(MENAFN - Arab News) A tripartite agreement has been signed here yesterday to establish a large Islamic bank in Doha with a capital of 1 billion. Sudan President Omar Al-Bashir attended the signing by Qatar Islamic Bank, Islamic Development Bank and Dallah Albaraka Group.
"The three founders have subscribed to half of the new bank's capital (500 million)," an official statement issued by IDB said.
Ahmed Muhammad Ali, president of IDB, said the new bank would facilitate the establishment of a financial market by Islamic banks and provide innovative solutions for liquidity management.
The IDB chief disclosed plans to establish an Islamic capital market with share-exchanging facilities. "The new bank will finance infrastructure projects and offer a number of Shariah-compliant products," he added.
The new bank was established at IDB's initiative to tackle a lack of major financiers and the absence of exchangeable Islamic tools and a liquidity market for Islamic banks.
Abdul Aziz Al-Hanai, vice president of IDB, said the new bank meets the need for a strong organization that can carry out liquidity management on the basis of Shariah and ensure strong and stable finance in the market.
He said the new bank would have branches in different countries and regions. He commended Qatar's support to Islamic banking, adding that it would contribute to the system's worldwide expansion.
Meanwhile, the 37th conference of IDB board of governors began in Khartoum yesterday with the participation of finance ministers and central bank governors from 56 OIC countries.
In his opening address, Al-Bashir said Islamic countries can jointly become a strong economic union if there is a political will. "The concept of development should be based on justice," he added.