DOHA: 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 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 semi-annual dividends equating to an annual cash-on-cash return of between 6 per cent and 8 per cent.
Khalid Al Subeai, Group CEO, Barwa Bank Group and TFI board member, said: “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 capitalise on well-defined and distinct opportunities alongside reputable partners.”
He added: “We continue to believe in the performance of the Qatari real estate market, especially the residential segment, for 2020 and beyond. We remain focussed on identifying value-enhancing investment opportunities that are supported by strong fundamentals with minimal risks.” He affirmed Barwa Bank Group would continue seeking and offering superior risk-adjusted investment opportunities to investors in local and international markets.
Highlighting the rationale behind this strategic partnership between QIC and TFI, Salem Al Mannai, Group CEO, QIC Group, said: “We consistently endeavour 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 realising Qatar National Vision 2030.”
He added: “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.”