Business & Finance Group - Real Estate - Qatar: Qatar Islamic Bank QIB has signed an Istisna’a agreement for the financing of a QR300mn residential project in Al Khor.

Owned by Al Khor & Dakira Schemes & Services Company, the construction on the real estate development in the fast developing city on the northern side of the country is expected to be completed in just over two years. 

The UAE-based Construction & Reconstruction Engineering Company is the construction contractor for the project and Arab Consulting Bureau will deliver the consultant engineering services.
This new development will provide ‘high-quality’ residential accommodation comprising 145 villas and 252 apartments of varying configurations.  Also to be constructed as part of the project are a children’s nursery and a swimming pool, as well as a shopping mall and associated parking lots.
 
Located approximately 50km north of Doha, Al Khor has become a hotspot for residential and business development and is home to many employees of the oil industry due to its proximity to northern oil and natural gas fields, as well as to Ras Laffan Industrial City (RLC). 

QIB chief executive officer, Salah Mohamed al-Jaidah said, “Our involvement with projects such as the Al Khor development is a realisation of QIB’s compelling and ongoing commitment to Qatar’s economic development, one of the four interrelated pillars underlying HH the Emir’s 2030 Vision.  We are both proud and excited to support such an outstanding undertaking which partners QIB with leading companies in construction, design and project management, and denotes our enduring support of Qatar’s construction industry.

“At QIB, we are confident that the worst of the financial turmoil of the last couple of years is at an end. Qatar has demonstrated impressive resilience during the global economic crisis and remains in a very strong position, with GDP growing 11% in 2009 and forecasted growth of 16% in 2010-2011,” al-Jaidah added.

“Our involvement in this project at Al Khor demonstrates the major contribution that QIB makes to the growth of our country, and how we consistently provide leadership in the field of real estate development which is so vital to Qatar’s continued progress”, said Ahmad Meshari, QIB’s Domestic Business Group general manager. 

“Further, QIB’s ability to finance such significant construction projects using Islamic finance products enhances the wider understanding and acceptance of Islamic banking and finance as a viable alternative to conventional banking methods.”

QIB’s Real Estate Group general manager Salah al-Hail added, “This real estate project at Al Khor is one of the biggest in Qatar since the economic and financial downturn in 2008 and will play a key role in satisfying the high demand for quality residential developments in Qatar’s northern area.”

Moustafa Rajab Abou Zeid, Al Khor & Dakira Schemes & Services Company general manager said, “This significant agreement is indicative of the strength of the collaboration between QIB, one of the world’s leading Islamic financial institutions, and AKD Schemes & Services. Our company has a proven track record for providing commercial and residential facilities in Al Khor, Dakira and Ras Laffan among other places.”