How Qatar turned its wealth into political influence | World | DW

This glamorous event was covered by the best magazines: an exhibition starring Italian brand Valentino, owned by Qatar investment fund Mayhoola, was attended by Naomi Campbell at its opening. Model coming to launch Appeara new fashion charity aimed at promoting young designers from developing countries, in partnership with an art initiative named Qatar Make.

It was originally said so Appear it is an offshoot of Campbell’s British charity, Fashion For Relief, which is now being investigated by the UK Charity Commission for alleged mismanagement and misconduct. One of the accusations is Fashion For Relief she has spent most of the money she has raised, around 1.6 million pounds (about 1.86 million euros or $1.98 million) on glamorous events in 2019, but she has only donated around 205,000 pounds (about 238,000 euros or $254,000) of that money goes to charity. The British Charities Commission told DW they had appointed interim managers for Fashion For Relief, and the managers, UK-based lawyers, said there was no link between the two organisations.

legitimate activity

While this sort of relationship between Qatar and a celebrity like Campbell is legitimate, it is definitely yet another example of how Qatar, the host of the 2022 World Cup, is using its vast financial resources to polish its international image. Another example is the purchase of French football club Paris Saint-Germain, through various investment funds. Qatar also owns London store Harrods and French department store chain Printemps, several luxury London hotels including Ritz and Claridge’s, and French-based, Italian-based luxury clothing brands Balmain and Pal Zileri.

Some reports suggest that the Qatari royal family also spends around $1 billion a year on art. The country has attracted attention and acclaim for the submission of works of art and public buildings by some of the world’s most renowned artists and architects.

Less glamorous investments include Qatari stakes in Siemens, Volkswagen, Porsche and Deutsche Bank in Germany, as well as stakes in Heathrow airport, Barclay bank and the supermarket Sainsbury’s in England.

“Enlightened Despotism”

Qatar became one of the richest countries after natural gas was discovered there in 1970. The emirate, which is ruled by the Al Thani dynasty, boasts one of the highest per capita incomes in the world. In 2021, the World Bank listed it as nearly $61,300 per Qatari, a higher amount than many European countries, including Germany and France. Experts point out that there is no real separation between the interests of the State and the interests of the ruling family. The state is often described as a “tenant state”, in which the state generates income, or “rent”, and then distributes it among its citizens. Nearly everyone in Qatar is guaranteed a job and Qatari citizens receive free electricity, water and education. Beyond that, money and power tended to be distributed by the royal family, generally following the rules of a long-established system, a network of hereditary and tribal ties.

Although Qatar has liberalized its economy and has a constitution, there is no real opposition or genuine elections, and freedom of expression is curtailed.

The Emir of Qatar, Tamim bin Hamad al-Thani, delivers a speech at the start of the World Cup.

It Corruption Risk Forecasta system developed by various academic organizations, describes Qatar as a country with a “model of good governance based on enlightened despotism”.

Influence = safety

Most experts agree that Qatar – a small, resource-rich nation that sits between big neighbors like Saudi Arabia and Iran but lacks military might – needs to improve its position and connections globally. It’s the equivalent of having insurance in case you get attacked.

In addition, investment diversification makes economic sense, as major buyers of Persian Gulf oil and gas prepare to shift to more environmentally friendly energy sources.

The criticism in the Qatar case is that most of its investments are opaque, because decision makers are not held to public accountability. Moreover, the accusations surrounding the latest corruption scandal in the European Parliament have further highlighted Qatar’s intricate network of influence operations.

(ers/cp)

Elena Eland

"Web specialist. Incurable twitteraholic. Explorer. Organizer. Internet nerd. Avid student."

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