Qatar royal family buys Greek island of Oxia for knockdown €5m
The reported sale comes a month after the Qatari royals snapped up another picturesque slice of the Mediterranean – a portfolio of hotels on Sardinia's exclusive Costa Smeralda.
The 1,236-acre uninhabited island of Oxia in the Ionian Sea was bought for €5m (£4.1m).
Previously owned by a Greek-Australian family, it had been on the market for close to €7m.
But the Qataris were apparently able to drive a hard bargain, arguing for a lower sale price because of increased property taxes recently introduced by the Greek government.
Oxia lies close to the fabled island of Ithaca, reputedly the home of Odysseus, the hero of Homer's Odyssey.
Part of it is protected as a nature reserve but the rest is open to development.
A spokesman for Qatar Holding, the sovereign wealth fund of the gas-rich state, declined to comment on the sale.
According to Vladi Private Islands, a specialist property company, Oxia was one of the most desirable Greek islands on the market.
"Oxia's 500 hectares boast clear waters and lush grounds. The island is half the size of Capri, spanning 3.6 miles in length," the company's website said.
Covered in scrub and patches of pine forest, it has a craggy coastline and three large bays ideal for mooring yachts.
"The island is uninhabited and undeveloped except for a derelict but picturesque lighthouse, which may be profitably restored."
Saddled with a giant public debt that threatens to tip it into economic oblivion, Greece has come under pressure from the European Union and IMF to sell off valuable state-owned assets.
The higher property taxes have prompted a mini-boom in the sale of private islands in Greece, as their cash-strapped owners seek to offload assets that were once a dream but have now become a liability.
The sale comes a week after Qatar Holding confirmed a report in the Telegraph that it had acquired a collection of four luxury hotels on the Costa Smeralda, the resort created by the Aga Khan 50 years ago.
The Gulf emirate is also considering a plan to invest in a €600m theme park dedicated to Ancient Rome.
The park, to be located outside Rome, would enable visitors to see re-enactments of famous battles, descend into replica catacombs or walk through the ancient city's markets and forums.
Qatar, with a population of 1.7m, was named the world's richest country by Forbes this year, thanks to its huge oil and natural gas reserves.