Qatar Islamic Bank (QIB) said on Monday it expects to win a banking licence in Britain by the end of next month and list shares of its joint venture on the London Stock Exchange (LSE) within three years.
The Gulf’s fourth-largest Sharia compliant lender by market value wants to increase its exposure to European markets where demand among Muslims for investments that comply with their beliefs is growing.
“We are eager to see some of the large corporates within the European markets expose themselves to sharia products, especially sukuk,” QIB chief executive Salah Mohammed Jaidah told Reuters from Doha on Monday.
QIB will put up 51% of the share capital of 25 million pounds ($51.76 million) for the venture to be called Europe Finance House.
“We are expecting the licence by the end of this year,” Jaidah said. “It will not be listed in the near-term, but within three years is very much realistic.”
Islamic law forbids the receipt of interest, equating it with usury, and instead encourages banks and investors to share risk.
Sukuk are Islamic bonds – generally backed by physical assets – that pay holders rent or a share of profit, though they are priced like conventional bonds.
Jaidah said QIB was planning to sell sukuk by the middle of next year to help finance expansion and general corporate activities. He would not be more specific.
Infrastructure financing at home and earnings from property funds in Europe would help boost profit this year, Jaidah said, declining to be more specific. (Reuters)
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