April 2008

Qatar Development Bank

BACKGROUNDBACKGROUND

• Established as Qatar Industrial Development Bank (QIDB) in 1997, with a Capital (Authorized & Paid-up) of QR 200 million and activities limited only to the Industrial Sector

• Was Transformed into Qatar Development Bank (QDB) in 2006.

• Highly Expanded Range of Activities

• Presently, the only development financial institution in Qatar to serve all sectors of the economy, such as Industry, Tourism & Hospitality, Education, Healthcare, Agriculture, Fisheries & Livestock, and others.

• Present Authorized Capital: QR 5.0 Billion

• Present Paid-up Capital: QR 1.5 Billion

• QDB is fully owned by the Government

• QDB is an important element in the government’s overall development plan

GOALSGOALS

• Basic Goal : Assist in the development of the economy through developing and supporting the manufacturing and services sectors. These are achieved by:

Providing financial assistance to new as well as existing projects in industrial, tourism, healthcare, education, agricultural, animal resources, fisheries sectors

Facilitating JV projects and encouraging foreign direct investment Encouraging private investment, increasing the investors’ base,

developing entrepreneurship Facilitating development and growth of SMEs Introducing international best practices in all sectors of the

economy, Increasing competitiveness of Qatari businesses Playing an increasingly larger role in the SME Support Providing consulting and advisory services

FINANCIAL FINANCIAL ASSISTANCEASSISTANCE

Preference for Projects that:

• Use Locally Available Raw Materials and manufactured products

• Are Energy Intensive• Are high on Automation and less Labor Intensive• Integrate with and support the Existing Industries• Represent Significant Advancement in Technology or Level of

Services• Are in line with the government’s economic development

strategy

OPERATIONSOPERATIONS

Project Development Department

• The Project Development (PD) Department evaluates project proposals for financing (both long-term & short-term)

• Has responsibility for disbursement & recovery• Follows up on the assisted projects• Helps in obtaining all licenses, approvals, etc. Remains

engaged from inception through completion• Provides consulting and advisory services that may include

preparation of feasibility studies and other project-related services

Long-Term Loans :Long-Term Loans :

QDB provides financial assistance to Greenfield projects as well as for expansion, diversification and modernization

• Amount : Depends on the Sector. As an example, for Industrial sector, up to 80% of cost of production equipment, 60% of fixed assets costs, or 10% of the capital & reserves of QDB, whichever is the lowest

Tenure : Depends on the expected cash generation and debt servicing capacity of the project. For Industrial Sector, up to 8 years including 2 years’ grace period

Short-Term Loans :Short-Term Loans :

QDB also provides short term loans for raw material purchase and export financing

FINANCIAL SUPPORTFINANCIAL SUPPORT

QDB provides financial assistance to Greenfield projects as well as to projects for expansion, diversification and modernization to various sectors as shown below:

Sector Interest (p.a.) Exposure Limit (% of Loan Outstanding) (% of Paid-up Capital) ------------------------------------------------------------------------------------- Industry 3.0 – 5.0 35.0Tourism 3.0 – 5.0 30.0Healthcare & 2.5 – 4.0 25.0

EducationAgriculture 1.0 – 1.5 10.0 (incl. Livestock & Fishery)

FINANCIAL SUPPORTFINANCIAL SUPPORT

Maximum Tenure

Industry Sector: 8 yearsAll other Sectors: 8 years (long), 5 years (medium)

or 3 years (short), as needed

QDB also provides loans for working capital support and export credit

In select cases, the financial assistance could include direct subscription to the equity

FINANCIAL SUPPORTFINANCIAL SUPPORT

Qatar Development Bank