ABU DHABI — Qatar has been negotiating to purchase one of the
largest defense companies in Europe.
The state-owned Qatar Investment Authority has been examining a proposal
to purchase a stake in EADS, one of the largest defense companies in Europe.
EADS is the parent of Airbus, which has been a leading supplier of aircraft
to the Gulf and Middle East.
On Feb. 19, the Qatari Foreign Ministry Foreign Minister Hamad Bin Jassim
Bin Jabr Al Thani has been discussing the purchase with EADS and the French
government. Al Thani heads Qatar Investment Authority, manager of $40
billion in Qatari government assets, according to Middle East Newsline.
Officials refused to provide details. Investors from several GCC states,
including the United Arab Emirates, have expressed interest in EADS.
EADS has sought to emerge from a crisis that struck the French-German
company in 2006. At the time, the company was unable to meet production
schedules on the Airbus, which cost Airbus nearly five billion euros.
Industry sources said Qatar has been searching for a major aerospace and
defense firm that would provide the emirate with an indigenous defense
industry. They said France, which has supplied about 70 percent of Qatar's
military equipment, has encouraged Doha to purchase a stake.
The French government and French media firm Lagardere own a total of 22.5
percent of EADS. DaimlerChrysler, with 22.5 percent of EADS, has placed 7.5
percent of the defense contractor with a public-private consortium. Spain
has a
5.4 percent stake.
