Qatar Telecom (Qtel), the fast-expanding operator owned by the Gulf emirate, is keen to secure more acquisitions in the Middle East and Asia, according to a Financial Times report. The article notes that Nasser Marafih, Qtel’s chief executive, argues the company’s supportive shareholders and revenue from operations in countries such as Qatar allow it to invest in growth markets such as Indonesia, Iraq and Algeria, and continue to look for further purchases elsewhere. “We’re still on the lookout for good acquisition opportunities,” said Marafih. “Our view is that our vision is still very viable, and there are a lot of opportunities that will come up… Scale is important, and we think we will see more consolidation in the Middle East.” One telecoms analyst told the Financial Times he expects Qtel to make acquisitions in the US$1 billion to US$2 billion range, most likely in North Africa: “The balance sheet is much more comfortable overall than it was just a couple of years ago,” he commented.

Qtel’s aggressive growth plans come despite rising debt levels. Moody’s estimates the group’s net debt, including subsidiaries, at QR36 billion (US$9.9 billion), and it put the company on review for a downgrade from its A1 rating in March. The Financial Times notes that while the operator’s net debt has continued to rise this year, the ratio of debt to earnings before interest, taxes, depreciation and amortisation has declined from 3.4 times in the first quarter of 2007 to 2.1 times in the first three months of this year. According to Wireless Intelligence, Qtel has 75 million connections globally (on a ‘sum of operations’ basis). As well as owning 100 percent of its operation in Qatar, recent acquisitions include a 65 percent stake in Indonesia’s PT Indosat, a majority stake in Wataniya Telecom in Kuwait, and licences in Iraq, Oman and Palestine. It is also present in Algeria, Saudi Arabia, Cambodia, Laos, Singapore and Tunisia.