Qatari investments in Africa focus mainly on renewable energy (Qatari press)

Doha

- In light of the fluctuation of Chinese funding for infrastructure projects on the African continent, and the decline of the European role, Qatar’s investments in the African continent have increased and expanded significantly in recent years after being coupled with diplomatic moves, alliances and international agreements, so that investments go beyond the North Africa and the Horn of Africa region to all parts of the continent. .

Qatar's move to invest in the African continent comes within the country's strategy for economic, geographic and cultural diversification, which aims to strengthen its economic presence and obtain a prominent position on the global investment map at the regional and international levels.

Its accumulated experience in the business environment, its strong relations with markets and large companies, and its diplomatic and sporting reputation played a major role in Qatar’s entry into the African continent without reservation, and opening the doors of Africa to the Qatari investor, despite the competition between the major powers (the United States, China, Russia, and Europe). ), on investing in Africa.

Qatar has investments in Africa in the transportation sector (Qatari press)

Diverse markets

Economic analyst Dr. Abdullah Al Khater believes that the Qatari trend towards investing in the African continent is due to the fact that Africa has diverse markets and huge resources, and that a large portion of the region’s projects are still virgin, while large investments can be obtained at preferential prices.

Al Khater told Al Jazeera Net that the Qatar Investment Authority (the sovereign wealth fund) owns investments in Europe, America and Asia, and now focuses on investing in Africa in the sectors of energy, agriculture, real estate and various fields, with the aim of achieving economic, geographical and cultural diversification.

He adds that Qatar has a surplus of energy, and it can be a partner in projects in this field on the African continent, whether related to exploration or providing energy if there is a need. Therefore, Al-Khater continues, Qatar is able to play the role of a provider of clean energy.

Qatar's entry into the field of competition for investment in the African continent is an important and healthy matter, as this leads to creating balances and enabling decision-makers in Africa to have various options away from monopoly. In addition, these investments contribute to increasing the rate of economic growth on the continent, and also enable Countries achieve development, according to risk.

Huge expansion

  • Qatari investments in Africa focus mainly on renewable energy, mining, steel, communications and transportation.

  • It is the largest Arab investor in Algeria, with a share of more than 74% of the total Arab investments.

  • Qatar is a major investor in Egypt in all sectors, as a group of investments and partnerships totaling $5 billion were agreed upon last year.

  • Cooperation between Doha and Abidjan has witnessed significant development in recent years in a number of fields such as investments, infrastructure, aviation, and natural gas.

  • Qatar Energy Company signed an agreement with the Italian company Eni and the American Exxon Mobil to acquire a 25.5% and 10% exploration concession in the Ingushe offshore basin in Mozambique.

  • In the Republic of the Congo, Qatar Energy acquired 15% of the French company Total, in addition to another investment in the field of electricity.

  • Qatar has strengthened its partnership with South Africa in many fields, the most important of which are oil, minerals and petrochemicals, and joint investments between the two countries amounted to about 13 billion dollars.

Al Kuwari (right) stresses that the African continent is the ideal destination for Qatari investments (Qatari Press)

Investment opportunities in East Africa

Mohammed Al Kuwari, First Vice President of the Qatar Chamber, stressed that the country’s domestic product, which amounts to about $200 billion, is one of the factors that contribute to strengthening cooperation between Qatar and Africa, especially the eastern region and Uganda, which provide investment opportunities and are considered a source of basic commodities, food, and raw materials, and are also considered a leading tourist destination. .

Al-Kuwari stressed - on the sidelines of the East African Investment and Trade Forum and Exhibition, which was held in Uganda recently - that the State of Qatar is on the throne of liquefied natural gas production and marketing in the world, and supplies a large number of countries with this commodity, noting that Qatar Energy has concluded many agreements. Exploration and production agreements with dozens of countries on various continents, including Africa.

Al-Kuwari believes that the African continent is the ideal destination for Qatari investments, noting that the assets of the Qatar Investment Authority amount to about 475 billion dollars.

He says that the Qatari private sector has various investments in many countries of the world, especially in the European Union, the Gulf Cooperation Council, and some Arab countries.

Promoting Qatari investments in Africa #Al-Raya_Newspaperhttps://t.co/xolaZ5jRlw

- Al Raya Qatar (@alraya_n) February 7, 2024

Efficient diversification

In turn, economic analyst Dr. Abdul Rahim Al-Hoor believes that the Qatari investment policy applies the principle of efficient diversification, which works to reduce risks by distributing them in terms of relative weight, geography, and sector, while trying to increase returns in the long term, which is what is currently happening by turning to investing in The African continent after Europe, America and Asia.

Al-Hoor told Al Jazeera Net that Qatar has a balanced knowledge economy and human resources, and also has international partnerships with government investments exceeding $450 billion, which can be partly used to build international economic alliances, in addition to having a cheap source of energy with large production quantities, and a network of financial institutions. A balanced legal system capable of managing external operations.

He adds that all these capabilities open the doors for Doha to invest in Africa, by entering as a service provider in the energy sector, especially through its expertise in exploration and oil extraction and the related logistical operations, or through its partnerships with countries operating in the sector, and investing in other sectors such as communications. , transportation, mining, and heavy industries.

Al-Hoor believes that the East African region is considered one of the attractive areas for Qatari investments, whether governmental or private, as it enjoys large natural resources, good political stability, human resources, and good opportunities for establishing direct investments supported by achievable political alliances.

Source: Al Jazeera