QIB seeks to become first bank to issue securitization in the Middle East

Both Advisors will be involved in the Securitization exercise in support of QIB's growing real estate financing and investment activities locally and abroad.

Such a transaction will be the first in Qatar and the first Securitization for a financial institution in the Middle East, and hence reaffirms QIB's role as a pioneer in Islamic Banking.

Furthermore, in its commitment to leadership, QIB is looking forward to bring this Securitization to the market (subject to QCB's and QIB Sharia' Board's approval), enhancing therefore the development of Islamic financing and the growth of the Sukuk market in the region.

QIB CEO Mr. Salah Al Jaidah stated that this comes under the bank's five-year plan to diversify its Islamic Financing Tools and to enhance QIB's banking expertise with the recent recruitment of a senior Sukuk Securitization Structurer. This will, in return, allow QIB to provide the necessary financing for medium and macro projects in the country.

The proposed Securitization will serve the bank's assertive plans to up-grade and develop its tools, and in particular "Sukuk" instruments which are the most suitable for short and long-term financing for infra-structure projects. He added that Sukuk's help attract liquidity available in the market and direct it towards financing purposes.

Mr. Al Jaidah confirmed in this respect that expectations show that Sukuk offers will jump to over USD 100 billion within the five coming years, as opposed to USD 27 billion in 2006. He expected also that the use of Sukuk in financing will significantly grow in the coming stage and that QIB intends to play a leading role in developing this tool in order to satisfy the increasing demand on it as an effective Islamic financial tool.