Qatar To Set Up An Islamic Bank

The Qatari government plans to set up Islamic bank with a paid-up capital of US$ 1 billion.

The government agencies concerned are discussing the aims and objectives of the bank and the mechanism to decide on ownership rights on the basis of the percentage of contribution by the founding partners. This is being done in light of the feasibility reports that have been prepared covering a wide range of issues.

Initially the government will contribute $300mn towards the bank’s capital and the Islamic Development Bank and the al-Baraka bank will jointly contribute $200mn. 

Constituting the higher level of management for the bank and obtaining the approval from the Shariah committees are also being worked out so as to have the bank registered with the Qatar Finance Centre Authority, Gulf Times reported.