QIB signs Istisna'a agreement to fund Al Khor residential project worth QR300m

The UAE-based Construction & Reconstruction Engineering Company has been assigned as the construction contractor for the project, and Arab Consulting Bureau will deliver the consultant engineering services.

This substantial new development at Al Khor, valued at QR300m, will provide high-quality residential accommodation comprised of 145 villas and 252 apartments of varying configurations. Also to be constructed as part of the project are a children's nursery and a swimming pool, as well as a shopping mall and associated parking lots. Located approximately 50 kilometres north of Doha, Al Khor exhibits a well-established charm that is melding successfully with the extensive development it is currently experiencing, without jeopardizing its traditional identity as one of Qatar's original pearling and fishing villages. The burgeoning city has become a hotspot for residential and business development and is home to many employees of the oil industry because of its proximity to Qatar's northern oil and natural gas fields, as well as to Ras Laffan Industrial City.

Commenting on the signing of this important financing agreement, Mr. Salah Al Jaidah, QIB's CEO, said, "Our involvement with projects such as this Al Khor development is born out of QIB's compelling and ongoing commitment to Qatar's economic development, one of the four interrelated pillars underlying the Emir's 2030 Vision. We are both proud and excited to support such an outstanding undertaking which partners QIB with leading companies in construction, design and project management, and denotes our enduring support of Qatar's construction industry."

Mr. Al Jaidah continued, "At QIB we are confident that the worst of the financial turmoil of the last couple of years is at an end. Qatar has demonstrated impressive resiliency during the global economic crisis and remains in a very strong position, with GDP growing 11% in 2009 and forecasted growth of 16% in 2010-2011."

"Our involvement in this project at Al Khor demonstrates the major contribution that QIB makes to the growth of our country, and how we consistently provide leadership in the field of real estate development, so vital to Qatar's continued progress", observed Mr. Ahmad Meshari, General Manager of QIB's Domestic Business Group. "Further, QIB's ability to finance such significant construction projects using Islamic finance products enhances the wider understanding and acceptance of Islamic banking and finance as a viable alternative to conventional banking methods".

General Manager of QIB's Real Estate Group, Mr. Salah Al Hail added, "This real estate project at Al Khor is one of the biggest in Qatar since the economic and financial downturn in 2008, and will play a key role in satisfying the high demand for quality residential developments in Qatar's northern area."

In response, Mr. Moustafa Rajab Abou Zeid, General Manager of Al Khor & Dakira Schemes & Services Co., said, "This significant agreement is indicative of the strength of the collaboration between QIB, one of the world's leading Islamic financial institutions, and AKD Schemes & Services. Our company has a proven track record for providing commercial and residential facilities in the Al Khor, Dakira and Ras Laffan areas that meet the highest standards of quality, as will our latest real estate development project in Al Khor".