Posted on December 22, 2010

Al Khaliji (QE: KCBK) and IBQ have today announced progress in the proposed merger discussions that began earlier this year. The proposed merger is now entering final stages of negotiations and due diligence, including formal discussions with key regulators.

The merger remains subject to approval from the relevant government and regulatory authorities in Qatar, as well as the Board and shareholders of both banks.

An Integration Steering Committee (ISC) which brings together the combined expertise of both institutions has been formed to complete the process required for the proposed merger. The committee which is made up of senior executives from both banks will guide and manage the proposed integration, and take decisions around the proposed combined entity in terms of strategy, integration approach and organizational structure.

Commenting on the proposed merger Al Khaliji Chairman and Managing Director, His Excellency Sheikh Hamad Bin Faisal Bin Thani Al-Thani said, “The proposed merger of Al Khaliji and IBQ presents many benefits to all stakeholders and the wider market including improved depth of product ranges and services for customers, potential to realize higher profitability and value for shareholders, increased personal development opportunities for employees and greater competitiveness in the market place.”

George Nasra the Managing Director of IBQ said, “The combined entity of Al Khaliji and IBQ will provide multiple synergies, and be better positioned to capture growth opportunities and compete effectively through increased size and scale. We firmly believe that this new entity will bring benefits to all of our stakeholders.”

Further information in this regard will be provided as and when it becomes available.