QATARI FOOD COMPANY ADAPTS INVESTMENT STRATEGY TO

C O N F I D E N T I A L DOHA 000552 SIPDIS E.O. 12958: DECL: 08/30/2019 TAGS: EAGR ECON ETRD PGOV PREL EINV TRGY QA AS SU SUBJECT: QATARI FOOD COMPANY ADAPTS INVESTMENT STRATEGY TO CONCERNS OF PARTNER COUNTRIES REF: DOHA 446 Classified By: CDA Mirembe L. Nantongo for Reasons 1.4 (b) and (d). -------------- (C) KEY POINTS -------------- -- (U) Qatar's Hassad Food Company has received international praise for its business plan, investing in developing countries' companies rather than just purchasing their land, according to a local newspaper. -- (U) Hassad's Chairman has commissioned a study of Qatar's food needs to be completed within the next month and expects his company's products to enter the market within the next 1 to 2 years. -- (C) A Hassad Food advisor explained to Emboff September 3 that the company tailors its involvement in each country to the preferences of its partner in order to minimize local "backlash" to the company's actions. -------------- (C) COMMENT -------------- -- Hassad's efforts to forge durable arrangements with companies in agriculturally rich countries is further evidence of the priority Qatar, which imports over 90 percent of its food, attaches to food security. The extent to which Hassad goes to accommodate its partners is a reflection of this importance. -- Food security issues present opportunities for cooperation between the U.S. and Qatar, and the latter has recently engaged Embassy on this subject (Reftel). End Key Points and Comment. ¶1. (U) A local Qatari newspaper carried an article August 31 praising the investment strategy of Qatar's Hassad Food Company. Hassad's decision to purchase shares in local agricultural companies instead of expropriating the agricultural land of poorer countries exclusively for Qatar's own purposes has met with international acclaim, according to the newspaper. Hassad Chairman and Managing Director Nasser Mohamed Al-Hajri emphasized that his company is "looking for opportunities where we can work with partners...We do not want to take away the land of the poor." ¶2. (U) At an August press conference, Al-Hajri said Hassad allocated 500 million USD for investment in agricultural companies worldwide. He stated that he expects his company's first products to reach the world market within the next 1-2 years. Al-Hajri also reported that Hassad hired a consultant to prepare a study on Qatar's food needs, which will be completed within the next month. ¶3. (C) Dr. Hamad Al-Saad, an Adviser for Hassad Food, expounded on his company's investment strategy in a September 3 phone call with Emboff Miller. He said Hassad is working to create a "win-win situation," where both the company and the countries in which it invests benefit. Al-Saad emphasized the importance Hassad attached to minimizing local "backlash" to its presence. ¶4. (C) In order to create more stable and enduring relationships, Hassad tailors the nature of its involvement to the desires of its prospective partners, according to Al-Saad. He said that the company buys land based on the preferences of its partners, as in Australia, and buys shares in local companies where that mode of investment is desired, as in Sudan. ¶5. (C) Al-Saad also reported that Hassad recruits Qatari humanitarian organizations to become involved in countries where it does business. The purpose of this, according to him, is to avoid developing an "intimidating" image in the eyes of local populations, thereby facilitating their acceptance of Hassad's presence in their countries. Al-Saad said such actions are part and parcel of doing "the right thing all the way." ¶6. (U) Hassad Food Company is a 1 billion USD firm established in 2008 and owned by the Qatar Investment Authority, the Gulf nation's sovereign wealth fund. The firm is charged with ensuring Qatar's food security through a strategy of diversification, investing locally and in Africa, Asia, Europe, and Latin America. Its biggest project to date is a 300 million Qatari Riyal poultry farm in Qatar that meets 22 percent of local demand. Hassad is currently exploring investment possibilities with companies in Australia and Sudan. Nantongo