Punching above its weight

A subsidiary of Qatar Telecom paid $1.2 billion for the remaining half of its joint venture in Tunisia.

Despite its small size and scant natural resources, Tunisia has recently emerged as a big destination for foreign investment.

With a bustling tourism industry and an open attitude towards foreign involvement, many foreign companies have moved in or launched projects there.

A unit of Dubai Holding owns 35 per cent of Tunisie Telecom, a stake it bought in 2006 with a US$2.25 billion (Dh8.26bn) loan.

Gulf Finance House of Bahrain launched the $3bn Tunis Financial Harbour, and Sharjah's Bukhatir Group unveiled the $5bn Tunis Sports City in 2008.

The Abu Dhabi Investment Authority owns half of a small bank in Tunisia called Banque de Tunisie et des Emirats.

Qatari investors have put large amounts of money into Tunisia recently. A subsidiary of Qatar Telecom paid $1.2bn in November for the remaining half of Tunisiana, its joint venture with Orascom Telecom in Tunisia.

Property companies in the UAE also have large interests in Tunisia.

They include Sama Dubai, a unit of Dubai Holding, which launched the $14bn Mediterranean Gate in 2007. Abu Dhabi's Al Maabar launched a $10bn project the following year.

The status of both of those investments is unclear, but the Mediterranean Gate project did not get beyond planning and design phases.

Companies and investors from Europe have long been at the top of the list of foreigners with interests in Tunisia, given the country's close proximity to the continent.

But with large developments launched by companies such as the Bukhatir Group, Sama Dubai and Al Maabar, the UAE is thought to have about $30bn of investments in Tunisia, making it one of the largest foreign players in the country.