BERLIN - German Chancellor Olaf Scholz will host Qatar's Emir, Sheikh Tamim bin Hamad Al Thani, at a baroque palace just north of Berlin on Tuesday for talks aimed at deepening economic and diplomatic ties.

The energy-rich Gulf Arab state has increasingly become a strategic partner for Germany since Russia's 2022 invasion of Ukraine forced Berlin to seek alternative sources of energy to Russian gas.

Qatar is also a key investor in the German economy, which could benefit from fresh funds as it faces its second consecutive year of contraction. One potential investment under discussion is Qatar's possible purchase of a stake in Berlin's main refinery, Schwedt, from Russia's Rosneft ROSN.MM.

Qatar has emerged as an important mediator in the Middle East, notably between Hamas and Israel. It played a role in the deportation of some Afghans from Germany. Global security issues are also on the agenda of talks, according to the German government.

"Germany has understood that the Gulf states have become a partner of necessity rather than a partner of choice," said Sebastian Sons, a researcher at the Bonn-based Center for Applied Research in Partnership with the Orient.

For Qatar, the partnership represents an opportunity to position itself as an essential global player, building alliances that provide protection and influence.

Scholz will host the emir at Meseberg Castle, with a meeting focused on deepening bilateral ties in energy, trade, and regional security, according to the chancellery.

Qatari Energy Minister Saad al-Kaabi will accompany the emir, as will Mansoor Ebrahim Al-Mahmoud, the head of Qatar Investment Authority, which has over the past 15 years built up stakes in major German companies including Deutsche Bank DBKGn.DE, RWE RWEG.DE and Volkswagen VOWG_p.DE.

A turning point in bilateral relations was Russia's invasion of Ukraine in February 2022. Later that same year, Qatar reached a deal to export liquefied natural gas (LNG) to Germany starting in 2026, with the agreement spanning at least 15 years.

Some critics have questioned the ethics of increasing cooperation with Qatar given concerns about its human rights record - issues that came sharply into focus during Qatar's hosting of the 2022 World Cup.

Frustrated by negative German media coverage during the World Cup, Doha has been working on rebranding itself by hosting cultural and media events in Berlin. A Qatari-German media dialogue earlier this month, for example, addressed stereotypes in German reporting about the region.

"In the end, they're sort of doing the German government a favour," said Christian Glaessel, a researcher at the Centre for International Security in Berlin. "In order to achieve policy changes, Qatar understands that they have to work on public opinion."

(Reporting by Riham Alkousaa; Editing by Sarah Marsh and Matthew Lewis)