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New regulations introduced by the Qatar Central Bank (QCB) in mid-June will curb local banks’ investment options, potentially making sovereign bonds more appealing at the expense of some private sector options. Under the new regulations, with which lenders must comply within six months, equities and bonds can account for up to 25% of a bank’s capital and reserves, although debt issued by the government and national banks are exempt from the limit. The cap had been previously set at 30%. The new regulations also limit the amount banks can place with individual companies and unlisted securities, establishing a maximum of 5% of capital and reserves for foreign investments and 10% domestically. The cap for total foreign equities is set at 15%. These new rules will apply to both conventional and Islamic lenders.

Qatar-based Barwa Bank has reported half-year profits of QR303.6mn, up 85% from the QR162.9mn recorded in the same period last year. Return on equity increased from 6.6% to 11%, with earnings per share rising from QR0.55 to QR1.01 on the back of a 10% increase in total assets to QR27.8bn. The highlight of the first half has been the high level of activity in corporate banking as major infrastructure projects have started to bear fruit. Also, contributing ware the strong performances in the bank’s treasury and trading businesses. Barwa Bank has also seen selective expansion in its retail footprint with two new high-profile branches nearing commissioning and good response to its special outlets located in the Ministry of Interior and the Navy.

Deadlines for Qatar-based Islamic bank Masraf to announce a firm intention to make an offer for Islamic Bank of Britian have been extended to the end of August. The latest deadline again lapsed as talks that have been ongoing since late 2012 continue. The bank has struggled to make a profit in recent years and at the end of 2012 bosses revealed the lender would look at ways to offer more products. In 2009 the bank attempted to boost business by targeting mortgage advisers, launching a website providing resources enabling them to re-sell the Islamic Bank of Britain’s range of Sharia-compliant home purchase plans and commercial property finance products. Yet in 2011 the bank reported a loss of £8.9m despite income from home purchase plans increasing 17.9 per cent to £2.3m.

Barwa Bank has signed a cooperation agreement with Qatar Charity to provide QR500,000 for its Ramadan projects in the country. The deal was signed by Steve Troop, Chief Executive Officer of Barwa Bank, and Yousef Al Kuwari, Qatar Charity Executive Chairman, at the charity headquarters. Troop said that Barwa Bank aims to support projects which provide assistance to the needy in the Qatari community in various ways, including forging partnerships with charities such as Qatar Charity. One of Qatar Charity’s projects is Al Baraha which has been extended from 10 days to one month. Around 24,000 people will benefit from the QR950,000 project during the holy month.

Mr. Adel Al Asoumi, Chairman of Houra and Gudhaybeya Charity Fund thanked Khaleeji Commercial Bank for its contribution towards sponsoring a number of needy families in association with the Charity Fund. As part of its Zakat fund program, the Bank works closely with charity organizations in the country supporting needy families and helping out raise their standard of living. The Bank has contributed from its Zakat fund to support a number of families sponsored by Houra and Gudhaybeya Charity Fund to ensure the support goes directly to the needy families. The Charity Fund will facilitate the process of helping those selected families by providing the Bank with their names, details and identified needs.

Maran Nakilat Company, a joint venture between Nakilat and Maran Ventures, has secured $662.4mn Islamic refinancing. At a ceremony held in Doha, Maran Nakilat signed the Murabaha refinancing agreement with Qatar Islamic Bank (QIB) and Barwa Bank. With the refinancing, Maran Nakilat will be able to expand its fleet of LNG carriers from four vessels to six, with the delivery of two new carriers scheduled for early 2014. At the same time, Nakilat has also increased its ownership of Maran Nakilat Company. Latham & Watkins advised Maran Nakilat on commercial and legal matters related to the refinancing, while Allen & Overy advised QIB and Barwa Bank.

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Qatar Islamic Bank (QIB) has been affirmed by international credit rating agency, Capital Intelligence (CI), with a Financial Strength Rating (FSR) of 'A'. This reflects the Bank's Islamic banking franchise, evidenced by substantial growth in financings and customer deposits, net financial income differential, and the Bank's capitalisation. In view of the Bank's intrinsic financial profile, Qatar's economic growth potential, and ongoing government support for all Qatari banks, the Bank's Long and Short Term Foreign Currency Ratings are affirmed at 'A' and 'A2', respectively, on Stable Outlook. Based on the strength of the Qatari government balance sheet, the Support Rating is affirmed at '2'.

Qatari entrepreneur and philanthropist, Sheikh Ali bin Abdullah al-Thani and International Islamic CEO, Abdulbasit A. al-Shaibei participated in the celebrations held as part of the Charity Art and Photography Auction at the College of North Atlantic in Qatar on May 22. More than 100 selections of art and photography were up for bids. The majority of these pieces have been donated by members of CNA-Q’s art and photography clubs. The proceeds from the auction will go to Qatar Red Crescent. Institutions such as Qatar Red Crescent are committed to serving the local community and others in need. Through various projects they undertake such initiatives.

Qatar resident Ziyad Rahim, head of market risk at Barwa Bank, recently broke a Guinness World Record by completing the Marathon Grand Slam in just 41 days. In the process, he set the fastest time to complete a marathon on each continent and the North Pole and smashed the previous record of 324 days, which had stood for over six years. He is also the first person in the world to complete two extreme marathons - at Antarctica (-20 degrees Celsius) and the Sahara Desert (50 degrees Celsius) - within a month. Ziyad is an ambassador for CARE, a charity educating underprivileged children in Pakistan. He says he runs to promote health and fitness and raise awareness for the less fortunate.

Kuwaiti Ambassador to Qatar Ali Salman Al-Haifi praised Kuwaiti-Qatar coordination, namely setting up the sixth waqf forum. The forum which concluded on Tuesday reflected keenness of the two countries on maintaining the Islamic endowment, which is one of the important pillars for social solidarity, Al-Haifi said. The two-day forum, which dealt with emerging issues and Islamic legitimacy, was organized by Qatar's Ministry of Awqaf and Islamic Affairs, in coordination with Kuwait Awqaf awqaf authorities and the Islamic Research and Training Institute, an affiliate of the Islamic Development Bank Group.

Qatar is striving to raise its credit rating to ‘AAA’, two levels higher than its current rating of 'AA' with a stable outlook. The country’s economic growth accelerated to an average 13% during the period from 2008 to 2012. Such favourable international ratings, combined with a healthy financial climate, ensured that Qatar enjoyed a stable economic outlook. However, Qatar may find it difficult to win a credit rating upgrade in the next two years unless the nation reduces its reliance on public spending. According to Standard & Poor's, Qatar’s limited monetary flexibility, and its banks’ increasing dependence on external financing stand in the way of raising the rating from ‘AA’.

The sixth waqf forum will kick off in Doha on Monday under auspices of Qatari Prime Minister and Minister of Foreign Affairs Sheikh Hamad Bin Jassem Al Thani with delegations from 15 Arab and Muslim countries. The forum, themed "new issues and juridical rooting," will discuss a number of legal contemporary issues relating to the Islamic jurisprudence in the area 'Awaqf' (endowments). The gathering is being organized by the Qatari Ministry of Awqaf and Islamic Affairs in collaboration with Kuwait Awqaf Public Foundation (KAPF) and the Islamic Development Bank Group (IDB).

Qatar Islamic Bank is not expecting to issue more Islamic bonds before 2014, according to its Chief Executive Officer Bassel Gamal. The CEO said that there seems to be enough liquidity currently. Last October, it tapped the bond market with a US$750 million five year sukuk bond issue. This is part of the overall sukuk programme of the bank valued at US$1.5 billion. Gamal added that local currency sukuks would be expected to be issued in the coming years. He also said that many countries encourage local issuances of sukuk, such as Saudi Arabia and Malaysia.

Islamic Bank of Britain (IBB) narrowed its losses in 2012 a week after it raised £10 million ($15.5 million) from majority shareholder Qatar International Islamic Bank (QIIB). Last week, IBB raised £10 million by placing 1 billion shares with QIIB at a price of 1 penny each, raising the number of its outstanding ordinary shares to 4.5bn. In 2012, IBB posted a loss of £6.99m versus a loss of £9m a year earlier. Home financing business helped narrow the gap by nearly doubling to £117m in 2012 versus £61m a year earlier. The bank did not disclose personnel or administrative expenses, which in the past have represented the bulk of its costs. QIIB, which now owns 91 percent of IBB, has been in discussions since last June with Qatari lender Masraf Al Rayan to sell a controlling stake in the British bank.

Qatar-based bank Masraf Al Rayan is in the final stages of due diligence to acquire a stake in a Libyan lender. According to the group chief executive Adel Mustafawi, after preparing the required studies, a memorandum of understanding will be signed before proceeding to secure the required approvals from the authorities in both Qatar and Libya. Shareholders of Rayan had approved in February its plan to buy a stake in a Libyan lender, while also voting to give the board of directors control over a QR1bn ($275mn) war chest to make acquisitions over the next two years. Moreover, the bank has also made significant progress in fulfilling the requirements of acquiring a stake in Islamic Bank of Britain.

Barwa Bank has elected its new nine-member board of directors (for 2013-2015) with Sheikh Mohamed bin Hamad bin Jassim al-Thani as chairman and managing director. The other members on the board are Abdulaziz Mohamed Hamad Almana (vice chairman); Mohamed Esmail Ali al-Emadi; Abdulla Abdulaziz Abdulla al-Subaie; Mohamed Ebrahim Mohammad al-Sulaiti; Aisha Mohamed al-Noaimi; Sultan Yousef al-Sulaiti; Jamal Abdul Rahman al-Musalmani and Nasser Hamad Ali al-Sulaiti (all board members). The board of directors also appointed Talal Ahmed Abdulla al-Khaja as a secretary to the board, which will meet at least six times a year and ad hoc as required.

Qatar Financial Centre Authority in its first ‘Mena Asset Management Barometer‘ has predicted that Qatar will soon become a “key international distribution hub” for Shariah-compliant products. It suggests that Qatar’s position in the Islamic finance market will be boosted with the development of new infrastructure projects that will help in the growth of alternative fund structures and encourage public-private partnerships. However, the report also highlights that the asset management sector in Qatar is still in its infancy and the alternative sector will need time to develop. Besides, Qatar was also chosen by hedge fund management firms as the most favored location to establish a presence in the GCC.

Barwa Bank Group held its annual general meeting (AGM) on the 14th April at which the financial results for 2012 were approved and a new Board of Directors was elected. The Chairman, H.E. Sheikh Mohamad Bin Hamad Bin Jassim Al Thani, gave a detailed report on the bank's activities, and highlighted the group's strong growth in both balance sheet and profitability. The bank's net income for 2012 increased by 41% to QR345m, total assets increased by 32% to reach QR25.3bn. Following the AGM, Barwa Bank Group also held an Extraordinary General Meeting (EGM) to approve QR1bn in additional capital through a Rights Issue of 50 million shares at QR20 per share and an Initial Public Offering of 50 million shares at QR21 per share.

Qatar Islamic Bank (QIB) has launched its new investment product called International Sukuk Portfolio. It will be invested predominantly in global sukuks issued by sovereign, quasi-sovereign and corporate issuers using well defined investment guidelines and is designed to keep risk exposure under control. The portfolio will be managed by QIB’s subsidiary in the United Kingdom QIB-UK, which has experience in asset management. Since International Sukuk Portfolio is priced and available for trading on a weekly basis, liquidity will be ensured. The portfolio will be diversified across sukuk issuers, a wide sector split and a broad geographic allocation. Part of the profits will be distributed to investors on a quarterly basis.