Al Rayan, Barwa
Bank & IBQ Enter into Initial Negotiations
on Potential Merger
December 20, 2016
Ina joint press release issued today, Masraf Al Rayan,
Barwa Bank and International Bank of Qatar
have announced that they have entered into
initial negotiations regarding a potential
merger of the three banks to create a larger
and stronger financial institution with a
solid financial position and liquidity to
support Qatar’s economic growth and to
finance development initiatives in line with
Qatar Vision 2030.
The potential merger will lead to the creation of the
largest Sharia compliant bank in the State
of Qatar and the third largest Sharia
compliant bank in the Middle East with
assets worth more than 160 Billion Qatar
Riyals and a share capital of more than 22
Billion Qatar Riyals.
The merger is also expected to contribute positively to
the economic development in the State of
Qatar by supporting business and small and
medium sized entities, and would also create
a strategic partner for the Government and
the public sector.The merger is also
expected to create value to all
stakeholders, including the shareholders,
the banks customers and to the national
economy.
The potential merger would aggregate in the combined
entity the key strengths of the three banks,
in the areas of retail and private banking,
services to corporates and government
institutions, Sukuk capital markets and
wealth and asset management.
The proposed merger is subject to the approval of the
Qatar Central Bank, the Qatar Financial
Markets Authority, the Ministry of Economy
and Commerce, and other relevant official
bodies and the approval of the shareholders
in each of MasrafAl Rayan, Barwa Bank and
International Bank of Qatar after the
completion of a detailed legal and financial
due diligence on all three banks.
It is worth
noting that the new entity will maintain all
its dealings in compliance with Sharia
principles.