Qatar to launch world’s largest 'Energy Bank' with $10 billion capital

Cementing its position as a key player in the global energy market, Qatar has announced its plans to launch an energy-focused Islamic lender with a targeted capital of $10 billion to finance both local and international oil and gas projects.

The announcement came yesterday during the Doha Islamic Finance Conference where it was revealed that the ‘Energy Bank’ would begin its operations in the fourth quarter of this year, reported Reuters.

The bank is being set up under the umbrella of the Qatar Financial Centre (QFC), and is expected to have representative offices in the Middle East and North Africa region, among other parts of the world.

#Qatar will launch an energy-focused Islamic lender in Q4, with a capital of $10 billion to finance global projects @QFCAuthority https://t.co/e7qmVoQQJv

— Ministry of Finance Qatar (@MoF_Qatar) March 19, 2019

The move comes in the context of a fast-growing energy sector in Qatar, which plans to expand the capacity of annual production of liquefied natural gas (LNG) to 110 million tonnes by 2024, according to Energy World.   

It will focus on funding oil, gas, petrochemicals, and renewable energy projects, while offering competitive and innovative products, corporate and project financing coupled with asset management services, reported Gulf Times.

“The bank will further Qatar’s firm financial stance and will make us a significant key player on the global energy scene, a catalyst of growth in the regional energy sector, and enabler of energy innovation, said Khaled bin Ahmed al-Suwaidi, chairman of the founding committee of Energy Bank.

A team of experts with technical capabilities, years of experience in the banking and energy industries and know-how of the energy sector are engaged in setting up the bank.

“The Energy Bank is the latest of several major international banks to join the QFC’s unique platform and we will work closely with them to ensure their success well into the future,” Yousuf Mohamed Al Jaida, CEO of QFC said.

The bank’s media committee did not specify the timing and process of raising the capital for the bank. However, Mohamed Al Marri, Head of the Energy Bank’s media committee said the bank is looking into organizing international roadshows to get international investors on board.

Qatar’s energy and Islamic finance industries are poised for rapid growth in the near future, Al Marri said. This presents a need for the formation of the Energy Bank, which operates at the intersection of these two fast-growing industries, and will serve as an impetus for the development of these sectors both locally and internationally.

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Cover Image Credit: Qatar Tribune