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Doha - Qatar Development Bank announced today that Abdulaziz Bin Nasser Al Khalifa, CEO of Qatar Development Bank (QDB) and Mr. Abdulla Saleh Al Raisi, CEOofCommercial Bank, signed a new Al Dhameenprogram portfolio agreementwithQDB, supporting further expansion of SME financing in Qatar.
Speaking at thesigning, Mr. Abdulaziz Bin Nasser Al Khalifa, CEOof QDB said: "Al Dhameen is a primary program for ensuring Qatari SMEs are capable of overcoming obstacles, guarantees and short credit history. Al Dhameenadditionally facilitatesfinancing procedures for key sectors such as industry, education, healthcare, and added-value services".
Al Khalifa added: "The program is mainly targeting companies and start-ups, and we are delighted with this partnership with Commercial Bank, which asserts that all banks operating in Qatar to support and develop the SMEs sector, diversifying the private sector and build a knowledge-based economy."
With a QR100m portfolio, the new product "Al Dhameen portfolio" aims at facilitating and speeding up the approvals to guaranty the value of the funding provided by the partner bank to small and medium enterprises lacking sufficient guarantees.
To ensure a smooth introduction of Al Dhameen portfolio program by Commercial Bank, QDB has prepared a dedicated portfolio guide that describes the terms, conditions, highest international standards, due diligence, credit monitoring, applications and guidelines development. This will allowCommercial Bank to take the necessary decisions without referring back to QDB. Developing the program content took nearly two years of close cooperation between QDB and partner banks to cater to all needs and increase transparency.
Commercial Bank CEO Abdulla Saleh Al Raisi said: "As Qatar's first private bank, we actively support the Qatar National Vision 2030 under the wise leadership of His Highness The Emir, which sets out an economic blueprint of a viable and prosperous future for Qatar as our nation continues to transform into a more knowledge-based economy. The Al Dhameenprogramgives the private sector a real boost by helping the creation and growth of new SMEs required to deliver Qatar's strategic projects, and introduce new and innovative products and services to the public".
Al Raisi added: "We are delighted to sign this agreement with the Qatar Development Bank and join "Al Dhameen portfolio" program, which aims to provide funding opportunities for SMEs in Qatar, and we look forward to a successful collaboration. Commercial Bank provides dedicatedsupport for SMEs to help them grow and succeed through our bespoke, value-added products and services, through our specialised Enterprise Banking departmentto meet the requirements of our valued customers".
SMEs can benefit from the new program by visiting their nearest Commercial Bank branch where detailed information and support is available for those interested in the Al Dhameen portfolio program.
In enhancing and improving the Al-Dhameen program, QDB relied on the survey of partner banks and all concerned parties to expand the base of beneficiaries and allow the partner banks to determine the appropriate small and medium enterprises to be financed and to fund them more flexibly. Al-Dhameen program continued its distinguished contribution to the enhancement and diversification of the national economy and achieved the highest rates since it was launched in 2010 as the bank agreed to provide bank guarantees estimated at more than QR 573 million for more than 212 small and medium enterprises. QR 363 million of these guarantees were cashed.
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About Qatar Development Bank (QDB)
Qatar Development Bank (QDB) was established in 1997 as the Qatar Industrial Development Bank, a 100% government-owned developmental organisation. Its primary aim was to develop investments within local industries, thereby accelerating growth and economic diversification in Qatar through support for private sector. Between 1997 and 2005, the bank expanded its portfolio, diversifying from its industrial base to include support and guidance for a range of non-industrial sectors identified as key to the development of Qatar. Shortly afterwards, the bank revisited its mission statement to reflect the successful completion of its new strategic objective and changed its name to Qatar Development Bank. The State of Qatar, QDB's sole shareholder, increased the bank's capital from 200 million to 10 billion riyals in 2008. Since that time, and reflecting the expansion of its mission and financial assets, QDB has launched a considerable number of strategic initiatives and programs, all designed to directly contribute to the economic growth and development of Qatar.
QDB's strategy is entirely in line with Qatar National Vision 2030. It is focused on promoting and facilitating the growth of the private sector in Qatar within key economic channels. In turn, this support will enable the development of long term, sustainable social and economic benefits across the economy.
Aside from offering financial support, Qatar Development Bank is tasked with promoting entrepreneurship in the private sector, facilitating the development of key economic sectors through the provision of capital and advisory services. QDB has also launched several initiatives, including Al Dhameen program, an indirect loan facility to guarantee commercial bank loans to private sector companies, in collaboration with other banks and financial institutions.
QDB's export arm "Tasdeer" program was created to develop and promote exports from Qatar, providing export credit guarantees in addition to financial products and solutions designed to mitigate the risks imposed on local exporters. The bank also provides consulting services in business development to help entrepreneurs to prepare for business. This will include feasibility studies, the conduct of market research and the selection of appropriate techniques; fundamentally helping to develop the capabilities of SME owners to enhance and refine their skills in the market and establish strong ties with financial and non-financial support entities.
About Commercial Bank
Commercial Bank has total assets of QAR 119.1 billion as at 30 June 2015. As a full service commercial bank, the Bank offers a full range of corporate, retail and investment banking services as well as owning and operating exclusive Diners Club franchises in Qatar and Oman. The Bank's countrywide network includes 32 full service branches and 156 ATMs.
Profitable every year since incorporation in 1974, continual investment in technology and human capital, together with a strong capital base, provides a solid foundation for continued growth. A successful diversification strategy has expanded Commercial Bank's GCC footprint through strategic partnerships with associated banks, the National Bank of Oman (NBO) in Oman and United Arab Bank (UAB) in the UAE. NBO, the second largest bank in Oman with total assets of OMR 3.2 billion as at 30 June 2015, has 61 conventional branches and 6 Islamic branches in Oman and 1 branch each in Egypt, Abu Dhabi and Dubai. UAB is headquartered in Sharjah, with total assets of AED 26.6 billion as at 30 June 2015, and operates 30 branches across the emirates in the UAE. Building on the successful execution of the Bank's expansion strategy to date, Commercial Bank completed the acquisition of a majority stake in Alternatifbank in Turkey in July 2013.
Commercial Bank enjoys strong credit ratings of (A) from Fitch, (A1) from Moody's and (A-) from Standard & Poor's. The Bank is listed on the Qatar Exchange and was the first Qatari bank to list its Global Depository Receipts (GDRs) as well as bonds on the London Stock Exchange. Commercial Bank's Swiss Franc bond issuance in December 2010, listed on the SIX Swiss Exchange, was the first public bond issuance by a Qatari bank in Switzerland. Commercial Bank's latest bond issuance in June 2014 is listed on the Irish stock exchange.
Commercial Bank was awarded "Best retail bank in Qatar" for 2015 by The Asian Banker based on its wide-ranging achievements over the past three years and ambitious future plans. In recognition of the Bank's innovative customer focused products and services provided to SMEs, Commercial Bank also won the prestigious "Best Commercial (SME) Bank of the Year, Qatar" award from The International Banker for the year 2015.
The Bank is dedicated to supporting Qatar's community and social infrastructure through Corporate Social Responsibility programmes and sponsorship of various events. Title sponsorship of the Commercial Bank Qatar Masters and the Grand Prix of Qatar Moto GP reflects the Bank's promotion of excellence in sports and its keen interest in enhancing Qatar's international sporting reputation. To reinforce Qatar's flourishing cultural environment, Commercial Bank is the strategic partner of the Katara Cultural Village. This collaboration symbolises the Bank's commitment to supporting cultural activities in Qatar and making the country a regional arts and cultural hub.
About Alternatifbank (ABank)
ABank was established in 1991 and has been listed on the Istanbul Stock Exchange since 1995. Commercial Bank became the majority shareholder in ABank in 2013 holding a 74.24% stake, following the acquisition of ABank shares of 70.84% from the Anadolu Group and 3.40% through a public tender offer. Anadolu Group remains a significant shareholder retaining 25% of shares in ABank. Currently the Bank owns 74.87% of ABank shares.
ABank is a mid-size Turkish bank that predominately serves medium-sized companies through a country-wide network of 64 branches in 21 cities. ABank provides commercial/corporate banking services and products, with a special focus on the growing segment of Small and Medium-Sized Enterprises. The Bank's main product ranges cover trade finance instruments, working capital finance, cash management, and portfolio management. The Bank has also recently made a strategic decision to re-enter Retail Banking, targeting the "mass affluent segment" in terms of customer profile with tailor made products.
At 30 June 2015, ABank had total assets of TL 13.2 billion, total loans stood at TL 9.5 billion, customer deposits of TL 6.1 billion and shareholders' equity of TL 1.02 billion.
For more information, please contact:
Qatari media
Ibrahim Al-Emadi
Head of Corporate Communications
Commercial Bank
Tel: +974 4475 4748
Email: ibrahim.alemadi@cbq.qa
© Press Release 2015
