Qatar Investment Authority buys stake in Audi F1 racing team

The Qatar Investment Authority is buying a stake in the Audi Formula One racing team, joining other Gulf sovereign funds who have been channeling their vast wealth into global sports franchises.

The $510 billion fund has agreed to acquire a 'significant minority' shareholding in Sauber Holding AG, the company overseeing Audi's bid to join the racing circuit, according to a joint statement Friday.

The deal gives Audi capital to build out its team and infrastructure at its F1 development sites in Neuburg, Germany, and Hinwil, Switzerland. Audi is preparing to enter the competition in 2026, when regulations change to increase the use of e-fuels and ensure greater electrical propulsion.

Qatar is one of the top shareholders of Audi parent Volkswagen AG, with the F1 investment expected to further increase ties. The Gulf nation's commitment to Audi's racing ambitions comes as Volkswagen weathers a major restructuring on the back of an economic slowdown, the rise of electric vehicles and increasing competition from China.

Using its enormous financial reserves, Qatar in past decades has splashed out billions of dollars on expanding its global clout in different sectors ranging from sports to luxury brands. It is one of several Gulf states to host grand prix events, with its own Doha race taking place this weekend.

Qatar is the owner of Paris Saint-Germain, hosted the World Cup football tournament in 2022 and made several other high-profile investments - from padel to a US firm that owns several franchises including an NBA team.

Its neighbors in Saudi Arabia and Abu Dhabi are also active in the global sports sectors, owning Premier League teams and the breakaway golf league LIV.