Qatar First Investment Bank highlights Qatar 2022 investment opportunities

Qatar First Investment Bank highlights Qatar 2022 investment opportunities

Qatar First Investment Bank (QFIB), Qatar’s independent Islamic investment bank, today provided an in-depth economic snapshot of Qatar’s investment landscape to an influential group of Saudi businessmen at a reception hosted by Mafaz International, a shareholder of QFIB and one of the leading organizations in the Kingdom of Saudi Arabia.

Mafaz International, based in Riyadh, hosted a dinner for key Saudi Arabian businessmen and government officials in addition to QFIB shareholders’ based in the Kingdom. Speaking at the event, the QFIB senior executives discussed the Bank’s progress and the investment landscape in Qatar ahead of the FIFA 2022 World Cup. They gave a presentation that outlined the different sectors that will benefit from the 2022 World Cup and the potential opportunities that will be generated for investors.

“We extend our appreciation to Mafaz International for organizing this gathering. We are delighted to meet our Saudi shareholders and share the progress of QFIB to date” commented Abdullah bin Fahd bin Ghorab Al Marri, QFIB Chairman. “We are further pleased to share our insights and knowledge of the Qatari investment landscape with our Saudi counterpart. Everyone is eyeing Qatar with great interest after winning the bid for FIFA 2022 World Cup. There will be tremendous opportunities for investors in the region as Qatar is poised for massive growth- not just in the obvious sectors of infrastructure, construction and development, but also in education, healthcare and telecom”, he continued.

Dr. Fahad Al Damer, QFIB Board member and General Manager of Mafaz International commented, “As a board member of QFIB, I applaud the management’s efforts in trying to connect with its shareholder base around the GCC. We are pleased to have had the opportunity to organize such an event. This gathering has given QFIB Saudi based shareholders the opportunity to meet with QFIB senior executives and discuss how the Bank has progressed since the private placement in 2008. We also appreciate QFIB sharing the opportunities in different sectors that are likely to emerge as a result of the FIFA 2022 World Cup. This will alert Saudi businessmen to any investment prospects they might focus on.”

Equity research undertaken by QFIB has indicated that over nine sectors are expected to benefit from Qatar’s FIFA bid win. Immediate sectors to benefit include infrastructure, transport and logistics, and construction/development. Further sectors are also projected to benefit due to ancillary development needs including the financial sector, education, power and healthcare. These multiplier effects, according to QFIB executives, combined with a population growth will have a great impact on Qatar’s GDP in the coming years.

“With no major energy projects on the horizon, economists had projected a slowdown in growth from 2012-2015,” Emad Mansour, CEO of QFIB, began. “The FIFA 2022 World Cup is a big win; the resulting investment will have a multiplier effect on several other industries and lead to increased diversification of Qatar’s hydro-carbon focussed economy,” he added. The executives also detailed the three pillars of announced FIFA 2022 investment initiatives: stadiums, accommodation and infrastructure, projected at $3 billion USD, $12.4 billion and $44 billion respectively. With a concentration of key event facilities and venues within a compact area of a 60km radius, three stadium renovations and the construction of nine new stadiums are planned.

While detailed information is still being compiled, Qatar government decision-making is ongoing. Nonetheless, healthcare and education are the key sectors of expected growth with approximately 72 out of 200 awarded projects.

For more information on QFIB’s analysis of projected growth in Qatar, please visit the detailed report at www.qfib.com.qa

QFIB Plays a key role in securing ENPI’s AED 250m

QFIB announces that its portfolio company Emirates National Factory For Plastic Industries L.L.C. (“ENPI”) has signed a new five-year, AED 250 million syndicated Islamic facility, arranged by Abu Dhabi Islamic Bank (“ADIB”).

Qatar First Investment Bank (“QFIB”) announces that its portfolio company Emirates National Factory For Plastic Industries L.L.C. (“ENPI”), the UAE’s leading manufacturer of plastic packaging solutions, paper products and technologically advanced plastic cards has signed a new five-year, AED 250 million syndicated Islamic facility, arranged by Abu Dhabi Islamic Bank (“ADIB”). The signing ceremony took place at Abu Dhabi Islamic Bank headquarters in Abu Dhabi.

The financing will be used for the construction of a new production facility in Industrial City of Abu Dhabi 1 (“ICAD 1”), the purchase of new machinery and equipment and the refinancing of a portion of the company’s existing conventional debt. The five-year facility, split into an AED tranche and a USD tranche, not only extends ENPI’s debt maturity profile but also reduces ENPI’s overall cost of funding.

ADIB acted as the Mandated Lead Arranger for the transaction which was oversubscribed by more than 30% reflecting the strength of ENPI’s credit. Participating banks included Al Hilal Bank, Al Khalij Commercial Bank (Al Khaleeji), Ajman Bank, First Gulf Bank and Mubadala GE Capital (“MGEC”). For MGEC the transaction represented their first Islamic investment since inception.

QFIB, ENPI’s majority shareholder, played an instrumental role in structuring this facility which will allow ENPI’s management further flexibility to realise its strategic objects. The facility enables ENPI to capitalise on the growing demand for plastic solutions regionally and internationally as well as to raise the profile of the developing industrial sector in the UAE. The proceeds will in part be used to expand and strengthen ENPI’s production platform as well as to solidify the company’s market position across the UAE and the broader region.

Nizar Rajoub, CEO of ENPI commented “We are grateful to QFIB for their expertise and valuable insight in assisting with structuring this Shari’ah-compliant facility. This new financing facility will provide us with the financial strength to deliver on our strategic plan to expand our manufacturing base across the GCC to meet the growing demand for our products. This will lead to considerable growth of our sales and allows us to strengthen our existing market position as a leader in the industry.

Emad Mansour, CEO of QFIB said: “We recognize the importance of developing the industrial sector as GCC countries embark on a drive to diversify their economies. Assisting ENPI with their expansion plans has given us deeper insights into the industrial sector. Furthermore, it has given us the opportunity to cement and broaden our relationship with a number of top-tier financial institutions across the UAE. The over-subscription not only demonstrates the financial strength of ENPI, but also the growing confidence in the outlook for SMEs and the increased appetite across the region for Islamic finance. QFIB is pleased to have assisted one of its portfolio companies with negotiating this long-term Islamic financing solution”.

QFIB is the first independent Shari’ah compliant investment bank in Qatar. It acquired ENPI in July 2009. Since then, QFIB has also been influential in accelerating ENPI’s development. Experienced board members and top management have been recruited in line with corporate governance best practices, ENPI’s information technology infrastructure is being developed and expansion plans into new markets are being progressed, especially in Saudi Arabia. QFIB continues to work closely with ENPI’s management as partners in order to maximise value for all stakeholders.