The investment arm of the sovereign of Qatar has acquired a 5 per cent stake in leading Indian telecoms firm Bharti Airtel for $1.26 billion.

The Qatar Foundation Endowment would invest in the Indian telecom service provider and there are indications that the Qatari organisation would be a regular investor in the company. Some suggest that the Qatar Foundation Endowment is aiming to get a seat at the board of the world’s fourth largest telecom service provider.

The Qatar Foundation Endowment, which is an investment vehicle of the Qatar Foundation controlled by Sheikha Mozah, is looking to invest around the world and has started focusing on emerging markets in Asia. This will be the first major investment in a listed Indian company by Qatar’s investment firm.

The deal will allow Bharti Airtel to access much needed capital and strengthen its financial position. The company has been recording falling profits in recent years due to stiff competition at low prices in Indian telecom market and also because of losses at the company’s African operations, which it acquired from Kuwait's Zain for $9 billion. Bharti has a presence across 20 Asian and African countries and has a subscriber base of about 260 million.