Qatar Islamic Bank is planning the first securitisation by a bank in the Middle East.
Qatar’s largest Islamic bank and the Gulf’s fourth largest Islamic lender by market value has hired Kuwait-based Islamic investment bank Rasameel Structured Finance Company and an international investment bank, which it did not name, to advise on the deal.
QIB’s securitisation aims to serve the bank’s overseas expansion plans.
QIB chief executive officer Salah Mohamed al-Jaidah yesterday said the proposed securitisation was part of the bank’s strategy to diversify and develop Islamic financing tools. It will also enable QIB to provide the necessary financing for medium and macro projects in the country.
Both the advisers will be involved in the securitisation exercise in support of QIB’s growing real estate financing and investment activities, locally and abroad.
He said the bank was looking to tap into the increasing demand in sukuk offerings, which it expected to grow to $100bn in the next five years, from $27bn in 2006. QIB will bring the securitisation to the market after approval by its Shariah Board.
“This will further enhance the development of Islamic financing and the growth of the sukuk market in the region. Sukuks are the most suitable for short and long-term financing for infrastructure projects,” al-Jaidah said.