Barwa launches real estate bank

With initial capital investment of QR 1 billion and paid up capital of QR 500 million, Barwa Real Estate Bank will be 100 per cent owned by Barwa. Having received full regulatory support and approval, the bank intends to start trading in the first quarter of 2008.

Announcing the bank's launch at the Al Mirqab Hall, Four Seasons Hotel Doha, Barwa's Chairman and Managing Director Ghanim Bin Saad Al Saad explained the visionary and innovative thinking responsible for establishing this unique real estate bank offering: "Qatar currently has plans for large scale real estate and construction projects valued at an astronomical $114.5 billion. This incredible undertaking needs support from the private sector through the creation of Qatar's own specialist real estate financial institution."

"With a range of Sharia'a compliant products specially developed for the real estate market, the bank will begin to deliver innovative, customized financial solutions for large scale projects such as those under construction by Barwa."

Barwa directors and shareholders unanimous showed support for the bank project at the company's January 2007 General Assembly fully approving plans to reinvest the entire 2006 company profit (452 million QR) into the new bank.

The bank's Business Plans were developed in conjunction with internationally respected consultants Investment Company. Feasibility studies showed clear support for setting up Barwa Real Estate Bank to fill a gap in Qatar's real estate and banking sectors for financing large scale project developments.

"The bank will help Barwa to execute its huge real estate and construction project plans, in addition to providing finance for other key private sector real estate projects thus further driving Qatar's economic development" added Al Saad.

Al Saad went on to pay tribute to the Barwa company, its shareholders and directors before announcing plans for the future issue of the bank's shares: "The bank is another achievement for Barwa. Despite being a young company we have gone from strength to strength in a short period of time. We see the bank providing strong support for Barwa's local and international development plans and it reflects positively on our shareholders long term vision for the company."

"In due course and at a time yet to be decided, we plan to issue shares in Barwa Real Estate Bank. This will enhance Barwa's sustainability and be a in the best interests of its shareholders."