Kiefer, CC BY-SA
Deutsche Bank - Frankfurt
Deutsche Bank - Frankfurt
Qatari investors attending the recent Qatar-German Business & Investment Forum in Berlin earlier this month, the fourth such event, were very bullish about the German economy in general, and several key players said they specifically plan to increase their exposure to the country’s real estate market.
The high-level event, held under the patronage of the Emir of Qatar H.H. Sheikh Tamin Bin Hamad Al Thani and attended by chancellor Angela Merkel, looked at the cross-border mutual investment by both countries, at a time when Qatar is being put under increasing pressure by its Gulf neighbours, who continue to try to isolate the tiny sheikdom.
Qatar’s finance minister, Ali Sharif al-Emadi, said the Qatari delegation “views Germany as a key player in the world economy and are looking at the German market with great optimism.” Qatar has already invested over $25bn in Germany, including sizeable stakes in companies such as Volkswagen, Deutsche Bank, Siemens, Hochtief and Solarworld.
The CEO of Qatari Diar Real Estate Investment and Development Company Eng Abdullah Hamad al-Attiyah said that his company was participating in this year’s forum because it wants to expand its real estate portfolio with German real estate developers.
He said that the German market was attractive to Qatari Diar, and confirmed that the company was looking for German companies to partner with. He said that the companies competitive advantage stems from their ability to examine investment opportunities well regardless of they are in the world.
He highlighted their project to develop the site of the former US embassy in London located at Grosvenor Square as an example of the company’s ability in that regard.
Al-Attiyah said that they are looking at the five best companies that offer services in real estate investment in the German market, noting that Diar operates in 22 countries around the world. He said that the company notices the trend of people moving to live in the suburbs of Berlin, which he says makes the city a more attractive property market.
Qatar’s neighbours Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have severed ties with the government in the Qatari capital Doha last year, imposing a land, sea, and air blockade over claims that it supports terrorism and Iran.
The Arab countries issued a list of 13 demands at the time, including the shutdown of Al Jazeera news network, claiming it interferes in the internal affairs of their countries. The requirements also included ending support for the Muslim Brotherhood, downgrading ties with Iran, and closing a military base housing Turkish troops. Doha has denied the claims, and any charges that it is linked to terrorism.
Responding to the sanctions in July 2017, finance minister al-Emadi told media that Qatar - the world's biggest exporter of liquefied natural gas - was far too rich to worry about any economic repercussions. "We are the fastest-growing country in the region, 40 percent faster than the nearest Gulf Co-operation Council country [the UAE]," he said at the time.
Trade relations between Germany and Qatar have surged in recent years, reaching €1.9bn last year. At least 300 German companies are active in the Qatari market, with many German company’s supporting Qatar’s stated goal of becoming a technology-based economy.
Recently, as part of its efforts to modernize the education sector, Qatar Science and Technology Park hired the German software giant, SAP, to play a significant role in training and rehabilitating Qatari youth. While supplying key equipment, the project also transferred German knowledge and technology to develop specific programs and applications in Qatar.
