Posted on October 06, 2013

Qatar Development Bank (QDB) today announced the launch of its new Shariah-compliant financing promotion based on the Murabaha financing product that offers customers financing options to buy fishing boats and equipment.

This program is the second product launched by QDB to support the fishing sector in Qatar, and builds on the promotion launched earlier to enable the financing of wooden boats. The new promotion comes as part of QDB’s ongoing support of fishing boat owners and the fishing sector in Qatar.

The launch of the new product is the culmination of intensive efforts by QDB, in collaboration with the Qatari Ministry of Environment and boats owners at various levels, to determine the needs of the market, recognize the challenges of the local fishing sector, find optimum ways to support fishing boat owners, and provide adequate financing methods to develop and renew their boats and equipment.

"Since its inception, Qatar Development Bank has invested significantly to develop and support local industries in Qatar,” said Abdulaziz Al Khalifa, Chief Executive Officer, Qatar Development Bank.“Through this new product, we aim to grow the fishing sector in Qatar,which was historically a key pillar of the local economy, and is still a major livelihood in Qatar. Our job doesn’t end here,we are in constant dialogue with the fishermen to understand their needs and through collaboration with the ministry of environment, we are developing products that meet those needs."

The new Murabaha financing promotion covers fishing boats and equipment up to 100% of the value, with a profit rate of 1%, in addition to 0.5% as prepaid fees. The loan can be for a tenor of up to 4 years with additional 2 months if required. The financing options available via this promotion can be used to buy equipment, tools and engines for fishing boats.The loan value ranges from 50,000 QR up to 150,000 QR, and depends on the length of the boat as shown in the schedule below:

Third

Second

First

Category

32-38 foot

25-31 foot

18-24 foot

The length of the boat

130,000 QR

90,000 QR

50,000 QR

Engine value

20,000 QR

10,000 QR

10,000 QR

Equipment value

150,000 QR

100,000 QR

60,000 QR

Total

The fishing sector is considered extremely significant in Qatar, and has resulted in producing 13,760 tonnes of fish in 2010, according to the Qatar National Food Security Programme. Qatar exported around 2208 tons in 2010.

Qatar is estimated to be 88%self-sufficient in fishing, with the average annual fish consumption registering about 12 Kg per capita, roughly the same as the world average. The total supply of fish for local consumption was 15,487 tonnes in 2011, including imported fish.

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