Barwa Bank announces successful exit of Education investment in Qatar
Doha, Qatar – 24 August 2020: Barwa Bank has announced the successful closure of the education investment launched by its wholly owned subsidiary, The First Investor (“TFI”) Qatar, a leading Shariah investment firm.
In 2013, along with investors and in partnership with Qatar Insurance Company (QIC), TFI provided funding for the construction of two schools in Al Wakra, Qatar and leased the operations to GEMS Education.
The transaction, in line with the planned investment strategy, performed exceptionally well throughout the holding period and initial investors received a net 60 per cent return on investment. During the tenure of their investment, investors received semiannual dividends equating to an annual cash-on-cash return between 6 per cent and 8 per cent.
Khalid Al-Subeai, Group CEO, Barwa Bank Group and TFI Board Member commented:
“We are extremely pleased with the performance of the asset. Our investors have enjoyed a strong and steady income throughout their respective holding periods. This investment is an endorsement of our ability to capitalize on well-defined and distinct opportunities alongside reputable partners. We continue to believe in the performance of the Qatari real estate market especially the residential segment, for 2020 and beyond. We remain focused on identifying value-enhancing investment opportunities that are supported by strong fundamentals with minimal risks.”
He further affirmed that Barwa Bank Group will continue seeking and offering superior risk-adjusted investment opportunities to esteemed investors in local and international markets.
Further highlighting the rationale behind this strategic partnership between QIC and TFI, Salem Al Mannai, Group CEO QIC Group commented,
“We consistently endeavor to identify and support initiatives that aim at furthering investment in key sectors that are vital for enhancing the Qatari economy. The Education Fund provided us with one such unique opportunity to support the growth in the education sector, a key pillar in realizing the Qatar National Vision 2030. We will continue to engage in identifying such investment opportunities, which promote the broader agenda at the national level and at the same time provide attractive risk-adjusted returns to QIC Group and its partners.”