In a 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 Masraf Al 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.