Entertainment

Movie

Music


  • One analyst said that Doha could find it difficult to fulfil the deal due to the boycott on Qatar by the Anti-Terror Quartet
  • Qatar could also saddle British taxpayers with a bill for billions of pounds by defaulting on payments for military equipment
LONDON: Doubts have been cast over a multibillion-dollar investment Qatar plans to make in Germany, with one analyst warning that Doha could struggle to fulfil its financial pledge.
Qatar said on Friday it would invest €10 billion ($11.6 billion) in Germany over the next five years, including the possible creation of a liquefied natural gas terminal, Reuters reported.
“To express our trust in the strength of the German economy and the importance of investing in it, I announce the intention of Qatar to pump investments that amount to €10 billion into the German economy in the next five years,” Qatar’s Emir Tamim bin Hamad Al-Thani was reported as saying.
One analyst said that Doha could find it difficult to fulfil the deal due to the boycott on Qatar by the Anti-Terror Quartet. Saudi Arabia, the UAE, Egypt and Bahrain have imposed sanctions on Doha over its alleged support of terror groups. Doha denies the charges.
Ghanem Nuseibeh, founder of Cornerstone Global, a management consultancy focused on the Middle East, said that Qatar is making the German investment “partly from a political standpoint.”
He added: “They will not be no-strings-attached investments and whichever Germany project they invest in, (people need) to be aware of that.”
Nuseibeh said that Qatar is known for failing to fulfil its investment pledges. “Given the financial pressure the Qatari economy is under due to the sanctions, Qatar may find it difficult to carry out whatever it has promised Germany,” he said.
“In addition, contractors working for Qatar including for FIFA 2022 are known to have faced delays in payments, and the most notable case is Carillion which has collapsed, despite senior British government intervention with the Qatari government.
“The Germans need to be very cautious about Qatari promises and be aware of serious risks that such collaboration would entail.”
News of the pledged Germany investment follows another warning over Qatari deals in Europe.
Qatar could saddle British taxpayers with a bill for billions of pounds by defaulting on payments for military equipment ordered from the UK, it emerged this week.
A leaked UK government document revealed that a deal to sell Typhoon fighter jets to Qatar will require “unprecedented” support from the British taxpayer, The Telegraph reported on Monday. Officials expressed concern that underwriting the £6 billion deal risked “billions” of government funding if Qatar defaulted on the agreement.
The documents indicated that there is concern over whether Qatar can meet its obligations,
with Qatar reportedly missing a July deadline for the first instalment.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.