Three Qatari banks are proposing a merger, which will lead to the creation of the largest Islamic bank and second largest bank in Qatar. The three banks that are in the process of talking are Masraf Al-Rayan, Barwa Bank and International Bank of Qatar. Analysts say a possible merger would result in a more balanced competitive environment in Qatar’s fragmented banking system. The three entities are now engaged in a due diligence. Analysts studying the prospects say there could be considerable integration challenges. They also point out that currently 18 banks serve a population of only 2.6 million and Qatar National Bank, the largest bank in the Gulf Cooperation Council, dominates with a market share of more than 40% of domestic assets. The report said that upon the successful completion of the merger, it would create an entity with total assets amounting to around QAR173 billion ($48 billion) and a market share of around 14%.
