Qatar Shipping Company and Qatar Navigation are proceeding with a merger after their board of directors approved the deal, a joint statement said on Saturday.

Qatar's government has ordered Qatar Shipping and Qatar Navigation to merge to protect the firms during the global financial crisis.

'The boards of directors have approved an exchange ratio of 2.2 shares of Qatar Shipping for each share of Qatar Navigation,' the firms said, adding the evaluation process was now complete.

The merger is still subject to shareholder and regulatory approval, the firms said.

HSBC Bank Middle East is the lead consultant on the merger.

Consolidation in the oil-exporting Gulf Arab region has been on the rise as the financial crisis and an oil price slump ended an economic boom, forcing firms in sectors ranging from property to investment to search for ways to weather the downturn.-Reuters