Volkswagen’s plans for a deal with Israeli arms maker Rafael to use its struggling Osnabrueck ​plant are being complicated by Qatar’s sovereign wealth fund, the German carmaker’s third-largest investor, three people ‌familiar with the matter told Reuters.

State-owned Rafael is interested in manufacturing components for Israel’s Iron Dome missile defence system at the plant, and has signed a letter of intent to buy the site, sources told Reuters in late April.