Italy arms deals with Qatar fuel furore

ROME- The recent campaign by a number of Arab countries to isolate Qatar for sponsoring terrorism is deeply embarrassing for Italy, which last year arranged a constellation of lucrative arms deals with the tiny gulf state, commentators said Wednesday.

 "It's wrong to think badly of someone, but you're very often right. Might the fight against terrorism become the new,commercial, end of the world weapon?" The words of Il Fatto Quotidiano commentator, Ivo Mej, discussing Italy's role in contributing to alleged Qatari funding of Islamist terrorist groups.

 In June 2016, Italian Minister of Defence Roberta Pinotti proudly announced a mega-deal with the Qatari government, celebrating the sale of seven naval vessels from Italy’s Ficantieri shipyard as part of the nation’s largest ever naval export sale, brining in almost 4 billion euros.

 Pinotti herself described the sale as “the greatest objective ever reached by the Italian navy in terms of international cooperation” and pointed to the Italian government’s decision to spend 5.4 billion on a series of new vessels for the Navy as a “shop window” for the country’s naval capabilities.

 The deal involved the Italian high-tech defence firm Leonardo S.p.A, part owned by the Italian government, which provided all of the combat systems for the vessels in return for a third of the contract share.

 However, recent developments in the Middle East have cast the deal in a negative light, as several Gulf nations have cut all diplomatic ties with Qatar for its alleged support of militant Islamist groups such as the so-called Islamic State and al-Qaeda.

 The Qatari government has denied accusations that is has provided financial support to IS and has described the allegations as “unjustified” and with “no basis in fact.”

 Nevertheless, strong Western allies such as Saudi Arabia have closed its borders with Qatar, also cutting off land, air and sea contact with the oil-rich peninsula.

 “The cooperation in the Defence sector with Qatar has been very strong for many years. The signing of today’s (June 2016) agreement reinforces further a collaboration that we maintain is very important and strategic,” the words of Pinotti on the day of last June’s deal, which may prove to be somewhat of a gaffe for Italy depending on the outcome of this latest disagreement in the Middle East.

 The recent isolation of the wealthy Qatar by other Arab states is likely to slow investments in the Qatar Investment Authority, the sovereign fund of the state which owns assets and shares in developments all over the world, including Italy. 

 The organisation is involved in the development of Porta Nuova in Milan, in the building of hotels and tourist resorts on Costa Smeralda and even owns a 49 percent share in the airline Meridiana.