Qatar says Islamic bank to be set up with IDB "soon"

Finance Minister Youssef Kamal expects $1billion bank to go ahead in near future

Qatar expects to go ahead soon with its plan to establish a big, international Islamic bank, Finance Minister Youssef Kamal said on Monday.

Last April the Qatari government signed a memorandum of understanding with the Jeddah-based Islamic Development Bank, a multilateral lender, and Saudi Arabia's Dallah Albaraka Group to establish a bank with initial capital of $1 billion.

Asked on Monday when the bank would be set up, Kamal replied: "Soon." He did not elaborate on the timing, ownership or other aspects of the new institution.

A scarcity of very large, cross-border Islamic banks, which could spread ground-breaking products and best practices around the Gulf and the world, is seen by many analysts as holding back the growth of Islamic finance.

Islamic banks control about a quarter of the banking market in the Gulf Cooperation Council but their average asset base is a third the size of conventional banks, according to a study last year by consultants Ernst & Young.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Trading bricks: The growing popularity of real estate investment trusts in the Gulf

Investor interest in real estate investment trusts (REITs) has...

First bank merger in 20 years sets Saudi Arabia up for more deals

First bank merger in 20 years sets Saudi Arabia up for more deals

Q&A look at what the planned merger of HSBC and RBS’s Saudi ventures...

A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

Most Discussed
sponsoredTracking