Qatar

BRIEF-#Qatar Islamic #Insurance Receives C.Bank Nod To Change Name

Qatar Islamic Insurance Company received central bank approval to change its name to Group Islamic Insurance Company. The company also received approval from the central bank to establish a real estate company owned 100 percent by the group.

#Qatari banks lead Gulf states in real estate lending despite blockade: report

Qatari banks lead the Gulf Cooperation Council (GCC) members states in real estate lending despite the economic blockade. Qatar disbursed 3.36 billion U.S. dollars of incremental credit in the first quarter of this year. Saudi Arabian banks ranked second, as they disbursed 1.47 billion dollars of incremental credit. Residential-related transactions contributed to 48% of the total transactions and accounted for 50.8% of the transaction volumes in the first quarter. On Sunday, Fitch Ratings has upgraded the outlooks of Qatar Islamic Bank (QIB) to 'stable'. The rating showed that Qatar was able to overcome the economic and trade blockade imposed on it by the Saudi-led bloc since last year.

Fitch upgrades Qatar Islamic Bank (QIB) rating to stable and affirmed 'A' rating

Fitch Ratings has upgraded Qatar Islamic Bank’s (QIB) outlook to 'stable'. The move reflects Fitch's view that Qatar has successfully managed the fallout from last year's rupture of trade, financial and diplomatic relations. Public sector liquidity injections have stabilised the banking sector and stemmed the outflow of non-domestic funding. The government has demonstrated a strong commitment to its banks and key public sector companies. Earlier this year, Fitch also affirmed QIB’s Long Term Issuer Default Rating (IDR) at 'A'. These ratings of QIB reflect its well-established franchise in Qatar, with a market share of about 11% of total banking system assets at end-2017.

Call for promoting role of Islamic Waqf

Qatar's Ministry of Awqaf and Islamic Affairs organized a forum on waqf where participants called for the advancement of the waqf to regain its role in the Islamic economy. Qatar has made great steps in the advancement of the waqf, starting with the enactment of the laws regulating it, and taking all measures to ensure the governance and transparency of waqf operations. The four-day forum discussed current vital issues including the responsibility of scholars, the renewal of Islamic jurisprudence, the reform of religious education, and the Islamic waqf and its role in development.

#Sukuk issuance: QIIB weighs market mood

Qatar International Islamic Bank (QIIB) is waiting for the right time to issue its $500m sukuk in the international market. QIIB CEO Abdulbasit Ahmed Al Shaibei said that QIIB is currently weighing market conditions before the issuance of the 5-year sukuk. QIIB is not in a hurry to hit the market, as it does not face any kind of liquidity issues. The lead arrangers of the QIIB issuance will be QNB, Standard Chartered and some Malaysian Banks. The tenor would be 5 years. QIIB issued its first sukuk in 2012 for $700 and it matured in October 2017. The bank’s $2bn Trust Certificate Issuance programme has already been approved by the UK Financial Conduct Authority (the FCA) and is being admitted to the official list of the FCA and the London Stock Exchange. The Programme has been assigned a provisional rating of A2 by Moody’s Investors Service Cyprus.

QIB and INJAZ Qatar sign deal to launch financial literacy programme

Qatar Islamic Bank (QIB) has signed an agreement with the youth organization INJAZ Qatar to sponsor a three-year financial literacy programme for selected high schools and universities in Qatar. The agreement was signed by Bassel Gamal, QIB Group CEO and Emad Al Khaja, INJAZ Qatar CEO. The new "Personal Finance Program" is a five-week training with interactive sessions tailored specifically for high school students and university freshmen. The programme explores ways to earn money and spend it wisely by budgeting, saving, and investing. Courses include the cautious use of credit cards, and protecting your personal finances. Emad Al Khaja said the course was in line with local cultural requirements, as Islamic banking principles are incorporated into the programme.

#Qatar bank #merger said to stall over price dispute

Talks to merge three Qatari banks have hit a roadblock as shareholders disagree on price. The three banks include Masraf Al Rayan, Barwa Bank and International Bank of Qatar. Discussions are currently on hold and it’s not clear if the deal will be revived. Qatar started talks in December 2016 to create the country’s largest Shariah-compliant bank and the Middle East’s third-biggest Islamic lender with more than 178 billion riyals ($49 billion) of assets. According to Sanyalak Manibhandu, equities analyst at FAB Securities, the delay is bad news because the three banks combined would be able to compete better in the Qatar market. The merger would also provide opportunities to extract synergies from saving overheads, direct costs and investing in digitization.

#Qatar central bank backs three-way Islamic bank #merger

Qatar’s central bank hopes the planned merger between three local Islamic banks can proceed this year. Masraf Al Rayan, Barwa Bank and International Bank of Qatar have been discussing a merger, though they missed the target date to complete the proposed deal. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar last June. Qatar accused them of trying to sabotage its financial markets and manipulate its currency. Sheikh Abdullah said that since the embargo started, the central bank had been meeting regularly with executives of banks to ensure daily control of liquidity levels and financial transfers. He added that Qatar plans to issue roughly the same amount of riyal debt in 2018 as it did in 2017, when it issued 47.5 billion riyals ($12.3 billion). That included 18.5 billion riyals of bonds and 15.4 billion riyals of sukuk.

QIIB to raise up to $500m via #sukuk; plans roadshows

QIIB plans to raise between $300m-$500m via Sukuk this year. CEO Dr Abdul Basit Ahmed Al Sheibi said the bank got shareholders' approval and will hold roadshows in selected Asian and European markets next month. QIIB’s $2bn Trust Certificate Issuance programme has already been approved by the the UK Financial Conduct Authority and is being admitted to the official list of the FCA and the London Stock Exchange. The Programme has been assigned a provisional rating of A2 by Moody’s Investors Service Cyprus.

Source: 

https://www.thepeninsulaqatar.com/article/27/03/2018/QIIB-to-raise-up-to-$500m-via-sukuk-plans-roadshows

World's largest single country Islamic ETF launched on QSE

#Qatar launched the world's largest single country Islamic exchange traded fund (ETF). Al Rayan Qatar ETF (QATR), sponsored by Masraf Al Rayan, is planning to create more units to meet the increasing demand. The QATR is listed on the Qatar Stock Exchange and seeks to track the performance of the QE Al Rayan Islamic Index to provide investors diversified exposure to Qatari equities. The open-ended fund, with initial assets of $120mn, is three times larger than any other ETF in Qatar and Gulf region and has pegged total expense ratio at 0.5% of net asset value, which is considered to be the lowest for any single country ETF in the region. According to Al Rayan's chief investment officer Haithem Katerji, QATR is perfect for investors seeking diversified exposure to Shariah-compliant Qatari stocks with the simplicity and efficiency of buying just one share.

#Qatar’s first Shariah compliant ETF to hit market tomorrow

Qatar’s second listed exchange traded fund (ETF), the Al Rayan Qatar ETF will begin trading tomorrow on Qatar Stock Exchange (QSE). Al Rayan Qatar ETF is the first Shariah-compliant exchange traded fund listed on QSE.
The ETF, issued by Masraf Al Rayan, will track the QE Al Rayan Islamic Index. The Fund will track the performances of 18 stock index of Sharia-compliant Qatari listed equities. Al Rayan Investment is the Fund Manager. HSBC Bank Middle East is the Investment Custodian. According to the prospectus issued by the Fund Manager, the Fund is structured as an open-ended vehicle with a maximum limit of issued capital of QR2bn. The base currency of the Fund is Qatari Riyal and the Fund will only invest in securities denominated in Qatari Riyal.

QIB launches new Investor Relations App

Qatar Islamic Bank (QIB) has launched an Investor Relations app for Android and iOS smartphones. The QIB IR App keeps the investors updated on the latest financial developments related to share prices, stock performance, bank news, financial results and key financial reports. It includes interactive financial screens enabling investors to see QIB’s historical share price and results while providing comparison with peers. As QIB’s investors are global, the app supports 17 languages and enables the display of share prices in different currencies as well. QIB cooperated with Euroland, a leading fintech company, to launch the app and update the information available on the website. All interested parties can download the QIB IR app from the Apple Store or Google Play Store and visit the Investor Relations (IR) section on QIB’s website.

A.M. Best Affirms Credit Ratings of #Qatar Islamic #Insurance Company Q.S.C.

A.M. Best has affirmed the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Qatar Islamic Insurance Company (QIIC). The outlook of these Credit Ratings is stable. QIIC adopts a hybrid takaful model, whereby the shareholders’ fund (SHF) charges the policyholders’ fund (PHF) a Wakala fee based on gross written contributions (GWC) and a Muderaba fee based on investment income. QIIC has a track record of strong operating and technical profitability, highlighted by a five-year average combined ratio of 79% that has remained very stable over recent years. Although the company is concentrated to its domestic market of Qatar, the company maintains a niche market position as an established provider of Shari’a compliant products.

QINVEST records solid revenues for 2017

Qatar's QINVEST announced its end of year results for 2017. Revenues from all business lines amounted to QR368.6m ($101.3m), resulting in operating profit of QR177.3m ($48.7m) and net profit of QR65.9m ($18.1m). The group’s global assets stood at QR4.45bn ($1.22bn) as of 31 December 2017. QINVEST has continued to enjoy a strong liquidity position of $120m as of December 2017. The company has also taken the decision to early adopt IFRS9 accounting standard, reducing future volatility from its reported results. The firm launched two income-generating Ijara funds in 2017 and both were oversubscribed. QINVEST will look to launch the third in the series of the Ijarah funds during 2018 to meet market demand.

#Qatar Islamic #Insurance posts gain in gross written premium to QR316.6mn in 2017

Qatar Islamic Insurance has reported more than 1% year-on-year rise in gross written contribution (premium) of QR316.6mn in 2017. The company’s earnings-per-share was QR4.13 compared to QR4.23 a year ago. The policyholders’ surplus registered more than 100% growth to QR16.2mn in 2017 compared to QR7.9mn in the previous year. Chairman Sheikh Abdulla bin Thani al-Thani said the company would distribute, for the eighth consecutive year, 20% surplus to all the eligible policyholders for 2017. The management of Qatar Islamic Insurance achieved these results despite a very challenging environment in 2017 due to negative impact of low oil prices on national economy.

#Qatar witnessing robust momentum in #fintech, says Sheikh Abdulla

According to Qatar Central Bank (QCB) Governor Sheikh Abdulla bin Saoud al-Thani, Qatar is witnessing a robust momentum in fintech. The country is opening up increasing opportunities for digital payments, money management, lending, loyalty and rewards, remittances, investments and advisory services. Sheik Abdulla said the QCB’s recently launched new strategy would need to ensure that fintech firms are enhancing the financial system. Although there have been some success stories, he said banks and insurance companies in the region have been slow to embrace innovation. The fintech industry in Qatar remains very small, but it has seen a few startups such as Hasalty. As a mobile application, Hasalty improves financial literacy for children supported by the Qatar Business Incubation Centre.

The First Investor acquires another #German asset

The First Investor (TFI) Qatar, a subsidiary of Barwa Bank Group has acquired a new office building in Frankfurt. The asset is another unique blend to TFI Euro Income Fund, which was launched in 2017 with sharia compliant stature. Europe continues to provide excellent investment and business environments given low inflation and low interest rate regime. TFI is keen to pursue its investment strategy with the aim to help clients achieve their objectives in a very challenging business environment. By that, TFI will soon launch another UK Income Fund and a US Income Fund together with many investment opportunities during 2018.

#Qatar’s QR25bn worth #sukuk to mature soon

Almost half of Qatar’s outstanding sukuk, worth of over QR25bn, will mature in 2018. With the ongoing growth of Shariah-compliant institutions, new issuances are vital. If no sukuk are issued in the country to replace the maturing ones, Shariah-compliant investors might look to other sukuk investments outside Qatar. According to the joint research of Qatar Financial Centre (QFC), Thomson Reuters and Islamic Research and Training Institute (IRTI), retail sukuk remains an untapped segment in most of the countries in GCC. Qatar can capitalise on selling sukuk to the retail market to promote both the primary and secondary capital market. Financial institutions have been leading corporate issuance in the GCCIn Qatar, Ezdan Holding Group is the only corporation outside financial institutions to issue sukuk. Ijarah continues to be the most popular sukuk structure in Qatar. However, Qatari corporate sukuk have all been issued based on wakalah structure, which has been gaining popularity in the recent years.

Finance Minister: #Qatar's Islamic Banks is the third largest contributor to global growth in Islamic Banking

According to Qatar's Finance Minister Ali Shareef Al Emadi, Qatar's Islamic Banking sector is the third largest contributor to global growth in Islamic banking. At the 4th Doha Islamic Finance Conference, the Minister called for continued growth in the Islamic finance sector through concerted efforts to confront financial risks. The Minister noted that Islamic finance accounts for 50% of banking services in the GCC, where most GCC citizens prefer Sharia-compliant banking services. More and more international universities are adopting programs in Islamic finance, including the Master of Islamic Finance at Hamad bin Khalifa University in Qatar. The rapid growth of electronic financial transactions have brought new challenges requiring further cooperation, coordination and discussion. New products require the development of clear frameworks. Al Emadi added that increasing transparency in this field will help Shariah scholars to identify the correct structures and it will enable banks to make these products more attractive.

#Qatar needs to develop regulatory framework to cement Islamic finance lead: QFC

According to a Qatar Financial Center (QFC) study, Qatar needs to reform interbank liquidity management to study leakages from Islamic banks through interbank finance. Moreover, there is also a need to develop a regulatory framework and promote green bonds and sukuk. So far Qatar has led the world in ensuring in the authenticity of Shariah-compliant bank assets with Qatar Central Bank and the QFC Regulatory Authority requirements separating Islamic and conventional banks. To ensure this segregation, there should be a review of interbank markets to limit flows from Islamic banks to conventional ones in their liquidity management operations using 'Murabaha'. The report also stressed the role of a centralised guidance on fit and proper criteria for Shariah scholars and promoting Fintech development.

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