Arab Bank seeking stronger foothold in Qatar

Shoman: Arab Bank seeking stronger foothold in Qatar

DOHA — Arab Bank's Chairman/CEO Abdel Hamid Shoman has said that the bank aspires to expand the horizons of its banking services in the Qatari market, which is witnessing a qualitative shift at the level of the various economic sectors.

Shoman, who heads the oldest banking institution established by the private sector in the Arab region, told the Qatari Al-Arab newspaper that the planned expansions are consistent with the increasing confidence in the promising Qatari economy on the one hand, and the successes recorded by Arab Bank, which has financed several mega strategic projects in the Gulf state over the past years, on the other.

Shoman's statements to the newspaper were made on the sidelines of His Majesty King Abdullah's visit to Qatar and his meeting with HE prince, Sheikh Hamad bin Khalifa Al Thani.

According to the chairman, the Qatari market is rich in potential, promising more opportunities that attract banking institutions, which find in Qatar well-established investment and legislative environment.

Arab Bank was one of the first institutions to operate in the Qatari market in 1957, and henceforth it has established a strong presence as the largest non-Qatari banking organization.

The bank chief's statements were based on his own experiences in the Gulf area, where he served as regional director of Arab Bank branches in the region between 1972 and 1976.

Shoman highlighted the bank's contributions to the great economic revival in Qatar though financing several projects in most vital industrial sectors, including gas, steel, cement, navigation and maritime transport.

Citing examples of these contributions, Shoman referred to Arab Bank's participation in bank consortiums that extended loans to finance projects in various sectors such as the two phases of the electricity generation plant in Ras Laffan, Um Mesaieed power plant and Quwa plant, all run by Qatar Petroleum Company.

In the field of gas, the bank has financed Qatar liquid gas conveyance project and another to purchase tankers to ship liquid gas overseas.

Arab Bank has also been in the lead to finance industrial projects such as Qatar Aluminum Plant and Qatar Steel Company. In addition, the bank financed Qatar Cool and the two petrochemical projects: Q-Chem Fin and Q-Chem 2. In the field of communications, the bank contributed to funding Q-Tel plans.

The bank has also participated in financing mega construction schemes, including the 42-floor Al-Bidda Tower, which is built at a cost of $95 million, Yousef bin Alawi Tower ($60 million), the West Bay & Hotel Resort, which comprises three hotels and hotel suits on the western coast ($410 million), National School of Foreign Service ($155 million), construction works in Doha Airport conducted by several contractors ($500 million, as the first phase of a $5 billion project), construction works in Cornell Medical School and North Atlantic College at the education estate, Qatar Foundation for Education, Science and Community Development, infrastructure works at Qatar Aluminum Plant ($90 million), Salwa Road intersections ($95 million), and inner roads, water networks, sewage and rain water drainage works (exceeding in total $200 million).

The total credit facilities banks working in Qatar extended to the private and public sectors in the country mounted to QR1880.4 billion at the end of the first quarter 2008, growing by 63 per cent, compared to the same period last year.

As part of Arab Bank's policy of active engagement and participation in supporting and funding economic development in Qatar, a package of retail banking services are offered, including personal and housing loans, in addition to financing the purchase of stocks and vehicles.

According to Shoman, these loans are available for both citizens and expatriates and they boast competitive interest rates among all banks operating in Qatar. They are conveniently paid back over long periods according to applicants' needs and allow comfortable grace periods.

The bank offers diversified loan services and credit cards that allow customers to pay their dues over long periods, in addition to e-banking services that meet daily and future needs of customers.

Arab Bank has four branches in Qatar, along with an Islamic banking outlet in Hamad Al Kabeer Street in Doha, providing Islamic banking services in illustration of Arab Bank's vision that envisages an expansion in banking operations to meet the accelerating development in the banking sector in Qatar.

Passers-by can notice that the branch on Hamad Al Kabeer Street is being expanded by supplementing the existing building with a same-size one.