International rating agency Capital Intelligence

At the same time the financial strength rating was upgraded to (A) from (A-) and outlook stable.

CI has stated that these upgrades are the result of improved asset quality (lower NPLs) despite rapid growth, QIB consistently produces the highest profitability in the Qatari market, the sustainability of non-financial and investment income is improving and capital adequacy ratio remains comfortable with another rights issue in Q1 2008.

These upgrades are the result of QIB exceptional profitability in 2007 which crossed QR1255m and represented a growth of 69% vs.

2006 which the highest among the Qatari banks as well as it achieved the highest growth in assets of 104%.

The bank enjoyed a 37.9% return on average Equity (ROAE) and an outstanding 8.3% return on average Assets (ROAA).

This is considered an excellent achievement by the board and executive management of QIB who are pleased with this upgrade which comes only 4 months after a similar upgrade from Fitch from A- to A.

This places QIB as the second among the best 5 Islamic banks in the world and the second best bank in Qatar and the 13th Largest Bank in the Gulf

Commenting on this event, Mr. Salah Al Jaidah, QIB CEO said:

"This rating reflects the significant growth achieved by QIB as a result to a successful strategy that focused on the development of its activities and the expansion in retail and corporate financing in addition to entering in macro investment projects and offering innovative products. All this has been reflected positively on operation returns."

"We look for a better rating by year end, especially with the distinctive results achieved in the first half of the year 2008, the first of our five strategic five years" he added.

"Our bank is smoothly but confidently stepping up the rating scale despite the strong competition in Qatar and the region" he continued.

It is worth noting that, on the year 2007, QIB has executed unique financing operations mainly the first Islamic financing for the purchase of an Airbus A340-600 plane for Qatar Airways, Al Wa'ab city project, the arrangement for Al Salam Bounian Sukuk, in addition to participating in the first Islamic financing for the United Development Co. to perform the Canat Cartier project and to the financing operations for the construction of several offices and residential towers.

On the other hand, over the past few months, QIB has arranged for a US$ 250 Million worth financing to Ras Laffan Power & Water Project.

This was preceded by a $145m financing to QEWC and other strategic operations including the signature of an MOU with the Gulf Oil Co.- Berhard Malaysia, an affiliate of Gulf Oil Co. of Qatar to study of the feasibility of leading a syndicated financing for a full-fledged oil derivatives project in the North of Perak Malaysian state at a cost of $5bn.

Furthermore, QIB maintained its pace at the local level expanding its branch network and at the foreign level by opening the European Finance House early 2008.

It is currently considering the opening of banks in Turkey and Kazakhstan.

Expanding its activities towards the Asian (through its Asian Finance Bank) and the North African markets is also under consideration.