Qatar Islamic Bank's foreign currency and financial strength ratings raised

The upgrades are based on QIB's exceptional profitability, even by Qatari standards, in 2006. Margins were higher than average due to both better returns and to lower funding costs. The bank diversified its sources of income and received large underwriting fees in 2006. QIB has improved its risk management processes and procedures and booked substantial recoveries of fully provided facilities. The buoyant property market in Qatar has played a part in this success.

QIB has launched an ambitious plan to expand outside the confines of its home market, where it continues to grow briskly while maintaining a balanced risk profile. The bank is establishing affiliates in a number of overseas locations, such as Lebanon, Malaysia and United Kingdom.

QIB manages a number of investment funds, which invest in property, mainly in Europe. The bank has consistently maintained strong capital adequacy ratios, now stated under Basel II conventions. This has been achieved by high rates of retention, until 2006/07, boosted by rights issues in 2006 and 2004.

QIB was the first Islamic banking institution to be incorporated in the State of Qatar in 1982 and celebrated its twenty-fifth anniversary in May. It provides Islamic banking services to its clients, operating through its head office and a network (at end 2006) of eighteen domestic branches.