Following the UAE SWF Mubadala, the Qatar Investment Authority (QIA) will invest $5 billion into the Spanish economy.
Qatar’s Amir Sheikh Tamim bin Hamad Al Thani, who led a high-level delegation including his wife Sheikha Jawaher bint Hamad Al Thani a fortnight ago to that country, made the announcement during a dinner hosted by King Felipe VI on Spain.
With this, the total investments in Spain has crossed $22 billion. The latest investments will be in the projects supported by the European Union’s (EU) COVID-19 Recovery Fund.
Spain’s state-owned investor Compañía Española de Financiación del Desarrollo (Cofides) signed an MoU with QIA to identify potential joint investment opportunities in both Spain and Qatar.
Cofides is 54% owned by Spanish public agencies, and 46% owned by private banks such as Sabadell, Santander and BBVA. The focus is tech-enabled sectors, as well as sectors supporting energy transition initiatives, including renewable energy, clean transportation, and the circular economy.
Cofides’ Chairman, José Luis Curbelo, said: “By combining Cofides expertise in business development and QIA’s long-term investment perspective, both institutions leverage their strengths for the successful implementation of this agreement, which should translate in sound investments aligned with Spain’s economic strategy.”
Earlier in February this year, Abu Dhabi sovereign fund Mubadala forged bilateral relationships to look into common interests, particularly in the development of the Spanish economy, in energy transition, sustainable mobility, transport, circular economy, digitization, biotechnology and agribusiness.
At that time, José Luis Curbelo said the UAE offered investment opportunities in areas such as infrastructure and transport, tourism and renewable energies, in which Cofides has extensive and extensive experience.
Mubadala has entered a number of bilateral deals involving sovereign funds, indicating that it is an element of Abu Dhabi’s soft power as it seeks to cement economic and political alliances, according to a media report.
Mubadala has signed sovereign investment partnerships with the UK, China, France, Russia, Greece and Kazakhstan, the report said.
In September 2021, Mubadala indicated that it was scaling up its plans under the UAE-UK Sovereign Investment Partnership (UAE-UK SIP) with $7 billion investment framework agreed in March boosted to $14 billion over the next five years.
SIPs focus on tech, infrastructure and energy transition – areas where Mubadala has already made significant investments in the UK over the past decade.