After the United Arab Emirates, Qatar may also launch major investments in the Balkan country, but one key condition is that Belgrade must clearly stand with the West, according to the Demostat investigative portal.

Arab investments in the Balkans

A recent visit by the Serb president to Qatar was not the work of chance. In early March, Alexandar Vucic attended a conference organised by the United Nations in Doha and met the Emir of Qatar. Following the meeting, Serbia’s head of state spoke about possible investments and cooperation. In specific, he wanted to find out if the Arab country was interested in becoming a strategic partner for Air Serbia. At their meeting, Sheikh Tamim bin Hamad al-Tani and the President of the Republic of Serbia discussed further opportunities for bilateral cooperation, including economic and energy issues, and possible investments from Qatar. After the visit, Aleksandar Vucic told the press that his discussions with the Emir had carried great importance and that the Arab country expressed interest in relations with Serbia. The Emir of Qatar is expected to pay a visit to the Balkan country, Mr Vucic added.

Qatar is a close partner of the United States, with the US being the supporter of a quick settlement of the Kosovo issue and wanting to win over the Western Balkans to its side in the current geopolitical situation. Although Qatar is not a NATO member, it is an ally of the US, President Joe Biden said, for instance. The emirate has become an important actor in regional and global politics, primarily owing to the country’s large natural gas reserves.

Nothing is for free

Potential Qatari investments can be part of the benefits offered by the West, if Belgrade is willing to stand on their side and take a constructive approach to solving the Kosovo issue, according to Demostat. The investigative news portal pointed out that Arab monarchies will not invest in countries like Serbia without the West’s approval. This is what happened in 2013, when the United Arab Emirates launched investments in the Balkan country after Belgrade and Pristina had concluded the Brussels agreement.

The sources interviewed by the portal say that money from the Emirates may have served as an incentive to Belgrade, which was willing to strike an agreement with Pristina 10 years ago. Serbia received a significant amount of Arab money, even if not all announced projects have been realised. One project that failed was Mubadala’s chip factory in Belgrade. Etihad, however, made an investment in the former Serbian airline JAT, purchasing 49 per cent of the company. The company’s share has been decreasing after that, and finally Aleksandar Vucic has said in Qatar that Air Serbia is owned 100 per cent by the Serbs. It may change, however, as the president offered a strategic partnership to Qatar Airways.

Another large-scale investment by Arabs in Serbia is related to the construction of the „Belgrade on Water” project. A significant part of the residential and commercial complex is owned by the investor, the Emirati Eagle Hills company.

Photo: V4NA

The production and processing of food features heavily in the profile of the Al Dahra company. It purchased the Belgrade Agricultural Combine in 2018, investing some 105 million euros into the business. In 2020, Serbian Finance Minister Sinisa Mali said the total value of Arab investment in Serbia was around 4 billion euros at the time.

Besides investments, Serbia has received several loans over the past decade, supporting its budget.

Belgrade has always described these loans as beneficial, and the government representatives were satisfied with the conditions. Last year the Balkan country received a loan of 1 billion dollars from the United Arab Emirates. After the Emirates, Serbia may also establish a fruitful cooperation with Qatar. To that end, Marko Cadez, president of the Serbian Economic Chamber, visited Doha, where he met the representatives of the Qatar Development Fund. The Arabs then expressed their willingness to invest in Serbia, stressing that they saw great opportunities for cooperation in the energy, food industry and IT sectors.