“NCB is committed to supporting the Kingdom’s infrastructure development. Besides leading Islamic finance in other segments, I am glad NCB also maintains its leadership position in shari’ah complaint Infrastructure financing,” said Corporate Sector Head Al Sharief Khalid. Madina International Airport is being built at a cost of approximately US$ 1.2 billion. Out of this, NCB is providing a significant chunk of total funding through both Senior Participation and Equity Bridge Financing. “We had been working on this deal for the last 18 months. The Build, Transfer and Operate (BTO) structure presented a few challenges from a shari’ah standpoint. But we managed to overcome them all,” explained Mansoor Durrani, Head of Project Finance.
Long term infrastructure financing sits well with shari’ah principles. So far Islamic project finance is largely confined to power and hydrocarbon
sectors. “This experience will allow Saudi banks to extend their coverage of project financing to other critical infrastructure sectors like
highways and railways,” believes Mansoor Durrani. At a time when liquidity in the international banking market is drying up, shari’ah
complaint financing is assuming added significance. “In these challenging times, NCB is at the forefront of bringing innovative shari’ah
complaint solutions to our esteemed clients,” added Sikander Zaman, Head of Specialized Finance Group.