Given the size of the Qatari market and the industries based there, obviously, much will have to be contracted in, but I expect more deals like this in the near future so that some Qataris profit from the outlay of World Cup costs.

Ahmad Mohamed Al-Sayed, Qatar Holding’s chief executive, said the investment would “cement our relationship with one of the key trading partners for the development of the infrastructure of Qatar ahead of the World Cup in 2022”.

This deal also follows a predictable pattern. Qatar likes to invest, wherever possible, in companies or real estate that are looking for investment and are, to some degree, desperate. This helps to drive down the price and get Qatar a bargain: it has been a long time since unscrupulous Western businessmen went to the Gulf to sell gold-plated Rolls Royces to newly minted and naive Shaikhs.

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Comments»

1. Anonymous - 10, December 2010

As much as I’m enjoying the image of a Hogtied Qatari, it’s Hochtief, not Hochtied.

2. thegulfblog.com - 10, December 2010

Many thanks! (Though I did consider leaving it as it is…comic relief and all…)

3. RohanV - 10, December 2010

Other news: Qatar Foundation is to become Barcelona’s first shirt sponsor from next year in a $150 million+ deal. The club presently pays (well, donates money) to UNICEF to have that logo on their jerseys, but now’ll they’ll have QF as well. (http://www.bbc.co.uk/sport2/hi/football/europe/9276343.stm)

Barcelona fans are fairly unhappy, and some of that ire is being targeted at Qatar (http://www.barcelonafootballblog.com/5355/bara-reportedly-set-sell-shirt-sponsorship-clubs-mission-future-unicef/#comments), although mostly at the new club president Sandro Rosell.

Also, snow in the gulf (blog)? If only.

thegulfblog.com - 10, December 2010

Thanks. Pleased you like the snow.

4. P. - 26, December 2010

Ironically, the German press has been going out of its way to condemn Fifa and Qatar for hosting the 2022 World Cup.

At times like these, I cannot stand ze Goimanz!

5. Mohamed Fahmy - 9, January 2011

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