Qatar’s proposed three-way merger to form top Islamic lender

The proposed merger of Masraf Al Rayan, Barwa Bank and International Bank of Qatar (IBQ) will create Qatar’s second-biggest lender and top Islamic bank as consolidation in the Middle East banking industry accelerates.The combination would help build an institution with assets worth more than QR160bn ($44bn), Masraf Al Rayan said in a statement on December 19. The negotiations follow Abu Dhabi’s announcement earlier this year to merge National Bank of Abu Dhabi and First Gulf Bank, its two biggest lenders, to create a regional powerhouse with $175bn of assets, Bloomberg reported.About 18 lenders are competing for business in Qatar - a country of about 2mn people. With a combined overall credit share of 15%, the proposed bank would be able to compete better with rivals as the world’s biggest liquefied natural gas exporter spends an estimated $200bn on upgrading infrastructure in preparation for hosting soccer’s World Cup in 2022. Still, by size and market share, it would be dwarfed by Qatar National Bank.