Qatar

#Qatar Islamic Bank's dollar #sukuk books top $1 billion -lead

Order books for Qatar Islamic Bank's planned dollar five-year sukuk have topped $1 billion. The senior unsecured deal is part of a $3 billion sukuk programme. It will be of benchmark size, which conventionally means upwards of $500 million. Initial price guidance for the Islamic bond was 145-155 basis points over mid-swaps. Citi, Emirates NBD Capital, HSBC, Noor Bank, QInvest and Standard Chartered Bank have been appointed to lead the transaction.

Qatari investors focus on #US #property market

Qatari investors are increasingly looking for opportunites in the booming US propery market. Just Real Estate (JRE) has recently launched its new US portfolio, while QInvest announced its US mulitifamily residential-focused real estate fund Magnolia Real Estate Fund. The fund completed its first acquisition of an outstanding asset in Colorado, US. QInvest has been investing in Western Europe, UK and US for the past 5-6 years. JRE recently added two upscale addresses in Miami and New York City to its ever-growing portfolio of luxury developments in Qatar. Qatar, as a country, is becoming a big player in the New York City’s real estate market, with unconfirmed reports showing Qatar Investment Authority ranking the city's ninth-largest commercial property owner.

QInvest and GCC investor launch “Magnolia Fund” to invest in #US #residential #market

#Qatar's QInvest announced its collaboration with a GCC institutional investor to create the Magnolia Real Estate Fund. The fund has already completed its first acquisition of an asset in Colorado, USA. The acquisition was funded using an Ijarah property debt structure. The Magnolia Fund is focused on investing in the fast-growing, income-generating multifamily residential market in the US. The Fund is building a portfolio of assets in the sector and plans to make more acquisitions during 2017. The newly acquired asset is located in Fox Creek, Thornton, a northern suburb of Denver, Colorado. The asset is projected to yield net cash in excess of eight per cent on annual basis and a net IRR in the range of 12-13%. The multifamily manager TruAmerica has co-invested in the asset and will oversee the day-to-day operations of the property.

#Merger of three #Qatari #banks to take six months

The merger of Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar is said to take six months to complete, Masraf Al Rayan’s chairman Hussain Ali al-Abdulla said lately. In December Reuters had reported that merger talks had begun which, if successful, would create the Gulf state’s second-largest bank. The new bank would have assets worth more than 160 billion riyals ($44 billion).
KPMG and PricewaterhouseCoopers have been appointed as merger advisers, along with law firm Allen & Overy as legal adviser, and furthermore the Barwa Bank and International Bank of Qatar. Masraf Al Rayan’s shareholders approved the issuance of sukuk worth up to $2 billion to meet the bank’s liquidity needs. In January banks had been appointed to handle a debut sukuk issue of around $500 million, banking sources told Reuters that month, but Abdullah said on Sunday the timing of the issue had not been finalised. Asked whether the bank’s liquidity had been affected by low oil prices Abudullah said “liquidity now is better than in 2016” and that the U.S. Federal Reserve’s raising of interest rates last month would improve the profits of Qatari banks.

Shareholders at #Qatar's Masraf Al Rayan approve #sukuk #issuance for up to $2bln

The shareholders of Qatar's Masraf Al Rayan, an Islamic lender, approved the issuance of sukuk worth up to $2 billion to meet the bank's liquidity needs on Sunday. The Gulf state's second largest lender by market value appointed banks in January to handle a debut sukuk issue of around $500 million, banking sources told Reuters that month.

QInvest’s income-generating #Ijara #fund oversubscribed

#Qatar’s QInvest has successfully launched its QInvest SQN Income Fund. It aims to pay out a net yield of 7% per annum on a monthly basis and has a targeted IRR of between 8-9%, with a tenure of 5 years. The Fund invests in the leasing and financing of business-essential, long-life, revenue producing equipment across developed markets. Industries include health care, manufacturing and agriculture. QInvest plans to launch another fund in the same series later this year. QInvest CEO Tamim Hamad Al Kawari said the new fund provides investors with concentrated portfolios with means of diversification and risk mitigation. It provides attractive returns and a regular income distribution, all within a relatively conservative investment profile.

Stock Exchanges of #Nairobi and #Qatar to Cooperate on Islamic Finance

The Kenyan capital markets regulatory authority and the Nairobi Securities Exchange today visited the Qatar Stock Exchange (QSE) and signed a memorandum of understanding (MOU) for cooperation between the two exchanges. The two sides will share information and technical assistance in respect of processes and procedures relating to listing, trading, depository operations, clearing and settlement. Mr. Samuel Kimani, Chairman of the Nairobi Stock Exchange, said that his is a young exchange looking for further development and cooperation opportunities. Rashid bin Ali Al-Mansoori, CEO of Qatar Stock Exchange, expressed his happiness and hope that the MOU will help enhance the economic cooperation between the two countries.

Barwa Bank is eyeing larger share of infrastructure financing in #Qatar

Barwa Bank Group said it will spare no effort to gain the largest possible share of financing infrastructure projects in the country. Barwa Bank chairman Sheikh Mohamed bin Hamad bin Jassim al-Thani said due to the national economy’s provision of promising opportunities, the bank will provide all possible support to the growth of the country’s economy. The group recorded strong growth in each of the financial position and profits, as net profit for 2016 rose to QR738.8mn and earnings per share reached QR2.49. The growth in the group’s business and the increase in its investment activities go in line with maintaining asset quality and risk management policies with total non-performing loans accounting for just 1.5% of the net financing portfolio.

QIIB to begin operations in #Morocco with four branches

Sheikh Dr Khalid bin Thani bin Abdullah Al Thani, Chairman of Qatar International Islamic Bank (QIIB) inaugurated the bank’s new branch at the Mall of Qatar. CEO Abdulbasit Ahmad Al Shaibei said the bank is expected to start its operations in Morocco by the first quarter of 2017 with four branches. The lender had signed a joint venture agreement with the Moroccan Bank Credit Immobilier et Hotelier (CIH) for the establishment of a bank in Morocco in December 2015. Under the agreement, QIIB will have 40% stake in the proposed bank. The new QIIB branch is on the ground floor of the Mall of Qatar, considered to be one of the most important shopping destinations in the region.

Qatar Islamic Bank AGM gives the go-ahead to #Sukuk issuance

The Assembly General Meeting (AGM) of Qatar Islamic Bank has voted the proposal to increase the limit of the perpetual Sukuk “Additional Tier 1 Capital (AT1) Sukuk“ from QAR 5 Billion to QAR 7.5 Billion. The meeting, held on 21 February, also approved the board of directors’ proposal to distribute 47.5% cash dividends of the nominal value per share, i.e. QAR 4.75 per share.

#Qatari bank #merger will ‘rebalance’ the market – Moody’s

According to Moody’s Investors Service, a proposed merger between three Qatari banks would help “rebalance” the banking sector in the country. The merger is currently at due diligence stage and will be subject to approval by the relevant authorities. The merged entity between Masraf Al Rayan, Barwa Bank and International Bank of Qatar would create the largest Islamic bank and second largest lender in Qatar. Total assets would amount to around QAR173bn ($48bn) and the market share would be around 14%. Moody’s assistant vice president Nitish Bhojnagarwala said Islamic banking asset growth has outpaced conventional banking in Qatar, as demonstrated by a 21% compound annual growth rate of loans for Islamic banks between 2011 and 2016 compared with 14% for the conventional banks. The GCC is witnessing a consolidation in the banking sector, with the two largest lenders in Abu Dhabi also currently preparing to merge.

QInvest successfully exits a prime London residential #real-estate #fund

Qatar Islamic Bank's QInvest is exiting the St. Edmund’s Terrace LP Fund. The Shari'ah compliant fund was jointly owned by QInvest and a range of GCC institutional and retail investors. It invested GBP 50 million into developing a new, prime residential project through a real estate development company. The Fund was created to provide investors with the opportunity to invest in London’s prime residential market. At completion, the Fund generated 22% net returns to investors. Craig Cowie, Head of Real Estate at QInvest said the returns exceeded expectations and added a notable asset to the luxury real estate market in London. The project, 50 St. Edmund’s Terrace, completed in June 2015 and comprises of three residential blocks and 37 units. It delivered an average selling price in excess of GBP 2,600 per square foot.

Poverty amid plenty in the #Gulf

The UN appointed Special Rapporteur on extreme poverty in the Gulf has concluded his mission on 19th January. In his report Dr. Mohamed Ramady highlights that poverty encompasses non-financial targets that encompasses women’s right to work and move freely, inhibiting factors that lead to family poverty. It is meaningless to adopt an absolute line given a large variance in GCC GDP per capita, ranging from around $ 25,000 in Saudi Arabia to $ 95,000 in Qatar. National poverty line figures accordingly vary from $ 1,300 per month to $ 5,000 levels. Cash payment handouts to reduce subsidies to balance national budgets are short-term measures. The key to poverty eradication is education, access to work and removal of social restrictions. To varying degrees, all the Gulf countries have given emphasis to ensuring more female work and civil and political participation. The UN Report also highlighted an uneven corporate social responsibility to carry out effective training and offer more opportunities for female workers and handicapped employees.

#GCC #debt issuance likely to swell in 2017 as governments and corporates seek funding

Debt issuance from the GCC is expected to surge in 2017 with sovereign issuers leading while conventional bonds outstripping sukuk both in terms of amounts raised and number of issues. The key drivers to bond issuances in the GCC during 2016, which more than doubled to $66.5 billion (Dh244.5 billion), was primarily the sovereign bond issuances by Saudi Arabia, UAE and Qatar. Saudi Arabia’s first international bond issuance valued at $17.5 billion in October last year was the biggest recorded emerging market bond. Saudi Arabia has indicated further bond issuances in the near term and the Kingdom has a target debt-to-GDP ratio of 30% by 2020 as compared to 13.2% for 2016. Banking sector contribution to bond issuance witnessed a steep decline from 22% in 2015 to 15% in 2016, although the size of the total offering increased by 36% $11.7 billion.

Islamic finance key to #GCC funding needs in the 'new oil order'

According to the chief economic adviser of the Qatar Financial Centre (QFC), Islamic finance will need to play a pivotal role in meeting the increasing demand for funds by the Gulf Cooperation Council (GCC). Dr Haitham al-Salama said oil prices are not likely to exceed $100 in the near future and are forecast to stay around the $55-$65 per barrel. Also, a spike in the shale oil production is expected, which will push the prices down. He added that this puts further emphasis on the economic diversification efforts of oil producing countries, particularly in the GCC. Qatar has already taken various measures to diversify the economy, which includes lowering the subsidies and cost optimisation apart from prioritising planned spending. Finance Minister HE Ali Sherif al-Emadi had recently said Qatar would be spending another QR46bn in 2017 to upgrade its infrastructure in the run up to 2022 FIFA World Cup.

#Qatari bank trio in talks for potential $44 b #merger

Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar have begun initial talks for a potential merger. This deal would create the Gulf state's second-largest bank and it would have assets worth more than 160 billion riyals ($44 billion). If the deal goes ahead, it would be a rare example of consolidation among banks in the Gulf, which have previously been reluctant to tie up. The previously lavish state spending is now being trimmed to adjust to lower oil prices and the argument for consolidation is now more compelling. Though negotiations have begun, there is no guarantee any agreement will be reached. The proposed merger of Rayan, Barwa and IBQ depends on financial and legal due diligence, as well as securing approvals from regulatory authorities and shareholders of all three banks.

Silatech signs new accords to support Arab youth

Silatech founder and chairperson HH Sheikha Moza bint Nasser witnessed the signing of a number of Memorandums of Understanding (MoU) with its partners to support the Arab youth. HH Sheikha Moza also chaired the first meeting of the new Board of Trustees of Silatech at which Silatech’s annual performance 2016 and strategy and achievements report 2016 were presented. Silatech signed an agreement with QNB Africa to empower Youth in Sudan with Sama Al Shabab Portfolio. This way QNB Sudan will direct 12% of its portfolio towards financing youth enterprises. Another MoU to employ Tunisian youth was signed in order to create 50,000 jobs by 2020 and reduce migration of Tunisian competencies abroad. In another agreement, Silatech partnered with the World Congress for Muslim Philanthropists to develop the first innovative Micro-waqf platform to connect youth entrepreneurs with donors and investors.

QIIB expects to receive licence for Moroccan JV before year-end: CEO

#Qatar International Islamic Bank (QIIB) expects to secure the licence from the Moroccan authorities for its joint-venture bank in the kingdom before the year-end. CEO Abdulbasit A. al-Shaibei said QIIB firmly believed that Morocco presented a 'good opportunity' for the bank, being a gateway to North Africa, which is in need of Shariah-based, value-driven banking. He said QIIB and its partners in Morocco have identified the branches and installed the IT systems. While there are opportunities, al-Shaibei said any new market would pose some challenges. In terms of overseas ventures, QIIB will now be focused only on Morocco. Al-Shaibei said 2016 was a challenging year not just in the Middle East, but everywhere. However, he said he remained very optimistic about the Qatari economy and the future opportunities of the country.

#Qatar: Barwa signs $165m project finance agreement

Qatar-based developer Barwa Real Estate has signed a new facility agreement with Qatar International Islamic Bank (QIIB) worth $165m (QAR600m). According to the official statement, the move is aimed at securing finance for a part of its upcoming projects. This agreement reinforces Barwa’s strategy of strengthening its financial position by funding the upcoming projects through credit facilities with favorable rates, terms and conditions.

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