Doha – Mubasher: Qatar Islamic Bank (QIB) on Monday said it has signed a QAR 1 billion financing agreement with Daewoo Engineering and Construction Company (Daewoo E&C).
The agreement was signed at QIB’s headquarters, according to a filing to the Qatar Stock Exchange (QSE).
This agreement will support Daewoo’s current projects in Qatar including the construction and upgrading of the E-Ring Road by expanding the number of lanes from 8 to 14 and the highway by 4.5 kilometres added to building a new 4 kilometre long section.
Estimated at QAR 2.25 billion, the project was recently by the Public Work Authority (Ashghal) to Daewoo E&C.
The Qatari bank's participation in the project comes as part of its strategic vision to provide Islamic financing options to companies participating in the development of major development projects in Qatar, according to the statement.
“QIB is having an important role in Qatar’s economic life for over three decades”, QIB’s general manager of wholesale banking Tarek Youssef Fawzi said.
“The Bank’s strategy is closely tied with Qatar’s National Vision 2030. As the leading Islamic Bank in the country, we are making sure to participate and contribute to the development and diversification of Qatar’s economy. In 2016, our Contracting division continued in this trajectory, supporting and financing infrastructure projects for major government, semi-government and private sector initiatives,” Fawzi added.
Meanwhile, In-Hwan CHO, Daewoo’s head of finance commented that Qatar was one of his company's "key countries" of operation, noting that the new QAR 1 billion follows another signed with the same bank for QAR 365 million in 2016.
"Those agreements support our company to perform existing projects making QIB a key strategic partner to our success in the State of Qatar,” he added.
Daewoo E&C expects to secure more infrastructure projects related to the 2022 FIFA World Cup, the statement showed.
QIB last reported a profit rise of 12.8% to QAR 555 million in the first quarter of 2017, compared to QAR 492 million in Q1-16.
