HSBC and Qatar Islamic Bank (QIB) have closed an Islamic trade finance facility worth US$100mn.

The financial institutions refinance trade facility is a new addition to HSBC’s Islamic product suite, according to a press statement by QIB.

“We are very proud that QIB is the first bank in the region to complete an Islamic trade facility with HSBC,” says Bassel Gamal, group CEO of QIB. “We look forward to further co-operation in the future.”

Abdul Hakeem Mostafawi, CEO of HSBC Qatar, adds that this is also a first-of-its-kind transaction for HSBC within the Menat region.

“We are very optimistic about the different growth opportunities in Qatar that is driven by the expansion in gas production, final preparations for the FIFA 2022 World Cup and ongoing investment in infrastructure development. This transaction signals a strong start to the year,” he says.

While details of the agreement are scant, the deal could prove strategically important for HSBC and suggest that there may be more business with Qatari banks and businesses to come.

Diplomatic relations between Qatar and other Middle Eastern powers, including Saudi Arabia and the United Arab Emirates, have only recently been restored after an embargo was imposed on Qatar in 2017 for the country’s alleged support of Islamist groups.

The blockade on Qatar proved economically costly, with the country’s land border shut, Qatari ships prohibited from docking at ports, and much of the region’s airspace closed to Qatari planes.