Qatar-Spain trade to see double-digit growth in 2018

Doha: Qatar-Spain bilateral trade volume, which jumped to €1.2bn in 2017 by witnessing 60 growths compared to previous year, is set to witness the same growth momentum in 2018 and coming years, said a top Spanish diplomat in Qatar.

The growth forecast in trade is based on the fast growing and expanding bilateral economic ties between Spain and Qatar.

“The bilateral trade between Spain and Qatar witnessed sharp growth last year, and we expect the same trend continuing this year and beyond. Some of the Spanish products such as agro- food and vegetables have already registered more 30 percent growth until now,” Ambassador of Spain to Qatar Belen Alfaro told The Peninsula.

Ambassador Alfaro added: “Cooperation in other sectors, such as infrastructure, energy, water desalination, education, sports, healthcare, IT and many other sectors, is also expanding rapidly.”

She noted that over the years, some 100 Spanish companies have established their presence in Qatar which are operation and contributing in different sectors of the Qatari economy. And to boost the bilateral cooperation, Spain is also establishing a Spanish Chamber of Commerce in Qatar, for which they have already got the needful approval. This will help boost the economic ties.

“We are also working to host the first high level meeting of Spain-Qatar joint committee for business and economic cooperation, which is expected to be held in Doha next year. The exact dates are yet to be finalised. The agenda of the meeting will include expanding and deepening bilateral cooperation to enhance trade and investment in Spain, Qatar and other countries, including the Latin America region,” said the envoy.

She also said that relation between Qatar and Spain is growing fast for a win-win situation. Qatar has already become the third largest supplier of gas to Spain, accounting for nearly 10 percent of the country gas demand.

“Qatari companies, both private and public, have invested in major Spanish companies significantly.  For instance Qatar Investment Authority (QIA), the sovereign wealth fund, has acquired a significant stake in Spain’s energy giant, Iberdrola, in addition to investments in other sectors,” said Alfaro on the sidelines of an event held to honour QIA and Al Koot Insurance & Reinsurance, who won the sixth edition of Premios amigos de España (Friends of Spain Awards).

The awards cheer the promotion of the relation between Spain and Qatar. This year the Spanish Business Council and the Spanish Embassy have chosen under the corporate segment the QIA and under the individual category Ahmed Rafee Al Emadi, from Al Koot Insurance & Reinsurance.

Jose Vicente Chairman of the Spanish Business Council took the floor to review the relations between Spain and Qatar and to congratulate the laureates.  Commenting on the reasons why QIA was awarded, Alfaro said:  “This fund is not only the tenth largest wealth financial instrument worldwide in terms of asset value managed, but also a reliable partner committed to its investment portfolio in the long term.”

Regarding the bilateral relations with Spain, QIA is one of the sovereign funds with bigger deals closed and wider scope of sectors. By way of illustration, QIA holds stakes as relevant as the one in Iberdrola, with an 8.6 percent share of its equity.

We may find also equity holdings in Colonial, Marina Port in Tarragona, W Hotel in Barcelona, the Intercontinental Hotel in Madrid, or even a small share of the Banco Santander in Brazil, among others.

This close engagement with the Spanish economy has been relaunched at the occasion of the visit to Madrid of the Deputy-Prime Minister and Minister of Foreign Affairs, H E Sheikh Mohamed bin Abdulrahman bin Jassim Al Thani last September.

During his meeting with the Spanish Prime Minister Pedro Sánchez, both signatories agreed to establish an institutional framework promoting foreign direct investment in Spain and in countries of common interest, with particular focus in the Latin American region. Qatar Investment Authority and Compañía Española de Financiación del Desarrollo (COFIDES) will work together to reach a Memorandum of Understanding establishing operational guidelines and procedures for investment opportunities.”

As for the individual award the motivation to select Ahmed Rafea Al Emadi, the CEO of Al Koot was in words of the Ambassador his active role and close collaboration with Spanish hospitals to put in contact patients from Qatar with the health institutions in Spain. Al Koot is the leading health insurance company in the country and has a very large customer base of public organizations and private firms. 

The first approach of Al Koot to the Spanish National System came as result of the signing by Al Emadi of a Health Services Agreement with the Hospital of the University of Navarra in the north of Spain last January.

This first step has been consolidated during the rest of the year, given that Al Koot has currently signed direct billing arrangements with over 82 hospitals in Spain, which has been supported by this Embassy, its Commercial Office and the Spanish Investment and Trade Promotion Authority, ICEX, who have been working hard along with Al Koot to bring these agreements to a good end.

Spain offers good investment opportunities in the health sector for many reasons.

First, because of the quality of the Spanish Health System, ranking 7th in the world according to the World Health Organization. For instance, Spain is the world leader in organ transplants for more than 25 years.

Second, because Spain’s health professionals are top-rated, being highly demanded by the rest of the European countries due to their high qualifications and their ability to design management systems that later become international reference models.

Third, because the Spanish National Health System is complemented with a solid and renowned private health system boasting nearly 500 hospitals and 54,000 beds.