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Abu Dhabi Islamic Bank granted licence to open in Qatar

Abu Dhabi Islamic Bank has been granted permission to open an Islamic branch in Qatar.

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The decision comes after the Qatar Central Bank issued a ban in February on conventional banks opening new Islamic, or Shariah-compliant, branches amid concerns of an overlap. The Central Bank gave conventional banks until 31 December this year to halt existing Islamic branch operations.

When announcing the ban, the Central Bank said it was concerned that companies operating in both markets were unable to accurately report and that this would make it difficult for it to regulate the banks’ activities. There were also concerns that conventional banks have a competitive advantage over their Islamic counterparts.

A statement from the QFCRA  confirmed the authorisation. It said: “Abu Dhabi Islamic Bank’s authorisation, as a PIIB Prudential Category 5 Islamic financial institution, permits it to carry on regulated activities in relation to deposit taking, providing and arranging financing facilities and managing investments.”

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