Energy Bank will target private sector and government energy projects, both at home and abroad.
Qatar has announced that it will launch the largest energy-focused Islamic lender in the world – Energy Bank.
According to Reuters, Qatari authorities have confirmed that they will launch the bank later this year with a targeted capital of US$10 billion to finance both domestic and global projects.
The World’s largest Islamic energy-focused lender
During an Islamic Finance conference in Doha, executives revealed that Energy Bank would be the largest Islamic energy-focused lender globally, and would target private sector and government energy projects, both at home and abroad.
Mohammed al-Marri, chairman of Energy Bank’s media committee, said operations would begin in the fourth quarter of 2019.
With paid-up capital of US$2.5 billion, the establishment of Energy Bank in Qatar comes in light of the incredible growth projected for Qatar’s energy sector, he said.
Marri hasn’t yet revealed exactly how the bank plans to raise its capital to the US$10 billion target. He said it would focus on financing oil and gas, petrochemicals, and renewable energy projects, but it’s not yet known how much will be allocated for home or abroad.
Qatar is one of the wealthiest oil and gas nations in the world, and its developing liquefied natural gas (LNG) market has made the country a key player in the sector. Qatar’s LNG production is roughly 77 million tonnes annually, and it plans to increase this amount by over 40 percent to 110 million by 2024.
Despite being under immense pressure from its Arab neighbours, Qatar has succeeded both at home and abroad.
The Saudi-led economic and political siege of Qatar has encouraged Doha to build its own economy and forge its own course. Joined by the UAE, Bahrain and Egypt, Saudi Arabia has continued its boycott for nearly two years now, which has only led to the small Arab state becoming more powerful on the world stage.