Qatari firm buys two important European Banks

Precision Capital, a Qatari firm established in Luxembourg has agreed in the last few days KBL European Private Bankers, the group that involves KBC, one of the most important Belgian banks. This deal has supposed a great relief for the bank that has reduced its risk index by releasing capital into other stronger companies. Dexia, another important European firm, has been part of this giant operation that ahs encourage the governments of Luxembourg, France and Belgium to trust European banking. Although the exact amount of the operation has not been disclosed yet, KBC’s deal could have reached over $ 1.4 billion. However, this is not the first case of Qatari investors involved such acquisitions.

With the crash of Lehman Brothers in 2008, great European banks like Barclays Bank already for support in Qatari funds in order to preserve its preponderance over the impending crisis. It is not new for anyone that Qatar is one of the richest countries in the Middle East and in the world, thanks mostly to the petrodollars. However, we see how they also stand out by its spotless economic strategy. Most of Qatar’s power relies in the fortunes of great businesses groups and in the Royal family. However, in contrast to the rest of the world, they have not seem to notice the big downfall in which all great corporations have been involved.  European and American banks, at first reluctant to the idea of joining forces with the Middle East, have found a way out of the bankrupt in countries like Qatar. And this is not only involving banking, but also other fields of business like sports, franchising and R&D. We could even say that Europe is redirecting its alliances in the long run and adapting to the new world status. But then again, we will see what the future brings and what the US has to say about all this.

New York Times

http://dealbook.nytimes.com/2011/10/11/qatar-bets-on-hobbled-european-banks/?scp=2&sq=qatar&st=cse