Qatar Eyes German Auto Industry

In crisis, there is opportunity. Billionaire sheik Hamad bin Khalifa Al-Thani said on Monday that Qatar plans to invest in the troubled German auto industry, as stock markets in the U.S. and Europe are dragged down by auto stocks.

"For sure we will invest in the car manufacturers in Germany," said the Emir of Qatar. "But we will have to find the right time and the right price," he told Der Spiegel magazine.

Middle East investment is becoming more common place in Germany. Last week, sheikh Mansour bin Zayed al-Nahyan invested $2.7 billion to become its biggest shareholder, with a 9.1% stake. (See "Abu Dhabi Oils Daimler's Wheels.")

"To invest in a carmaker is good because automobiles are not only sold in a small country, but rather all over the world," said Al-Thani, who has ruled the Gulf emirate of Qatar since 1995.

"With the value of many businesses in the automotive sector having plummeted in recent times as demand for vehicles has diminished, there is a good opportunity for significant long-term investors to make both a constructive investment offering capital stability as well as potential profits when an upswing takes place," said Ian Fletcher of Global Insight.

However, Georges Dieng, an analyst with Natixis Securities, said there will be limited options for investment in carmakers in Germany. Porsche controls more 50.0% of Volkswagen with the option to take up to 72.0% in equity, while the Lower State of Saxony holds 20.0% of voting rights. The Quandt family owns around 46.0% of BMW and is not likely to let go of their shares. Investors from the Middle East putting money in the German car industry means they feel there is potential for growth, Dieng said.

Indeed, there are signs that sales in the industry might pick up. The Central Association of German Commercial Vehicles also said on Monday that car sales will continue to climb this month, thanks to the country's environmental car rebate.

Shares of Daimler (nyse: DAI - news - people ) fell 8.3%, or 1.73 euros ($2.28), to 19.10 euros ($25.13), in Frankfurt.