Qatar to Invest €10 Billion in the French Economy

by Sebastien GOULARD

During his official visit to France on 27 February 2024, the Emir of Qatar, Tamim bin Hamad Al Thani, agreed to invest €10 billion in the French economy by 2030.

Over the years, Qatar and France have become major partners, not only in defence and security but also in energy and economics.

Qatar’s investment plan is ambitious and is expected to primarily target the following sectors: energy transition, semiconductors, aerospace, artificial intelligence, digital technology, healthcare, and culture.

Some of these sectors have already been identified as key industries in the France 2030 plan, launched in 2021, which aims to strengthen France’s industrial independence and foster the emergence of national startups in strategic areas. Consequently, France seeks to accelerate its industrial resurgence in innovative sectors related to aerospace, healthcare, digital technology, and more.

The Qatari plan thus confirms France’s position as a destination for foreign investors within the European Union, reassuring all investors of the potential of France at a time when the European economy is showing signs of fatigue.

It is also noteworthy that some sectors identified by the Qatari plan for France also appear in the third edition of Qatar’s 2024-2030 development strategy unveiled earlier this year. This document, outlining Qatar’s strategy to become an advanced economy by 2030, lists the following seven ambitions: 1) achieving sustainable economic growth, 2) adopting sustainable taxation, 3) developing a future-ready workforce, 4) preserving Qatari society’s cohesion, 5) offering a high quality of life, 6) promoting sustainable development, and 7) achieving governmental excellence. To achieve economic growth objectives, Qatar’s strategy relies on its energy sector while also seeking diversification, particularly in industry, finance, healthcare, education, and tourism. Environmental concerns are also emphasized. Despite ranking third globally in natural gas reserves, Qatar is expanding its renewable energy capabilities.

Hence, Qatar and France should enhance their cooperation, as confirmed by the economic forum chaired by their respective Prime Ministers, Gabriel Attal and Mohammed bin Abdulrahman Al-Thani on 28 February. Potential collaborations could emerge, benefiting both the France 2030 strategy and Qatar’s development plan.

France is already a major partner of Qatar, with over 400 French companies present in Qatar, thanks to the dynamism of the Emirate and its open policies. France is currently the largest investor in Qatar of the countries in the European Union, and is particularly active in the energy sector through TotalEnergies, which has been the leading foreign partner in the “North Field South” LNG project since 2022. Qatar is expected to supply nearly 3.5 million tons of liquefied natural gas to France annually for 27 years. Additionally, TotalEnergies has opened its largest solar power plant in Qatar, in partnership with the Japanese company, Marubeni. The Al Kharsaah solar station, with a capacity of 800 megawatts peak (MWp), could cover up to 10% of the Emirate’s energy consumption. This demonstrates Qatar’s commitment to accelerating its transition to a green economy, exemplified by projects like the Lusail green city north of Doha.

Regarding Qatari investments in France, these are already present in various sectors, from high-profile investments in PSG, the Parisian football club, to luxury and hospitality sectors. France is currently the primary destination for Qatari investments within the European Union.

Moreover, Qatar, through its sovereign wealth fund of the Qatar Investment Authority (QIA), may be interested in acquiring stakes in the aerospace sector, including drone manufacturing.

Diplomatic and cultural ties between the two countries are strong, with France and Qatar collaborating on humanitarian efforts in the Gaza Strip. Culturally, Qatar joined the International Organization of La Francophonie as an associate member in 2012, and Emir, Tamim bin Hamad Al Thani, is proficient in the French language. This partnership between the two countries notably expanded during Nicolas Sarkozy’s presidency from 2007 to 2012, which aimed to deepen relations between France and Qatar.

Both Qatar and France have a vested interest in working together to advance their respective development strategies. Qatari investments should be viewed from a long-term perspective, necessitating closer alignment and greater policy coordination between France and Qatar.