Qatar has emerged as the home of the potential mystery investor in Icelandic food group Alfesca.

Last week, Alfesca, which makes a range of products from seafood to snacks, said an investor was planning to buy a 12.6% stake in the business.

The company has now admitted that Qatari investment fund ELL162 ehf is to buy the shares.

The fund, a vehicle for the Qatari royal family, has agreed to buy some 850m shares at ISK6.45 (US$0.08) a share.

Alfesca said the agreement came after “close dialogue” over two years with the Qatari royal family.

The deal is expected to be completed within the next eight weeks.