(MENAFN - The Peninsula) QNB Al Islami, a branch of Qatar National Bank, announced the signing of a QR300m Islamic financing agreement (Wakala) with National Leasing Company (NLC).
"We are proud to have QNB Al Islami fund the expansion of NLC with a maturity of five years. Al Islami has in a very short time succeeded in taking a leading role in the Islamic banking products and services that are being provided to the Qatari market," Ali Ahmed Al Kuwari, Executive General & Chief Business Officer at QNB said.
"We also take pride in what the QNB Al Islami's Shari'a Advisory Board has been doing for QNB by reviewing and certifying the products and services to ensure they are Shari'a-compliant, before they are launched. This agreement falls in line with QNB Al Islami's strategy of supporting Islamic banking services and activities in Qatar," he added.
In the second quarter ending in June 2007, QNB Al Islami succeeded in achieving excellent results, with financing activities increasing QR1.7 bn (114.6pc) to reach QR3.1bn. Net profit for QNB Al Islami was up by QR47.0m (155pc) to reach QR77.3m.
The number of QNB Al Islami branches have rapidly increased to ten since it was established in April of 2005 as the first by a bank in Qatar.
Earlier this year, QNB Al Islami signed an Islamic Financing Agreement worth one billion Qatari Riyals with the BARWA Real Estate Company. The agreement will be utilized in financing BARWA's real estate investment projects and is done in compliance with Qatar Central Bank's regulations of real estate financing.
In 2006, QNB Al Islami was mandated by Qatar Real Estate Investment Company (QREIC) to lead the arrangement of an Islamic financing package totaling 375 million (QR1.368 billion) for Qatar Real Estate Investment Company. QNB Al Islami signed an agreement with Dubai Islamic Bank (DIB), Gulf International Bank (GIB) and Standard Chartered Bank (SCB) to mandate the issuance of Sukuk and a syndicated Islamic facility in Qatar.
National Leasing Company (NLC) is a strategic client of QNB Al Islami. NLC deals mainly with ownership, leasing and selling of moveable assets, leasing and renting of fixed assets, all according to Islamic Shari'a principles.