QIB has signed a QR1bn financing deal with Daewoo Engineering and Construction Company (Daewoo E&C) that will support the latter’s current projects in Qatar including the construction and upgrading of the E-Ring Road.
The agreement was signed at QIB’s headquarters by Tarek Youssef Fawzi, QIB general manager (Wholesale Banking Group) and In-Hwan Cho, Daewoo E&C’s head (Finance).
The E-Ring Road project will expand the number of lanes from 8 to 14, enlarge the highway by 4.5km and build a new 4km long section.
The project value is estimated at QR2.25bn and was recently awarded to Daewoo E&C by the Public Works Authority (Ashghal).
QIB’s participation in the project comes as part of the bank’s strategic vision to provide Islamic financing solutions to key stakeholders that are participating in the country’s major development projects.
Over the past few years, the bank has been involved in financing agreements for large projects in the sectors of energy, industry, infrastructure, construction, and trade.
“QIB is having an important role in Qatar’s economic life for over three decades” Fawzi said.
“The bank’s strategy is closely tied with Qatar National Vision 2030. As the leading Islamic bank in the country, we are making sure to participate and contribute to the development and diversification of Qatar’s economy. In 2016, our contracting division continued in this trajectory, supporting and financing infrastructure projects for major government, semi-government and private sector initiatives.”
On the agreement In-Hwan Cho said, “Qatar is one of the key countries we are operating in and this is the second financing deal signed with QIB following the QR365mn facility granted in 2016. Those agreements support our company to perform existing projects making QIB a key strategic partner to our success in Qatar”.
Daewoo E&C was established in 1973. It is one of the top-tier construction companies in South Korea actively involved in domestic and international projects.
Daewoo E&C began its activities in Qatar in 2005 with Ras Laffan Refinery project, and so far the company has been awarded five projects, a total of QR8.75bn.
The company said it expects to “secure more” infrastructure projects related to 2022 FIFA World Cup.