Qatar’s leading Islamic bank QIIB has announced that it has signed a joint venture (“JV”) agreement with CIH Bank S.A. (Crédit Immobilier et Hôtelier), a Moroccan bank, for the establishment of a bank in the Kingdom of Morocco.
The JV agreement is in the framework of QIIB’s strategy, which focuses on pursuing overseas opportunities to enhance the financial position of the bank and diversify its portfolio investments so as to benefit its shareholders.
QIIB stressed that the expansion move into Morocco follows a detailed feasibility study, which took into account all factors including the expected returns on investment and other market factors.
QIIB noted that the Kingdom of Morocco has a “strong and diversified economy”, one that requires high quality banking services that contribute to the Kingdom’s overall growth and prosperity.
QIIB said, “We are pleased to announce our entry into the Moroccan banking sector with a strategic partner, CIH Bank S.A, which was established in 1920 and has long-standing banking tradition in the Kingdom of Morocco. The partnership followed the requisite due diligence in consultation with the Qatar Central Bank.”
The JV agreement is a sequel to comprehensive and in-depth talks between QIIB and CIH Bank S.A. Under the agreement, QIIB will have 40% stake in the proposed bank in the Kingdom of Morocco.
The Board of Directors of QIIB has set a long-term strategy that focuses on the domestic market whilst it pursues excellent opportunities outside of Qatar. The Board of Directors of QIIB see Morocco as a valuable market that provides unique opportunities for the bank as well as the Moroccan economy at large.
QIIB derives its strength from nearly 25 years of banking experience and hopes to continue its success by working in the Kingdom of Morocco.
QIIB said it will put all of its expertise at the disposal of the proposed bank to ensure its development, growth, and success, as well as that of the Moroccan economy, thus benefitting the Moroccan population in the area of banking services.
QIIB hopes that it will be able to obtain all the necessary regulatory approvals for establishing the new bank to launch the banking services during the upcoming months.
Established in 1991, QIIB currently has a wide network of branches in the State of Qatar. The bank also has investments through numerous partnerships within and outside of Qatar.
As a premier bank, QIIB has managed to achieve sustainable growth and strong financials for the past 25 years. QIIB continues to enhance its strategy to transform the way it works with their customers to enable the bank to compete effectively. The Bank’s team continues to deliver market leading innovative banking solutions developed with customers’ needs in mind.
QIIB enjoys a strong and robust reputation and has been given an ‘A2’ rating by Moody’s with a stable outlook, while Fitch has accorded it an ‘A+’ rating with a stable outlook.