French state-owned bank Caisse des Depots and Qatar's sovereign fund Qatar Holding said they have signed a memorandum of understanding to co-invest in small and medium businesses in France.

The partnership will have capital of 300 million euros ($389 million) and invest in companies "engaged in sectors with high growth potential and where both have common interests," they said.

In France, Qatar Holding holds stakes in luxury group LVMH, media to aerospace group Lagardere, oil giant Total and soccer club Paris St Germain.-Reuters