Yahoo Finance Qatar: Influential Emir Hands Power To Son
One of the richest and most influential leaders in the world, the Emir of Qatar, has abdicated his crown in favour of his son.
Sheikh Hamad bin Khalifa al Thani handed power to his 33-year-old son, Sheikh Tamim, in a televised ceremony on Tuesday, in a first for the Arab world.
"I announce handing the rule over to Sheikh Tamim bin Hamad al Thani," the 61-year-old Emir said, adding the decision opened the way for a "young leadership".
Sheikh Hamad handed to his son power over a state that owns one of the largest sovereign wealth funds in the world, which itself owns major property holdings in London.
The move had been rumoured for months. Qatar has given no official explanation, but it is widely believed that Sheikh Hamad is suffering from health problems.
British-educated Sheikh Tamim is expected to begin the process of putting together a new government that may be in direct contrast to the old guard leaders in other Gulf Arab states.
Qatar, an ally of the West, is an absolute monarchy under the leadership of the al Thani family, which have been in power since 1825. It has no parliament and political parties are banned.
Sheikh Hamad is listed on Muslim500, an independent internet-based list of major Islamic figures, as the fifth most influential Muslim in the world.
In 1995, soon after taking over from his father, he provided a loan to set up and subsequently bankrolled the satellite news channel Al Jazeera, which has increasingly significant influence in the Middle East and Asia
Sheikh Hamad's personal wealth was listed at £2.5bn, but the amount of assets possessed by his country is considerably greater.
The new Emir will head up a country which, according to Global Finance, has the highest per capita income in the world at an average of £66,000 each. Other lists put Qatar only behind Luxembourg, Monaco and Liechtenstein.
Its vast wealth comes from huge supplies of gas. It is the world's largest exporter of liquified natural gas and sits on the world's third largest gas resource, after Iran and Russia (EUREX: OMRU.EX - news) .
Qatar's £115bn sovereign wealth fund has made huge investments in industry, finance and property around the world, particularly in Europe (EUREX: FMEU.EX - news) and the Middle East.
The Qatar Investment Authority owns Harrods, is the largest shareholder in Sainsbury (LSE: SBRY.L - news) 's, owns 15% of the London Stock Exchange (LSE: LSE.L - news) , and 12% of Barclays (LSE: BARC.L - news) .
The fund possesses considerable property holdings, including London's The Shard and major shares in the owners of Heathrow Airport and Canary Wharf.
At the point it invested in Heathrow operator BAA, now known as Heathrow Airport Holdings, Qatar Holding said the UK was an "attractive investment destination".
It also owns a stake in Royal Dutch Shell (Xetra: A0ERUK - news) , around 6% of Swiss bank Credit Suisse (NYSE: CS - news) and in 2012, bought the football club Paris St-Germain for £110m, making an investment that led to David Beckham coming on board.
Its investments in world football led to Qatar being award the 2022 Fifa World Cup, despite the fact that matches will be played in 40C plus heat if it takes place in the summer.
In 2010, Qatar brought a 110-year tradition to an end by brokering an agreement to sponsor Barcelona Football Club, with Qatar Airways replacing the Qatar Foundation on shirts in 2013.
Despite being an ally of the US, Qatar is a supporter of Hamas and in 2012, Sheikh Hamad became the first world leader to visit Gaza where the Palestinian nationalist party is in power.
Qatar was the second country to pledge support for Libya's transitional government and is thought to have spent millions supplying weapons to rebels.
It is also believed to be funding militant rebels in war torn Syria and hosts that country's transitional government.
In the last few days, it has also allowed the Afghanistan Taliban to set up an embassy in Doha, the capital, designed to allow negotiations to take place.
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