IFN
IFNCOUNTRY
SECTOR
CORRESPONDENTS
High aspirations for 2014
QATAR
By Amjad Hussain
The Islamic finance sector in Qatar
got off to a strong start with the
announcement by the Qatar Central
Bank (QCB) of plans to issue a
combination of conventional and
Islamic government bonds worth
QAR24 billion (US$6.6 billion), an
amount significantly larger than past
quarterly debt offerings. Of the QAR24
billion, QAR11 billion (US$3.02
billion) will be by way of Sukuk, while
the rest will be by way of conventional
bonds. This issue is designed to
replace part of the QAR50 billion
(US$13.72 billion)-worth of three-year
government bonds that were issued
in January 2011, as part of the QCB’s
measures to manage money market
liquidity.
Qatar has also launched its first IPO in
three years. Mesaieed Petrochemical
Holding Company (MPHC) — a whollyowned subsidiary of Qatar Petroleum
(QP) is offering a 26% stake worth
over QAR3.2 billion (US$878.1 million)
primarily to Qatari private individuals
— although select public and quasipublic organizations such as Qatar
Foundation and the General Retirement
and Social Insurance Authority have
also been allowed to take part in the
subscription. Certain Qatari banks have
taken a key role in supporting the IPO
by extending credit to Qatari investors
seeking to acquire shares. Notably Qatar
International Islamic Bank announced
a scheme to provide acquisition finance
for up to 100% of the value of the
shares to Qatari nationals who wish to
subscribe to the IPO.
On the back of solid year-on-year
credit growth in the fourth quarter of
2013, some of the major Qatar banks
have commenced publishing their
2013 financial results. Qatar National
Bank announced a net profit of QAR9.5
billion (US$2.61 billion), up by 13.7%
compared to 2012, although slightly
below earlier estimates. Qatar Islamic
Bank recorded a net profit of QAR1.34
billion (US$367.71 million), up 7.6%
compared to QAR1.24 billion (US$340.26
million) posted a year ago and Doha
Bank reported a net profit of QAR1.31
billion (US$359.47 million) although its
year-on-year growth was flat. With more
development projects scheduled to be
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IFN Sector Correspondents
tendered in 2014, it will be interesting
to see how the acceleration of credit
growth — particularly to the real estate,
projects and construction sectors — will
affect the Islamic banking sector.
In market news Barwa Real Estate
recently announced its agreement to
sell its 37.34% stake in Barwa Bank
for QAR2.39 billion (US$656 million)
in a bid to reduce its leverage. Barwa
Bank was recently in the news for its
participation along with Doha Bank
in a US$123 million financing facility
to Qatar Petroleum International
Upstream, to part finance upstream oil
and gas operations in the Republic of
Congo.
Masraf Al Rayan, Qatar's largest Shariah
compliant bank by market value, also
recently announced the completion of
its acquisition of the Islamic Bank of
Britain (IBB) the terms of which were
not disclosed. IBB was majority-owned
by Qatar International Islamic Bank,
which had been in discussions with
Masraf Al Rayan over the sale since mid2012. Masraf Al Rayan confirmed that it
had received approval for the sale from
IBB’s shareholders holding 95% of IBB's
share capital, and that the regulatory
authorities in the UK had approved the
deal.
Finally, Doha Insurance Company
(DIC) recently announced that it
will be raising up to QAR437 million
(US$119.92 million) through a rights
issue as part of its efforts to shore up its
capital base and to improve its credit
rating as it aims for a bigger slice in
the local and international markets.
DIC has received in-principle approval
from the QCB and the Qatar Ministry
of Business and Trade to issue 24.26
million new shares at QAR18 (US$4.94)
a piece (including a premium of QAR8
million (US$2.2)). After the rights issue,
the company’s capital base is slated to
increase by more than 94% from the
present QAR257.4 million (US$70.63
million).
Amjad Hussain is a partner at law firm
K&L Gates’ corporate and finance practices.
He can be contacted at Amjad.Hussain@
klgates.com.
ASSET MANAGEMENT
Sean Daykin, head of investment funds, Emirates NBD
Asset Management
CROSS-BORDER FINANCING:
Fara Mohammad, senior lawyer and consultant in Islamic
finance
DEBT CAPITAL MARKETS:
Muhammad Shoaib Ibrahim, managing director & CEO,
First Habib Modaraba
LAW:
Bishr Shiblaq, head of Dubai office, Arendt & Medernach
LEASING:
Professor Dr Shahinaz Rashad, chairperson & CEO,
Egyptian Leasing Association
MICROFINANCE (ASIA):
Dr Mahmood Ahmed, executive vice president and
director training, Islami Bank Training and Research
Academy
MICROFINANCE (AFRICA):
Mansour Ndiaye, director of microfinance, Assistance and
Consulting for Development
PRIVATE BANKING & WEALTH MANAGEMENT
Khadra Abdullahi, associate, investment banking, Faisal
Private Bank
PRIVATE EQUITY & VENTURE CAPITAL:
Arshad Ahmed, partner, Elixir Capital
REAL ESTATE (EUROPE)
Philip Churchill, founder partner, 90 North Real Estate
Partners
REAL ESTATE (MIDDLE EAST):
Yahya Abdulla, head of capital markets — Middle East,
Cushman & Wakefield
REGULATORY ISSUES (ASIA)
Intan Syah Ichsan , chief operating officer, Samuel Aset
Manajemen
REGULATORY ISSUES (MIDDLE EAST):
Mohammad Abdullah Malik Dewaya, head of Shariah
compliance and audit, Maisarah Islamic Banking Services
RETAIL BANKING:
Ris Rizqullah, lecturer, Trisakti University
RISK MANAGEMENT:
Hylmun Izhar, economist, Islamic Research and Training
Institute, Islamic Development Bank Country
SECURITIES & SECURITIZATION:
Nidhi Bothra, executive vice president, Vinod Kothari
Consultants
STOCK BROKING & TRADING:
Athif Shukri, research analyst, Adl Capital
SUKUK
Marco Mauri, senior director of asset management,
Alkhair Capital Saudi Arabia
TAKAFUL (UAE)
Rima Mrad, Partner, Bin Shabib & Associates
TAKAFUL & RE-TAKAFUL:
Dr Sutan Emir Hidayat, senior lecturer, University College
of Bahrain
TREASURY PRODUCTS:
Nafith ALHersh Nazzal, certified financial & investment
advisor
TECHNOLOGY:
Syed Mohammad Ali, Islamic finance consultant,
Miraipod Inc
IFN Correspondents are experts in their respective fields
and are selected by Islamic Finance news to contribute
designated short sector reports. For more information
about becoming an IFN Correspondent, please contact
sasikala@redmoneygroup.com
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5th February 2014