Amlak Finance PJSC, the largest real estate financier in the Middle East, and Barwa Real Estate Company, the largest publicly listed property developer in Qatar, announced today that Amlak Finance (Qatar) has received the license to commence operations from Qatar Central Bank.
Following the receipt of the license, Ghanim Bin Saad Al Saad, Chairman and Managing Director of BARWA Real Estate, said: "Amlak Finance (Qatar) will significantly compliment the unique and pioneering range of products and services offered by both companies – BARWA Real Estate & Amlak Finance - for the development of the booming real estate industry in Qatar."
"Our strong positioning in Qatar and the region leads us to align with the largest real estate financier in the Middle East, such as Amlak Finance PJSC in order to create a conglomerate that will promote the development and advancement of the sector in Qatar," Al Saad added.
“With BARWA’s core business in real estate & project development, property & facility management, construction material production, environmental activities & health, banking & finance, hotels & resorts, technology & utility, knowledge & communications and agriculture, Amlak Finance (Qatar) shall play a major role in synergizing mutual co-operation and correlations among the Group subsidiaries. Furthermore, such joint venture reflects BARWA strategy of having a strong partners in different fields related to its main activities and core business. Receipt of the license will motivate us to start the operations as soon as practically possible,” concluded Al Saad.
Nasser Bin Hassan Al-Shaikh, Chairman, Amlak Finance PJSC, said: “This is a positive step ahead in structuring our operation in Qatar, which is part of our strategic expansion plans across the region. Now that we have the license and all the required documents are in place, we expect to commence operations in the second half of 2008.”
Al-Shaikh added, “Qatar has witnessed a rapid growth in all sectors during the last couple of years, topped with an increase in local, regional and foreign investment opportunities, and I am confident that our new operation will bring to the market the home financing solutions that have become synonymous with innovation and market leadership.”
In a recently held board meeting Amlak Finance (Qatar) appointed the founding board of directors which will comprise of five members with three representatives from Barwa and two from Amlak Finance PJSC, as stipulated by the 40% (Amlak) - 60% (BARWA) joint venture agreement with an authorized capital of QR 500 million.
With the rapid development of the real estate sector in Qatar, Amlak Finance (Qatar) has ambitious plans for the market, which will encompass the introduction of new products and services as well as the customization of existing products to suit the local needs and requirements.
Amlak Finance’s existing portfolio includes leading edge products and services that have a proven track record and are already available in other markets across the region.
From the 1-hour approval service, where customers’ applications can be approved in a time span of just one hour provided all the required documentation is complete, to “Easy Start”, which allows customers to pay profit only on their financing in the first four years, Amlak is set to offer its customers in Qatar the best pioneering products and services that will ensure an easy and hassle free process of financing to own their dream home.
Amlak embarked in 2007 on an ambitious expansion plan across the region, with operations already launched in Egypt and Saudi Arabia, while Qatar and Jordan are set to be launched in the second half of 2008.
It is worth noting that Amlak Finance signed in 2007 a Memorandum of Understanding (MoU) with the International Finance Corporation, part of the World Bank, in order to develop the home finance sector in the region’s developing markets and to introduce Amlak’s products and services to a wide spectrum of customers.
According to a recent World Investment Report, published by the United Nations Conference on Trade and Development, Qatar was ranked third in the GCC in terms of inward foreign direct investment in 2006, attracting nearly $ 1.5 billion of inflows. In addition, Qatar is considered among the wealthiest countries in the region, with a growing diversified economy and one of the highest Real GDP per capita.
