QDB Annual Report 2014 en

THE ART OF
BUILDING SUCCESS
ANNUAL REPORT 2014
QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014
In The Name Of Allah,

The Most Gracious,
The Most Merciful
His Highness
SHEIKH TAMIM BIN HAMAD AL THANI

Emir of the State of Qatar
CONTENTS
Corporate Philosophy
06
Vision and Mission
07
Chairmans Message
08
Board of Directors
10
CEOs Message
14
Envisioning Qatars Success
18
2014 Year of Success
20
Key Seven Sectors
22
Industrial
24
Education
26
Healthcare
28
Tourism
30
Agriculture
32
Livestock
34
Fisheries
36
Products 38

Direct Lending
40
Al Dhameen
42
Tasdeer
44
Housing Loans
46
Private Sector Initiatives
48
Business Plan Creator
50
Advisory Services
52
SME Toolkit
54
Bedaya
56
Banks Training Sessions
58
Qatar Business Incubation Center
60
Partnerships
62
Corporate Governance
66
Financial Statements
80
CORPORATE PHILOSOPHY
OUR VISION
The establishment of Qatar Development Bank (QDB), previously known as Qatar Industrial
Development Bank (QIDB) in 1997 reflects the farsighted vision of H.H. Sheikh Hamad Bin
Khalifa Al Thani, the Father Emir of the State of Qatar to diversify the income resources of the
Qatari economy by promoting private sector projects.
To be the primary enabler of Qatars private sector and economic diversification.
Over the years, we have provided competitive project financing facilities. Our innovative
approaches have allowed us to identify promising investment opportunities for Qatari
investors. This, in turn, has contributed towards carving a dynamic and productive private
sector in Qatar.
To accelerate the development of the Qatari private sector in line with the diversification needs of Qatar.
OUR MISSION
Today, QDB continues to play a vital role in the development of many leading projects in
Qatar. We take pride in our position as a pro-active partner for the ongoing economic growth
and development of the State of Qatar.
CHAIRMANS
MESSAGE
2014 was a year marked by exceptional performance and institutional growth for Qatar
Development Bank.
Product and service innovation, investment in customer experience, and continuing
to enlist strong partners remained the tenets of the banks success. Through our core
portfolio of direct lending, indirect lending through Al Dhameen, advisory services,
and export promotion through Tasdeer, QDB stimulated further private sector growth
and participation by Qatari businesses in 2014 a year where Qatars non-hydrocarbon
sector accounted for more than half of the GDP in Q3.
At QDB, 2014 could be characterized as the Year of the SME.
QDB, now more than ever, offers Qatari SMEs and entrepreneurs products and
services, supporting their growth journey, in every step of the way. Growing a vibrant,
prosperous and competitive private sector in Qatar begins with their success. As an
institution, we lived this philosophy in 2014 - doubling our commitment to enhancing
the journey of Qatari SMEs and entrepreneurs. We launched landmark strategic
initiatives, held more counselling sessions, conducted more market studies and hosted
more workshops and training sessions for the Qatari industry than in previous years.
H.E. SHEIKH ABDULLAH BIN SAUD AL-THANI | CHAIRMAN
In September, HE the Prime Minister inaugurated Qatar Business Incubation Center

(QBIC) which is a joint endeavour between QDB and SDC - this is a 20,000 square
meter mixed-use business incubator in Qatar and the largest in the Middle East and
North Africa. A milestone of national importance, QBICs launch means SMEs in Qatar
are receiving integrated world-class support through the provision of office space,
workshops, laboratories, production services, technical and administrative support,
and mentoring programs. QBIC has been immensely productive in a very short time,
training 100 entrepreneurs in 2014 alone.
Following the prudent guidance of the government in November, Enterprise Qatar
(EQ) and QDB merged to create a single window of support for the development of
SMEs, consolidating efforts to better serve them by providing all financial resources
and technical expertise in one place. For our customers, this creates synergies and new
opportunities across an even stronger portfolio of products and services, particularly
with respect to the strategic advice and resources we offer Qatari entrepreneurs.
In the year ahead, we will continue to support Qatari businesses and individuals in
every step of their journey. On behalf of the banks Board of Directors and Executive
Management, I wish to congratulate and express our deep gratitude to His Highness
the Emir Sheikh Tamim Bin Hamad Al Thani and His Excellency the Minister of Finance
Mr. Ali Sharif Al Emadi, asking God Almighty to bless every step we take as well as our
beloved country, Qatar.
OUR TEAM | THE PRESENT BOARD CONSISTS OF SEVEN MEMBERS

AND IS CHAIRED BY H.E. SHEIKH ABDULLAH BIN SAUD AL-THANI.
H.E. SHEIKH ABDULLAH

BIN SAUD AL-THANI
H.E. DR. IBRAHIM BOUTROS

AL-IBRAHIM
H.E. Sheikh Abdullah Saud Al-Thani

has been the Chairman of the Board of
Directors of Qatar Development Bank since
its inception in 1997. H.E. Sheikh Abdullah
Bin Saud Al-Thani has been the Governor
of Qatar Central Bank since May 2006,
starting his career there in 1982. H.E. Sheikh
Abdullah Bin Saud Al-Thani has a Bachelors
Degree in Business Administration (majoring
in Economics) and has a dual Master of
Business Administration, specializing in
Banking and Finance.
H.E. Dr. Ibrahim Boutros Al-Ibrahim

has been a Board Member of Qatar
Development Bank since 2007, and is
currently serving as the Economic Advisor
to H.H. Sheikh Hamad Bin Khalifa Al
Thani and as the Secretary General for
the General Secretariat for Development
Planning (GSDP). H.E. Dr. Ibrahim Boutros
Al-Ibrahim holds a Ph.D. in Business
Administration from New York University
and his scholarly research in the areas
of forecasting, business economics and
energy economics have been published
internationally.
Chairman
BOARD OF
DIRECTORS
10
Deputy Chairman of the Board
11
H.E. MR. HAMAD ALI AL-MANNAI
MR. ALI MOHAMMED AL-KUBAISI
Member
Member
H.E. Mr. Hamad Ali Al-Mannai has been a Board Member of Qatar Development
Bank Since 2012. He serves as the Director of the Office of the Minister of
Business & Trade (Under Secretary Status). H.E. Mr. Al-Mannai holds multiple
academic degrees from Georgetown University and Florida Institute of
Technology and a Bachelors Degree with honors in Electrical Engineering with
emphasis on Telecommunication.
Mr. Ali Mohammed Al-Kubaisi has been a member of the Qatar Development
Bank Board since 2007, and is currently serving as an agricultural consultant
at the Ministry of Environment. Mr. Ali Mohammed Al-Kubaisi has a Bachelors
Degree in Agricultural Sciences. He participated in many local, regional and
international seminars and conferences.
MR. MUFTAH JASSIM AL-MUFTAH

Member
Mr. Muftah Jassim Al-Muftah has been a Board Member of Qatar Development
Bank since 1997, and is currently the Director of Public Revenues and Taxes
Department at the Ministry of Economy and Finance of the State of Qatar.
Mr. Al-Muftah holds a BA in Economics and Management from Oakland
University in Michigan, USA.
MR. NASSER MOHAMMED AL-MALKI

Member
Director of the Shared Services Department in the Supreme Education Council

since 2011, Mr. Al-Malki was appointed in the same year as Acting Director of
the Shared Services Department, aside from him being the Manager of Public
Facilities and Services; a position he held since 2006.
MR. SAEED MUBARAK AL-KAWARI

Member
Mr. Saeed Mubarak Al Kawari has been on the Qatar Development Bank Board
since 1997. He is also the Director of Industrial Development at the Ministry of
Energy and Industry. Mr. Saeed Al-Kawari has a Bachelors Degree in Industrial
Engineering from the University of North Carolina, USA and a Diploma in Public
Administration.
12
13
CEOs
MESSAGE
In 2014, Qatar Development Banks core portfolio of products and services reached more
Qatari businesses and entrepreneurs, while ambitious new projects and partnerships met
with major success in the marketplace.
The banks growth, performance, and expansion of services spanning the entrepreneurial
journey - from idea inception to implementation - is the result of the QDB teams tireless
work and dedication to growing the private sector and building our economic future.
It is with great pride and pleasure that I present the highlights of what we achieved
together in this past year:
QAR 1.11 BILLION in direct loans disbursed in 2014 a 65% increase from
the previous year. To date, QDB has granted QAR 3.15 BILLION in loans and
advances to 272 customers in Qatar.
Constant innovation in project finance, launching 3 new direct lending products in 2014:
Forward Ijara, Wakala (to buy and sell to self), and Bayal Wadiah (Islamic product for bill
discounting).
ABDULAZIZ BIN NASSER AL-KHALIFA | CHIEF EXECUTIVE OFFICER
Approved QAR 167.4 MILLION in loan guarantees through Al Dhameen in

2014 - securing access to lending for 69 SMEs who may not have got a loan otherwise.
Since 2011, QAR 573 MILLION in loan guarantees have been approved for
over 212 SMEs through Al Dhameen.
Enhanced Al Dhameens product base in close collaboration with our partner banks and
hosted an annual workshop for managers and credit officers at the banks to ensure that
SMEs seeking a loan are getting the best service and information.
262 SMEs
benefited from QDB Advisory Services, with 200 individual

counselling sessions held.
QAR 600 MILLION in financing for projects in strategic industry sectors primarily recycling and manufacturing.
14
15
Through market studies, matchmaking events and trade

exhibitions, QDB helped Qatari companies grow exports by
53%.
QAR 250 MILLION in new business orders for

Qatari exporters, following the QDB-backed participation of
60 Qatari SMEs in 10 international trade exhibitions.
QDB and Qatar Tourism Authority (QTA) announced the signing
of 4 sponsorship agreements which will enable the start-up of
four new projects in Qatars emerging tourism sector.
110 local SMEs and entrepreneurs competed to tender across

7 specific business opportunities for the Pearl GTL supply
chain. 33 companies qualified, and 5 companies signed the
contract with Shell.
QAR 1.8 BILLION in housing loans issued and

15,000 Qatari citizens were served in 2014. Having already
reduced the loan processing times to just 15 minutes, we remain
focused on enhancing customer experience by listening to
feedback and providing homeowners with the best information
available - including a list of approved contracting firms and
regular information sessions to help homeowners select and
manage the right contracting partner. 2014 also witnessed the
launch of online banking for housing loans.
Following the successful merger of Enterprise Qatar (EQ) and
QDB, creating a single umbrella for supporting the development
of SMEs, the full range of QDB products in the form of financing
was made immediately available to clients.
We are confident that our extended range of products and
offerings will allow us to soon become the single window entity for
all Qatari SMEs and entrepreneurs.
In partnership with the Social Development Center (SDC), we

launched Qatar Business Incubation Centre (QBIC), the largest
mixed-use business incubator in MENA. QBIC has already
graduated two classes of entrepreneurs from its acclaimed
LeanStartup program and has incubated 33 local companies.
16
17
Today, Qatar is the richest country in the world with the highest per
capita income. The real GDP is expected to grow at the rate of 6%
to 7% during 2014 to 2016. The country also has a rare, near zero
unemployment rate of 0.2%. As Qatar stands at the threshold of
unprecedented progress, with one of the fastest growing economies
in the world, the country also faces lots of challenges in terms of its
economic development. This is where Qatar Development Bank steps
in; to help overcome two of Qatars greatest challenges - economic
diversification and the private sectors contribution to GDP.
QATARS GDP IS EXPECTED TO REACH QAR 873 BILLION BY 2015
ENVISIONING
QATARS SUCCESS
ECONOMIC
DIVERSIFICATION
PRIVATE SECTOR
DEVELOPMENT
Having the worlds third largest natural gas

reserve also means a high dependency
on hydrocarbon-based industries to fuel
the economy. In 2012, 52% of Qatars
nominal GDP was contributed by oil & gas
mining, significantly higher than most other
economies. On the other hand, the private
sectors share of the GDP stood at 38%, a lot
lower than most resource-based economies.
The primary focus of Qatar Development

Bank is to create a robust and diversified
private sector in Qatar that can stimulate
economic growth through non-hydrocarbon
based industries.
Qatar Development Bank plays an

important role in accelerating the economic
diversification in Qatar by promoting private
sector development and shifting the focus
away from the hydrocarbon industries.
18
The bank promotes a number of strategic

industry sectors, including Manufacturing,
Education, Healthcare, Tourism, Agriculture,
Livestock and Fisheries. Through a range of
targeted business financing products and
support services, QDB is nurturing a sound
and sustainable SME eco-system and is
fostering a knowledge-based economy in
Qatar.
19
2014
YEAR OF SUCCESS
Number of SMEs (small and medium enterprises)

who signed contracts with Qatar Shell
262
Number of private sectors companies who were offered pre and post start-up
advice through advisory.
600 million
QATARS GDP EXPECTED TO REACH QAR 873 BILLION BY 2015
Number of approved financed projects in manufacturing and recycling.
QAR 250 million
The value of booked orders by Qatari exporters in various opportunities

enabled by Qatar Development Bank.
QAR 1.11 billion
Amount of direct loans disbursed.
QAR 573 million
Total amount of guarantees given to over 69 SMEs in favor of

14 commercial banks under Al Dhameen program.
645
Number of shops built in the first phase of Al Furjan Market project.
QAR 3.15 billion
The total outstanding loans sanctioned under the

direct lending program to over 272 customers
QAR 1.8 billion
The total amount of housing loans disbursed to Qatari citizens.
20
21
INDUSTRIAL I EDUCATION I HEALTHCARE

TOURISM I AGRICULTURE I LIVESTOCK I FISHERIES
KEY SEVEN
SECTORS
22
SEVEN VITAL SECTORS.

MANY SUCCESS STORIES.
THE DEVELOPMENT AND DIVERSIFICATION OF THE QATARI
ECONOMY, IN LINE WITH QATAR NATIONAL VISION 2030, IS AT
THE HEART OF OUR VISION AT QDB. WE AIM TO ACHIEVE THIS BY
SUPPORTING THE OWNERS OF SMALL AND MEDIUM ENTERPRISES
THROUGH SIGNIFICANT INVESTMENTS IN PRIVATE SECTOR
DEVELOPMENT, WHILE FOCUSING OUR EFFORTS ON THE SEVEN
KEY INDUSTRY SECTORS THAT ARE CRITICAL TO BUILDING A
ROBUST AND SUSTAINABLE ECONOMY AS WELL AS RAISING THE
SOCIO-ECONOMIC STANDARDS IN QATAR.
23
INDUSTRIAL
SECTOR
140
PROJECTS
24
1.62
QAR
BILLION
KEEPING THE WHEELS OF PROGRESS TURNING
INDUSTRIAL DEVELOPMENT IS KEY TO REALIZING

QATARS ECONOMIC DIVERSIFICATION GOALS. AT QATAR
DEVELOPMENT BANK, WE HAVE BEEN SUPPORTING THE
DEVELOPMENT OF THE MANUFACTURING SECTOR BY
OFFERING STRATEGIC FINANCING SERVICES TO QATARI
ENTREPRENEURS APART FROM A RANGE OF NON-FINANCIAL
SUPPORT SERVICES.
25
NURTURING THE FUTURE OF QATAR
EDUCATION
SECTOR
9
PROJECTS
89.47
QAR
MILLION
QATAR DEVELOPMENT BANK, IN CONSULTATION

WITH THE SUPREME EDUCATION COUNCIL, PROVIDES
COMPETITIVE AND FEASIBLE FINANCING SOLUTIONS FOR
THE EDUCATION SECTOR. WE OFFER DIRECT LENDING
FACILITIES OF UP TO 70% OF THE PROJECT VALUE, WITH
A STRONG FOCUS ON PRIMARY EDUCATION, FROM
KINDERGARTEN TO HIGH-SCHOOL LEVEL.
26
27
HEALTHCARE
SECTOR
3
PROJECTS
28
62.4
QAR
MILLION
INVESTING IN A HEALTHY COMMUNITY
THE PRIVATE SECTOR IS EXPECTED TO PLAY A LEADING ROLE

IN QATARS HEALTHCARE DOMAIN. AT QATAR DEVELOPMENT
BANK, WE PROVIDE COMPREHENSIVE FINANCING SOLUTIONS
TO A WIDE RANGE OF HEALTHCARE PROJECTS IN QATAR, IN LINE
WITH THE NATIONS HEALTHCARE STRATEGY. WE OFFER DIRECT
LENDING FACILITIES THAT COVER UP TO 70% OF THE OVERALL
PROJECT COST AND UP TO 80% OF THE EQUIPMENT COST.
29
OPENING MORE DOORS TO QATAR
TOURISM
SECTOR
1
PROJECT
54.2
QAR
MILLION
THE TOURISM SECTOR IN QATAR HAS GROWN

EXCEPTIONALLY OVER THE PAST FEW YEARS,
OWING TO THE COUNTRY WINNING THE HONOR
OF HOSTING FIFA 2022 WORLD CUP, CREATING A
SURGE IN DEMAND FOR TOURISM AND HOSPITALITY
RELATED FACILITIES.
30
31
AGRICULTURE
SECTOR
PRE-APPROVED
PROGRAMS
32
4.23
QAR
MILLION
PLANTING A SUSTAINABLE FUTURE
BY 2024, QATAR AIMS TO PRODUCE 40% OF ITS OWN FOOD.

HENCE, TO SUPPORT THE NATIONS FOOD SECURITY GOALS,
QATAR DEVELOPMENT BANK OFFERS COMPETITIVE DIRECT
FINANCING TO INDIVIDUAL QATARI AGRICULTURISTS AT 1%
FINANCING RATE. THROUGH OUR COLLABORATION WITH THE
STATE-OWNED AGENCY HASSAD FOOD, WE ARE FURTHERING
OUR SUPPORT TOWARDS THE SECTORS DEVELOPMENT THROUGH
NEED-BASED FINANCING AND SUPPORT SERVICES.
33
GROWING THE LOCAL SUPPLY CAPACITY
LIVESTOCK
SECTOR
62
PRE-APPROVED
PROGRAMS
18.15
QAR
MILLION
QATAR DEVELOPMENT BANK IS ACTIVELY SUPPORTING

THE FOOD SECURITY PROGRAM, WHICH IS IN LINE WITH
QATAR NATIONAL VISION 2030, BY LAUNCHING PRODUCTS
AND SERVICES THAT SPECIFICALLY ADDRESS THIS SECTOR.
WE OFFER DIRECT LENDING FACILITIES AT 1% FINANCING
RATE. WE ARE ALSO WORKING WITH THE MINISTRY OF
ENVIRONMENT AND WEDAM TO ADDRESS LIVESTOCK
SHORTAGES THROUGH THE DEVELOPMENT OF A PROPER
BREEDING PLATFORM IN QATAR.
34
35
SURFING NEW WATERS WITH A FOCUS ON EXPORTS
FISHERIES
SECTOR
24
PRE-APPROVED
PROGRAMS
36
2.26
QAR
MILLION
DEVELOPING THE FISHING SECTOR, WHICH HAS LONG BEEN A KEY

PILLAR OF QATARS ECONOMY, NOT ONLY HELPS THE NATION MEET
ITS FOOD SECURITY GOALS BUT ALSO HELPS BUILD A STRONG EXPORT
INDUSTRY. QATAR DEVELOPMENT BANK OFFERS DIRECT FINANCING
AT 1% INTEREST RATE TO INDIVIDUAL ENTREPRENEURS FOR THE
PURCHASE OF BOATS AND FISHING EQUIPMENT. RECENTLY, WE ALSO
LAUNCHED A NEW SHARIAH-COMPLIANT FINANCING PROMOTION
FOR THE SECTOR, BASED ON THE MURABAHA FINANCING PRODUCT.
37
DIRECT LENDING I AL DHAMEEN I TASDEER I HOUSING LOANS
PRODUCTS
38
QATAR DEVELOPMENT BANK OFFERS A ROBUST PORTFOLIO

OF FINANCING PRODUCTS TO SMALL AND MEDIUM QATARI
ENTERPRISES TO PROMOTE PRIVATE SECTOR DEVELOPMENT
IN QATAR. INNOVATIVE, COMPETITIVE AND NEED-BASED,
THESE PRODUCTS ARE DESIGNED TO SUPPORT QATARI
ENTERPRISES THROUGH EVERY STAGE OF THEIR GROWTH
AND SUCCESS - FROM LAUNCH TO BUSINESS EXPANSION
AND EXPORT PROMOTION.
39
HELPING POWERFUL IDEAS BECOME

SUCCESSFUL ENTERPRISES
DIRECT
LENDING
DIRECT FINANCE
DISBURSED
A TOTAL OF
40
3.15
QAR
BILLION
DIRECT LENDING OFFERS LONG-TERM BUSINESS AND PROJECT

FINANCING AT COMPETITIVE RATES TO BOTH EXISTING AND
START-UP COMPANIES OPERATING IN STRATEGIC BUSINESS
SECTORS IN QATAR. DESIGNED TO SUPPORT THE GROWTH
AND DEVELOPMENT OF THE PRIVATE SECTOR, OUR DIRECT
LENDING PRODUCTS CATER TO COMPANIES OPERATING IN
THE MANUFACTURING, HEALTHCARE, TOURISM, EDUCATION,
AGRICULTURE AND FISHERIES SECTORS.
41
FACILITATING BUSINESS FINANCING

FOR START-UPS AND SMEs
AL DHAMEEN
VALUE OF
GUARANTEED
LOANS
573
QAR
MILLION
GRANTED TO 212 SMES
AL DHAMEEN IS AN INDIRECT LENDING FACILITY ESTABLISHED BY QDB TO

GUARANTEE COMMERCIAL BANK LOANS TO PRIVATE SECTOR COMPANIES
WITH LIMITED CREDIT HISTORY AND LACK OF COLLATERAL TO OBTAIN
ACCESS TO FUNDS IN ORDER TO ESTABLISH AND/OR GROW THEIR
BUSINESSES. ALL CORE SECTOR BUSINESS ACTIVITIES ARE ELIGIBLE FOR
SUPPORT UNDER AL DHAMEEN EXCEPT FOR: AGRICULTURE, FISHING AND
LIVESTOCK, NON-OIL MINING AND QUARRYING, WHOLESALE AND RETAIL
TRADE, FINANCIAL AND INSURANCE, AS WELL AS REAL ESTATE, WHICH ARE
FUNDED THROUGH OUR DIRECT FINANCE PROGRAM.
Partner Banks
42
43
PROMOTING QATARS EXPORTS IN THE GLOBAL MARKET
TASDEER
NON-HYDROCARBON
EXPORT GREW BY
44
56%
IN 2014
LAUNCHED IN 2011, TASDEER OFFERS FINANCIAL SOLUTIONS,

CREDIT INSURANCES AND ADVISORY SERVICES TO QATARI
EXPORTERS. THE PROGRAM ALSO HELPS QATARI BUSINESSES GROW
THEIR EXPORT CAPABILITIES THROUGH EXPORT DEVELOPMENT AND
PROMOTIONAL SUPPORT. ALL QATARI EXPORTERS ARE ELIGIBLE FOR
TASDEER SUPPORT, REGARDLESS OF THE SIZE OF THEIR EXPORT
CONTRACTS, BUSINESS SECTOR AND TURNOVER.
45
THE LARGEST HOUSING LOAN PROGRAM OF ITS KIND
HOUSING
LOANS
1.8
QAR
BILLION
THE TOTAL AMOUNT OF

HOUSING LOANS DISBURSED
TO QATARI CITIZENS UP TO
DECEMBER 2014
QATAR DEVELOPMENT BANK MANAGES THE GOVERNMENT-SPONSORED

AND FUNDED HOUSING LOANS FOR QATARIS, WHICH IS PART OF THE
GOVERNMENTS EFFORT TO ACHIEVE THE SOCIAL DEVELOPMENT
GOALS OF QNV 2030. WE MANAGE THE ENTIRE PROCEDURE RELATED
TO HOUSING LOANS FOR ALL QATARI CITIZENS WHO QUALIFY FOR
THE LOAN. IN ORDER TO PROVIDE THE BEST POSSIBLE SERVICE TO
OUR CUSTOMERS, WE CONSTANTLY STREAMLINE AND SIMPLIFY
THE PROCEDURES ASSOCIATED WITH THE LOAN REQUEST AND
DISBURSEMENT. THE TIME NEEDED TO APPROVE THE LOAN PAPERWORK
HAS BEEN REDUCED TO 15 MINUTES AND THE LOAN IS DISBURSED TO
THE CLIENT ON THE DAY OF THE APPROVAL ITSELF.
46
47
BUSINESS PLAN CREATOR I ADVISORY SERVICES I SME TOOLKIT I BEDAYA

BANKS TRAINING SESSIONS I QATAR BUSINESS INCUBATION CENTER
PRIVATE SECTOR
INITIATIVES
48
OBTAINING PROJECT FINANCING IS ONLY ONE OF THE STEPS

TOWARDS BUILDING A SUCCESSFUL ENTERPRISE. HENCE, QATAR
DEVELOPMENT BANK OFFERS AN INNOVATIVE RANGE OF
BUSINESS DEVELOPMENT AND ADVISORY SERVICES TO QATARI
ENTERPRISES TO BOLSTER PRIVATE SECTOR GROWTH AND
DIVERSIFICATION, IN LINE WITH QATAR NATIONAL VISION 2030,
THESE SERVICES ARE AIMED AT GUIDING, TRAINING, PROBLEM
SOLVING AND SKILLS ENHANCEMENT; MOSTLY AVAILABLE FREE
OF CHARGE TO QATARI ENTREPRENEURS.
49
BUSINESS PLAN
CREATOR
OVER
50,000+
DOWNLOADS
OF THE BUSINESS
PLAN CREATOR
APPLICATION IN 2014
THE QDB BUSINESS PLAN CREATOR APPLICATION IS DESIGNED

TO HELP ENTREPRENEURS PLAN AND DEVELOP THEIR BUSINESS
IDEA AND ASSESS THE FINANCIAL AND TECHNICAL FEASIBILITY OF
THEIR BUSINESS CONCEPT. THE APP HELPS PRODUCE A THOROUGH
BUSINESS PLAN, ENCOURAGING AND PROMPTING THE USER TO
THINK ABOUT THE VARIOUS ASPECTS OF HIS/HER BUSINESS.
THE BUSINESS PLAN CREATOR APPLICATION CAN BE
DOWNLOADED FROM THE QDB WEBSITE, AND IS AVAILABLE FOR
BOTH IPAD AND ANDROID PHONES AND TABLETS.
50
51
ADVISORY
SERVICES
PRE AND POST
START-UP ADVICE
OFFERED TO
262
OVER
PRIVATE SECTOR
CLIENTS
ADVISORY SERVICES OFFERS BUSINESS DEVELOPMENT SUPPORT

AND BUSINESS COUNSELING TO OUR CLIENTS AS WELL AS
OTHER ENTREPRENEURS. THIS INCLUDES:
Business Development Services - helping entrepreneurs and SMEs to develop
feasibility studies, conduct market research and select appropriate technology
Business counseling for both start-ups and existing SMEs
Providing entrepreneurs with tools for enhancing soft skills
Developing contacts with financial and non-financial support agencies
52
53
SME
TOOLKIT
THE SME TOOLKIT
HAD OVER
80,000+
UNIQUE USERS
OF ITS ONLINE TOOLS
AN ONLINE RESOURCE CENTER FOR ENTREPRENEURS AND SMES, SME

TOOLKIT OFFERS COMPREHENSIVE INFORMATION ABOUT STARTING,
RUNNING AND GROWING BUSINESSES FOR SMEs.
LAUNCHED IN COLLABORATION WITH INTERNATIONAL FINANCE
CORPORATION (IFC) AND IBM, SME TOOLKIT GIVES ENTREPRENEURS
AND SMES ACCESS TO INFORMATION, DOCUMENTS, SOFTWARE,
ADVICE, E-LEARNING AND SUPPORT. THIS INCLUDES OVER 100 LOCALLY
RELEVANT DOCUMENTS ON DOING BUSINESS IN QATAR AS WELL AS VAST
RESOURCES ON INTERNATIONAL BUSINESS BEST PRACTICES.
54
55
BEDAYA (Partnership with Silatech)

IN 2014 BEDAYA
SUPPORTED OVER
6,500+
CLIENTS IN THE
ENTREPRENEURSHIP
AND CAREER
DEVELOPMENT FIELDS
A JOINT VENTURE BETWEEN QDB AND SILATECH, BEDAYA CENTER FOR

ENTREPRENEURSHIP AND CAREER GUIDANCE OFFERS A WIDE RANGE
OF PROFESSIONAL SERVICES TO QATARI YOUTH FOCUSING ON GUIDING
AND HONING THEIR ENTREPRENEURIAL OR CORPORATE CAREERS.
AS A CENTER FOR ENTREPRENEURSHIP DEVELOPMENT, BEDAYA HELPS
YOUNG ENTREPRENEURS GET ACCESS TO BUSINESS FINANCING
APART FROM OFFERING THEM SKILL DEVELOPMENT AND BUSINESS
COUNSELING SERVICES. AS A CAREER GUIDANCE CENTER, BEDAYA
OFFERS A WIDE RANGE OF PROGRAMS, EVENTS, WORKSHOPS AND
COUNSELING SESSIONS TO HELP BRIDGE THE GAP BETWEEN QUALIFIED
QATARI YOUTH AND THE CORPORATE WORLD; HELPING THEM MAKE
THE RIGHT CAREER CHOICES.
56
57
BANKS TRAINING
SESSIONS
30
ATTENDANCE
FROM AL DHAMEEN
PARTNER BANKS
58
FOR THE SME DEBT

RESTRUCTURING AND
TURNAROUND SESSION
THROUGH THE TRAINING FOR BANKS PROGRAM, WE OFFER

SPECIALIZED TRAINING TO BANKERS, EDUCATING THEM ON THE GLOBAL
BEST PRACTICES IN SME BANKING AND METHODS OF ADAPTING THESE
PRACTICES TO THE LOCAL MARKET CONDITIONS.
THE PROGRAM WAS LAUNCHED WITH THE OBJECTIVE OF HELPING
COMMERCIAL BANKS UNDERSTAND THE POTENTIAL BENEFITS OF
TARGETING THE GROWING SME SECTOR AND THEREAFTER, HELPING
THEM BUILD AND EXPAND THEIR SME BUSINESS OFFERINGS.
EVERY YEAR, THE TRAINING IS CONDUCTED WITH A DIFFERENT
TRAINING INSTITUTE. IN 2012, IT WAS CONDUCTED IN COLLABORATION
WITH INTERNATIONAL FINANCE CORPORATION (IFC) AND IN 2013, IN
COLLABORATION WITH INTERNATIONAL FACULTY OF FINANCE (IFF).
59
QATAR BUSINESS
INCUBATION CENTER
(Partnership with SDC)
ONE OF THE LARGEST BUSINESS

INCUBATOR FACILITIES IN THE MIDDLE
EAST, LAUNCHED IN MAY 2014
OPENED IN MARCH 2014, QATAR BUSINESS INCUBATION CENTER

(QBIC) IS A FIRST-OF-ITS-KIND, MIXED-USE INCUBATION FACILITY FOR
ENTREPRENEURS TO NURTURE, DEVELOP AND COMMERCIALIZE THEIR
BUSINESS IDEAS.
QBIC HAS BEEN SET UP TO PROMOTE LOCAL ENTERPRISES AND
HELP THEM ALIGN THEIR BUSINESSES WITH THE NEEDS OF MAJOR
DEVELOPMENT PROJECTS IN QATAR LIKE FIFA WORLD CUP 2022 AND
THE RAILWAY PROJECT. THE CENTER OFFERS SHARED INFRASTRUCTURAL
AND OPERATIONAL RESOURCES TO NURTURE BUSINESSES IN A
PROFESSIONAL ENVIRONMENT. THE BUSINESS DEVELOPMENT SERVICES
INCLUDE BUSINESS-PLANNING, OPERATIONS, PRODUCTION, MARKETING,
ACCOUNTING, LEGAL, NETWORKING, FINANCE AND EXPORT, ETC.
60
61
AL FURJAN MARKETS I QATAR SHELL I QATAR TOURISM AUTHORITY

QRAIL I SUPREME COUNCIL OF HEALTH I COOPERATION BETWEEN
MINISTRY OF ENVIRONMENT AND WEDAM FOOD COMPANY
PARTNERSHIPS
62
63
645
SHOPS
SMEs SIGNED
CONTRACTS
25+
BUSINESS
OPPORTUNITIES
120
OPPORTUNITIES
AL FURJAN MARKETS
Qatar Development Bank joined hands with the Qatari Ministry of
Economy and Commerce to launch Al Furjan Markets, a unique
initiative to create 255 viable retail hubs located within 9 different
domestic areas nationwide and aiming to serve the population
of Qatar with a line-up of shops and arcades that cater to their
household needs and demands. Al Furjan, a project which will be
implemented with Qatar Development Bank, will be established
on government property and will play a key role in alleviating
congested traffic points in Doha due to massive influx of residents
heading to the capital to run their daily errands. Through this
initiative, QDB is supporting the commercial sector development
and promoting a sustainable economic environment in the
country, in line with Qatar National Vision 2030.
QATAR SHELL
110 local SMEs and entrepreneurs competed to tender across
seven specific business opportunities for the Pearl GTL supply
chain. 33 companies qualified, and 5 companies signed the
contract with Shell.
QATAR TOURISM
AUTHORITY
In December 2012, QDB and QTA appointed Tourism
Development International to identify and assess business
opportunities in the Tourism Value Chain in Qatar, in preparation
for the FIFA 2022 World Cup. Through the partnership, the bank
has identified 25 opportunities in the tourism sector for the local
small and medium enterprises thereby reinforcing the private
sector development in line with Qatar National Vision 2030.
QRAIL
In order to support the involvement of the small and medium
enterprises in the Qatar Rail projects, Qatar Development Bank
has collaborated with Qatar Rail and identified 120 business
opportunities. Our bank will provide financing solutions for
investors thus supporting the development of the private sector
and strengthening Qatars economy, in line with the banks
strategy to support Qatar National Vision 2030.
MEDICAL
CENTERS
SUPREME COUNCIL
OF HEALTH
Qatar Development Bank launched a new financing product dedicated to the
development of Qatari healthcare sector, in line with the banks strategy to
support Qatar National Vision 2030.
Through this product, QDB provides comprehensive financing solutions to a
wide range of healthcare projects, including the construction of diagnostics
clinics, and specialized medical and therapeutic centers. The bank also
finances all types of healthcare equipment, furniture and fixtures, computers,
vehicles and ambulances that are used for healthcare purposes.
99
DEALS
COOPERATION BETWEEN
MINISTRY OF ENVIRONMENT
AND WEDAM FOOD
COMPANY
QDB launched a new financing scheme targeting Qatari small and big
farm owners, and aimed at purchasing and raising female livestock, which
complements the countrys vision to guarantee food security.
The new Shariacompliant scheme was launched in cooperation with the
Livestock Management unit of the Ministry of Environment and Widam Food
Company. It provides small farm owners with financial loans of up to QAR
250,000, with a repayment period of up to 5 years, and big farm owners with
financial loans of up to QAR 750,000, with a repayment period of up to 8
years, at only 1% interest.
64
65
CORPORATE
GOVERNANCE
66
QDBS CORPORATE GOVERNANCE PRINCIPLES AND

PRACTICES ARE ENSHRINED IN ITS CORPORATE
GOVERNANCE POLICY AND CODE OF CONDUCT AND
BUSINESS ETHICS FOR ITS EMPLOYEES DULY APPROVED
BY THE BOARD OF DIRECTORS AND COMMUNICATED
TO EACH AND EVERY EMPLOYEE OF THE BANK.
67
REPORT ON
CORPORATE GOVERNANCE PRACTICES

IN QDB
QDBs corporate governance principles and practices are enshrined in its Corporate Governance Policy
and Code of Conduct and Business Ethics for its employees duly approved by the Board of Directors and
communicated to each and every employee of the Bank.
Being a state owned entity formed to fulfill a specific objective of supporting and promoting Qatar based
enterprises to broad-base and diversify the Qatari economy, the efficiency and accountability of the Bank is
a matter of both private and public interest and governance, therefore, is naturally on top of our agenda.
The corporate governance practices at QDB emanate from the solemn belief that sound governance
practices would go a long way in enabling QDB to achieve its strategic objectives, improve business
performance, enhance stakeholder perception of the Bank and generate a greater commitment from the
employees. It is the appreciation of this linkage that provides the context and content to our Corporate
Governance Principles and Practices.
We intend to use Corporate Governance as an instrument of internal change in our pursuit to engender a
social and economic transformation of the society in tandem with the objectives outlined in Qatar National
Vision 2030.
2.2 Appointment of Board Members

In accordance with Banks Articles of Association, the Banks Board of Directors is nominated
by HH the Emir of Qatar and consists of representatives from key stakeholder Government
Departments and Ministries.
The members are eminent persons with considerable experience in Industry/government and
are the key torch bearers of govt. strategy in developing the non-oil sectors of Qatari economy.
Our Board is an active Board, which meets frequently during the year to chart out policies and
practices and to decide on critical matters affecting the strategy and operations of the bank.
2.3. Composition

The present strength of the Board is seven and is chaired by H.E. Sheikh Abdullah Bin Saud AlThani.
Board Members
For us at QDB, implementation of Corporate Governance Practices have to be taken beyond the letter of
the corporate governance code and applied it innovatively in a more practical manner, making it relevant to
the organization operating in a specific environment different from the generic banking environment.
The basic tenets and pillars of our corporate governance framework are:

Competent and Qualified Board of Directors
Transparency in our business dealings
Chairman of the Board
H.E. Dr. Ibrahim Boutros Al-Ibrahim
Deputy Chairman of the Board
Mr. Muftah Jassim Al-Muftah
Member
Mr. Saeed Mubarak Al-Kuwari
Member
Mr. Ali Mohammed Al-Kubaisi
Member
Mr. Nasser Mohammed Al Malki
Member
H.E. Mr. Hamad Ali Al Mannai
Member
Accountability and fairness in our operations
Upholding the highest standards of business ethics and professional conduct
2.4 Board Procedures
Effective Compliance and Risk Management
The Board discusses all major issues based on comprehensive background information
and analysis, which is prepared and provided by executive level stakeholders to enable the
Board to take informed decisions. Agenda papers are generally circulated seven working days
prior to the meeting of the Board.
The members of the Board exercise due diligence in the performance of the functions as
Directors of the Bank and follow the highest degree of business ethics, transparent practices
and code of good governance amidst a congenial business environment.
The Board has been closely involved in the following activities:
Independent Internal Audit.
Corporate Governance Framework:
1. VISION AND MISSION

Our Vision: To be the primary enabler of Qatars private sector and economic diversification.
Our Mission: To accelerate the development of the Qatari private sector in line with the
diversification needs of Qatar.
2. GOVERNANCE
2.1 Board of Directors

68
H.E. Sheikh Abdullah Bin Saud Al-Thani
QDBs Board of Directors is primarily responsible for the development and implementation of
sound and ethical governance practices across the enterprise. It is the Boards primary duty
to ensure that principles of corporate governance, both as described by relevant laws and
regulations and those voluntarily adopted by the Bank are religiously followed and complied
with.
The Board has been actively involved in approving the Banks strategies and objectives;
Actively carry out its overall responsibility for the Bank, including its business and risk
strategy, organization, financial soundness and governance.
Approve and oversee the implementation of the Banks:
o overall risk strategy, including its risk tolerance/appetite;
o risk policy, risk management and internal control systems, including compliance policy; and
o corporate governance principles and corporate values, including a code of conduct or
comparable document.
69
REPORT ON CORPORATE GOVERNANCE PRACTICES IN QDB (Continued)
The Board provides oversight of senior management as part of the Banks checks and
balances. In doing so the Board:
o monitors that senior managements actions are consistent with the strategy and policies
approved by the Board, including the risk tolerance/appetite;
o regularly interacts with senior management;
o reviews critically explanations and information provided by senior management; and
o set formal performance standards for senior management consistent with the longterm objectives, strategy and financial soundness of the Bank, and monitor senior
managements performance against these standards.
o define clearly the key responsibilities and authorities of the Board itself, as well as of senior
management and the control functions.
Defining compensation policies in line with the Banks long-term objectives; and
supervise the management of the risks generated by operations that lack transparency
Protect the interests of stakeholders and
align corporate activities and behaviour with the expectation that the bank will operate
in a safe and sound manner, with integrity and in compliance with applicable laws and
regulations.
The Board gives particular attention to ensuring that transactions with related parties are
reviewed to assess risk and are subject to appropriate restrictions as required by QCB
regulations.
environment. The committee also works on reviewing and strengthening marketing and
communications plans as well as the allocation of resources in an effective matter to ensure its
adaptability to support the banks development and growth and development of its activities.
Moreover, the committee studies evaluates and adopts aspects of investment, funds and
credit facilities above the allowable limit for the executive management of the bank and makes
recommendations to the Board of Directors in situations it exceeds its authority.
Audit and Compliance Committee
Composition of Audit and Compliance Committee:

Mr. Muftah Jassim Al-Muftah
Chairman of the Committee
Mr. Ali Mohammed Kubaisi
Member
Mr. Nasser Mohammed Al Malki
Member
During the year 2014, the Audit and Compliance Committee has met 6 times.
Executive and Policy Committee
70
It is the sub-committee of Board with responsibility to oversee the Audit and Compliance
Management function in the Bank. Specific responsibility lies in approving the yearly audit plan
and reviewing the audit reports; following up on audit action points; regularly reviewing audit
and compliance profile of the Bank; monitoring implementation of audit & compliance policies,
strategies and tools.
It is another sub-committee of the Board responsible for the study and preparation, and
development strategies, objectives and policies, systems, plans and budgets. The Committee
has the authority to exercise the powers as delegated from the Board of Directors in the
granting of credit renewal and follow-up and investment, and capital investment in excess of
the powers of the executive management.
The committee also develops a long-term strategy for Qatar Development Bank based on
market and economic conditions and directions of the Board of Directors; in addition to that it
is in charge of the development of business plans and annual budgets for the Bank in line with
the long-term strategy taking into consideration the market, economic and regulatory changing
H.E. Mr. Hamad Ali Al Mannai
Member
Mr. Abdul Aziz N. Al Khalifa
Member
During the year 2014, the Executive and Policy Committee has met 3 times.
An independent body of specialist jurists in Fiqh-Al- Muamalat, responsible for ensuring that
the Banks Islamic finance operations are in compliance with the Islamic Sharia principles and
guidelines. The Fatwa and Sharia Supervisory Board is responsible for ensuring the following:
Provide Islamic advice and guidance to ensure that all QDB activities comply with Sharia
principles and guidelines.
Review Sharia Auditors report and report to full Board members on QDBs compliance with
sharia principles.
Determine whether contracts, transactions and dealings entered by QDB complies with
Sharia law.
Ensuring that the products are represented fairly and clearly to customers, in accordance with
Sharia principles.
Composition of Fatwa and Sharia Supervisory Board:
2.6 Board Committees
Two sub-committees were formed by the Board to help in deciding upon specific issues.
These are:
Chairman of the Committee
During the year 2014 the Board met 7 times.
Mr. Saeed Mubarak Al Kawari
2.7 Fatwa and Sharia Supervisory Board
2.5 Frequency of Board Meetings

Composition of Executive and Policy Committee:
Prof. Dr. Ali Muhyeadin Al- Quradaghi
Chairman and Executive Member
Dr. Sultan Ibrahim Al-Hashemi
Member
2.8 Executive Management

The Bank has an experienced and qualified executive management team lead by its CEO to run
the day to day affairs of the Bank and implement strategic objective as defined and approved
by Board.
Mr. Abdulaziz N. Al-Khalifa heads the executive management of the bank as its Chief Executive
Officer. He has been in this position since September, 2013.
2.9 Organizational Structure

The organizational structure of the Bank has been designed to facilitate business, create
efficient customer acquiring and delivery channels within the contours of a robust internal
control and compliance framework. The basic tenet of our Enterprise structural and functional
organization is that the roles related to business decisions and risk analysis remain independent
of each other and that the authorities are vested as per the organizational hierarchy, with more
critical, high financial impact and high risk decisions being taken by the highest echelons of
Board and Executive Management.
71
2.9.1 Authority Manual

The Bank has an Enterprise Authority Manual duly approved by the Board which
defines the financial and non-financial authorities at each level. In deference to sound
governance practices, the Bank has adopted a Grid structure for approvals where all
major and significant decisions are entrusted with different committees and individual
authorities, wherever granted are tightly regulated.
2.9.2 Policies and Procedures

All business and support units have documented policies and procedures in place which
are updated at regular intervals. Banks Policy & Operational Risk and Business Continuity
Committee has the responsibility to ensure that each business/support unit has well
defined and documented procedures along with expected service standards in place.
The Risk Management Department within the Credit & Risk Management Directorship
of the Bank periodically reviews and validates the process maps from a risk and control
perspective.
2.9.3 Segregation of Duties

A balance between the roles and responsibilities of the Board of Directors and
Management is achieved through duty segregation.The Board of Directors provides
the overall strategic direction and oversight through the review and approval of major
strategic initiatives, policies and objectives while day-to-day management of the Bank is
entrusted to the Chief Executive Officer.

3. RISK MANAGEMENT
3.1 Risk Governance and Responsibilities for Risk Management

The Bank has implemented a robust and fit for purpose risk governance model keeping in
view the underlying fundamental requirement of independence of risk analysis and information
from the business and clear definition of authorities and responsibilities at all levels and across
the enterprise.
3.1.1 Board (Strategic) Level

The Board of Directors (Board) bears the overall responsibility for defining the level of
risk accepted by the Bank and oversight of the risk management processes in the Bank.

Sharia Advisory and Supervisory Board (SASB) reviews the Islamic finance based
products to ensure that these are and remain Sharia compliant. Audit and Compliance
Committee is the Board sub-committee to discuss the audit and internal control issues
and act as the support level for the full board.
3.1.2 Management Level

At the organizational level, conflict of interest is actively managed by way of clear

independence between business generating, risk management and processing depts.
Internal Credit Committee (ICC)
The Internal Credit Committee is the key executive level credit approval committee in
the bank with the primary responsibility of discussing and approving the credit (including
Fund or Non-Fund based commitments) proposals originating from Business Finance, Al
Dhameen, Tasdeer or any other Business unit mandated to take up credit risk exposure
in accordance with the credit policy of the bank.
ICC comprises the following voting members:
72
CEO
Chairman
Executive Director, Operations and Support
Deputy Chairman
Executive Director, Strategy and Business Development
Member
Executive Director, TASDEER
Member
Executive Director, Business Finance
Member
Executive Director, Credit and Risk Management
Member
Legal Manager
Member
Head of Risk Management
Member
Financial Controller
Member
Frequency of Meetings
The full committee meets at least twice every month. More frequent sessions are
required whenever some specific issues require immediate action / follow-up. In
exceptional circumstances and with prior approval of the CEO, ICC discussion items
are circulated among the ICC members for their decision without convening a formal
meeting.
73
Tenders and Purchasing Committee
MRC comprises the following members:
The key purpose of the committee is to approve purchases (as per the delegated
authority) and tender bids for engineering projects or other admin related contracts/
supplies.
Tenders and Purchasing Committee comprises:

CEO
Chairman
Executive Director, Strategic Planning
Deputy Chairman
Member
Member
Chief Executive Advisor
Member
Legal Manager
Member
Procurement & Tendering Manager
Member
Human Resources and Grievances Committee
The purpose of the committee is to receive, deliberate and approve action related to
employee grievances and matters related to disciplinary actions.
Human Resources and Grievances Committee comprises:
74
CEO
Chairman
Deputy Chairman
Deputy Chairman
Member
Human Resources and Admin Manager (Acting)
Member
Chief Executive Advisor
Member
Management Risk Committee
The Management Risk Committee (MRC) is an executive management level constituted

to ensure that the bank adequately manages its non-financial risk including Operational
risk, strategic risk, reputational risk & Business continuity plan and is also responsible for
discussing & evaluating all aspects of the Banks Policies & products.
The primary objective of the committee is to oversee:

Ensure that key operational risks inherent in the business and support activities
undertaken by the bank are identified, assessed, reported and mitigated and that the
bank has robust and on-ground business continuity procedures.
MRC would also perform its Board mandated responsibilities for managing Risk
governance, Operational risk, Strategic risk, Reputational Risk and any other nonfinancial risk impacting the bank from time to time.
CEO
Chairman
Member
Member
Acting Executive Director, Business Finance
Member
CEO Advisor
Member
Member
Member
Member
Human Resources and Admin Manager
Member
Operations Manager
Member
Legal Manager
Member
IT Manager
Member
Head Of Risk Management
Member
Risk Officer
Member
The full Committee meets at least monthly, and minutes are kept of the meetings. More
frequent sessions are required whenever some specific issues require immediate action /
follow-up.
Performance Management Evaluation Committee (PME)
The committee functions include governing and insuring that all objectives are aligned
with QDBs goals and objectives; signing off and evaluating all objectives with the line
managers; in addition to conducting the annual evaluation and review with respective
executive directors / managers.
Asset Liability Management Committee
ALCO in the bank has a much broader role than the management of typical assetliability risks like market and liquidity based risks. ALCO has the responsibility to discuss,
implement and monitor Board approved strategies for management of all financial risks
that the bank is exposed to.
These include
Credit Risk
Market Risk
Liquidity Risk
Concentration Risk
75
3.1.3 Operating Level
ALCO comprises the following members:
CEO
Chairman
Member
Executive Director, Tasdeer
Member
Member
Executive Director, Business Finance (Acting)
Member
Member
Member
Treasurer
Member
Legal Manager
Member
Housing Loan Manager
Member
Head of Risk management
Member
Head of Business Development
Member
Risk Officer
Member
Risk Management
At the operating level, Risk Management Department is the main unit responsible
for implementing approved risk strategies, tools and providing risk information to
management and board level.
Other stakeholder Departments like Business Finance, Tasdeer, Credit Management,
Treasury and Finance work in close coordination with risk and audit dept.s to manage
the risk exposures the Bank is taking at a strategic and tactical day to day level. The RMD
is responsible to identify measure, monitor and control various risks faced by the Bank. It
assists in optimal risk/return decisions and to reduce volatility in operating performance.
Specific responsibilities related to risk management have been listed below.
Formulation, review and the implementation of the risk management Manual and
procedures;
Identifying, mitigating, monitoring and reporting on levels of risk across the Bank;
Preparation and analysis of accurate and timely market, credit, liquidity, investment
and operational risk reports to senior management;
Monitor The risk type of limits.
Monitoring and tracking of key risk indicators;
Review of new products with respect to the risks introduced by them.
The full committee meets at least monthly and minutes are kept of the meetings. More
frequent sessions are required in periods of increased economic activity, in times of
unanticipated liquidity volatility, and when specific issues require immediate further study
and follow-up.
Crisis Management Committee
Business Continuity Management
Business continuity is an ongoing priority for Qatar Development Bank. Recent business
continuity incidents have served to heighten that priority by underlining the substantial
risk of major operational disruptions. Given the increased focus of QDB Executive
Management towards an on-ground BCP implementation, following steps have been
implemented:
BCP policy has been developed and approved by the Board.
QDB has implemented BCP by the way of conducting: Business Impact Analysis,
Work area recovery test, Appointment of BCP fire wardens.
The BCP implementation plan has been developed by the risk management
department to conduct BIA, BCP test, etc.
BCP Call tree has been developed and circulated amongst the committee members.
BCP incidents are being reported by business units and investigated by the risk
management department.
The Crisis Management Committee is a management level group constituted to

ensure that the bank adequately manages its Business continuity plan, physical security
management, and other crisis issues and is also responsible for managing the disaster
recovery operations of the Bank. The primary responsibility of the Crisis Management
committee is to direct the implementation of the business continuity plan, physical
security plan as well as take responsibility for declaring a disaster and managing the
disaster recovery process, both pre-disaster and post-disaster.
The team comprises the following members:
76
Chairman
Human Resources and Admin Manager
Deputy Chairman
Member
Engineering Projects Manager
Member
IT Manager
Member
Procurement & Tendering Manager
Member
Head of Administration
Member
Head of Risk Management
Member
Information Security officer
Member
Risk Officer
Secretary
4. INTERNAL AUDIT

The major role is to provide assurance to the Board through the Audit and Compliance committee
that the internal control framework in the bank is effective and that all the internal control, fraud and
compliance risks are managed as per the Board approved strategies and policies.
The scope of internal audit work includes the review of governance processes, which includes the risk
management framework, internal control systems, information systems and compliance with the legal
and ethical standards of the Bank.
This work also involves periodic testing of transactions, best practice reviews, special investigations,
appraisals of regulatory requirements, and measures to help prevent and detect fraud. To fulfil its
responsibilities, IAD among other things shall focus on the following:
77
Reviewing the adequacy of controls established, surrounding the risk management framework;
Recommending improvements in procedures and systems;
Reviewing and validating the implementation of new products, processes and systems;
Reviewing the banks Business Continuity Plans;
Reviewing of the systems established to ensure compliance with legal and regulatory
requirements, codes of conduct and the implementation of policies and procedures;
Testing of the reliability and timeliness of the regulatory reporting;
Developing and presenting an annual internal audit plan to the audit committee; and
Validation of the Banks risk management framework.
5. INTERNAL CONTROL

The Internal Control function has been assigned under Internal Audit Department. QDB has a Board
approved internal control policy in place. Board and its Audit and Compliance committee have
the ultimate responsibility to define the internal controls in the Bank and ensure that the executive
management takes all steps to effectively implement the internal controls across the enterprise.
The Bank, as a responsible corporate citizen, recognizes its social responsibility to the community in
which the Bank operates. The Bank is committed to promoting sustainable development, protection
and conservation of human life, health, natural resources and the environment, and adding value
to the communities in which we operate. In doing so, the Bank recognizes the importance of both
financial and nonfinancial commitment and contribution.
QDB CSR beneficiaries, include various educational, cultural and health care
activities; sports clubs; social causes; charity societies; scholarships; conferences; exhibitions and
sporting events.
10. ENVIRONMENTAL POLICY

Internal Audit has the responsibility to periodically test and validate the efficiency of internal
controls and report the findings independently to Board through Audit and Compliance Committee
(ACC). The Board and ACC through its regular Risk and Control Self-Assessment exercise facilitate
the assessment of controls by the process and risk owners from a design and performance
perspective.
6. EXTERNAL AUDIT

9. CORPORATE SOCIAL RESPONSIBILITY
KPMG is the appointed external auditor to audit the financial statements of Qatar Development
Bank for the financial year 2014 inclusive, to report on the outcome of these audits to the Board of
Directors and to provide an audit opinion on the financial statements of Qatar Development Bank.
Conduct business in an environmentally responsible manner.

Comply with all applicable environmental laws and regulations.
Comply with Green Office policy with close to zero paper usage
11. HEALTH AND SAFETY POLICY

The Bank promotes a robust compliance culture across the organization and requires everyone, from
the Board down to staff, to consistently comply with applicable laws, regulations and standards. The
Bank has incorporated the regulatory requirements into the Banks policies, procedures and systems.
The Bank has comprehensive compliance and AML/CFT policies describing the compliance and
AML/CFT functions at the Bank, and this has been assessed and evaluated by internal and external
bodies.
8. CODE OF BUSINESS CONDUCT

78
Board approved Code of Business Conduct lays down the minimum standards for business ethics,
professional conduct, morality and respect to the governing law and regulations. The Code is
applicable to all employees and each and every employee has signed the Code and do comply with
its guidelines in letter and spirit.
The Business ethics code defines workplace responsibilities, confidentiality requirements,

expectations with regard to personal commitment, compliance with legal and government
regulations and handling and disclosure of conflict of interest situations etc.
Board and Executive management has the responsibility to ensure that the code of conduct is
implemented across the enterprise and that there is a total compliance at all times and deviations are
promptly identified, reported and corrective actions taken.
The Bank recognizes that good health and safety management has positive benefits to an
organization, and thus is committed to providing and maintaining a healthy, safe and secure
working environment for all employees. The Bank is committed to:
Ensuring the health, safety, security of all its employees whilst at work.
Ensuring that visitors to the Banks premises are not exposed to risks to their health and safety.
Identifying hazards, assessing risks and managing those risks.
7. COMPLIANCE

The Bank is committed to environmental management in ensuring that no harm should come to
the environment when performing its operations. In keeping with these beliefs and commitments,
the Bank endeavors to ensure that all the management and employees comply with the following
environmental policies.
Pursuant to this the Bank has in place a comprehensive Fire, Health and Safety Insurance and Policy
and provides extensive Medical and Health Insurance through a recognized insurance provider for the
benefit of all permanent staff.
12. PENALTIES OR FINES IMPOSED ON THE BANK BY

REGULATORY AUTHORITIES

No significant fines imposed by Qatar Central bank during the year 2014.
13. COMMUNICATION WITH STAKEHOLDERS AND

SHAREHOLDERS

The Bank keeps Qatar Central Bank & Ministry of Finance updated on matters and developments
that may affect its performance. Transparency and full disclosure are the cornerstones of the Banks
communication efforts. The Board values clear, comprehensive and timely communication with its
stakeholders.
At the General Assembly Meetings, the Chairman of the Board of Directors presents the shareholders
with detailed information and data on the Banks performance and its achievements during the prior
year, along with an outline of the major business plans and objectives of the next year.
79
FINANCIAL
STATEMENTS
80
FOR THE YEAR ENDED 31 DECEMBER 2014
81
INDEPENDENT AUDITORS REPORT
TO THE SHAREHOLDER OF QATAR DEVELOPMENT BANK Q.S.C.C

Report on the financial statements
We have audited the accompanying financial statements of Qatar Development Bank Q.S.C.C (the
Bank), which comprise the statement of financial position as at 31 December 2014, and the statements of
comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising a
summary of significant accounting policies and other explanatory information.
The Directors responsibility for the Financial Statements
The Directors are responsible for the preparation and fair presentation of these financial statements in
accordance with International Financial Reporting Standards and the applicable provisions of the Qatar
Central Bank regulations and for such internal control as management determines is necessary to enable
the preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with International Standards on Auditing. Those standards require that we comply
with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on our judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, we considered internal controls relevant to the Banks preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances but not
for the purpose of expressing an opinion on the effectiveness of the Banks internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting
estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of the
Bank as of 31 December 2014, and its financial performance and its cash flows for the year then ended in
accordance with International Financial Reporting Standards and the applicable provisions of the Qatar
Central Bank regulations.
Report on other legal and regulatory requirements
We have obtained all the information and explanations which we consider necessary for the purpose of
our audit. The Bank has maintained proper accounting records and financial statements are in agreement
therewith. We are not aware of any violations of the applicable provisions of Qatar Central Bank Law No. 13
of 2012, Qatar Commercial Law No. 5 of 2002 or the terms of the Articles of Association and amendments
thereto having occurred during the year which might have had a material adverse effect on the business of
the Bank or its financial position at 31 December 2014.
Gopal Balasubramaniam
Partner
Auditors Registry No. 251
Date:
Doha, Qatar
STATEMENT OF
QAR 000s
FINANCIAL POSITION
AS AT 31 DECEMBER 2014
Note
2014
2013
ASSETS
Cash and balances with Qatar Central Bank
165,204
129,478
Due from banks
876,366
885,231
Loans and advances to customers
2,993,141
2,429,907
Investment securities
2,088,633
1,839,075
Investment in associates and joint ventures
11
30,401
40,911
Investment properties
12
135,328
139,190
Property and equipment
13
66,321
68,226
Other assets
14
356,595
126,149
6,711,989
5,658,167
TOTAL ASSETS
LIABILITIES
Due to banks
Other liabilities
15
TOTAL LIABILITIES
1,001,438
1,402,737
204,779
158,216
1,206,217
1,560,953
EQUITY
Share capital
16
4,500,000
3,300,000
Legal reserve
16
120,095
105,942
General reserve
16
1,010
1,010
Risk reserve
16
96,254
78,570
Fair value reserve
16
414,731
276,940
Retained earnings
373,682
334,752
TOTAL EQUITY
5,505,772
4,097,214
TOTAL LIABILITIES AND EQUITY
6,711,989
5,658,167
These financial statements were approved by the Board of Directors and were signed on its behalf by:
Sheikh Abdullah Bin Saud Al-Thani

Chairman
Abdulaziz Bin Nasser Al-Khalifa

Chief Executive Officer
The attached notes 1 to 24 form part of these financial statements.
82
83
STATEMENT OF
QAR 000s
COMPREHENSIVE INCOME
STATEMENT OF
CHANGES IN EQUITY
Share
Capital
Legal
reserve
General
Risk
reserve reserve
Balance at 1 January 2014
3,300,000 105,942
1,010 78,570
Capital contribution*
1,200,000
Note 2014 2013

Interest income
QAR 000s
18
152,857
109,401
Interest expense
(7,113)
(2,635)
NET INTEREST INCOME
145,744
106,766
Profit from Islamic financing
22,328
24,165
NET INTEREST INCOME AND PROFIT

FROM ISLAMIC FINANCING
168,072
130,931
Fees and commission income
19
151,528
143,633
Income from investment securities
20
30,660
27,297
Rental income and other operating income
4,150
Foreign exchange gain
Fair value Retained

reserve earnings
Total
276,940 334,752 4,097,214
- 1,200,000
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR
Profit for the year
70,767
70,767
Other comprehensive income
137,791
137,791
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR
137,791
3,969
Transfer to legal reserve
14,153
- (14,153)
3,172
1,858
Transfer to risk reserve
- 17,684
- (17,684)
NET OPERATING INCOME
357,582
307,688
Balance at 31 December 2014 4,500,000 120,095
1,010 96,254
Staff and other costs
21
(198,541)
(162,407)
12 &13
(19,646)
(14,864)
Depreciation
Net impairment loss on investment securities
(8,130)
Net impairment loss on loans and

advances to customers
(57,923)
(58,963)
(276,110)
(244,364)
Share of losses / impairment on associates

and joint ventures
11
PROFIT FOR THE YEAR
(10,705)
(617)
70,767
62,707
OTHER COMPREHENSIVE INCOME FOR THE YEAR

Items that are or may be reclassified to profit or loss
Fair value reserve (available-for-sale financial assets):

Capital contribution*
Share
Capital
Legal
reserve
General
Risk
reserve reserve
2,900,000
93,401
1,010 43,915
400,000
70,767 208,558
414,731 373,682 5,505,772
Fair value Retained

reserve earnings
Total
255,831 319,241 3,613,398

-
400,000
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR
Profit for the year
62,707
62,707
Other comprehensive income
21,109
21,109
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR
21,109
62,707
83,816
- (12,541)
- (34,655)
Net change in fair value
139,329
29,239
Transfer to legal reserve
12,541
Net amount transferred to profit or loss
(1,538)
(8,130)
Transfer to risk reserve
- 34,655
Other comprehensive income for the year
137,791
21,109
Balance at 31 December 2013 3,300,000 105,942
1,010 78,570
TOTAL COMPREHENSIVE INCOME FOR THE YEAR
208,558
83,816
276,940 334,752 4,097,214
*During the year, the Bank has received QAR 1,200 million (2013: QAR 400 million)
from the Government as a contribution towards the authorised capital
84
85
STATEMENT OF
QAR 000s
CASHFLOWS
NOTES
TO THE FINANCIAL STATEMENTS
AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2014

Note
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the year
70,767
62,707
Adjustments for:
Dividend income
20
(24,415)
(27,297)
Interest income
(175,185)
(133,566)
Interest expense
7,113
2,635
Net Impairment loss on loans and

advances to customers
57,923
58,963
Net impairment loss on investment securities
8,130
19,646
14,864
Net gain on sale of available-for-sale securities
(6,245)
Share of losses / impairment on associates

and joint ventures
10,705
617
Depreciation
12 & 13
11
Qatar Development Bank (Q.S.C.C.) (the Bank) was established in the State of Qatar as a closed
shareholding company under Commercial Registration No.19299.
The main objective of the Bank is to participate in the economic development process of the State of
Qatar, by providing the necessary financing for small and medium size industrial, educational, health,
agricultural and tourism projects. The Bank also administers the disbursement of the Government land
loan scheme as part of its fiduciary activities.
2. Basis of Preparation
(a) Statement of compliance

The financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB)
and the applicable provisions of Qatar Central Bank (QCB) regulations.
(b) Basis of measurement

The financial statements have been prepared under the historical cost basis, except for availablefor- sale financial investments which have been measured at fair value.
(c) Functional and presentation currency

These financial statements are presented in Qatari Riyals (QAR), which is the Banks functional
currency. Except as otherwise indicated, financial information presented in QAR has been
rounded to the nearest thousand.
(39,691) (12,947)
Change in loans and advances to customers
(621,157)
(1,166,949)
Change in other assets
(230,446)
(54,952)
Change in due to banks
(401,299)
1,400,000
Change in other liabilities
46,563
34,402
1. Reporting Entity
(d) Use of estimates and judgments

The preparation of the financial statements in conformity with IFRS requires management to
make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.
(1,246,030) 199,554
Dividend received
24,415
27,297
Interest received
175,185
133,566
Interest paid
(7,113)
(2,635)
NET CASH (USED IN) / FROM

OPERATING ACTIVITIES
(1,053,543)
357,782
Cash flows from investing activities

Acquisition of investment securities, net of disposals
(605,522)
(303,110)
Acquisition of associates and joint ventures
11
(195)
(1,556)
Acquisition of property and equipment, net of disposals
13
(13,879)
(45,540)
(619,596)
(350,206)
Net cash (used in) investing activities

16
1,200,000
400,000
Net cash from financing activities
1,200,000
400,000
Net (decrease)/increase in cash and cash equivalents
(473,139)
407,576
Cash and cash equivalents at 1 January
964,709
557,133
CASH AND CASH EQUIVALENTS

AT 31 DECEMBER
491,570
964,709
22
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized in the period in which the estimate is revised and in any future periods
affected.
Information about significant areas of estimation uncertainty and critical judgments in applying
accounting policies that have the most significant effect on the amounts recognized in the
financial statements are described in note 6.
3. Significant Accounting Policies

The accounting policies set out below have been applied consistently to all periods presented in
financial statements.
(a) Basis of consolidation

The Bank controls an entity when it is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power over
the entity. When the Bank has decision making rights, it assesses whether it controls an entity
and determines whether it is a principal or an agent. The Bank also determines whether another
entity with decision-making rights is acting as an agent for the Bank. An agent is a party primarily
engaged to act on behalf and for the benefit of another party (the principal) and therefore does
not control the entity when it exercises its decision-making authority. A decision maker considers
the overall relationship between itself and other parties involved with the entity, in particular all of
the factors below, in determining whether it is an agent.
Cash flows from financing activities

Proceeds from capital contribution
86
87
NOTES

3.
Significant Accounting Policies (Continued)

(a) Basis of consolidation (Continued)

NOTES

3.

(c) Interest in other entities (Continued)
(i) Structured entities

As part of normal business, the Bank engages in various transactions with entities which are
considered to be structured entities. A structured entity is an entity that has been designed
so that voting or similar rights are not the dominant factor in deciding who controls the
entity, such as when any voting rights relate to administrative tasks only and the relevant
activities are directed by means of contractual arrangements.
The scope of its decision making authority over the entity;

The rights held by other parties (including kick-out-right);
The remuneration to which it is entitled;
The decision makers exposure to variability of returns from other interests that it holds in the entity.
The Bank makes significant judgments and assumptions when determining if it has control
of another entity. The Bank may control an entity even though it holds less than half of the
voting rights of that entity, for example if the Bank has control over an entity on a de facto basis
because the remaining voting rights are widely dispersed and/or there is no indication that other
shareholders exercise their votes collectively. Conversely, the Bank may not control an entity
even though it holds more than half of the voting rights of that entity, for example where the
Bank holds more than half of the voting power of an entity but does not control it, as it has no
right to variable returns from the entity and is not able to use its power over the entity to affect
those returns.
(b) Investment in associates and joint arrangements (equity-accounted investees)

An associate is an entity, including an unincorporated entity such as a partnership, over which the
Bank has significant influence and that is neither a subsidiary nor an interest in a joint venture.
Significant influence is the power to participate in the financial and operating policy decisions
of the investee but is not control or joint control over those policies. Significant influence is
presumed to exist when the Bank holds between 20 percent and 50 percent of the voting power
of another entity.

Investments in associates and joint venture are accounted for under the equity method and are
recognised initially at cost. The cost of the investment includes transaction costs.
The financial statements include the Banks share of the profit or loss and other comprehensive
income of equity-accounted investees, after adjustments to align the accounting policies with
those of the Bank, from the date that significant influence or joint control commences until the
date that significant influence or joint control ceases.
When the Banks share of losses exceeds its interest in an equity-accounted investee, the carrying
amount of the investment, including any long-term interests that form part thereof, is reduced to
zero, and the recognition of further losses is discontinued except to the extent that the Bank has
an obligation or has made payments on behalf of the investee.
Unrealised gains arising from transactions with equity accounted investees are eliminated
against the investment to the extent of the Banks interest in the investee. Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no evidence
of impairment.
(c) Interest in other entities

Interests on other entities are contractual and non contractual involvement that exposes the
Bank to variability of returns from the performance of the other entity. As a result of IFRS 12, the
Bank has expanded disclosures about its interests in other entities. The disclosure requirements
related to its involvement in other entities are not included in the comparative information.
Transactions with structured entities are generally executed to facilitate securitization

activities or to meet specific client needs, such as providing liquidity or investment
opportunities, and, as part of these activities, the Company may hold interests in the
structured entities. If the Bank controls the structured entity then that entity is consolidated.
The Bank discloses information about significant judgements and assumptions made in
determining whether the Bank has (joint) control of, or significant influence over, another
entity including structured entities. The Bank also provides disclosures with regards to
unconsolidated structured entities such as when it sponsors or has an interest in such an
entity.
(ii) Unconsolidated structured entities

The Bank has interests in a structured entity which is not consolidated. An interest is either
contractual or non-contractual involvement that exposes the Bank to variability in returns
from the performance of another entity. An interest on another entity can be evidenced
by, but is not limited to, the holding of equity or debt instruments as well as other forms
of involvement such as the provision of funding, liquidity support, credit enhancement and
guarantees.
A joint arrangement is an arrangement of which two or more parties have joint control. Joint
control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require the unanimous consent of the parties sharing
control. A joint venture is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the net assets of the arrangement.
The Bank does not have an interest in another entity solely because of a typical customer
and supplier relationship. An example of a typical customer and supplier relationship are fees
other than management and performance fees that are passively earned and are typically
one-off in nature.
The Bank considers itself the sponsor of a structured entity when either its name appears in
the name of the structured entity or in products issued by it or there is a general expectation
from the market that the Bank is associated with the structured entity or the Bank was
involved in the design or set up of the structured entity and has a form of involvement with
the structured entity.
(d) Foreign currency

Foreign currency transactions and balances

Foreign currency transactions that are transactions denominated, or that require settlement in a
foreign currency are translated into the respective functional currencies of the operations at the
spot exchange rates at the dates of the transactions.

Monetary assets and liabilities denominated in foreign currencies at the reporting date are
translated into the functional currency at the spot exchange rate at that date. Non-monetary
assets and liabilities denominated in foreign currencies that are measured at fair value are
retranslated into the functional currency at the spot exchange rate at the date that the fair value
was determined. Non-monetary assets and liabilities that are measured in terms of historical cost
in a foreign currency are translated using the exchange rate at the date of the transaction.
Foreign currency differences resulting from the settlement of foreign currency transactions
and arising on translation at period end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in profit or loss.
(e) Islamic financing activities

The Bank provides Islamic financing through various Islamic modes of financing. These activities
are conducted in accordance with the Islamic Sharia, as determined by the Sharia Committee.
88
89
NOTES

3.

(f)
Financial assets and financial liabilities
NOTES

3.

(f) Financial assets and financial liabilities (Continued)
(vi) Identification and measurement of impairment

At each reporting date the Bank assesses whether there is objective evidence that financial
assets not carried at fair value through profit or loss are impaired. A financial asset or a group
of financial assets is impaired when objective evidence demonstrates that a loss event has
occurred after the initial recognition of the asset(s), and that the loss event has an impact on
the future cash flows of the asset(s) that can be estimated reliably.
(i) Recognition and initial measurement

The Bank initially recognizes loans and advances to customers, due from / to banks and
other liabilities on the date at which they are originated. All other financial assets and
liabilities are initially recognized on the trade date at which the Bank becomes a party to the
contractual provisions of the instrument.

A financial asset or financial liability is measured initially at fair value plus, for an item not
at fair value through profit or loss, transaction costs that are directly attributable to its
acquisition or issue.
Objective evidence that financial assets (including equity securities) are impaired can include
significant financial difficulty of the borrower or issuer, default or delinquency by a borrower,
restructuring of a loan or advance by the Bank on terms that the Bank would not otherwise
consider, indications that a borrower or issuer will enter bankruptcy, the disappearance of
an active market for a security, or other observable data relating to a group of assets such
as adverse changes in the payment status of borrowers or issuers in the group, or economic
conditions that correlate with defaults in the Bank.
The Bank considers evidence of impairment loss for loans and advances to customers at
specific asset level. All individually significant loans and advances to customers are assessed
for specific impairment.
Impairment losses on assets carried at amortized cost are measured as the difference
between the carrying amount of the financial asset and the present value of estimated future
cash flows discounted at the assets original effective interest rate. Impairment losses are
recognized in profit or loss and reflected in an allowance account against loans and advances
to customers.
For listed investments securities, a decline in the market value by 20% from cost or more, or
for a continuous period of 9 months or more, are considered to be indicators of impairment.
Impairment losses on available-for-sale investment securities are recognized by transferring

the cumulative loss that has been recognized in other comprehensive income to profit
or loss as a reclassification adjustment. The cumulative loss that is reclassified from other
comprehensive income to profit or loss is the difference between the acquisition cost, net of
any principal repayment and amortization, and the current fair value, less any impairment loss
previously recognized in profit or loss. Changes in impairment provisions attributable to time
value are reflected as a component of interest income.
In subsequent periods, the appreciation of fair value of an impaired available-for-sale

investment securities is recorded in fair value reserves.
(ii) Classification

Financial assets
At inception a financial asset is classified in one of the following categories:
loans and receivables
available-for-sale
Financial liabilities
The Bank has classified and measured its financial liabilities at amortized cost.
(iii) Derecognition

Financial assets are derecognized when the rights to receive cash flows from the assets have
expired or when the Bank has transferred its contractual rights to receive cash flows from the
assets.

Financial liabilities are derecognized when they are extinguished, which is when the
obligation is discharged or cancelled or expired.
(iv) Offsetting

Financial assets and liabilities are offset and the net amount presented in the statement of
financial position when, and only when, the Bank has a legal right to set off the recognized
amounts and it intends either to settle on a net basis or to realize the asset and settle the
liability simultaneously.

Income and expenses are presented on a net basis only when permitted under IFRS.
(v) Measurement principles

(i) Amortized cost measurement
The amortized cost of a financial asset or liability is the amount at which the financial
asset or liability is measured at initial recognition, minus principal repayments, plus or
minus the cumulative amortization using the effective interest method of any difference
between the initial amount recognized and the maturity amount, minus any reduction for
impairment loss. The calculation of effective interest rate includes all fees and points paid
or received that are an integral part of the effective interest rate.
(ii) Fair value measurement
Fair value is the price that would be received to sell an asset or paid to transfer a liability
in an orderly transaction between market participants at the measurement date in the
principal or, in its absence, the most advantageous market to which the Bank has access
at that date. The fair value of a liability reflects its non-performance risk.

90
When available, the Bank measures the fair value of an instrument using the quoted price
in an active market for that instrument. A market is regarded as active if transactions for
the asset or liability take place with sufficient frequency and volume to provide pricing
information on an ongoing basis.
(g) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, unrestricted balances held with Qatar central
bank and other local banks and highly liquid financial assets with maturities of three months or
less from the acquisition date that are subject to an insignificant risk of changes in their fair value,
and are used by the Bank in the management of its short-term commitments.

Cash and cash equivalents are carried at amortized cost in the statement of financial position.
(h) Loans and advances to customers

Loans and advances to customers are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market and that the Bank does not intend to sell
immediately or in the near term.

Loans and advances to customers are initially measured at the transaction price which is the fair
value plus incremental direct transaction costs, and subsequently measured at their amortized
cost using the effective interest method.
If there is no quoted price in an active market, then the Bank uses valuation techniques
that maximise the use of relevant observable inputs and minimise the use of
unobservable inputs. The chosen valuation technique incorporates all of the factors that
market participants would take into account in pricing a transaction.
91
NOTES

3.

(i) Investment securities

Subsequent to initial recognition investment securities are accounted for as available-for-sale.

Available-for-sale financial assets

Available-for-sale investments are non-derivative investments that are designated as availablefor-sale or are not classified as another category of financial assets. Unquoted equity securities
and units of the unlisted funds are carried at cost less impairment, and all other available-for-sale
investments are carried at fair value.
Interest income is recognized in profit or loss using the effective interest method. Dividend
income is recognized in profit or loss when the Bank becomes entitled to the dividend. Foreign
exchange gains or losses on available-for-sale debt security investments are recognized in profit
or loss.
Other fair value changes are recognized in other comprehensive income until the investment
is sold or impaired, whereupon the cumulative gains and losses previously recognized in other
comprehensive income are reclassified to profit or loss as a reclassification adjustment.

3.

(k) Property and equipment (Continued)
(iii) Depreciation
Depreciable amount is the cost of property and equipment, or other amount substituted for
cost, less its residual value. Depreciation is recognized in profit or loss on a straight-line basis
over the estimated useful lives of each part of an item of property and equipment since this
most closely reflects the expected pattern of consumption of the future economic benefits
embodied in the asset and is based on cost of the asset less its estimated residual value.
Land is not depreciated.
The estimated useful lives for property and equipment are as follows:
Buildings
25 years
Furniture and fixtures
4 years
Equipment
3-4 years
Depreciation methods, useful lives and residual values are reassessed at each reporting date
and adjusted prospectively, if appropriate.
(j) Investment properties

Investment property is property held either to earn rental income or for capital appreciation or
for both, but not for sale in the ordinary course of business or use in the production or supply of
goods and services or for administrative purposes.
(l)

Impairment of non-financial assets

The carrying amounts of the Banks non-financial assets are reviewed at each reporting date to
determine whether there is any indication of impairment. If any such indication exists, then the
assets recoverable amount is estimated.
Subsequent expenditure is capitalized to the assets carrying amount only when it is probable
that future economic benefits associated with the expenditure will flow to the Bank and the cost
of the item can be measured reliably. All other repairs and maintenance costs are expensed when
incurred. When part of an investment property is replaced, the carrying amount of the replaced
part is derecognized.
Impairment losses are recognised in profit or loss. Impairment losses recognised in prior periods
are assessed at each reporting date for any indications that the loss has decreased or no longer
exists. An impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount.
Investment properties are treated as long term investments and carried at cost less accumulated
depreciation. Buildings are depreciated over a period of 25 years on a straight line basis. Land is
not depreciated. The cost of property includes all directly attributable costs.
An impairment loss is reversed only to the extent that the assets carrying amount does
not exceed the carrying amount that would have been determined, net of depreciation or
amortisation, if no impairment loss had been recognised.
When the use of a investment property changes such that it is reclassified as property and
equipment, its fair value at the date of reclassification becomes its cost for subsequent
accounting.
(k)

(i) Recognition and measurement
Items of property and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset.
Purchased software that is integral to the functionality of the related equipment is capitalized
as part of that equipment.
When parts of an item of property or equipment have different useful lives, they are
accounted for as separate items (major components) of property and equipment.
The gain or loss on disposal of an item of property and equipment is determined by
comparing the proceeds from disposal with the carrying amount of the item of property and
equipment, and is recognized in other income/other expenses in profit or loss.
(ii) Subsequent costs
The cost of replacing a component of an item of property or equipment is recognized in the
carrying amount of the item if it is probable that the future economic benefits embodied
within the part will flow to the Bank and its cost can be measured reliably. The carrying
amount of the replaced part is derecognized. The costs of the day-to-day servicing of
property and equipment are recognized in profit or loss as incurred.
92
NOTES
(m) Provisions

A provision is recognized if, as a result of a past event, the Bank has a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow
of economic benefits will be required to settle the obligation. Provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability.
(n) Financial guarantees

In the ordinary course of business, the Bank gives financial guarantees, credit guarantees,
consisting of letters of credit and guarantees (Al-Dahmeen and Al-Tasdeer). Financial guarantees
are contracts that require the Bank to make specified payments to reimburse the holder for a
loss it incurs because a specified debtor fails to make payment when due in accordance with the
terms of a debt instrument.

Financial guarantee liabilities are recognised initially at their fair value, and the initial fair value is
amortised over the life of the financial guarantee. The financial guarantee liability is subsequently
carried at the higher of this amortised amount and the present value of any expected payment
when a payment under the guarantee has become probable. Financial guarantees are included
within other liabilities.
(o) Employee benefits

(i) Defined contribution plans
Under Law No. 24 of 2002 on Retirement and Pension, the Bank is required to make
contributions to a Government fund scheme for Qatari employees calculated as a percentage
of the Qatari employees salaries. The Banks obligations are limited to these contributions,
which are expensed when due. The cost is included as part of staff costs.
93
NOTES

3.

(o) Employee benefits (Continued)
(ii) Defined benefit plans
The Bank provides for end of service benefits to its expatriate employees. The entitlement
to these benefits is based upon the employees final salary and length of service, subject
to the completion of a minimum service period. The expected costs of these benefits are
accrued over the period of employment. The provision of employees end of service benefits
is included in the other provisions within other liabilities.
NOTES

3.

(x) New standards and interpretations

New standards, amendments and interpretations effective from 1 January 2014

The following standards, amendments and interpretations, which became effective as of 1
January 2014, and are relevant to the Bank:
-
(p) Fiduciary assets

Assets held in a fiduciary capacity are not treated as assets of the Bank in the statement of
financial position.
Not an investment entity

The Bank concluded that it does not meet the definition of an investment entity and hence
the above amendments are not applicable to the Bank.
(r) Interest income and expense

Interest income and expense are recognized in profit or loss using the effective interest method.
The effective interest rate is the rate that exactly discounts the estimated future cash payments
and receipts through the expected life of the financial asset or liability (or, where appropriate,
a shorter period) to the carrying amount of the financial asset or liability. When calculating the
effective interest rate, the Bank estimates future cash flows considering all contractual terms of
the financial instrument, but not future credit losses.
The calculation of the effective interest rate includes all transaction costs and fees and points
paid or received that are an integral part of the effective interest rate.
Transaction costs include incremental costs that are directly attributable to the acquisition or
issue of a financial asset or liability. Interest income and expense presented in the statement of
comprehensive income include interest on financial assets and financial liabilities measured at
amortized cost calculated on an effective interest basis.
(s) Fees and commission income and expense

Fees and commission income and expense that are integral to the effective interest rate on a
financial asset or liability are included in the measurement of the effective interest rate.

Other fees and commission income, including account servicing fees, investment management
fees, sales commission, placement fees and syndication fees, are recognized as the related
services are performed. When a loan commitment is not expected to result in the draw-down
of a loan, the related loan commitment fees are recognized on a straight-line basis over the
commitment period. Other fees and commission expense relate mainly to transaction and service
fees, which are expensed as the services are received.
Housing loans management fee is being recognised at 1 % of the amount of outstanding

balance of the loans per annum.
(t) Income from investment securities

Gains or losses on the sale of investment securities are recognized in profit or loss as the
difference between fair value of the consideration received and carrying amount of the
investment securities.
(u) Rental Income

Rental income arising from investment property is accounted for on a straight line basis over the
lease term.
(v) Dividend income

Dividend income is recognised when the right to receive income is established.
Amendments to IFRS 10, IFRS 12 and IAS 27 Investment Entities

The amendments to IFRS 10 define an investment entity and require a reporting entity that
meets the definition of an investment entity not to consolidate its subsidiaries but instead to
measure its subsidiaries at fair value through profit or loss in its consolidated and separate
financial statements.
Consequential amendments have been made to IFRS 12 and IAS 27 to introduce new
disclosure requirements for investment entities.
(q) Transaction between shareholders

Any gain / loss arising on transactions with shareholders are recognized in equity.
Amendments to IAS 32 on offsetting financial assets and financial liabilities (2011 )

Offsetting Financial Assets and Financial Liabilities (amendments to IAS 32) clarify the
offsetting criteria IAS 32 by explaining when an entity currently has a legally enforceable right
to set off and when gross settlement is equivalent to net settlement.
The change did not have a material impact on the Banks financial statements.
Amendment to IAS 36, Impairment of assets on recoverable amount disclosures

This amendment addresses the disclosure of information about the recoverable amount of
impaired assets if that amount is based on fair value less costs of disposal.
The change did not have a material impact on the Banks financial statements.
New standards, amendments and interpretations issued but not yet effective
The new standards, amendments to standards and interpretations which have been issued but
are not yet effective for the year ended 31 December 2014 and have not been early applied in
preparing these financial statements are as follows:
-
IFRS 9, Financial Instruments

IFRS 9 published in July 2014, replaces the existing IAS 39 Financial Instruments: Recognition
and Measurement. IFRS 9 includes revised guidance on the classification and measurement
of financial instruments, including a new expected credit loss model for calculating
impairment on financial assets, and the new general hedge accounting requirements. It also
carries forward the guidance on recognition and derecognition of financial instruments from
IAS 39.
IFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with
early adoption permitted.
The Bank is assessing the potential impact on its financial statements resulting from the
application of IFRS 9.
Amendments to IFRS 11- Accounting for Acquisitions of Interests in Joint Operations

The amendments to IFRS 11 provide guidance on how to account for the acquisition of a
joint operation that constitutes a business as defined in IFRS 3 Business Combinations. The
amendments state that the relevant principles on accounting for business combinations
in IFRS 3 and other standards should be applied. The amendments to IFRS 11 apply
prospectively for annual periods beginning on or after 1 January 2016.
(w) Islamic financing

Revenues on Islamic financing transactions are recognized on a time apportioned basis over
the period of the contract. Income on non performing financing accounts is suspended until
realization in accordance with Qatar Central Bank regulations.
94
95
NOTES

3.
NOTES

4.
(x) New standards and interpretations (Continued)

- Amendments to IAS 19 Defined Benefit Plans: Employee Contributions
The amendments to IAS 19 clarify how an entity should account for contributions made by
employees or third parties to define benefit plans, based on whether those contributions are
dependent on the number of years of service provided by the employee.
4.2.1 Credit risk measurement

The Bank has in place proper governance structure, risk framework, standards, policies
and procedures for the control and monitoring of all such risks.
4.1 Introduction and overview

The Banks business involves taking on risks in a targeted manner and managing them
professionally. The core functions of the Banks risk management are to identify all key risks for
the Bank, measure these risks, manage the risk positions and determine capital allocations. The
Bank regularly reviews its risk management policies and systems to reflect changes in markets,
products and best market practice.
96
4.2.2 Risk limit control and mitigation policies

The Bank seeks to manage its credit risks exposure through effective customer selection
and due diligence processes, well-structured approval matrix and a proactive credit
monitoring and collection practices. To reduce concentration risks Bank diversifies
its lending, investing and financing activities across sectors, industries, products and
borrowers. In terms of collateral coverage, typically only the primary collateral (assets
being financed) is obtained in line with its mandate of supporting the private enterprise,
however, in exceptional cases (decided by Internal Credit Committee and Board for
very high risk projects) mortgage over Real Estate or pledge over equity instruments is
obtained.
Risk management framework

Risk is inherent in the Banks activities and being a development bank with a specific mandate
to lend to developmental oriented sectors at relaxed terms and covenants which includes a
concessional interest rate not proportional to the inherent risk of the lending, non-availability of
secondary collaterals and a relatively higher risk appetite and tolerances, the management of all
inherent risk is critical to the sustainability of our business both at a tactical as well as strategic
level. The Board and management of the Bank fully recognize the business critical importance
of risk management and has put in place a robust fit for purpose risk management framework
to proactively identify, assess and measure, monitor and manage risks within the predefined
appetite and tolerances. This process of risk management is critical to the fulfillment of Banks
strategic business objectives and each individual within the Bank is accountable for the risk
exposures relating to his or her responsibilities.
Risk management structure

The Board of Directors is ultimately responsible for defining and monitoring risk control and
management processes. Executive Management Committees like ALCO (asset and liabilities
committee) and Operational risk and Business continuity planning committee execute the Board
approved risk strategies and report on significant risk exposures.
The risk MIS (management information system) collects, processes and analyzes pertinent
business and risk information at transaction and portfolio level and reports to the head of each
business division, Risk Committees and ultimately to Board of Directors.
4.2 Credit risk

Credit risk is the risk that a customer or counterparty of the Bank will be unable or unwilling to
meet a commitment entered into with the Bank. It arises from lending (both direct and indirect),
trade finance, treasury and other activities undertaken by the Bank.
4. Financial Risk Management
The Bank is exposed to credit risk, operating risk and market risk. The risk management
framework in the Bank is now integrated with its strategic planning process and therefore, also
defines standards for managing strategic and business risks such as changes in the environment,
technology and industry.
Financial Risk Management (Continued)
The Bank is assessing the potential impact on its financial statements resulting from the
application.
QAR 000s
4.1 Introduction and overview (Continued)

on an inherent and residual basis, monitoring and controlling risks is primarily performed based
on risk limits established by the Board. These limits reflect the business strategy of the Bank and
the market environment as well as the level of risk that the Board is willing to accept.
For contributions that are independent of the number of years of service, the entity may
either recognize the contributions as a reduction in the service cost in the period in which
the related service is rendered, or to attribute them to the employees periods of service
using the project unit credit method; whereas for contributions that are dependent on the
number of years of service, the entity is required to attribute them to the employees periods
of service.
4.2.3 Maximum exposure to credit risk before collateral held or other credit enhancements
The table below shows the maximum exposure to credit risk for the components of the
statement of financial position, including off balance sheet items. The maximum exposure
is shown gross, before the effect of mitigation through the use of master netting and
collateral agreements.
GROSS MAXIMUM EXPOSURE

2014
2013
Due from banks
876,366
885,231
Net loans and advances to customers
2,993,141
2,429,907
Investment securities debt
1,377,384
1,192,205
Other assets
43,642
60,505
5,290,533
4,567,848
TOTAL ON BALANCE SHEET
Internal Audit
Risk management processes throughout the Bank are audited annually by the internal audit
function, which examines both the adequacy of the procedures and the Banks compliance with
the procedures. Internal Audit discusses the results of all assessments with management, and
reports its findings and recommendations to the Board through its Audit Committee.
Guarantees (AL Dahmeen & AL Tasdeer)
344,418
350,476
Contingent liabilities
345,858
175,863
Other commitments
1,594,886
1,485,039
Risk measurement and reporting systems

Risk is measured and assessed by a variety of tools and methodologies which include
quantitative models and qualitative risk scorecards. Whereas risk is measured and assessed both
Total off balance sheet
2,285,162
2,011,378
TOTAL EXPOSURE
7,575,695
6,579,226
97
NOTES
QAR 000s

4.
NOTES

4.
4.2 Credit Risk (Continued)

i) Risk concentration for maximum exposure to credit risk by industry sector

The table below summarizes the credit quality by class of financial asset, based on the Banks internal credit
classification methodology:
Gross
Net
Gross
Net
maximum maximum maximum maximum
exposure exposure exposure exposure
2014 2014 2013 2013
Government
LOANS AND
ADVANCES TO
CUSTOMERS
2014
2013
2,626,576 2,139,898
876,366
885,231
2,626,576 2,139,898
876,366
885,231
890,854
744,772
744,772
Financial institutions
1,478,490
1,478,490
1,121,543
1,121,543
NEITHER PAST DUE NOR IMPAIRED

(low risk):
Industry/manufacturing
3,567,823
3,567,823
3,794,415
3,794,415
Low risk excellent
Others
1,638,528
1,638,528
918,496
918,496
7,575,695 7,575,695
6,579,226
6,579,226
(ii) Credit quality by class of financial assets

The Banks internal rating scale and mapping to the table below are as follows:
INVESTMENT
SECURITIES - DEBT
DUE FROM
BANKS
2014
890,854
QAR 000s
2013
2014
2013
PAST DUE BUT NOT IMPAIRED

(special mentioned):
Standard grade / watch list
505,181
328,356
CARRYING AMOUNT
505,181 328,356 - - - -
BANKS RATING
DESCRIPTION OF THE GRADE
MAPPING
IMPAIRED
Grade 1
Low risk excellent
High grade
Substandard (overdue > 3 months)
Grade 2
Standard/satisfactory risk
Standard grade/watch list
Doubtful (overdue > 6 months)
Grade 3
Sub-standard
Impaired
Grade 4
Doubtful
Grade 5
Loss
26,796
74,626
9,923
7,032
Loss (overdue > 9 months)
19,063
31,720
Impaired
55,782
Impaired
Less: impairment allowance-specific

CARRYING AMOUNT - NET
(194,398)
113,378 - - - (151,725)
2,993,141 2,429,907
876,366
885,231
INVESTMENT SECURITIES - DEBT

Available for sale
Less: impairment allowance
CARRYING AMOUNT NET
- 1,377,384 1,192,205
2,993,141
2,429,907
876,366
885,231 1,377,384 1,192,205
TOTAL CARRYING AMOUNT
1,377,384 1,193,815
-
(1,610)
It is the Banks policy to maintain accurate and consistent risk ratings across the loans portfolio.
This facilitates focused management of the applicable risks and the comparison of financing
exposures across all lines of business and products. The rating system is supported by a variety
of financial analytics, combined with processed market information to provide the main inputs
for the measurement of counterparty risk. All internal risk ratings are tailored to the various
categories and are derived in accordance with the Banks rating policy and QCBs regulations.
The attributable risk ratings are assessed and updated regularly.
(a) Due from banks:

The amount due from banks consists of all high grade exposures. There were no past due
on impaired balances as at 31 December 2014 (2013: Nil)
(b) Investment securities- debt:

There were no impairment losses on financial investments for the year ended 31 December
2014 (2013: 1.6 million). All the debt securities were of high grade at 31 December 2014
with neither past due nor impaired exposure.
(c) There were no impairment losses on other assets as at 31 December 2014 (2013: Nil). All
other assets were of standard grade.
98
99
NOTES
QAR 000s

4.
QAR 000s

4.3 Liquidity Risk (Continued)
iii) Aging analysis of Past dues but not impaired category of loans and advances

Past due but not impaired loans and advances to customers are those for which contractual
interest or principal payments are past due, but the Bank believes that impairment is not
appropriate on the basis of the level of security/collateral available and/or the stage of
collection of amounts owed to the Bank.
AT 31 DECEMBER 2014
UP TO
1 MONTH
1-3
MONTHS
3 - 12
SUB TOTAL
MONTHS <1 YEAR
1-5
YEARS
OVER
5 YEARS
NO
MATURITY
165,204
165,204
165,204
Due from banks
326,366
550,000
876,366
876,366
55,748
139,466
305,130
500,344 1,397,737 1,095,060
2014
2013
Upto 30 days

30 to 60 days
385,721
178,483
- 1,393,407
119,460
106,673
Investment in associates and

joint ventures
Other assets
60 90 days
GROSS 505,181

43,200
328,356
iv) Collateral

The determination of eligible collateral and the value of collateral are based on QCB
regulations and are assessed by reference to market price or indexes of similar assets.

The Bank has collateral in the form of blocked deposits, pledge of shares or legal mortgage
against the past due loans and advances to customers.
The aggregate collateral is QAR 513 million (2013: QAR 1,031 million) for past due up to 30
days, QAR 374 million (2013: QAR 367 million) for past due from 31 to 60 days and
QAR 139 million (2013: QAR 529 million) for past due from 61 and above days, Nil (2013:
QAR 135 million).
4.3 Liquidity risk

Liquidity risk is the risk that the Bank will be unable to meet its funding requirements. Liquidity
risk arises from fluctuations in cash flows due to market disruptions or credit down grades, which
may cause certain sources of funding to cease immediately. Bank has a very low exposure to
liquidity risk since all its assets are predominantly financed by Capital. Hence, pure liquidity and
asset liability risks like maturity mismatch, interest rate risk in the Banking book are very minimal.

The table below set out the maturity profile of the Banks assets and liabilities. The contractual
maturities of assets and liabilities have been determined on the basis of the remaining period at
the reporting date to the contractual maturity date.
TOTAL
Cash and balances with

Qatar Central Bank
100

4.

NOTES
- 2,993,141
695,226 2,088,633
30,401
30,401
135,328 135,328
66,321
66,321
356,595 356,595
TOTAL ASSETS
547,318 139,466 855,130 1,541,914 1,397,737 2,488,467 1,283,871

6,711,989
Due to banks
100,000
200,000
Other liabilities
204,779
Equity
701,438 1,001,438
- 1,001,438
204,779
-
5,505,772
6,711,989
TOTAL LIABILITIES AND EQUITY 304,779 200,000 701,438

1,206,217
204,779
5,505,772 5,505,772
NET LIQUIDITY GAP
242,539
(60,534)
153,692
335,697 1,397,737 2,488,467 (4,221,901)
CUMULATIVE LIQUIDITY GAP
242,539
182,005
335,697
335,697 1,733,434 4,221,901
AT 31 DECEMBER 2013
UP TO
1 MONTH
1-3
MONTHS
3 - 12
SUB TOTAL
MONTHS <1 YEAR
1-5
YEARS
OVER
5 YEARS
-
NO
MATURITY
TOTAL
Cash and balances with

Qatar Central Bank
129,478
129,478
129,478
Due from banks
735,231
100,000
835,231
50,000
885,231
54,502
88,980
256,839
400,321 1,031,877
997,709
- 2,429,907
- 1,192,205
646,870 1,839,075
Investment in associates
and joint ventures
40,911
40,911
139,190
139,190
68,226
68,226
Other assets
126,149
126,149
TOTAL ASSETS
919,211
88,980
Due to banks
102,737
300,000
Other liabilities
158,216
356,839 1,365,030 1,031,877 2,239,914
1,021,346 5,658,167
700,000 1,102,737
300,000
- 1,402,737
- 158,216
158,216
Equity
4,097,214 4,097,214
260,953
300,000
4,097,214 5,658,167
NET LIQUIDITY GAP
658,258
(211,020)
(343,161)
104,077
731,877 2,239,914 (3,075,868)
CUMULATIVE LIQUIDITY GAP
658,258
447,238
104,077
104,077
835,954 3,075,868
700,000 1,260,953
300,000
101
NOTES

4.
QAR 000s
NOTES
a) Interest rate risk

Bank has an Interest rate risk exposure due to its investments in fixed income bonds. Interest
rate risk in its fixed income bond portfolio is managed by way of a well laid out process of
issuer due diligence and bond selection in line with Portfolio objectives. The investment
and treasury policy of the bank defines issuer due diligence standards, approval authorities,
Risk control limits and reporting. Bank uses variety of measures to measure interest rate risk
sensitivity of its portfolio which includes duration and stress testing. VaR measures are also
used wherever data is available.
Cash and balances with central bank
3 MONTHS
TO 1 YEAR
1-5
YEARS
OVER
5 YEARS
NON-INTEREST
SENSITIVE
165,204
The Banks interest sensitivity position based on contractual repricing arrangements at 31

December 2013 was as follows:
UP TO 3
MONTHS
1-5
YEARS
OVER
5 YEARS
NON-INTEREST
SENSITIVE
TOTAL
129,478
129,478
Due from banks
735,231
100,000
50,000
885,231
143,482
256,839
1,031,877
997,709
2,429,907
1,192,205
646,870
1,839,075

joint ventures
40,911
40,911
139,190
139,190
68,226
68,226
165,204
Other assets
126,149
126,149
TOTAL ASSETS
878,713
356,839
1,031,877
2,239,914
1,150,824
5,658,167
402,737
700,000
300,000
1,402,737
TOTAL
3 MONTHS
TO 1 YEAR
-
The following table summarizes the re-pricing profile of the Bank assets, liabilities and off
balance sheet exposures:
UP TO 3
MONTHS

4.4 Market Risk (Continued)

a) Interest rate risk (Continued)
4.4 Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate
due to changes in market variables such as interest rates, foreign exchange rates, and equity
prices.
QAR 000s

4.
Due from banks
326,366
550,000
876,366
195,214
305,130
1,397,737
1,095,060
2,993,141
Due to banks
1,377,384
711,249
2,088,633
Other liabilities
158,216
158,216

joint ventures
30,401
30,401
Equity
4,097,214
4,097,214
135,328
135,328
402,737
700,000
300,000
4,255,430
5,658,167
66,321
66,321
ON BALANCE SHEET INTEREST

RATE SENSITIVITY GAP
475,976
(343,161)
731,877
2,239,914
(3,104,606)
Other assets
356,595
356,595
CUMULATIVE INTEREST RATE

SENSITIVITY GAP
475,976
132,815
864,692
3,104,606
TOTAL ASSETS
521,580 855,130 1,397,737 2,472,444 1,465,098 6,711,989
Due to banks
300,000
701,438
1,001,438
Other liabilities
204,779
204,779
Equity
5,505,772
5,505,772
300,000
701,438
5,710,551
6,711,989
ON BALANCE SHEET INTEREST

RATE SENSITIVITY GAP
221,580
153,692
1,397,737
2,472,444
(4,245,453)
CUMULATIVE INTEREST RATE

SENSITIVITY GAP
221,580
375,272
1,773,009
4,245,453
The following table demonstrates the sensitivity to a reasonable possible change in interest
rates, with all other variables held constant, of the Banks statement of comprehensive
income.
The sensitivity of the statement of comprehensive income is the effect of the assumed
changes in interest rates on the net interest income for one year, based on the floating
rate non-trading financial assets and financial liabilities held at reporting date. The effect of
decreases in basis points is expected to be equal and opposite to the effect of the increases
shown.
SENSITIVITY OF NET INTEREST INCOME

Currency QR
102
Increase in basis points
2014
2013
+10
1,681
1,309
103
NOTES
QAR 000s

4.
4.4 Market Risk (Continued)

b) Currency risk

In the opinion of the management, the Banks exposure to currency risk is minimal as
most of the foreign currency financial assets and liabilities are denominated in US Dollars
and Euros. As the Qatari Riyal is pegged to the US Dollar, balances in US Dollars are not
considered to represent significant currency risk. The exposure to Euro currency is also
minimal and hence not considered to represent the significant risk.

Equity price risk

Equity price risk is the risk that the fair values of equities decrease as a result of changes in
the levels of equity and the value of individual investments. The effect on equity due to a
reasonable possible change in equity indices, with all other variables held constant, is as
follows:
EFFECT ON EQUITY

Market indices
Qatar Exchange
Change in equity price
2014
2013
10%
68,821
63,538
4.5 Operational and other risks

Operational risk refers to the loss resulting from inadequate or failed internal processes, people
and systems or from external events. The Bank endeavors to minimize operational losses by
ensuring that effective infrastructure, controls, systems and individuals are in place throughout
the organization. An enterprise wide Risk and Control Self-Assessment (RCSA) Process helps the
bank to identify risks, test controls and track and report significant operational risk exposures
through KRIs and operational risk loss data. Likewise regulatory, legal and reputation risks are
assessed by way of risk scorecards and controlled through. External legal advice is obtained from
lawyers to confirm legal and regulatory requirements, where required.

Other risks to which the Bank is exposed are regulatory risk, legal risk and reputational risk.
Regulatory risk is controlled through a framework of compliance policies and procedures.
Legal risk is managed through the effective use of external legal advisers. Reputational risk is
controlled through the regular examination of issues that are considered to have reputational
repercussions for the Bank, with guidelines and policies being issued as appropriate.
4.6 Capital management

The primary objectives of the Banks capital management are to ensure that the Bank complies
with externally imposed capital requirements and that the Bank maintains strong ratings and
healthy capital ratios in order to support its business and to maximize shareholders value. In
order to maintain or adjust the capital structure, the Bank may adjust the amount of dividend
payment to shareholders or issue additional capital securities. No changes were made in the
objectives, policies and process from the previous years.
104
QAR 000s
5. Financial Assets and Liabilities
c)
NOTES
The Bank maintains an actively managed capital base to cover risks inherent in the business.
Capital comprises of share capital, general reserve and retained earnings amounting to QR 4.9
billion (2013: QR 3.6 billion).
(a) Accounting classifications and fair values

The table below sets out the carrying amounts and fair values of the Banks financial assets and
financial liabilities:
AT 31 DECEMBER 2014
LOANS AND
RECEIVABLES
AVAILABLE
FOR SALE
OTHER
AMORTISED
COST
TOTAL
CARRYING
AMOUNT
FAIR VALUE
165,204
165,204
165,204
Due from banks
876,366
876,366
876,366
2,993,141
- 2,993,141
2,993,141
- 2,088,633
2,088,633

Other assets
4,034,711
2,088,633
-
2,088,633
43,642
43,642
43,642
43,642
6,166,986
6,166,986
Due to banks
1,001,438
1,001,438
1,001,438
Other liabilities
204,779
204,779
204,779
- 1,206,217 1,206,217 1,206,217
AT 31 DECEMBER 2013
LOANS AND
RECEIVABLES
AVAILABLE
FOR SALE
OTHER
AMORTISED
COST
TOTAL
CARRYING
AMOUNT
FAIR VALUE
129,478
129,478
129,478
Due from banks
885,231
885,231
885,231
2,429,907
2,429,907
2,429,907
1,839,075
1,839,075
1,839,075
Other assets
60,505
60,505
60,505
3,444,616
1,839,075
60,505
5,344,196
5,344,196
Due to banks
1,402,737
1,402,737
1,402,737
Other liabilities
158,216
158,216
158,216
1,560,953
1,560,953
1,560,953
105
NOTES
QAR 000s

6. Use of Estimates and Judgments
(i) Allowances for credit losses

Assets accounted for at amortised cost are evaluated for impairment on a basis described in
accounting policy.
QAR 000s

6.
(a) Key sources of estimation uncertainty

The Bank makes estimates and assumptions that affect the reported amounts of assets and
liabilities. Estimates and judgments are continually evaluated and are based on historical
experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances.
NOTES
Use of Estimates and Judgments (Continued)

(b) Critical accounting judgements in applying the Banks accounting policies (Continued)

(i) Valuation of financial instruments (Continued)
31 DECEMBER 2013
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
1,821,069
Financial assets
Investment Securities
1,821,069
The specific counterparty component of the total allowances for impairment applies to
financial assets evaluated individually for impairment and is based upon managements
best estimate of the present value of the cash flows that are expected to be received. In
estimating these cash flows, management makes judgments about counterpartys financial
situation and the net realisable value of any underlying collateral. Each impaired asset is
assessed on its merits, and the workout strategy and estimate of cash flows considered
recoverable are independently approved by the Credit Risk function. Minimum impairments
on specific counter parties are determined based on the Qatar Central Bank regulations.
Investment securities - at cost

At 31 December 2014, certain unquoted financial assets available for sale amounting to
QR 23 million (2013: 18 million) are carried at cost due to non availability of quoted market
prices or other reliable measures of their fair values. Management believes there is no
impairment in their value. The fair value of the financial instruments, which are not measured
at fair value approximates their carrying amount, hence not included in the fair value
hierarchy table.
(ii) Allowances for financial assets not carried at fair values through profit and loss

At each reporting date, the Bank assesses whether there is objective evidence that financial
assets not carried at fair value through profit or loss are impaired. A financial asset or a
group of financial assets is impaired when objective evidence demonstrates that a loss event
has occurred after the initial recognition of the assets and that the loss event has an impact
on the future cash flows of the assets that can be estimated reliably.
(iii) Useful lives of property and equipment / investment property

The Banks management determines the estimated useful life of property and equipment
/ investment property for calculating depreciation. This estimate is determined after
considering the expected usage of the asset, physical wear and tear, technical or
commercial obsolescence.
(ii) Impairment of investments in equity and debt securities

Investments in equity and debt securities are evaluated for impairment on the basis
described in the significant accounting policies section.
For an investment in an equity security, a significant or prolonged decline in its fair value
below its cost is objective evidence of impairment. In this respect, the Bank regards a
decline in fair value in excess of 20% to be significant and a decline in a quoted market
price that persisted for nine months or longer to be prolonged.
(b) Critical accounting judgements in applying the Banks accounting policies

(i) Valuation of financial instruments

The Bank uses the following hierarchy for determining and disclosing the fair value of
financial instruments by valuation technique:
Further, the investment in Q-Media (refer note 10(1)) amounting to QR 1 is initially

recognised at cost due to non-availability of observable market data and hence no gain /
loss has been recognised on initial recognition.
7. Due from Banks
Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities;
2014
2013
Level 2: Other techniques for which all inputs which have a significant effect on the recorded
fair value are observable, either directly or indirectly; and
Current accounts
1,106
598,968
Call accounts
123,934
136,263
Level 3: Techniques which use inputs which have a significant effect on the recorded fair
value that are not based on observable market data.
Placements
751,326
150,000
The following table shows an analysis of financial instruments recorded at fair value by level
of the fair value hierarchy:
31 DECEMBER 2014
LEVEL 1
LEVEL 2
LEVEL 3
TOTAL
Financial assets
2,065,594
2,065,594
876,366
885,231
The geographical distribution is set out below:
2014
2013
Qatar
861,504
874,481
North America
9,541
10,587
Europe
4,204
163
Other GCC countries
1,117
876,366
885,231
106
107
NOTES
QAR 000s
8. Loans and Advances to Customers

a) BY TYPE
NOTES
2014
2014
2013
Loans and advances (net of recoveries)
45,181
57,404
Other provisions
13,996
2,337
Interest in suspense
(1,254)
(778)
FOR THE YEAR ENDED 31 DECEMBER
57,923
58,963
(i) Conventional banking loans and advances
Non- agricultural and fishery loans
2,030,096
37,307
30,412
2,215,550
2,060,508
Agricultural and fishery loans

Specific impairment on advances to customers
Conventional banking loans and advances
(194,398)
(151,725)
2,021,152
1,908,783
(ii) Islamic financing activities

Murabaha
Istisnaa
Ijarah
285,755
71,609
35,380
447,083
671,777
39,791
Loans and Advances to Customers (Continued)

e) Net Impairment during the year:
2013
2,178,243
QAR 000s

8.
9. Investment Securities
2014
QUOTED
2013
UNQUOTED
TOTAL
QUOTED
UNQUOTED
TOTAL
AVAILABLE FOR SALE INVESTMENTS
992,912
558,483
Deferred income on Islamic finances
(20,923)
(37,359)
a) By type
Net financing activates
971,989
521,124
Equity securities measured at fair value
Net loan and advances and financing activities
2,993,141 2,429,907
b) All loans and advances are to corporate customers and small and medium sized entities
located in the State of Qatar.
c)
The movement in the allowance for impairment of loans and advances is as follows:
2013
151,725
95,099
66,329
68,512
Recoveries
(23,656)
(11,886)
AT 31 DECEMBER
194,398
151,725
At 1 January
Charge for the year
688,210
635,382
635,382
7,016
7,016
7,016
7,016
State of Qatar Bonds
890,854
890,854
701,347
701,347
Other debt securities
486,530
486,530
492,470
492,470
16,023
16,023
10,990
10,990
Equity securities measured at cost
Investment funds
TOTAL
2014
688,210
Interest in suspense of QR 4,129 thousand as at 31 December 2014 (2013: QR 5,383 thousand) is

for the purpose of Qatar Central Bank regulatory requirements, effectively included in the above
allowance for impairment on loans and advances. Movement in interest in suspense during the
year amounted to a net recovery of QR 1,254 thousand (2013: net recovery of QR 778 thousand).
Impairment loss
TOTAL
2,065,594
-
2,065,594
23,039 2,088,633 1,829,199

-
(8,130)
23,039 2,088,633 1,821,069
18,006 1,847,205
-
(8,130)
18,006 1,839,075
The State of Qatar Bonds and other debt securities financial assets amounting to QR. 890.9 million
and QR. 486.5 million respectively (2013: QR 701.3 million and QR. 492.5 million) represent
investments in fixed rate securities. There are no investments in floating rate securities as at 31
December 2014.
No impairment losses on the investments was recognised during the year ended 31 December 2014
(2013: 8.1 million).
d) Details of non-performing loans are as follows:

The net amount of non-performing loans and advances and financing activities to customers as
at 31 December 2014 amounted to QR 55.782 million representing 1.7% (2013: QR 113 million
representing 4.3%) of the total gross loans and advances to customers.
108
109
NOTES
QAR 000s
10. Interest in Other Entities

NAME OF THE ENTITY
DESCRIPTION OF ACTIVITIES
ACCOUNTING TREATMENT
Q Media W.L.L
The main activities of the

Q-Media (the Company) are
to provide media and outdoor
advertising services, marketing
services, managing events,
printing and road signboard
services.
Disclosed as an interest in other

entity and treated as an available
for sale investment.
Refer note 1
Yellow Services S.P.C.
The Company was designed

to facilitate the acquisition of
Q-Media.
Treated as a subsidiary but not

consolidated as the companys
operations are not material to the
Bank. Refer Note 2.
Ellan Entertainment
Development W.L.L. (a
subsidiary of Q-Media)
The principal activities of the

Company are investment
in properties including
construction, sales and
operating, development of
various kinds of projects,
general building contracting and
operating real estate.

Bank. Refer Note 3.
The principal activities of

the Company are to provide
entrepreneurs and small and
medium enterprises with the
support that allows them to
promote their capabilities,
continue to build their
businesses and successfully carry
out their operations.

Bank. Refer Note 4.

Company are manufacturing of
single used disposable syringes.
Disclosed as interest in other

entity. The Bank has extended a
financing facility amounting to QR
59.875 million to the company.

Company are manufacturing
HID lamps and other lighting
products.
Disclosed as an interest in
other entity and treated as an
investment in associate. Refer note
11. Further, the Bank has extended
a financing facility amounting to
QR 9.45 million to the company.
Qatari German Company

for Medical Devices Q.S.C.
Al Shams Advanced
Lighting Technologies
Q.P.S.C
Housing Loan Portfolio

managed by the Bank
110
The portfolio contains

government sponsored and
funded housing loans to Qatari
Nationals managed by the Bank.
QAR 000s
10. Interest in Other Entities (Continued)
Set out below is the summary of the Banks interest in other entities:
Small and Medium

Enterprises Development
Company Q.S.C. (EQ)
NOTES
1% of the total portfolio is

recognised as income.
NOTE 1
During the year, the ownership of Q-Media was transferred to the Bank on the instruction of Ministry
of Finance (MoF) at QR 1. 99.1% of the shares of Q-Media were transferred to QDB directly and 0.9%
through its wholly owned company Yellow Services S.P.C. (structured entity established only to acquire
Q-Media).
Q-Media is not consolidated in the books of the Bank in accordance with IFRS 10 Consolidated
Financial Statements, as Ministry of Finance (MOF) has the right to change the owner without
showing any reason as per letter dated 19 October 2014 from the MOF.
The maximum exposure to loss for the Bank is the credit risk in respect of loan amounting to QR 995
million provided by the Bank to the Company. However, the Banks exposure towards the Company is
secured through a guarantee issued by the MoF to settle the loan in case of default.
The following table provides the carrying amounts and classifications of interests recorded in the
Banks Statement of financial position and maximum exposure to loss as of and for the year ended 31
December 2014.

31 DECEMBER 2014
TOTAL
Statement of financial position line items
Available-for-Sale investment
Loans and advances to customer
Interest receivable
TOTAL ASSETS
Statement of comprehensive income line items
Interest income
MAXIMUM EXPOSURE TO LOSS
*This represents investment in Q-Media amounting to QR 1
NOTE 2
Yellow Services S.P.C. has net assets of QR 200,000 representing only the share capital and cash as at
31 December 2014.
NOTE 3
The ownership of Ellan Entertainment Development W.L.L. has been transferred to the Bank with
effect from 26 February 2014 without consideration, as a pass through arrangement, to facilitate the
sale of lands owned by it to a third party. Ellan Entertainment Development W.L.L. has net assets of
QR 200,000 representing the share capital and cash as at 31 December 2014, excluding the liability
to a third party amounting to QR 138 million which will be borne by Q-Media as per the letter dated
16 November 2014.
NOTE 4
On 11 August 2014, the Ministry of Finance received a letter from the office of the Prime Minister
instructing the merger of Small and Medium Enterprises Development Company Q.S.C. (EQ) with
the Bank. Further, on 26 November 2014, HE Emir of Qatar approved the merger of EQ with the
Bank. Upon completion of the merger, which is expected to occur in early 2015, all the assets and
liabilities of the EQ will be transferred to the Bank and thereafter the legal ownership of the EQ will be
cancelled. EQ has net assets of QR 20.4 million as at 31 December 2014.
-*
965,813
29,457
995,270
29,138
995,270
111
NOTES
QAR 000s

11. Investments in Associates and Joint Ventures
NOTES
QAR 000s

12. Investment Properties
The movement in investment property is as follows:
2014
2013
40,911
39,972
195
1,556
Share of results
(4,599)
(617)
Impaired during the year
(6,106)
BALANCE AT 31 DECEMBER
30,401
40,911
Balance at 1 January
Investments acquired during the year
BUILDINGS
LAND
96,557
53,576
Balance at 31 December 2013
96,557
53,576
150,133
96,557
53,576
150,133
96,557
53,576
150,133
COST
Acquisitions
Acquisitions
2013
ASSOCIATES/
JOINT
VENTURE
Al Shams Advanced Lighting

Technologies Q.P.S.C* -
5,911
Associate
Qatar
30,401
35,000
Joint Venture
Qatar
NAME OF THE COMPANY
Qatar Business Incubator
AMOUNT
2014
The Bedaya Centre** -
Joint Venture
COUNTRY
Qatar
OWNERSHIP %
BALANCE AT 31 DECEMBER 2014
2014
2013
ACCUMULATED DEPRECIATION
26%
25%
Career development
and entrepreneurship
services for the youth
of Qatar
50%
50%
Catering to the
diversified needs of
SMEs with tailormade solutions and
toolkits.
50%
COMPANYS
ACTIVITIES
Manufacturing HID
lamps and other
lighting products
31 DECEMBER 2014
AL SHAMS ADVANCED
LIGHTING TECHNOLOGIES
QATAR BUSINESS
INCUBATOR
12,689
77,396
1,397
Total liabilities
10,065
4,594
10,702
733
67
383
1,835
9,197
2,898
4,599
Total revenue
Net loss
Share of net loss
(7,081)
Charge during the year
(3,862)
(3,862)
(10,943)
(10,943)
(10,943)
(10,943)
(3,862)
(3,862)
(14,805)
(14,805)
89,476
53,576
143,052
85,614
53,376
139,190
81,752
53,576
135,328
The investment property is valued at QR: 142.5 million as on 31 December 2014 (2013 QR:
140million). This value is based on average market values carried out by independent valuers
not connected with the Bank, by reference to market evidence of recent transactions for similar
properties.
Rental income generated from this investment property amounting to QR 3,498 million (2013: QR
3,458 million) and no direct operating expenses were recognized in the statement of income during
the year.
THE BEDAYA
CENTRE
Total assets
150,133
(7,081)
CARRYING AMOUNTS
The financial position and results of associates and joint ventures based on financial statements, as at
and for the year ended 31 December 2014 are as follows:
Charge during the year

50%
TOTAL
*The Investments in this associate has been fully impaired.

**The Investments in this joint venture has been fully impaired. The Bank has recognised the share of loss up to the cost of the
investment in prior years.
112
113
NOTES
QAR 000s
QAR 000s
14. Other Assets
13. Property and Equipment

FURNITURE
AND
FIXTURES
LAND AND
BUILDING
OFFICE
EQUIPMENT
WORK IN
PROGRESS
2014
2013
Accrued interest receivable
28,185
46,569
Staff furniture allowance
10,398
9,462
167
6,837
4,599
3,952
TOTAL
COST
NOTES
23,377
10,526
28,707
62,610
Prepayments
Additions
81
8,777
36,716
45,574
Other receivables (a)
Disposals
(34)
(34)
Work in progress (b)
23,343
10,607
37,484
36,716
108,150
Other debit balances
23,343
10,607
37,484
36,716
108,150
356,595
126,149
Additions
6,188
7,691
13,879
Transfers
21,047
5,769
9,900
(36,716)
Disposals
50,578
16,376
55,075
122,029
8,899
7,979
12,044
28,922
953
1,145
8,904
11,002
9,852
9,124
20,948
39,924
9,852
9,124
20,948
39,924
935
1,811
13,038
15,784
10,787
10,935
33,986
55,708
Depreciation during the year

Disposals
Depreciation during the year

Disposals
CARRYING AMOUNTS
14,478
2,548
16,663
33,688
13,491
1,483
16,536
36,716
68,226
39,791
5,441
21,089
66,321
58,807
460
522
(a) Other receivables include receivable from Qatar Business Incubator amounting to QR 4.5 million
(2013: Qatar Business Incubator amounting to QR 47 thousands and Bedaya Centre amounting
to QR 3.9 million respectively).
(b) This represents the expenses incurred on construction of the Al-Farjan project in collaboration
with Ministry of Business and Trade.
ACCUMULATED DEPRECIATION
312,786
15. Other Liabilities

2014
2013
Deferred income
63,592
81,513
Accruals and others
19,363
19,128
Accounts payable
21,072
7,207
Provision for end of service benefits (a)
13,395
10,395
Other provisions (b)
30,217
22,667
5,350
7,150
51,040
9,407
750
749
204,779
158,216
Board and committees remuneration payable

Margin deposits
Loan fees payable
(a) Provision for end-of-service benefits

2014
2013
10,395
8,117
4,412
2,597
Payments during the year
(1,412)
(319)
AT 31 DECEMBER
13,395
10,395
At 1 January
Provision made during the year
(b) This represents the allowances for impairment made against guarantees (AL-Dahmeen).
114
115
NOTES
QAR 000s

16. Equity

SHARE CAPITAL
The authorised capital of the Bank amounts to QR 10,000 million (2013: QR 10,000 million) consisting
of 1,000 million shares of QR 10 each. The paid up capital amounted to QR 4,500 million consisting
of 450 million shares of QR 10 each. The Government of the State of Qatar is the ultimate parent and
controlling party of the Bank.
During the year, the Bank has received QR 1,200 million (2013: QR 400 million) from the Government
as a contribution towards the authorised capital.
LEGAL RESERVE
In accordance with the Banks Articles of Association, at least 20% of the net profit for the year is
required to be transferred to the legal reserve until the reserve equals 100% of the paid up capital.
The minimum required percentage of transfer to legal reserve as per Qatar Central Bank rules and
regulations is 10% (2013: 10%). This reserve is not available for distribution except in circumstances
specified in the Qatar Commercial Companies Law No. 5 of 2002 and with the approval of Qatar
Central Bank.
GENERAL RESERVE
The general reserve was created in 1997 in accordance with Article 31 (3) of the Articles of
Association. This reserve can be used at the discretion of the General Assembly, after obtaining the
approval of Qatar Central Bank.
RISK RESERVE
In accordance with Qatar Central Bank rules and regulations, a risk reserve is made to cover
contingencies on the loans, advances and financing activities to customers with a minimum
requirement of 2.5% (2013: 2.5%) of the total private sector exposure, net of cash secured facilities
is made to cover contingencies on the private sector loans and advances. The Bank is currently
transferring 3% to the reserve (2013: 3%).
POSITIVE FAIR
VALUE
NEGATIVE FAIR
VALUE
2013
14,278
158,835
Al- Dahmeen
330,140
191,641
Letters of guarantee
127,535
48,305
Letters of credit
218,323
127,558
1,594,886
1,485,039
14,842
13,026
2014 2014
Unutilised credit facilities

Capital commitments
2,300,004
2,024,404
i) Al-Tasdeer (export promotion agency)

This commits the Bank to make payments to its customers, contingent upon the credit default of
their overseas importers as per the terms of the contracts, thereby providing them guarantee to
cover their credit risk.
ii) Guarantees, Al-Dahmeen and letters of credit

Letters of credit, guarantees, Al-Dahmeen (Financial guarantee provided to customers in
partnership with other banks) commit the Bank to make payments on behalf of customers
contingent upon their failure to perform under the terms of the contract. Guarantees, AlDahmeen and standby letters of credit carry the same risk as loans. Credit guarantees can be
in the form of irrevocable letters of credit, credit insurance, advance payment guarantees and
endorsement liabilities from bills rediscounted.
iii) Unutilized facilities

Commitments to extend credit represent contractual commitments to fund loans and revolving
credits. Commitments generally have fixed expiry dates or other termination clauses. Since
commitments may expire without being drawn upon, the total contract amounts do not
necessarily represent future cash requirements. The commitments generally have expiry dates of
less than one year.
iv) Capital commitments

This includes the Banks commitments towards the share capital of the investee company and
fund as per the shareholders agreement.
2014
277,593
(653)
276,940
Net movement in unrealized fair value during the year
139,222
(1,431)
137,791
AT 31 DECEMBER
416,815
(2,084)
414,731
Al-Tasdeer
TOTAL
At 1 January
18. Interest Income

2014
2013
Due from banks
11,595
11,587
81,328
45,871
Debt securities
59,934
51,943

POSITIVE FAIR
VALUE
Available-for-sale investments
At 1 January
Net movement in unrealized fair value during the year
AT 31 DECEMBER
116
QAR 000s
2014
FAIR VALUE RESERVE
Available-for-sale investments
17. Contingent Liabilities and Commitments
NOTES
NEGATIVE FAIR
VALUE
TOTAL
2013
2013
2013
260,628
(4,797)
255,831
16,965
4,144
21,109
277,593
(653)
276,940
152,857 109,401
117
NOTES
QAR 000s
19. Fee and Commission Income
NOTES

22. Cash and Cash Equivalents

Cash and cash equivalents included in the statement of cash flows comprise the following amounts:
2014
2013
11,238
5,663
126,577
130,105
Fee income on Al-Tasdeer
3,998
2,462
Current accounts with banks
Fee income on Al- Dahmeen
3,227
2,654
Call accounts with banks
Fee income on indirect facilities
6,488
2,749
QAR 000s
Fee income on loans and advances

Fee income on land loans department
2014
2013
165,204
129,478
1,106
598,968
123,934
136,263
Cash and balances with Qatar Central Bank
Term deposit with banks

(with an original maturity of 90 days or less)
201,326
151,528
143,633
491,570
20. Income from Investment Securities

Dividend income
2014
2013
6,245
24,415
27,297
30,660 27,297
The Bank enters into transactions with major shareholder, directors and key management personnel
of the Bank, and entities controlled, jointly controlled, or significantly influenced by such parties. All
the loans and advances and financing activities to related parties are given at market rates.
The year - end balances in respect of related parties included in the financial statements are as
follows:
2014
21. Staff and Other Costs

2014
2013
128,830
104,735
Repairs and maintenance
3,146
3,485
Board of Directors and committees remuneration
3,050
4,000
Advertisement
19,065
15,049
Professional and Governmental fees
29,621
23,758
Communication and insurance
1,870
1,868
Travel and entertainment
2,313
1,028
311
795
IT expenses
7,093
4,683
Others
3,242
3,006
198,541
162,407
Staff cost
Printing and stationery
118
964,709
23. Related Party Disclosures
Net gains on sale of available-for-sale financial assets
100,000
GOVERNMENT
OF STATE OF ASSOCIATE
QATAR
JOINT
VENTURES
a) Statement of financial position

Financial investments
890,854
Other receivable (note 14a)
4,599
Investments in associates and joint ventures
30,401
Gross amount of loans and advances
9,451
9,296
b) Statement of comprehensive income

Interest on the State of Qatar bonds
34,602
Net impairment loss on loans and advances to customers
7,567
119
NOTES
QAR 000s

23. Related Party Disclosures (Continued)
2013
GOVERNMENT
OF STATE OF ASSOCIATE
QATAR
JOINT
VENTURES
a) Statement of financial position

Financial investments
701,347
Other receivable (note 14a)
3,952
Investments in associates and joint ventures
5,911
35,000
Gross amount of loans and advances
8,643
1,729
b) Statement of comprehensive income

Interest on the State of Qatar bonds
26,358
Net impairment loss on loans and advances to customers
1,729
Board of Directors remuneration amounted to QR 2,800 thousand (2013: QR 2,800 thousand).

Compensation of key management personnel is as follow:

Salaries and other benefits
2014
2013
8,697
7,443
24. Comparative Figures

120
Certain comparative figures have been reclassified to conform to the presentation in the current
periods financial statements. However, such reclassification does not have any effect on the net
income, net assets and equity of the previous period.

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THE ART OF

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

In The Name Of Allah,

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

SHEIKH TAMIM BIN HAMAD AL THANI

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

Vision and Mission

Envisioning Qatars Success

2014 Year of Success

Key Seven Sectors

Private Sector Initiatives

Business Plan Creator

Banks Training Sessions

Qatar Business Incubation Center

To be the primary enabler of Qatars private sector and economic diversification.

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

H.E. SHEIKH ABDULLAH BIN SAUD AL-THANI | CHAIRMAN

In September, HE the Prime Minister inaugurated Qatar Business Incubation Center

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

OUR TEAM | THE PRESENT BOARD CONSISTS OF SEVEN MEMBERS

H.E. SHEIKH ABDULLAH

H.E. DR. IBRAHIM BOUTROS

H.E. Sheikh Abdullah Saud Al-Thani

H.E. Dr. Ibrahim Boutros Al-Ibrahim

Deputy Chairman of the Board

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

H.E. MR. HAMAD ALI AL-MANNAI

MR. ALI MOHAMMED AL-KUBAISI

MR. MUFTAH JASSIM AL-MUFTAH

MR. NASSER MOHAMMED AL-MALKI

Director of the Shared Services Department in the Supreme Education Council

MR. SAEED MUBARAK AL-KAWARI

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

ABDULAZIZ BIN NASSER AL-KHALIFA | CHIEF EXECUTIVE OFFICER

Approved QAR 167.4 MILLION in loan guarantees through Al Dhameen in

benefited from QDB Advisory Services, with 200 individual

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

Through market studies, matchmaking events and trade

QAR 250 MILLION in new business orders for

110 local SMEs and entrepreneurs competed to tender across

QAR 1.8 BILLION in housing loans issued and

In partnership with the Social Development Center (SDC), we

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

QATARS GDP IS EXPECTED TO REACH QAR 873 BILLION BY 2015

Having the worlds third largest natural gas

The primary focus of Qatar Development

Qatar Development Bank plays an

The bank promotes a number of strategic

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014

Number of SMEs (small and medium enterprises)

Number of approved financed projects in manufacturing and recycling.

QAR 250 million

The value of booked orders by Qatari exporters in various opportunities

QAR 1.11 billion

Amount of direct loans disbursed.

QAR 573 million

Total amount of guarantees given to over 69 SMEs in favor of

Number of shops built in the first phase of Al Furjan Market project.

QAR 3.15 billion

The total outstanding loans sanctioned under the

QAR 1.8 billion

The total amount of housing loans disbursed to Qatari citizens.

QATAR DEVELOPMENT BANK | ANNUAL REPORT 2014