WTOL.com, Toledo's News Leader, News 11 | Deutsche Bahn signs $26B Qatar railroad deal
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DOHA, Qatar (AP) - An investment company owned by Qatar's sovereign wealth fund on Sunday signed a $26 billion deal with Germany's national railway operator to build a railroad network, a key part of the natural gas-rich Gulf sheikdom's expansion plans.
Under the deal, the Qatari Diar Real Estate Investment Company and Deutsche Bahn AG will set up a joint venture to develop a metro system in Qatar's capital, as well as a national rail network and a long-distance connection to neighboring Bahrain.
Qatar will hold a 51 percent stake in Qatar Railways Development Company and the German state-held railway will have a 49 percent stake
"This announcement represents the next step in the creation of this visionary Qatari project that will truly revolutionize the ease and convenience by which people travel," said Ghanim Bin Saad al-Saad, Qatari Diar's chief executive.
The railroad network will take about 15 years to complete, but the national railroad and the local commuter system for Doha is expected to be 70 percent built by 2017 to support the tiny Gulf nation's bid for the World Cup in 2022 and the Olympics in 2020.
Qatari Diar is a property investment company owned by the natural gas-rich state's sovereign wealth fund, the Qatar Investment Authority. It was established in 2004.
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