QFB focuses in the main on the healthcare, energy, financial services, industrials and realty sectors ...
By Santhosh V Perumal/Business Reporter
|
|
Qatar First Investment Bank, which has been re-branded as Qatar First Bank (QFB) to offer the entire spectrum of banking services rather than investment alone, will soon be able to list its share at the Qatar Exchange.
QFB, which is targeting high net worth clients through its premium Islamic banking model, is also seeking credit rating in another two to three years.
The announcement was made by QFB chairman Abdulla Fahad Ghorab al-Marri and CEO Emad Mansour yesterday at a function to mark its re-launch. The guest of honour and main speaker was Mohamed Alabbar, chairman of Emaar Properties, the Dubai-based global property developer.
“We are at the tail-end of discussions with the Qatar Financial Market Authority. We expect to complete the discussions and hope to get approval within the next six weeks,” al-Marri told reporters.
Instead of going in for initial public offering, the bank is seeking plain listing as it wants its shareholders to trade the stock, Mansour said, adding it will announce the listing soon.
QFB focuses on the healthcare, energy, financial services, industrials and realty sectors and geographically, its targets are in the GCC (Gulf Co-operation Council) and Middle East and North Africa (including Turkey). The bank is also open to Asia, Africa and Europe, should there be any opportunities.
Asked about the rating, Mansour the first leg of the strategy was to get listing and the rating per se is way down the priority. “We will seek credit rating in the next two to three years,” he added.
On re-branding, QFB — which last year saw its licence upgraded to Category V (by Qatar Financial Centre Regulatory Authority) to offer full-fledged banking including deposit taking — will be able to leverage from its investment skills so as to combine investments with the savings of the customers and is constructing investment products designed in-house.
The bank was incorporated after the financial crisis and hence it was in a better position to acquire assets at a very low valuation, which helped it to generate internal rate of return of 35% to 40% to investors, al-Marri said.
To date, the bank invested QR1.5bn in 16 transactions spanning five different sectors, seven geographies and successfully exited four investments.
Attributing the gains as a result of its unique business model and a sound, well-thought investment strategy, al-Marri said “this has helped us attract highly rewarding investments in various sectors, where we played a pivotal role in streamlining operations to create more value, exiting some of these investments with positive financial results and excellent revenues for our shareholders.”
“The change in our name reflects our growth strategy as we move from pure investment bank to a financial institution that offers a full suite of Shariah compliant financial products and services,” he said, adding QFB is well positioned to capitalise on the growing demand for Shariah-compliant banking.
Highlighting that the banking regulator had closed down the Islamic windows of conventional lenders, al-Marri said QFB hopes to get a “sizeable” chunk of those clients and assets into its new banking module.
“We are targeting cream of the cream clients with high potential,” Mansour said.
QFB will now evolve its business model to offer a comprehensive range of financial products and services, in addition to its existing principal investments, corporate finance and asset management offerings.
Asked whether QFB was looking towards tapping debt markets, he said the capital structure of the bank was evolving; indicating that all possible options would be explored in due course.
Qatar First Bank to launch
QFB will soon launch a multi-million-dollar real estate fund that will invest in central London as well as another sukuk as part of efforts to broad base its investment portfolio and offer good returns to investors.
“It is expected to be launched in the next three to four weeks,” QFB CEO Emad Mansour said but declined to be specific on the size of the fund and other aspects including the expected returns.
It is learnt that fund the will be investing in the central London.
The move comes at a time when Qatar is reportedly in talks to invest as much as £10bn in British infrastructure projects. Qatar has stakes in Barclays, Harrods, food retailer J Sainsbury and airport operator BAA.
QFB’s future plans include the opening of an exclusive high end branch that will offer a portfolio of financial services including investment products such as direct private equity co-investment, in addition to transaction services such as credit cards, cheque books and transfers. It will also offer non-financial services such as concierge, advisory and research services.
“There is a high concentration of wealth in our target region. We want to capitalise on the growing demand for international standard financial services for high net worth individuals and corporates,” Mansour said.
