Masraf Al Rayan, Qatar’s second-largest Islamic bank, announced the successful completion of its merger with the region’s leading financial institution, Al Khalij Commercial Bank (al khaliji).
The two banks will be considered as one legal entity named Masraf Al Rayan. While the legal merger is complete, the combined entity is focusing on the operational integration of the two banks into one seamless platform. Integration activities will consolidate the best of both institutions to provide an enhanced product and service proposition.
The entities said that the customers should continue to bank as normal under Islamic Shariah principles. The product and service convergence is planned to be finished in 2022. The process will be monitored by the new board and leadership team. Customers, counterparts, and stakeholders will be advised in a phased manner on how the merger may impact them.
Masraf Al Rayan will be one of the region’s largest Shariah-compliant banks, with total assets exceeding $50 billion. With strong capital and liquidity, the bank is well-positioned to help Qatar achieve Vision 2030 faster by utilizing its increasing scale, compelling product offering, and exceptional talent pool.
“The completion of this landmark transaction signals a new era in banking excellence in Qatar, and we would like to thank all those who contributed to this milestone, including our regulators, shareholders and employees. As one of the largest Shariah-compliant banks in Qatar and the region, we are committed to supporting the State of Qatar’s economic growth and ambitions. Our bank will help drive the growth of the domestic banking sector and economy in line with Qatar National Vision 2030, as well as becoming a strategic partner for the public sector.”
The merger is a turning point in Qatar’s banking sector, enabling growth for corporates facilitating landmark deals, fostering Small and medium-sized enterprises (SMEs) development and lending and supporting prosperity for private clients to manage and grow their wealth and for the retail customers to reach their potential. The group has international operations in France, the United Kingdom and the UAE.
Masraf Al Rayan’s capital increases from $2.05 billion to $2.55 billion, and Al Khaliji shareholders receive 0.5 percent ordinary shares in Masraf Al Rayan as consideration for every ordinary share held. Trading in Masraf Al Rayan shares continues with the increased capital. Al Khaliji shares have been de-listed from the Qatar Stock Exchange (QSE).
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