Banking
From The Report: Qatar 2014
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Having shown considerable resilience in the face of the global economic crisis, Qatar’s banks now stand to benefit from the nation’s anticipated economic growth. A pipeline of large-scale projects and the government’s development strategy, which is set to use the country’s hydrocarbons revenues to bring about economic diversification, both promise to supply lenders with plentiful opportunities for asset expansion. The highly capitalised banks which operate in the domestic market are also well positioned to expand their brands internationally, a strategic goal considered necessary in view of the limited size of the home market. Moves into foreign markets were a prominent theme in 2013 and will likely remain so going forward as lenders seek to increase their international footprints.
This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; and Sheikh Hamad bin Faisal bin Thani Al Thani, Chairman, Al Khaliji.

Articles from this Chapter

Overview

Strong results: A diversifying economy and an array of large projects support lenders’ asset expansion
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Having shown considerable resilience in the face of the global financial crisis, Qatar’s banks now stand to benefit from the nation’s anticipated economic growth. A pipeline of large-scale projects and the government’s development strategy, which is set to use the country’s hydrocarbons revenues to bring about economic diversification, both promise to supply lenders with plentiful opportunities for asset expansion. Furthermore, Qatar’s hosting of the 2022 FIFA World Cup has helped expedite…

Interview

New responsibilities: OBG talks to Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank (QCB)
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Interview:Sheikh Abdulla bin Saoud Al Thani What does the QCB’s new designation as the supreme authority for the financial services industry mean in terms of its regulatory oversight? SHEIKH ABDULLA BIN SAOUD AL THANI: The new law empowers the QCB to be the supreme authority in regulating, developing and supervising the payments, and settlement and clearing systems in Qatar. The law also introduces important new provisions for addressing the licensing and supervision of insurance businesses, consumer protection, protection of credit information, client confidentiality, regulation of Islamic financial institutions, dispute settlement,…

Analysis

Beyond borders: Looking for new growth opportunities, local banks are expanding abroad
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Qatar’s banks have demonstrated significant lending growth over the past decade, and banking sector assets are likely to continue to grow on the back of the nation’s expansion over the coming years. Much of the projected credit growth will be derived from increased exposure to the government and the various quasi-government entities which are the principal driving force behind the nation’s development. This connection to the sovereign brings the advantage of limiting risk and, thanks to a clearly…

Interview

Driving investment: OBG talks to Sheikh Hamad bin Faisal bin Thani Al Thani, Chairman, Al Khaliji
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Interview:Sheikh Hamad bin Faisal bin Thani Al Thani What are the most significant factors driving loan growth in the Qatari banking industry? SHEIKH HAMAD BIN FAISAL BIN THANI AL THANI: We are in the midst of unprecedented structural growth that is transforming the face of Qatar. The capital expenditure associated with the country’s infrastructure sector will be the key driver of loan growth. Qatar recognises the need to deliver enhanced infrastructure to keep up with our plans for growth…

Analysis

A change in the rules: The central bank introduces new regulations for lenders
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Regulations introduced by the Qatar Central Bank (QCB) in June 2013 will curb local banks’ investment options, potentially making sovereign bonds more appealing at the expense of some private sector alternatives. The move is taking place as the government prepares to put its infrastructure development programme into overdrive. Under the new regulations, with which lenders were given six month to comply, equities and bonds can account for up to 25% of a bank’s capital and reserves, although debt…