Masraf Al Rayan and Barwa sign US$ 200 million Mudharaba deal

The contract, formed on mudharaba basis, was signed by Mr. Ghanim Bin Saad Al Saad Chairman of Barwa and, Mr. Adel Mustafawi CEO of Masraf Al Rayan with the aim to finance real estate projects in GCC countries. Also present at the signing were from Barwa, Mr.Tamer Khedr, Chief Financial Officer and from Masraf Al Rayan, Mr.Nasser Al-Abdulla, General Manager Retail Banking.

Mudharaba contracts are one of the most important for the economy as they depend on the concept of risk sharing (profits or losses), through which projects of various caliber and size can be financed. Since inception, Islamic banks have relied on Mudharaba as one of their main investment tools.

Mr. Ghanim Bin Saad Al Saad expressed his satisfaction and delight over the deal. "In fact, Barwa's policy puts a lot of weight on the idea of developing business and expanding its geographical span in order to meet the increasing demand in the real estate market caused by the impressive economic boom currently being witnessed in the Gulf region. The vision of Barwa has met the vision of Masraf Al Rayan and the outcome will have a positive impact on both parties." he said.

"We are very optimistic about our partnership with Barwa, a highly successful company with clear local and regional vision. Financing through Mudharaba depends mainly and directly on the capabilities of a company to successfully undertake a specific activity. So when Masraf Al Rayan accepts the principle of sharing, within the framework of Islamic Shari'ah, it is important to choose efficient business partners with promising projects and companies with economically feasible projects, as long as they are Shari'ah compliant." Mr. Adel Mustafawi said.

A substantial paid up capital of over one billion US dollars has meanwhile helped Masraf Al Rayan to firmly project itself as a principal financier for a number of mega projects in the State of Qatar in particular and the region in general.