Qatar Airways has acquired a 9.99-percent stake in International Airlines Group (IAG), the parent company of British Airways and Spain’s Iberia, Qatar announced on Friday. The deal reinforces commercial ties established through code-share agreements between Qatar and IAG and both airlines’ membership in the Oneworld alliance. Although a requirement that EU shareholders must own a majority of any EU airline will limit Qatar’s stake in IAG, the Gulf carrier said it might consider increasing its share “over time.” However, it added that it does not currently intend to own more than 9.99 percent.

“IAG represents an excellent opportunity to further develop our westward strategy,” said Qatar Airways CEO Akbar Al Baker. “Having joined the Oneworld alliance it makes sense for us to work more closely together in the near term and we look forward to forging a long-term relationship.” Qatar Airways joined the Oneworld alliance in 2013, making it the first Arabian Gulf carrier to join a major airline alliance.

Valued at some $1.7 billion, Qatar’s stake in IAG makes it the largest non-EU shareholder in the British group.

“We're delighted to have Qatar Airways, one of the world's premier airlines, as a long-term supportive shareholder,” said IAG chief executive Willie Walsh. “We will talk to them about what opportunities exist to work more closely together and further IAG's ambitions as the leading global airline group.”

IAG, meanwhile, continues its own efforts to take a majority stake in Ireland’s Aer Lingus. New talks between IAG and the Irish government, which holds a 25-percent stake in its flag carrier, began this week.