Qatar Islamic Bank (QIB), the leading Islamic bank in Qatar, has signed a US$100 million murabaha facility with Qatar First Bank (QFB), Qatar’s first independent Shari’ah compliant financial institution authorized by QFC Regulatory Authority.
The facility, which will be used to support QFB’s growth plans, is a multiple Murabaha structured facility with a three year tenor period.
Bassel Gamal, QIB’s Group CEO, added: “This financing agreement reflects the strong working relationship between the two banks. QIB has a strategic vision that aims to provide Islamic financing solutions to partners, such as QFB. It also aims to build partnerships based on common interest and continuous co-operation to achieve the objectives of the Qatar National Vision 2030, one of which is to build an even stronger economy.”
Qatar Islamic Bank has strengthened its presence in the market, gaining a 35% market share of the Islamic banking sector. The bank has successfully implemented its strategy to provide Shari’ah compliant financing solutions for large projects in the sectors of energy, industry, infrastructure, construction, and trade finance. QIB is committed to supporting strategic partners and contributing towards the growth of businesses in the local market, where the Bank has directed more than 90% of its financing portfolio domestically, thereby enhancing its reputation as the leading Islamic Bank in Qatar.
Emad Mansour, CEO of QFB, commented: “QFB is a fast growing bank with ambitious plans for further expansion. This facility will provide us with the necessary funding to further accelerate our growth and capitalize on the ample business opportunities in Qatar and our target markets. We thank QIB for their support and look forward to a long term relationship.”
QFB has grown rapidly since its launch in 2009, demonstrating a strong profit and dividend record. The bank has concluded 16 transactions, investing a total of QAR 1.5 billion, and profitably exited from four investments. Earlier this year QFB changed its name from Qatar First Investment Bank to reflect the its expansion beyond investment banking activities to become a full-fledged Shari’ah compliant institution offering a suite of financial products and services.