Barwa Bank has announced the successful closure of the education investment launched by its wholly owned subsidiary, The First Investor (TFI) Qatar, a leading Shariah investment firm.
The transaction, which is in line with the planned investment strategy, performed "exceptionally well" throughout the holding period and initial investors received a net 60% return on investment.
During the tenure of their investment, investors received semi-annual dividends equating to an annual cash-on-cash return between 6% and 8%.
In 2013, along with investors and in partnership with Qatar Insurance Company (QIC), TFI provided funding for the construction of two schools in Al Wakrah, Qatar and leased the operations to GEMS Education.
"Our investors have enjoyed a strong and steady income throughout their respective holding periods. This investment is an endorsement of our ability to capitalise on well-defined and distinct opportunities alongside reputable partners," said Khalid al-Subeai, Group chief executive, Barwa Bank Group, and TFI board member.
Believing in the performance of the Qatari real estate market especially the residential segment, for 2020 and beyond; he said "we remain focused on identifying value-enhancing investment opportunities that are supported by strong fundamentals with minimal risks.”
Barwa Bank Group would continue seeking and offering superior risk-adjusted investment opportunities to investors in local and international markets, he added.
Salem al-Mannai, group chief executive, QIC Group, said the company consistently endeavour to identify and support initiatives that aim at furthering investment in key sectors that are vital for enhancing the Qatari economy.
"The education fund provided us with one such unique opportunity to support the growth in the education sector, a key pillar in realising the Qatar National Vision 2030," he said.
QIC would continue to engage in identifying such investment opportunities, which promote the broader agenda at the national level and at the same time provide attractive risk-adjusted returns to the group and its partners, he added.
