Fitch upgrades QIB rating to (A): a second upgrade in less than 18 months

The outlook for Long-term IDR remains stable. Fitch has also affirmed the bank's individual rating at (C) and Support Rating at (1).

The report also stated that QIB performance indicators are strong, reflecting high margins and robust volumes generated mainly in the domestic corporate segment. In addition, QIB has comfortable liquidity underpinned by stable deposits, Islamic interbank placements and marketable securities.

This rating places QIB as the second highest rated bank among the five largest Islamic banks worldwide, and in the State of Qatar.

"QIB's upgraded Fitch rating naturally reflects the impressive growth in the Bank's activities and our positive financial performance over the past years," said Mr Salah Al Jaidah, QIB's Chief Executive Officer.

"This is a direct result of QIB's commitment to implementing a strategy to upgrade the Bank's performance in all sectors, which has led to record profitability results for the fiscal year 2007 - acheivening a net profit of QR1.255m and QR456m for the first quarter of 2008."

The IDR upgrade recognises QIB's systematic importance to Qatar, given its flagship Islamic franchise and dominant 50% market share in Islamic banking, while its overall market share is around 10%.

The Fitch Rating stated that the QIB indicators are strong and reflect the increase of margins, the rise in the business volume in the local companies in addition to high liquidity that depends on the stable deposits and short term investments with Islamic banks.

Mr Al Jaidah confirmed that his management team will endeavor to continue implementing the Board-approved strategy for the year 2008, chaired by His Excellency Sheikh Jassim Bin Hamad Bin Jabr Al-Thani, a strategy that has the full support of the banks shareholders, customers and staff.

"This rating upgrade confirms our success in applying the 2007 plans and strategies which resulted in exceptional growth for the Bank. This is also reflected in our success in winning international awards such as "Best Islamic Real Estate House" and "Most Improved House" from EuroMoney,"

added Al Jaidah.

QIB was also awarded the "Best Re-branding of an Islamic Bank Award" and the "Best Advertising Marketing Campaign" from Islamic Business and Finance magazine in Dec2007, following a successful new marketing and communication strategy.

"One of the key element that led to this rating was QIB important role in financing and investment operations achieved in 2007, in both local and international markets such as the first Islamic financing operation for the purchase of an Airbus A340-600 for Qatar Airways; a $150m Sukuk for Salam Bounian; The participation in financing Al Waab City with QR819m; The financing of massive water desalination facility for Qatar Electricity and Water Company (QEWC) with $150m, the first ever project co-financed with IDB (Islamic development bank) with whom we are now working on a co-financing of Mega infrastructure project to be announced soon.; Moreover, we participated in the financing of Qanat Quartier a $600m project at the pearl Qatar," stated Jean Marc Riegel, GM Investment banking & development group.

"Moreover, QIB concluded successful investment operations such as our participation with a group of Qatari institutions in acquiring 80%of the Shard of Glass tower in London UK. We are also supporting the Dhow MENASA opportunities fund of a 1 billion Dollars; soon to be launched, creating the first large-scale Sharia'a-compliant private equity fund in Qatar. This in addition to the launch of Al Sanabel funds and the management of various real estate portfolios in Europe."

Furthermore, QIB achieved high performance in 2007 through its international expansion with affiliate finance houses such as the Arab Finance House in Lebanon; Qinvest at Qatar Financial Center (QFC); the Asian Finance Bank in Malaysia, and the European Finance House in the UK.

Al Jaidah added that the bank's executive management will continue executing the plans and strategies implemented by the board aiming to consolidate the performance of the Bank. This will be achieved by implementing the expansion plan for the bank both locally and internationally, and by offering new investment portfolios and funds opportunities.

"We aim to qualify for even higher Fitch ratings among local, regional and international banks for 2008," he concluded.