Spain in talks with Gulf sovereign funds on investing in EU recovery projects

The Spanish government is eager to get local and foreign private investors to co-invest in the projects approved, Gonzalez Laya said. She mentioned United Arab Emirates' Mubadala sovereign wealth fund - already owner of stakes in Spanish oil company Cepsa and gas pipeline operator Enagas, Qatar's QIA, a main shareholder in Iberdrola and Saudi Arabia's Public Investment Fund (PIF).

Reuters | Updated: 17-02-2021 19:45 IST | Created: 17-02-2021 19:45 IST
Spain in talks with Gulf sovereign funds on investing in EU recovery projects

Spain is in talks with sovereign wealth funds from several Gulf countries on them co-investing in projects financed by European aid in order to leverage the initial investment, Spanish Foreign Minister Arancha Gonzalez Laya said on Wednesday. "They are very interested in projects of decarbonisation, digitalisation and modernisation of our productive structure at a time when Spain is entering this process of transforming its economy," she said during a video-call with foreign correspondents based in Spain.

So far, the only condition on these investments under consideration is job creation in Spain, a senior official with knowledge of the management of the EU recovery plan told Reuters. The Gulf sovereign funds are "good connoisseurs of Spain and good investors," Gonzalez Laya added.

Spain will receive one of the biggest slices of European recovery funds in the coming years, up to 140 billion euros ($170 billion) of which about half will be in the form of grants. Through co-investment from private investors and sovereign funds, the Spanish government expects to increase the impact the funds will have on the economy.

The projects eligible for the Next Generation, as the rescue fund is dubbed, have to meet investment criteria such as modernising the administration or sustainability. The Spanish government is eager to get local and foreign private investors to co-invest in the projects approved, Gonzalez Laya said.

She mentioned United Arab Emirates' Mubadala sovereign wealth fund - already owner of stakes in Spanish oil company Cepsa and gas pipeline operator Enagas, Qatar's QIA, a main shareholder in Iberdrola and Saudi Arabia's Public Investment Fund (PIF). Last year, the government passed a decree giving it a veto on acquisition of stakes bigger than 10% in Spanish companies it deems 'strategic'. Gonzalez Laya said this veto is "compatible" with the search for foreign investors.

Gonzalez Laya is also seeking to increase Spanish companies' investment in the Gulf countries, particularly in infrastructure development. Spain's former king Juan Carlos was an active supporter of commercial relations between Spain and Arab Gulf countries. Since August, the father of the current Spanish head of state has lived in the UAE to distance the monarchy from questions about his financial situation. ($1 = 0.8310 euros)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


TRENDING

OPINION / BLOG / INTERVIEW

Tracking Fintech during COVID-19: Harnessing power of technology

Its abundantly clear now that as fintech cements its place in the financial sector, accelerated further by the COVID-19 pandemic, it could open the sector to new possibilities by harnessing the power of technology to deliver financial ...

Tectonic turns: How technology shaped healthcare over the decades

Tracing an episodic evolution, with technology at the interface of human and his health....

World Water Day sees crises of inequality in countries both rich and poor

... ...

Privacy and data protection: Reviewing notable policy frameworks

The evolved privacy principles and the resulting legislation across the world primarily aim to force the data collector to define the purpose for which the data is being collected along with the need to obtain explicit consent for the said ...

Videos

Latest News

Golf-Triple-bogey trips up doubting Thomas at Masters

World number two Justin Thomas was the pick of some as the man to beat halfway through the Masters, and a strong start to the third round on Saturday seemed to justify those who favored him.Thomass round came apart spectacularly with a trip...

Trump tells Republican donors he'll help win Congress in 2022

Former President Donald Trump sought to position himself as the Republican Party kingmaker on Saturday, telling party donors he will help them win seats in 2022 congressional elections but shed no new light on whether he will seek a second ...

Mother arrested after 3 children found slain in Los Angeles

The mother of three children, all under the age of five, found slain inside a Los Angeles apartment on Saturday morning has been arrested, police said. Liliana Carrillo, 30, was arrested in Tulare County, about 322 kilometers north of Los A...

Golf-Japan's Matsuyama in control of Masters, leads by four shots

Japans Hideki Matsuyama stormed home in style to put himself in position to become the first Asian golfer to win the Masters as he held a four-shot lead after the rain-interrupted third round at Augusta National on Saturday.Matsuyama, who b...

Give Feedback