A member of the Qatari Royal Family is indirectly buying into one of Scotland's largest salmon producers, according to local reports.

His Highness Al-Thani Sheikh Mohamed bin Khalifa from Qatar is buying into salmon producer Alfesca for around GBP 40 million has now been disclosed

Alfesca owns Farne Salmon and Trout, which employs 500 people at Duns in the Scottish Borders. It also owns Lyons Seafood in England, a major producer of prawn and other shellfish products.

Alfesca has entered into an agreement with his holding company under which the company will subscribe for 850 million shares in the capital of the company.

Al-Thani will therefore own a 12.6 percent share in the company.

Al-Thani Sheikh Mohamed bin Khalifa is the brother of the Emir of Qatar.

The Glitnir Bank said the development was unusual as Arabian investors are not known to have taken such a big stake in Icelandic businesses before.

Alfesca, based in Reykjavik, has reported excellent results - both for last year and for the first quarter of 2008, thanks to the stable price of salmon.

The company recently sold a Norwegian fish trading operation, but has bought into an Italian business, suggesting further expansion.

The development could eventually bring further investment to the Farne Salmon operation at Duns, which is now among the biggest smoked salmon facilities in Europe.