Qatar Creates $1 Billion Foreign Water and Power Investment Arm

Qatar created a $1 billion investment arm to add foreign power and water assets to stakes it already has in businesses from Barclays Plc (BARC) to Harrods department store.

Nebras Power will be 60 percent owned by publicly traded Qatar Electricity and Water Co., while Qatar Holding LLC and Qatar Petroleum International, the foreign investment arm of the state energy company, will each control 20 percent stakes, Energy Minister Mohammed Saleh Al Sada told journalists.

Nebras will invest in power generation, water desalination, and cooling and heating projects, as well as facilities to fuel the overseas projects, Qatar Electricity said in a statement.

“All the three parties, in one way or another, are investing in the power sector,” General Manager Fahad Hamad Al Mohannadi said. “We felt that this company will stand alone.”

Qatar, the biggest liquefied natural gas producer, used hydrocarbon revenue to invest $60 billion a year abroad from 2008 through 2012, the International Monetary Fund estimates.

Qatar Holding, the foreign investment arm of the Qatar Investment Authority, bought Volkswagen AG, Credit Suisse AG and Tiffany & Co. stakes. In February, it said it set up the $12 billion Doha Global Investment to be listed in the emirate.

Nebras will invest in power and water projects in countries with as much as 8 percent growth in electricity demand a year, mainly in the Middle East and East Asia, Mohannadi said. Qatar Electricity will retain sole ownership of its current assets abroad, including a power plant in Jordan, he said. Future expansion outside Qatar will be carried out by Nebras, he said.

Qatar Petroleum plans to sell shares in four of its units, Hussein al-Abdulla, a Qatar Holding board member, said May 9. There are no immediate plans to sell Nebras shares, he said.

“It’s too early to have that,” Mohannadi said. “I think it will go for 10 years before we think of going public.”

To contact the reporter on this story: Robert Tuttle in Doha at rtuttle@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net

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