QIB Signs Project Financing Deal for 500 New Taxi

09/01/2012 22:35 AST

Qatar Islamic Bank (QIB) has announced a project financing agreement with Al Million Services Trading and Contracting Co. W.L.L. in order to fund the purchase and operation of 500 new taxi vehicles. The financing will be implemented as per the Islamic finance methods of Murabaha, Wikala, and Istisnaa, Qatar Exchange website reported QIB's statement Sunday.

QIB s Acting CEO Mr. Ahmad Meshari spoke about the deal, saying, "The financing agreement with AL MILLION is part of QIB s strategy that aims to support national companies and provide them with appropriate funding for growth. Doing so achieves common goals and contributes to the national economy, noting that the Qatari transport sector is witnessing accelerated growth; as a consequence, this sector naturally attracts high levels of funding". "QIB is continually engaged in efforts to enhance corporate financing, and delivers innovative funding solutions which are Sharia -compliant.

This agreement, which includes numerous Islamic financing methods, reflects QIB s ability to provide appropriate financial solutions to all national economic sectors", he added. Abdul Kader Mydeen, Managing Director of Al Million Services Trading and Contracting Co. W.L.L. said, "The agreement concluded with QIB will contribute to the purchase and operation of the taxi cars required by the company in order to meet the goals of MOWASALAT. " We are very proud that the agreement will be a foundation stone for our co-operation in order to serve national objectives and enhance the transport sector within the STATE OF QATAR, Mydeen added.

It is worth noting that Al Million Services Trading and Contracting Co. W.L.L. has won the tender, competing with 24 companies and achieved the feat of being the First Franchise among three companies to operate taxis for MOWASALAT on an ongoing basis. AL MILLION will start their operations tentatively by first quarter of 2012 as per the terms of a five-year contract.

QNA