Qatar’s government-owned financial regulatory authority Qatar Financial Markets Authority (QFMA) has approved the merger of the region’s leading banks, Masraf Al Rayan and Al Khalij Commercial Bank (Al Khaliji), which will create the second-largest lender in the country.
The merger will establish a larger and stronger bank with a strong financial position and high liquidity, as well as a broader range of banking activities, customer portfolios, unique products, and a stronger foundation for funding development initiatives in line with Qatar’s National Vision 2030.
The approval of the merger application is subject to applicable laws and regulations, according to the statement. “In connection with the merger agreement announced on January 7 this year between Masraf Al Rayan and Al Khalij Commercial Bank, a merger application was filed with the QFMA. We are pleased to inform that the QFMA has approved the merger application, subject to applicable laws and regulations,” Al khaliji said.
Al Khaliji’s business will be merged into Al Rayan’s operation, and Al Rayan will be the remaining legal entity following the merger, according to a joint statement issued by the two banks. In detail, the two banks will join through a statutory merger, in which Al Khaliji will be dissolved and all of its assets and liabilities will become part of Al Rayan by operation of law as of the merger’s completion.
The merger will also become one of Qatar’s and the Middle East’s largest Shari’ah-compliant banks, with total assets of roughly $47 billion (QR172 billion) as of September 30, 2020. The Qatar Central Bank recently stated that the merging of Masraf Al Rayan and Al khaliji will strengthen Qatari Islamic banks globally.
In addition, the merger will bring together the two banks’ key strengths in retail and private banking, corporate and government institutions, capital markets, as well as wealth and asset management, giving the combined business an excellent customer proposition as well as stability for shareholders through diversification.