QInvest CEO sees Qatar sukuk, possible IPOs in 2011

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Following Qatar's winning bid for the 2022 World Cup, the Gulf Arab state is expected to reap the benefits of an infrastructure boom

Following Qatar's winning bid for the 2022 World Cup, the Gulf Arab state is expected to reap the benefits of an infrastructure boom

Qatar's largest investment bank QInvest sees Islamic bond issuances continuing to gain momentum in 2011 while initial public offerings may also see some revival, the company's chief executive said.

Shahzad Shahbaz said the firm is working with potential issuers in Qatar who are looking to tap the Islamic bond, or sukuk, market in 2011 after Qatar Islamic Bank's oversubscribed $750 million sukuk demonstrated growing appetite and set a benchmark for other corporates to raise capital on favorable terms.

In an interview with Reuters, he said: "The market has stabilised and as long as liquidity is there and capital is available, issuers can tap the sukuk market with favorable pricing."

And he added: "We're looking at opportunities with some issuers to potentially bring them to market in 2011."

The market for initial public offerings may also see some revitalisation next year, he said, adding that the company is currently working on a few deals to bring private companies to the market in 2011.

He said: "This is an area that we see gradually picking up in 2011."

He also added: "There's a strong underlying story in Qatar and definitely an opportunity to bring some names to market."

Shahbaz said in October that QInvest would consider an IPO on Qatar's exchange next year.

The Gulf IPO market remained muted for months as trading on regional exchanges dwindled and volatility prevailed. Qatar's bourse, however, is the market leader, up 24 percent so far this year, dwarfing gains from other Gulf markets.

Following Qatar's winning bid for the 2022 World Cup, the Gulf Arab state is expected to reap the benefits of an infrastructure boom as it plans to spend more than $100 billion over the next five years on projects.

Shahbaz said the games will draw increasing interest both regionally and globally for Qatar, which will translate to more opportunities for investments and capital raising.

He said: "We are the leading and most well established bank in Qatar so we certainly see all these initiatives providing opportunity for us."

But the company is not looking solely within its borders.

QInvest has applied for a licence to operate in Saudi Arabia and aims to enter the kingdom in 2011. He said the company also plans to expand its operations into Turkey and the UAE.

While QInvest has an organic growth strategy, the company would consider acquisitions to fast-track its growth plans, he said.

To that end, QInvest, whose shareholders include Qatar Islamic Bank, acquired a 25 percent stake in Mumbai based Ambit Group in February. The two firms launched a sharia compliant fund in India earlier this month.

And last May, QInvest trumped two other bidders to buy a 44 percent stake in the UK's Panmure Gordon, investing $35.4m in the 130 year old stockbroking firm, which has since been pummelled by tough financial market conditions.

QInvest said it had no plans to change its stake.

Join the Discussion

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

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Finance talk with RAKBANK

Finance talk with RAKBANK

StartUp sat down with RAKBANK’s head of personal banking, Ian...

Tips from the top: Hisham Al Gurg

Tips from the top: Hisham Al Gurg

High profile investor and entrepreneur Hisham Al Gurg discusses...

The hubsters' ecosystem

The hubsters' ecosystem

Tamara Pupic visits Impact Hub Dubai, the first local branch...

Most Discussed
  • 6
    UK politician sacked over burka binbag jibe

    The whole point is that women should dictate what they want to wear and not men. That should be the underlying motive. If a woman WANTS to wear a burqa... more

    Wednesday, 27 August 2014 1:16 PM - mick
  • 5
    UAE teens among the highest for obesity rates

    There are loads of fatties in Dubai. They don't offend me personally. Unlike other countries where taxes support the health system, here, each person has... more

    Wednesday, 27 August 2014 4:04 PM - nice
  • 5
    Smoke-free Dubai - the big debate

    Surprisingly the only studies that show a negative financial impact of the smoking ban on the hospitality industry are sponsored by tobacco companies ... more

    Wednesday, 27 August 2014 4:19 PM - Telcoguy