Qatar's government, the Islamic Development Bank and a subsidiary of the Saudi Arabia's Dallah Albaraka Group in Sudan have agreed to set up an $11bn Islamic bank that will be based in Doha, Arab News reported, citing Saudi Arabian billionaire businessman Saleh Kamel, chairman and founder of the Dallah Albaraka Group
Kamel will contribute $300m to the venture, and Dallah Albaraka Group which has interests in Islamic banking and financial services, real estate, construction, media and manufacturing will put in $100m, the businessman who also chairs Jeddah's Chamber of Commerce told the daily. IDB will also contribute $100m.
Another $500m will be raised from various Islamic banks globally Kamel told the paper without naming any of the institutions. An initial public offering will seek to raise the remaining $10bn, he said. The bank plans issue Islamic bonds known as sukuk.
"Through this, we would change the course of Islamic banking to the rank of development banking rather than banks for giving loans,'' Kamel told the daily. "As everybody knows, there are only soft loans in Islam. We want to return to the fundamental principles of Shariah.''
Al Baraka Banking Group currently owns 17 Islamic banks in various Muslim countries.