Qatar Islamic Bank

Qatar Islamic Bank (QIB) was established in 1982 as the first Islamic financial institution in Qatar. Its products and operations are supervised by a Shari’a board, which ensures the Bank adheres to Islamic finance principles.^[1][2][3] It is the country's largest Shari’a-compliant lender.^[4]

Overview

QIB is now the largest Islamic Bank in Qatar, with a 35% share of the Islamic sector and a 9% share of the banking market overall. It has over 170,000 retail clients and more than 3,000 corporate clients. It conducts its domestic business through 32 branches spread throughout the country in addition to private centres for ladies and dedicated lounges for affluent customers, augmented by more than 175 multi-function ATM installations.^[5][6]

Major share holders

The Qatar Investment Authority (QIA) is the single largest shareholder of QIB. The balance of QIB’s shareholders comprise other Qatari individuals, families and institutions; and QIB’s shares are listed on the Qatar Exchange.^[7]

Board of directors

QIB is overseen the following directors:^[8]

• Sheikh Jassim Bin Hamad Bin Jassim Bin Jaber AI Thani (Chairman)
• Mr. Abdullatif Bin Abdulla Al Mahmoud (Vice Chairman)
• Mr. Abdulla Bin Saeed Al Ledah
• Mr. Nasser Rashid S. Al-Kaabi
• Mr. Mohamed Bin Issa Al Mohanadi
• Mr. Mansour Al Muslah
• Mr. lssa R. Al Rabia Al Kuwari
• Sheikh Ali Bin Ghanim Bin Ali Al Thani
• Mr. Abdul Rahman Abdulla Abdul Ghani

History and acquisitions

In 1982, QIB was established with a paid up capital of QR 25mn. It opened its first branch for customers in July 1983.

In 1989, Al Jazeera finance was established, 30% owned by QIB. By 1996, QIB’s paid up capital increased to QR 200mn and in 1998 it was listed on the Qatar Stock Exchange. 2000 saw the establishment of Aqar, 49% owned by QIB. Arab Finance House (37% owned by QIB) was established in Beirut in 2003. By 2005, the number of QIB’s branches stood at 8; and its paid up capital was increased to QR 663m.^[9]

2005 also saw the establishment of Asian Finance Bank (41.67% owned by QIB); and the following year QIB’s paid up capital increased to QR 1.19bn.

QInvest was established in 2007 (46.96% owned by QIB), as was Bawabat Al-Shamal (a Real Estate Development and Investment company); QIB-UK was set up in 2008 (70.00% owned by QIB); and in 2009 BEEMA was established, with 25% owned by QIB. The Bank’s capital increased that year to QR 2.06bn.

In 2010 QIB launched a US$750m Sukuk. Paid up capital increased to QR 2.36bn in 2011.^[10]

QIB International

QIB international is responsible for all international banking activities of the QIB Group.^[11]

Awards

Qatar Islamic Bank’s recent awards include:

• Best New Product in Qatar” for 2015 from VISA International for its QIB-Qatar Airways Visa Signature Co-Branded credit card
• “Best Deal of the Year - Regulatory Capital" from Islamic Finance News (IFN) in relation to its QAR 2 billion Sukuk deal
• Mr. Bassel Gamal, QIB’s Group CEO, was recognized as the first of 100 best performing CEOs of listed companies in the GCC states from TRENDS & INSEAD Business School
• Bank of The Year - Qatar 2015, by The Banker magazine
• Most Innovative SME Product – Aamaly in Qatar 2015,by International Finance Magazine (IFM)
• Best Mobile Banking App, by International Finance Magazine (IFM)
• The Excellence Award in the Retail Banking –Qatar 2015, by the 2nd Qatar Enterprise Agility Awards
• Standard Chartered Bank Award for outstanding performance in Straight Through Processing (STP) and delivery of commercial and financial payments-
• Best Treasury Products Management - Qatar2014 - Banker Middle East
• Best SME Islamic Finance Provider for the GCC & MENA 2014 - Global Banking & Finance Review
• Best Sukuk Deal 2012 from World Finance
• Best Asset Manager Europe/Australia/America 2012 for QIB-UK from Islamic Business & Finance Awards
• The Best Islamic Financial Institution in Qatar by Global Finance in 2012
• The 'Best Turkey Deal of the Year 2011 for its role as joint co-manager for the $350 million KT Sukuk Varlik Kiralama deal-
• The Best Islamic Finance Deal of 2010 for its debut International Sukuk from Euroweek Emerging Markets
• The Bank of the Year 2010 by the Arabian Business Awards, who also honoured QIB as the region's most dynamic financial institution

Controversial correspondents

A 2015 report by the Consortium Against Terrorist Finance (CATF) called attention on Qatar Islamic Bank’s correspondents claiming that some of them “have controversial histories of affiliation with or support of terrorist or extremist activities.”^[12]

Qatar Islamic Bank’s controversial correspondents include:

Al-Rajhi Bank

Saudi Arabia’s largest private bank and the largest Sharia compliant lender, Al-Rajhi Bank was at the center of several investigations after 9/11 for its alleged involvement in schemes of terror financing.^[12][13]

The name of one of the bank’s key founders, Sulaiman bin Abdulaziz al-Rajhi, appeared on the so-called “Golden Chain,” a list of early sponsors of al-Qaeda seized during a police raid the premises of the Benevolence International Foundation in Sarajevo in 2002.^[14]

Al-Rajhi Bank provided financial services to Abdulaziz al-Omari, one of the five hijackers of the American Airlines flight 11 and part of the 9/11 attacks.^[15]

Moreover, the Wall Street Journal reported in 2007 that, shortly after the September 11 terrorist attacks, Al-Rajhi Bank’s board was ordered to explore “financial instruments that would allow the bank’s charitable contributions to avoid official Saudi scrutiny.”^[12][13] According to the report, Al-Rajhi executives were allegedly informed that the bank had maintained several accounts for Al-Haramain Foundation, an Al-Qaeda front heavily involved in terror financing, before Saudi authorities shut it down in 2004.^[12][13]

Qatar Islamic Bank’s “Investor Presentation for Fiscal Year 2014” reveals a long history of QIB top executives’ relations with al-Rajhi Bank.^[12][16]

In 2010 HSBC severed ties with Al-Rajhi Bank

due to the bank’s uncovered implication in terrorist activities.^[12] In 2012, a report released by the U.S. Senate Permanent Subcommittee on Investigations that exposed HSBC's role in funding global narcotics trafficking and terrorism included an extensive coverage of HASB’s relations to Al-Rajhi Bank and of the bank’s terrorist ties and activities.

In 2014, JPMorgan Chase & Co. dropped Al-Rajhi Bank as a correspondent bank as well amidst terrorist financing concerns.^[12][17]

Islami Bank Bangladesh Limited (IBBL)

A 2006 investigation commissioned by the Bangladesh Bank uncovered evidence that Islami Bank authorized suspicious transactions in support of militant groups worldwide.^[12][18]

In 2011 the Bangladeshi home ministry intelligence disclosed that 8% if Islami Bank’s profits were devolved in support for jihad as “corporate zakat.”^[19]

A 2012 U.S. investigation revealed that Islami Bank offered services to Abdur Rahman, the leader of the terrorist organization Jagrata Muslim Janata Bangladesh, and to the terrorist leader Siddique-Ul-Islam between 2005 and 2006.^[18]

The bank was also involved in several laundering schemes that resulted in sanctions.^[18] In 2014, the bank was penalized with the largest fine available under the money laundering act for failing to timely report suspicious transactions to the authorities.^[12][20]

The U.S. investigation culminated in a 2012 U.S. Senate Committee report, that pointed out Islami Bank’s relations with: the controversial International Islamic Relief Organization (IIRO); Abu Sayyaf militants; Hamas; the terrorist organization Al-Gama’a al-Islamiyya; and the Kuwaiti terrorist Ramzi Yousef. During the same year, an Islami Bank senior officer was arrested for alleged involvement in a terrorist operation.^[12]

HSBC Bank USA, Citi Bank NA and Bank of America have severed ties with Islami Bank as a consequence of those allegations.^[21]

Jordan Islamic Bank

Jordan Islamic Bank is listed among the prohibited investments by the 2013 Illinois State Board of Investments.^[12]

In the late 1990s the bank helped set up Al-Aqsa Islamic Bank (AAIB), the financial branch of Hamas in the U.S.^[22] The funder of Al Baraka Bank, Saleh Abdullah Kamel, a Saudi billionaire businessman whose name appeared on the “Golden Chain” and is associated to a number of terrorist enterprises, contributed to the establishment of Al-Aqsa Islamic Bank as well.^[23]

Faisal Islamic Bank

Jamal Ahmed Mohamed al-Fadl, an al-Qaeda defector, testified in court that Faisal Islamic Bank was implicated in the management of al-Qaeda operatives’ bank accounts.^[24][25]

Faisal Islamic Bank is also known for having been a major financial sponsor of Hassan al-Turabi, a prominent Islamist political leader in Sudan.^[26]

Controversial executives

Yusuf al-Qaradawi, the well-known Islamist ideologue and preacher, appears on Qatar Islamic Bank’s “Corporate Governance Report for Fiscal Year 2010”.^[12][27] Qaradawi served as the chairman of the Sharia supervisory board, although his name is not listed on the bank’s official documents after 2010.^[12][27]

Qaradawi, an Egyptian theologian currently living in Qatar, is one of the most influential figures for the Sunni world.^[28] A prolific writer, Qaradawi has authored over 120 publications and is known to the public especially for his show, “Sharia and Life”, broadcast on the Qatari government-sponsored TV channel al-Jazeera since 1996.^[28][29]

Qaradawi has been affiliated with the Muslim Brotherhood since its youth, and was offered twice to serve as the international movement’s supreme leader, an offer that Qaradawi turned down. He continues to serve as a primary inspiration for the Muslim Brotherhood movement.^[29]

However, Qaradawi’s alleged ties with extremist and terrorist organizations and often radical positions make him a controversial figure, banned from the UK, France, and the U.S.^[30][31]

Qaradawi is the chairman of the Union of Good, an umbrella organization including over 200 charities supporting Hamas and designated as a terrorist entity by the U.S. Department of the Treasury in 2008.^[32]

In 2004, his name - along with several other “sheikhs of death” - appeared on a list drafted by 2,500 intellectuals from 23 countries addressed to the United Nations for his alleged manipulative use of religion to incite violence.^[33]

References

External links

• Qatar Islamic Bank (QIB)