Dive Brief:

• The Qatar Investment Authority (QIA) has notified the U.S. of its plans to invest $10 billion in U.S. infrastructure programs, according to Reuters.
• The announcement follows on the heels of the wealth fund’s previous statements that it would finance $35 billion worth of projects in the U.S. between 2016 and 2021. QIA officials did not say whether the $10 billion is part of that figure.
• The investment also could have political implications, as some Arab states are wary of a potential shift in the Middle East balance of power toward Iran if the U.S. begins a withdrawal from the region under a Trump administration, according to Reuters. The $10 billion is seen by some as a way for Qatar to strengthen its relationship with the U.S. and to help maintain a U.S. presence in the Gulf.

Dive Insight:

The potential for a multibillion-dollar investment into U.S. infrastructure adds weight to President-elect Donald Trump's plan to finance $1 trillion worth of highway and transportation projects over the next 10 years. Trump wants to tap the private sector for the program rather than use federal tax dollars and has suggested that those willing to contribute private equity to certain types of projects receive an 82% tax credit.

The transition team has also indicated that another avenue of investment, an infrastructure bank, could potentially be established — even though it criticized opponent Hillary Clinton for a similar plan during the campaign. However, there could be a stumbling block ahead for Trump as incoming Senate Democratic Leader Charles Schumer (NY) has said he believes the tax credit plan is a "gimmick" and that any sizeable infrastructure program should involve a direct federal spend. Earlier this week, Senate Majority Leader Mitch McConnell (R-KY) expressed his opposition to a "$1 trillion stimulus" infrastructure plan.

If the QIA delivers on its infrastructure investment promises, it will only be adding to its country's existing construction presence in the U.S. In July, New York City developer Tishman Speyer announced that it had joined with investment fund Qatari Diar to build a $700 million, 1.1 million-square-foot, mixed-use office complex in Long Island City, NY.  Qatari Diar is also an investor in the 360-room Conrad Washington project in the CityCenterDC development in Washington, DC. Turner Construction is the general contractor on that project, which will feature high-end retail and dining in addition to the luxury Conrad hotel.