Qatar to invest $5 bln in Spain's funded recovery, Emir says
MADRID, May 18 (Reuters) - Qatar's $300 billion sovereign wealth fund plans to invest $5 billion in Spanish projects, the Gulf state's ruler said late on Tuesday at a dinner held in his honour in Madrid.
Spain's Prime Minister Pedro Sanchez said on Tuesday that Emir Sheikh Tamim bin Hamad Al-Thani told an audience at a dinner held in King Felipe's Palace in Madrid that the amount underscored Qatar's confidence in the Spanish economy's strength.
"This is without a doubt a show of confidence not only toward the Spanish economy, but also toward Spanish companies," Sanchez added in a speech.
Qatar's ruler, who is visiting Spain this week, is expected to sign a bilateral agreement with Spain to invest in projects funded by the European Union COVID recovery funds, the first such agreement between a member state and a non-EU country.
The investments, mainly in technology and environmental projects, are due to be implemented within two to three years, according to government sources.
Spain, the main recipient of EU funds - a total 140 billion euros ($147.53 billion), is scrambling to get support from private and foreign investors to speed up its recovery from the record 11% contraction it suffered in 2020 as a result of the pandemic.
As part of efforts to uplift its economy, the country wants to use its spare Liquefied Natural Gas (LNG) terminals and storage capacity to serve as an energy hub for EU nations seeking to reduce their dependence on Russia.
However, it still lacks the infrastructure to re-export gas to the north to live up to those ambitions.
The energy hub project would require more imports from major LNG producers such as Qatar, which exports 77 million tonnes of LNG per year but aims to reach 126 million tonnes by 2027.
Qatar had a stock of direct investment in Spain worth 2.7 billion euros as of December 2019, Sanchez said. The Gulf state's sovereign funds has invested in iconic Spanish companies such as Iberdrola IBE.MC , Santander SAN.MC and Prisa PRS.MC , he said.
($1 = 0.9489 euros)
Reporting by Isla Binnie, Belen Carreno and Inti Landauro, Editing by Louise Heavens
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.