Shk Khalid Bin Thani Al Thani is a leading Qatari businessman with interests across many areas, including media, real estate and financial securities. He is also the co-founder and benefactor of a number of non-profit organisations and business associations. In banking, however, he is probably best known for having founded a number of Sharia-compliant Islamic banks, including the Islamic Bank of Britain (IBB).
Shk Khalid Bin Thani Al Thani has had a keen interest in business ever since he was a child. “The concept of trading and investing to realise a gain has always intrigued me,” he says. “I started a number of small trading enterprises while still at school. It took a number of trials and some hard lessons to sharpen my skills to analyse an investment proposition and reach a balanced judgement about risk and return.” He feels that these experiences taught him the importance of finance and of sound investment strategies for any business to succeed.
As he grew older, he became increasingly involved with the family business, which would give him a firm foundation for his later years in the banking sector. However, his schooling raised his interest even further in “the considerable role finance and banking play in the economy.” After finishing his schooling, Shk Khalid Bin Thani Al Thani went on to study both undergraduate and post-graduate degrees in Industrial Management and Technology at Michigan University. “I was fortunate to go to college in the US for my undergraduate degree,” he says. “Gaining access to some of the best educational institutions globally has widened my horizons and enforced the idea of an interconnected and interdependent world. I then chose to study a PhD in the UK as it offered me access to a world-class institution in my field of study.”
Shk Khalid Bin Thani Al Thani also feels that these experiences abroad have helped him become a better businessman. “When you live in a different country, speak a foreign language and observe different customs and ways of interacting between people, you become more adaptable and flexible. You learn to accept different views and entertain different ideas and concepts.” During this time, he was also able to learn about different sets of rules, regulations, laws and governing bodies around the world. This has, he says, had an invaluable influence on his business decisions and strategies throughout his career.
The endurance of Islamic Finance
While he considers this exposure to other cultures and customs to have been invaluable, he is adamant that this tool should not be used at the expense of one’s own culture and heritage. It is no doubt this attitude which led him to take the decision that he would only be involved in financial institutions that are Sharia-compliant. Sharia-compliant financial services meet with the requirements of the Muslim faith, which prohibits usury – i.e. interest. “Simply put, Islam views the economic value of money from the perspective of what it adds to a business, an investment, a product or a service. Money is not seen as a commodity in its own right,” Shk Khalid Bin Thani Al Thani explains. “In other words, unless money is mixed with other economic resources to create something new, money itself does not create value. Thus, Islam annuls the concept of compensating an investor for a risk-free cash investment and substitutes it with a risk/return shared approach. When applied correctly, this concept offers a tremendously positive impact on the economy. One needs only to consider the huge debt weight in many developed economies and the burden it creates for future generations just servicing the interest on the debt.”
On 1st January 1991, Shk Khalid Bin Thani Al Thani founded Qatar International Islamic Bank (QIIB) and remains its Chairman and Managing Director. The bank now has 12 branches and 50 ATMs in convenient locations across the country. It is a full service institution, offering a full array of both retail and corporate services while still remaining committed to Sharia principles. Now 20 years old, the bank has assets worth over QR16.6bn ($4.5bn). It is also a founding partner of Tasheelat, a Sharia-compliant consumer financing company.
After the success of QIIB, Shk Khalid Bin Thani Al Thani decided to take his experience abroad and found a second Islamic bank, this time in the UK. “Our experience at QIIB has shown a strong appeal for Sharia-compliant financial services not only to Muslims, but among all segments of the population, regardless of faith or belief,” he says. “When we started contemplating expansion beyond the Qatari borders, we decided to expand in the form of stand-alone entities, sometimes in strategic partnerships with domestic partners. When selecting these partners, we would look for companies that shared our vision and that had a proven knowledge of their domestic markets. The UK was a natural choice, as it is considered one of the main global banking hubs.” To this day, IBB remains the only British retail bank regulated by the Financial Standards Authority that is also fully operating as an Islamic bank.
Subsequently, Shk Khalid Bin Thani Al Thani founded the Syria International Islamic Bank (SIIB), which was one of the first entrants into Islamic banking in the country, “SIIB has been successful and we are pleased with the results of its operation,” he says. “We have also been looking at other opportunities in the Middle East, Europe and North America. However, the challenging banking environment over the last three years and the ensuing regulatory changes mandated re-examining each market closely to ascertain the potential and feasibility of an investment.”
Aside from Islamic banking, Shk Khalid Bin Thani Al Thani has set up a number of other financial companies. The Islamic Holding Group is the first specialised Islamic company providing Sharia-compliant brokerage services for its customers. It has over QR116m ($32m) in assets and endeavours to provide the best brokerage services in the Doha securities market. Qatar Islamic Insurance Company started business in 1995. It is a national organisation, but one that has international reach and currently has over QR586m ($161m) in assets with market capitalisation in excess of QR263m ($72m). Other entities include Syria Islamic Insurance Company and two holding companies, Tadawul Holding Group and Mackeen Holding.
Social investments
Shk Khalid Bin Thani Al Thani’s business interests do not begin and end with financial services – he also has business interests in media, healthcare and education. “In today’s interconnected world, business diversification is a must,” he says. “Economic cycles and varying business conditions impact different industries in different ways. Additionally, as good corporate citizens, we believe that we have a role to play in Qatari society and to make strong contributions towards its development.”
To this end, he was one of the founders of Medicare Group (Al Ahli Hospital) and remains a board director. The 250-bed hospital provides complete healthcare services and aims to become the preferred provider of healthcare for patients from the Gulf area. He is also involved with five media entities, Dar Al-Sharq Publishing and Distribution Co., Al-Sharq Arabic Newspaper, The Peninsula English Newspaper, Dar Al-Arab Publishing and Distribution Co., and Al-Arab Arabic Newspaper. Finally, he holds positions with three real estate and housing development organisations: Zenon Trading and Contracting Co., National Leasing Holding, and Ezdan Real Estate Co. In addition to these corporate interests, he is the Emeritus Vice President of the Asian Amateur Athletic Association (AAAA) and sits on the Board of Directors of the Qatar Society for Rehabilitation and Special Needs. “Healthcare, education and media are complimentary to each other and allow us to play an active role in enhancing the lives of Qatari citizens and expatriates,” he says.
When reflecting on his success over the years, Shk Khalid Bin Thani Al Thani believes that his family background and education form the backbone of what he has become today, “I can honestly say I was fortunate to come from a family of business people. Growing up, I was always exposed to how and why business decisions were made. There were many valuable lessons I learned just by observing even at a young age. My education and travels have helped in expanding my horizons and learning about different cultures and people.” Continuing, he says that if he were to pick out one defining factor, it would be that he takes a longer-term strategic view of issues, problems, challenges and opportunities. “My years in business taught me to consider factors beyond immediate gratification. Today’s shortcomings may be tomorrow’s opportunity, so learning from your own mistakes is part of our success. Finally, aiming high and working hard to achieve one’s goals are basic business values that as true today as they have ever been.”
