Qatari banks Masraf al-Rayan, Barwa Bank, and International Bank of Qatar say they have entered into initial negotiations regarding a potential merger of the three banks.

In a joint statement on 20 December the three banks say they intend to create a larger and stronger financial institution with a solid financial position and liquidity to support Qatar’s economic growth and to finance development initiatives in line with Qatar Vision 2030.

The potential merger will lead to the creation of the largest Sharia compliant bank in Qatar and the third largest Sharia compliant bank in the Middle East with assets worth more than QR160bn ($44bn) and a share capital of more than QR22bn.

The proposed merger is subject to the approval of the Qatar Central Bank, the Qatar Financial Markets Authority, the Ministry of Economy and Commerce, and other relevant official bodies and the approval of the shareholders in each of the banks.