Sunday 24 June 2018

Qatar to set up giant global Islamic bank

Doha, March 11, 2013

Qatar, the world's largest exporter of natural gas, expects to go ahead soon with its plan to establish a big, international Islamic bank, said Finance Minister Youssef Kamal on Monday.

Last April the Qatari government had signed a MoU 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 GCC but their average asset base is a third the size of conventional banks, according to a study last year by consultants Ernst & Young.-Reuters

Tags: Qatar | Jeddah | IDB | Islamic bank |

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