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Arabian Business turns the spotlight on Industries Qatar.

I hear there's a new player coming up in Qatar's real estate market..

You must be referring to the US$274.8m property firm set up by Qatar's biggest firm by market value, Industries Qatar, to take advantage of the growth witnessed in the state's market.

Yes, that's the one. Aren't there other companies involved as well?

You got that right. In addition to Industries Qatar, which is a conglomerate operating mainly in the chemicals and steel sectors and will own one-third of the new company, Qatar Real Estate Company and Kuwait's Al-Koot Insurance and Reinsurance Company will each have a 33% stake.

And when does this new company start operations?

I believe it's starting some time in the first quarter of this year.

What will it specialize in exactly?

According to publicized news it will build, manage, buy and sell residential, commercial and industrial towers.

What does such a move mean for Industries Qatar?

Well, some say it is a positive step because it's an indication of the company's high liquidity surplus and gives the impression they have reached their full capacity in their core field.

The Qatari economy seems to be doing well at the moment, doesn't it?

It is indeed. Not only is it the world's biggest exporter of liquefied natural gas but it's economy is set to grow 9.9% in 2008, which is the fastest pace in the Gulf Arab region.

The Gulf state is apparently pouring its record revenues from energy exports into developing infrastructure, tourism and financial services.

How is the property market doing though?

You've just put your finger on it. There is a noticeable shortage of property units, which has been noted as a key contributor to inflationary pressures. Annual inflation in Qatar accelerated to 13.73% at the end of September of 2007, just below a record, as accommodation costs in the Gulf Arab state jumped nearly 29%.

And I understand that Industries Qatar has posted its second consecutive record profit in the third quarter this year?

Yes, this is largely due to the profit growth at the firm's Qatar Steel Company, Qatar Petrochemical Company and Qatar Fertiliser Company.

I think Industries Qatar also signed a big deal quite recently.

Well, it's been reported that last month the company signed a US$1.6bn 10-year loan with 14 mandated lead arrangers to fund a chemical plant. A unit of the company, Qatar Fertiliser Co (Qafco), secured the funds to finance construction of a plant making urea and ammonia. The loan is split between a US$1.1bn term loan and a US$500m revolving credit.

Who are the mandated lead arrangers?

They are Arab Banking Corp., Apicorp, BNP Paribas, BBVA, Bank of Tokyo-Mitsubishi UFJ, DnB NOR Bank, DBS Bank, Gulf International Bank, HSBC, ING, Mega International Bank, Nordea, Qatar National Bank and Royal Bank of Scotland.

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