In what seemed to be a major breakthrough for debt-ridden Greece, it had gained trust from a Qatar-based holdings firm to invest in one of its gold-mining projects.

On Saturday, Qatar Holdings LLC signed a $1 billion investment into European Goldfields Ltd. The deal was signed during the visit of Qatari Emir Sheikh Hamad Bin Khalifa Al-Thani to Athens on Saturday.

The agreement effectively gives Qatar a 10 percent stake at Ellaktor SA, as well as an opportunity to purchase another 5 percent from the Greek construction company. It also supplies a $600 million financing facility to European Goldfields.

The partnership is expected to generate up to 1,500 job positions at the northern Greece mines.

"This agreement sends a message to the international community that Greece offers development opportunities, following the reforms implemented by the government," Greek Prime Minister George Papandreou was quoted as saying by the Xinhua News Agency. He added the Qatari financing is a vote of trust in the Greek economy in spite of its ailing condition.

"Hopefully this will have a positive impact on the local economy. By investing in the company we are giving them the security of financing to start operating," Ahmad al-Sayed, the chief executive officer of Qatar Holdings told reporters in Athens during Saturday's contract signing.

Greece is also working on other Qatari investments, such as the proposed merger of Alpha Bank SA and EFG Eurobank Ergasias SA to create Greece's largest bank. If it pushes through, Qatari-backed Paramount Services Holding Ltd. will have the biggest stake.

The place of the former Athens airport is also being eyed for development and expansion by Qatar.

"We have been through difficult times ourselves, but we managed to overcome challenges," said Sheikh Hamad Bin Khalifa Al Thani during the signing ceremony, adding he is convinced Greece will overcome its fiscal crisis.

The Emir of Qatar likewise thanked Greece for the assistance it offered in rescuing Qatari officials from war-torn Libya. He said his country has strong interest to invest in Greece's tourism and energy sectors.

Meanwhile, Qatar Holdings said it continues to look for other possible investment partnerships in Greece but did not mention specific project details.