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If the norm at the moment is that countries don’t want to invest in other countries due to the economic downturn and volatile markets, then the exceptions are Qatar and Germany. Currently, the country of Qatar is looking to invest heavily into the exporting powerhouse, and they have the money to do it. As of 2007, Qatar has attained the highest per capita income in the world, primarily through the means of oil and natural gas revenues. So what interests Qatar so much about Germany?
Surprisingly enough, Qatar has its sights set on Germany’s auto industry. The oil giant is primarily concerned with the German brands Volkswagen and Porsche, brands which are very numerous and very popular in the Arab world, especially in the country looking to invest, which had an $80,900 GDP per capita in 2007.
Furthermore, Qatar may have other interests in Germany. Martin Boll, a correspondent of the Dubai firm Germany Trade and Invest states that "They want to invest excess capital, secure long-term revenues and diversify. And they also want to obtain know-how for their domestic economy in order to generate jobs in this way." The amount of money Qatar has and is willing to invest is staggering. The oil giant has already invested about $60 billion worldwide, and has a fund with near $20 billion extra at its investment disposal every year.
Currently, a power struggle between Volkswagen and Porsche has stalled Qatar’s investment plans in the German auto industry. However, even if Volkswagen and Porsche don’t resolve their issues, Qatar is still likely to invest in Germany. Since Germany is the largest exporter in the world, that’s good news for Qatar. And Qatar has lots and lots of money to invest. That’s good news for Germany.
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