Qatar Financial Centre Regulatory Authority nod for QInvest operations

QInvest yesterday was formally authorised by the Qatar Financial Centre Regulatory Authority (QFCRA) to operate as an Islamic investment bank from the Qatar Financial Centre (QFC). QInvest is the first such entity of its kind to receive a QFC licence.

Qatar Islamic Bank (QIB) holds a 15 per cent stake in QInvest , Bahrain-based Gulf Finance House (GFH) has another 15 per cent and the balance 70 per cent has been offered to a group of potential corporate and private investors. The bank is chaired by Prime Minister and Foreign Minister H E Sheikh Hamad bin Jassem bin Jabor Al Thani.

There are also plans to have the bank listed on the stock exchange.

Addressing media at the QFC premises yesterday, QInvest Chief Executive Officer (CEO) Professor Abdul Latif Al Meer said: "We believe in the growth of the Qatari economy and the region. There has been a need of a local inevstement bank that is Islamic, which can understand the economy and the economic growth in the area."

Asked on whether it would be a competitor or a partner to the QIA , the CEO said: "We are hoping to become one of the investment and product providers to the QIA . Qatar has a huge economy, a GDP per capita income of $60,000 and QIA sits on top of the pile. Hopefully we will be one of the important providers with QIA ."

He said: " QInvest is an investment bank in Qatar that will bring investment to Qatar and take investment abroad. We have an ambitious plan to make it a leading investment bank in the world, in not just the Islamic, but the global aspect."

Abdul Latif pointed out that the board's strategy has made it clear on what its targets should be and the new bank had no doubts on where it stands. "We know we are in Qatar and the QFC. We know that Islamic banking is a growing industry and we know what is happening in the GCC," he said.

QIB CEO Salah Al Jaidah for his part was pleased to be associated with the QFC. "We do not see added value in other markets. We have trust and belief that the QFC will support the bank, probably beyond other regulators."

Chairman and CEO of the QFCRA Philip Thorpe welcomed the new entity aboard and noted with delight that there will be a focus on Qatar. "From the regulatory point of view there were some challenges, but nothing great. It ( QInvest ) has no track record so it is all new. But most important was the commitment shown by the company," he stated.

His remarks were echoed by QFC CEO and Director-General Stuart Pearce who remarked that it was important QInvest has chosen to open shop in Qatar. "We (QFC) are a better platform and we look for quality and not quantity," he said.