Islamic banks collaborate to finance Qatari railway project - IFN

Islamic banks collaborate to finance Qatari railway project

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QATAR: Barwa Bank, Mashreqbank, Qatar Islamic Bank (QIB) and Union National Bank have signed an agreement to provide QAR2.11 billion (US$579.1 million) in club financing for the construction of the Red Line North Underground project for Qatar Railways. Estimated at QAR8.46 billion (US$2.32 billion), the contract was awarded to a league of construction companies namely: Impregilo, SK Engineering & Construction Co, and Galfar Al Misnad Engineering & Contracting. Mashreqbank was appointed to lead the financing consortium. The Red Line North Underground, which is part of the Qatar Rail Development Program, includes the construction of two parallel 13km underground tunnels and seven underground stations between the cities of Msheireb and Lusail Marina. In line with the state’s vision to implement an integrated rail system, the development program will incorporate high-speed long distance rail links, freight lines, a light rail transit system in Lusail, and people-mover systems in West Bay and Education City. Commenting on the deal, Bassel Gamal, QIB’s group CEO stated: “QIB grants special attention to strategic projects in the state of Qatar, and accordingly directs a large share of its financing operations to cater the increasing demand of Islamic finance to infrastructure projects.” He further noted that the bank was recently involved in co-financing a number of ventures with other local and global banks, signifying the continued efforts between various financial institutions in the emirate to finance new projects in Qatar.