The Qatar Central Bank is evaluating a proposal on the three-way combination of Masraf Al Rayan, Barwa Bank and International Bank of Qatar (IBQ) that will pave the way for the creation of the country’s largest Shariah-compliant bank, according to the chairman and managing director of Masraf Al Rayan.
The tie-up will be completed once regulators approve the deal, Dr Hussain al-Abdulla said at Masraf Al Rayan’s annual general meeting on Tuesday, without giving a time frame.
Al-Abdulla had said in April that Masraf Al Rayan would issue new shares to acquire the other two banks, helping to form a lender with about QR178bn ($49bn) of assets.
The QCB hired JPMorgan Chase & Co to advise on the transaction, al-Abdulla said at the AGM. The New York-based lender was appointed to assist the central bank in early 2017, according to a person familiar with the matter.
A spokesman for the QCB didn’t immediately respond to requests for comment, while a spokesman from JPMorgan declined to comment.
Qatar, a country of 2.7mn people, has about 20 local and international banks competing for a share of business. QNB is the Middle East’s largest lender with about $221bn of assets, according to data compiled by Bloomberg.
Masraf Al Rayan is set to emerge as Qatar’s biggest Islamic bank after the three-way merger
