QIIB is looking to issue additional Tier 1 sukuk up to QR3bn before the end of April, said CEO Abdulbasit A al-Shaibei.
Besides supporting the bank’s Tier 1 capital in accordance with the Basel III requirements, the sukuk will support QIIB’s ability to finance and improve its capital ratio, he said in an interview with Gulf Times yesterday.
 “Our capital ratio is now 17% ... and with Tier 1 it will go up to 22% or even more,” al-Shaibei said.
At its annual general meeting held at the Ezdan Tower yesterday, the bank’s shareholders “approved renewal of the additional Tier 1 sukuk issuance.”
Asked whether the tightening liquidity in banks would impact local businesses he said, “In terms of funding small businesses or even big corporates, there will not be any major impact. The impact, if any, will be on pricing. The pricing including the inter-bank rates will go up. But this is not something that is confined to Qatar. Even in our neighbouring countries, the banks are increasing rates for one reason or another.”
On QIIB’s projections for 2016 in view of the current low oil price regime, the CEO said he was “optimistic” about the prospects this year.  
“In Qatar, the government budget is promising. The government is also going ahead with a lot of key projects in the country. And if you look at Qatar’s 2016 budget, more than QR90bn has been earmarked for infrastructure projects alone. The banking sector will obviously benefit from this,” he said.
He said the “good thing about Qatari economy is that it can live with and easily accommodate the current oil price. The Qatari economy is very dynamic, vibrant.” al-Shaibei said QIIB would continue to fund projects that are significant for the national economy.
“We remain committed to that.”
He, however, said the pricing might not be the same that was seen either in 2014 or 2015.
“Now everybody is bidding on the price. The price should be attractive.  Otherwise, the banks will prefer to keep the cash and place it for the short-term; either inter-bank or bridge financing,” al-Shaibei said.
He pointed out that the return on deposits in all banks is going up; the banks are competing with each other for getting deposits from customers.
In terms of corporate financing, QIIB would keep on funding large projects such as infrastructure, industry, transportation, and communication projects, amongst others, as they constituted a pillar of progress and prosperity for the nation.
In 2015, he said the bank took new steps in the financing of SMEs as part of QIIB’s strategy to support these vital enterprises. In this context, the bank had signed two agreements for the financing of SMEs: one with Qatar Development Bank within the scope of Al Dhameen programme, and the other with the Logistics Committee at the Ministry of Economy and Commerce and Economic Zones Company - Manateq to provide necessary financing to the investors of the logistic zones in Qatar in accordance with required financing conditions.
On QIIB’s expansion plans in Qatar, he said the bank would continue to open branches wherever these were required.
“The Qatari economy is rapidly expanding. The oil price decline is not the end of the story. With Qatar’s economic expansion and accomplishment of many mega projects, the service industry will take the centre stage. This will provide numerous opportunities to us,” al-Shaibei said.