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29 August 2026 · 13:12

Germany to bypass Qatari veto and produce Iron Dome components at Osnabrück plant

Image from Ynet

The state government of Lower Saxony in Germany plans to invest €200 million to take control of part of the Volkswagen plant in Osnabrück. This move aims to bypass a veto by Qatar's sovereign wealth fund, which holds a 10.4% stake in Volkswagen and had previously blocked the production of military equipment for the Israeli firm Rafael at the site. According to reports by Bloomberg and Bild, the agreement between Rafael and the Lower Saxony government is expected to be signed in September. In addition to Iron Dome components, the deal is set to include the production of heavy trucks, launch systems, and generators. Lower Saxony Premier Olaf Lies stated that the state is examining long-term industrial solutions for the site. The Osnabrück plant employs 2,300 workers, whose jobs were previously at risk. The project has faced opposition from left-wing parties and peace activists in Germany, who cited the Israeli government's military activities in the Middle East as grounds for protest. However, the primary obstacle was Qatar's veto, which sparked criticism within Germany, with public figures accusing Doha of attempting to influence German foreign policy through its economic leverage.