DOHA, Qatar, Feb. 01, 2016 (GLOBE NEWSWIRE) -- Qatar Development Bank (QDB) has signed a Memorandum of Understanding (MoU) with The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Islamic Development Bank (IDB) Group. The new agreement is a joint strategic collaboration in examining innovative means and opportunities to support small-and-medium enterprises (SMEs) in Qatar.
The MoU commits the two institutions to share knowledge and expertise relating to the SME sector in Qatar. A work group composed of key stakeholders and experts from each party will be formed in order to work on the feasibility of co-developing an investment and financing vehicle that will focus on supporting and developing SMEs and local businesses. The preliminary work to be undertaken by the joint parties will cover, although be not limited to, the following: concept design, market analysis, structure and governance, as well as potential positioning and product development. The MoU will enhance the ability of both organizations to achieve its respective objectives and mandate.
The MoU was signed by Mr. Khaled Mohammed Al-Aboodi, the Chief Executive Officer and General Manager of the ICD, and Mr. Abdulaziz Nasser Al Khalifa, the Chief Executive Officer of QDB.
Mr. Abdulaziz Bin Nasser Al-Khalifa, CEO of Qatar Development Bank, said: "We are delighted to partner with the Islamic Corporation for the Development of the Private Sector (ICD), which includes in its membership a number of countries that strive to offer all assistance to young entrepreneurs. Qatar Development Bank aims to empower local SMEs and entrepreneurs to help achieve Qatar’s National Vision 2030. Through this Memorandum QDB will conduct a compatibility study for The Islamic Corporation for the Development of the Private Sector (ICD) programmes, and find the best applicable ways to utilize the findings in supporting the local SMEs, especially in providing funds to this important and vital sector, in order to develop the skills of the Qatari entrepreneurs and empower them to grow and compete successfully in the regional markets, in accordance with international standards."
During the signing ceremony, Mr Khaled Al-Aboodi, the CEO of ICD, said: “ICD and QDB share a mission of supporting the private sector, in particular SMEs. We look forward to enhancing our cooperation through this new and innovative initiative as there are great opportunities for local businesses to benefit."
About Qatar Development Bank (QDB)
Qatar Development Bank (QDB) was established in 1997 as the Qatar Industrial Development Bank, a 100% government-owned developmental organization. Its primary aim was to develop investments within local industries, thereby accelerating growth and economic diversification in Qatar through support for private sector. Between 1997 and 2005, the bank expanded its portfolio, diversifying from its industrial base to include support and guidance for a range of non-industrial sectors identified as key to the development of Qatar. Shortly afterwards in 2006, the bank revisited its mission statement to reflect the successful completion of its new strategic objective and changed its name to Qatar Development Bank. In 2008, The State of Qatar, QDB's sole shareholder, increased the bank's capital from 200 million to 10 billion riyals in 2008. Since that time, and reflecting the expansion of its mission and financial assets, QDB has launched a considerable number of strategic initiatives and programs, all designed to directly contribute to the economic growth and development of Qatar.
QDB's strategy is entirely in line with Qatar National Vision 2030. It is focused on promoting and facilitating the growth of the private sector in Qatar within key economic channels. In turn, this support will enable the development of long term, sustainable social and economic benefits across the economy. Aside from offering financial support, Qatar Development Bank is tasked with promoting entrepreneurship in the private sector, facilitating the development of key economic sectors through the provision of capital and advisory services. QDB has also launched several initiatives, including Al Dhameen program, an indirect loan facility to guarantee commercial bank loans to private sector companies, in collaboration with other banks and financial institutions. QDB's export arm "TASDEER" program was created to develop and promote exports from Qatar, providing export credit guarantees in addition to financial products and solutions designed to mitigate the risks imposed on local exporters. The bank also provides consulting services in business development to help entrepreneurs to prepare for business. This will include feasibility studies, the conduct of market research and the selection of appropriate techniques; fundamentally helping to develop the capabilities of SME owners to enhance and refine their skills in the market and establish strong ties with financial and non-financial support entities.
About the Islamic Corporation for the Development of the private sector (ICD)
ICD is a multilateral organization and a member of the Islamic Development Bank (IDB) Group. ICD has an authorized capital of $4 billion. Currently, the shareholders of ICD are the IDB, 52 Member countries and five public financial institutions. The mandate of ICD is to support economic development and promote the development of the private sector in its member countries through providing financing facilities and/or investments which are in accordance with the principles of Shari'a. ICD also provides advice to Governments and private organizations to encourage the establishment, expansion and modernization of private enterprises. Fitch rated ICD ‘AA/F1+’ with a stable outlook. Moody's assigns Aa3/P-1 rating to ICD with a stable outlook. Standard & Poor's Ratings Services assigned its 'AA' rating to ICD with stable outlook. For more information, visit www.icd-ps.org.