France wins Qatar tram deal, discusses Rafale jets

PARIS, June 23 Mon Jun 23, 2014 2:54pm EDT

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PARIS, June 23 (Reuters) - French industrial companies Alstom and Vinci signed a 2 billion euro ($2.72 billion) deal with Qatar on Monday for the construction of a tram system in Lusail city, while the two countries also discussed a possible defence deal.

The deal, that sees the light rail system starting to operate in 2018 and 2020, was signed during a visit by Qatar's emir, Sheikh Tamim bin Hamad al-Thani, Vinci said in a statement.

Leaders of the two countries also discussed the possible sale of French Rafale fighter jets, built by Dassault Aviation , to Qatar but there was no immediate conclusion.

"They discussed it. Negotiations are continuing," a source close to French President Francois Hollande said following a meeting held during the emir's first official visit to France. ($1 = 0.7357 Euros) (Reporting by Elizabeth Pineau; Editing by Maya Nikolaeva)