Qatari government confirms plans for US$1 billion Islamic bank (By IFN)

Qatari government confirms plans for US$1 billion Islamic bank

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GLOBAL: The Qatari Government, in collaboration with the Islamic Development Bank (IDB) and Saudi Arabia-based Dallah Albaraka Group will go forth with their plan to set up an Islamic bank with a minimum paid up capital of US$1 billion. The idea, which was first discussed in April last year, is expected to come into fruition “soon”, as stated by the country’s Finance Minister Youssef Kamal. However, he did not elaborate on any other aspects of the institution, including the projected timeline for its establishment, or ownership. According to industry analysts, the creation of a “mega” Islamic bank in Qatar could potentially increase the country’s global presence and increase cross-border activity, and potentially allow the country to increase its non-oil GDP growth. IMF estimates have predicted this sector to grow by 9% in 2013, on the back of the state’s bullish economic outlook. It has also been reported that the country is seeking to increase its credit rating to ‘AAA’ from ‘AA’; a rating which its Finance Minister believes is a true reflection of the state’s economic strength. He also said that the country’s construction sector is expected to grow by 10% this year, while its transport and communications sector will also see a progression of 10 to 15%.