To: All Islamic Banks operating in Qatar

Subject: Capital Adequacy Based on the Revised Basel III framework and IFEB (23) Standard

Referring to QCB Qatar Central Bank Circular No. 6/2014 dated on 14/1/2014 on Capital Adequacy ratio, and to Basel committee’s issuance of the revised Basel III framework and the revised IFSB 23 standard, QCB decided to implement this issuance and the revised standard as per the attached implementation instructions as from 1/1/2024.

Provided that the following must be complied with:

• (1) The current instructions of Qatar Central Bank Circular No. 6/2014 mentioned above, and the subsequent Qatar Central Bank Circular No. 17/2015 dated 11/3/2015 shall remain effective up to 31/12/2023.

• (2) Islamic banks must calculate Capital Adequacy Ratio (Pillar I) as per the attached instructions as from 1/1/2024 which shall replace the current instructions attached to Qatar Central Bank Circular No. 6/2014.

• (3) Upon implementing the new implementation Instructions attached hereto paragraphs (2) and (6) of instructions mentioned in circular 6/2014 shall remain effective.