Transcript Qatar Development Bank April 2008 BACKGROUND • Established as Qatar Industrial Development Bank (QIDB) in 1997, with a Capital (Authorized & Paid-up) of QR.

Qatar Development Bank
April 2008
BACKGROUND
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Established as Qatar Industrial Development Bank (QIDB) in
1997, with a Capital (Authorized & Paid-up) of QR 200 million
and activities limited only to the Industrial Sector
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Was Transformed into Qatar Development Bank (QDB) in
2006.
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Highly Expanded Range of Activities
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Presently, the only development financial institution in Qatar to
serve all sectors of the economy, such as Industry, Tourism &
Hospitality, Education, Healthcare, Agriculture, Fisheries &
Livestock, and others.
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Present Authorized Capital: QR 5.0 Billion
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Present Paid-up Capital: QR 1.5 Billion
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QDB is fully owned by the Government
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QDB is an important element in the government’s overall
development plan
GOALS
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Basic Goal : Assist in the development of the economy through
developing and supporting the manufacturing and services sectors.
These are achieved by:
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Providing financial assistance to new as well as existing projects in
industrial, tourism, healthcare, education, agricultural, animal
resources, fisheries sectors
Facilitating JV projects and encouraging foreign direct investment
Encouraging private investment, increasing the investors’ base,
developing entrepreneurship
Facilitating development and growth of SMEs
Introducing international best practices in all sectors of the
economy, Increasing competitiveness of Qatari businesses
Playing an increasingly larger role in the SME Support
Providing consulting and advisory services
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FINANCIAL
ASSISTANCE
Preference for Projects that:
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Use Locally Available Raw Materials and manufactured
products
Are Energy Intensive
Are high on Automation and less Labor Intensive
Integrate with and support the Existing Industries
Represent Significant Advancement in Technology or Level of
Services
Are in line with the government’s economic development
strategy
OPERATIONS
Project Development Department
• The Project Development (PD) Department evaluates
project proposals for financing (both long-term & shortterm)
• Has responsibility for disbursement & recovery
• Follows up on the assisted projects
• Helps in obtaining all licenses, approvals, etc. Remains
engaged from inception through completion
• Provides consulting and advisory services that may include
preparation of feasibility studies and other project-related
services
FINANCIAL SUPPORT
Long-Term Loans :
QDB provides financial assistance to Greenfield projects as well as for
expansion, diversification and modernization
• Amount : Depends on the Sector. As an example, for Industrial sector, up
to 80% of cost of production equipment, 60% of fixed assets costs, or
10% of the capital & reserves of QDB, whichever is the lowest
Tenure : Depends on the expected cash generation and debt servicing
capacity of the project. For Industrial Sector, up to 8 years including 2
years’ grace period
Short-Term Loans :
QDB also provides short term loans for raw material purchase and
export financing
FINANCIAL SUPPORT
QDB provides financial assistance to Greenfield projects as well as
to projects for expansion, diversification and modernization to
various sectors as shown below:
Sector
Interest (p.a.)
Exposure Limit
(% of Loan Outstanding) (% of Paid-up Capital)
------------------------------------------------------------------------------------Industry
3.0 – 5.0
35.0
Tourism
3.0 – 5.0
30.0
Healthcare &
2.5 – 4.0
25.0
Education
Agriculture
1.0 – 1.5
10.0
(incl. Livestock & Fishery)
FINANCIAL SUPPORT
Maximum Tenure
Industry Sector:
All other Sectors:
8 years
8 years (long), 5 years (medium)
or 3 years (short), as needed
QDB also provides loans for working capital
support and export credit
In select cases, the financial assistance could
include direct subscription to the equity
Qatar Development Bank