The parties have submitted a formal application for a license to the Qatar Financial Centre Regulatory Authority this week. The banks will each own a 15% stake in the new Islamic investment bank which will have a paid-up capital of $500 million and an authorized capital of $1 billion.
Interestingly the balance of 70% will be placed with Gulf Finance House and Qatar Islamic Bank clients, with a listing planned in the near future on the Doha Securities Market.
CEO of the new bank and board member of Gulf Finance House, Esam Janahi commented:
‘It is a sound strategic move for GFH to establish a significant presence on the ground in Qatar’s banking sector, one which will help source a number of high quality opportunities in Qatar as well as offer Qatari investors more opportunity outside the country.’
This is the latest feather in the cap of the Qatar Financial Centre Regulatory Authority which has established a world-class regulatory framework for financial institutions setting up in Qatar, and modernized the previous regime prevailing in Doha.
Perhaps this success should not be so surprising given the huge opportunities for project finance in Qatar and advisory services for high net worth individuals. But Qatar has moved ahead of many other Gulf States in establishing the QFCRA and the Qatar Financial Centre itself, which has yet to celebrate its first anniversary.
The creation of new financial institutions like this Islamic investment bank is a testimony to the high oil and gas revenues being enjoyed by Qatar, and also to this tiny peninsula’s commitment to economic reform.
It should occur to some traditionalists that such economic reform is now delivering Sharia-compliant banking on a formidable scale to benefit the region, combining the best of the old and new orders.
Wednesday, March 15- 2006 @ 9:53 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.