Banking
From The Report: Qatar 2016
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After half a decade of strong growth, Qatar’s banking sector is well positioned to weather regional economic volatility in 2016. As of the end of the first half of 2015 the country was home to the third-largest banking industry in the GCC, boasting total assets of $293bn. The sector consists of 18 institutions, including six domestic conventional lenders; Qatar Development Bank, which provides services for small and medium-sized enterprises; four domestic sharia-compliant banks and seven foreign institutions. Banking assets are highly concentrated in the domestic market, with the top five local institutions accounting for more than three-quarters of total sector assets, according to data from Qatar National Bank, the largest bank in the country by a significant percentage, and one of the largest financial institutions in the Middle East.

This chapter contains interviews with Sheikh Abdulla bin Saoud Al Thani, Governor, Qatar Central Bank; Raghavan Seetharaman, Group CEO, Doha Bank; and Fahad Al Khalifa, Group CEO, Al Khaliji.

Articles from this Chapter

Overview

Seeking stability: Prescient oversight and years of robust expansion give the sector strong fundamentals
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After half a decade of strong growth, Qatar’s banking sector is well positioned to weather regional economic volatility in 2016. As of the end of the first half of 2015 the country was home to the third-largest banking industry in the GCC, boasting total assets of $293bn. The sector consists of 18 institutions, including six domestic conventional lenders, Qatar Development Bank (QDB), which provides services for small and medium-sized enterprises, four domestic sharia-compliant banks and…

Interview

Forging ahead: 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 Given that the QCB’s current strategy for developing the state’s financial services industry ends in 2016, what are the new strategy’s objectives? SHEIKH ABDULLA BIN SAOUD AL THANI: As we progress towards the completion of the Strategic Plan for Financial Sector Regulation 2013-16, we remain satisfied with the progress that has been made. A risk-based micro-prudential framework, based on Basel III standards, has been developed, and existing…

Analysis

A larger loan book: Bank lending, particularly to the private sector, is on the rise
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The banking sector has seen steady, robust credit growth in recent years, even as macroeconomic indicators throughout the GCC have signalled a challenging period ahead. From end-2010 through December 2015 bank loans in Qatar expanded at a compound annual growth rate (CAGR) of 19%, according to figures from Qatar Central Bank (QCB). By the end of 2015 the sector’s loan book had reached some QR752.6bn ($206.5bn), more than double the QR315.4bn ($86.5bn) in outstanding loans as of 2010. Continued…

Interview

Measured footprints: OBG talks to Raghavan Seetharaman, Group CEO, Doha Bank
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Interview:Raghavan Seetharaman How concerned are you that bank lending in the country could be impacted in 2016 given the current state of the economy? RAGHAVAN SEETHARAMAN: Lending is an overall function of economic momentum in the country. If the state is going to score 4.3% growth, then I would expect overall lending in the industry to expand by 7-8%. With regards to non-hydrocarbons growth, which is double-digit, the majority of expansion will be in this area. The government has budgeted…

Interview

Financing diversity: OBG talks to Fahad Al Khalifa, Group CEO, Al Khaliji
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Interview:Fahad Al Khalifa Do you expect infrastructure financing to continue playing a key part in local financing in 2016? FAHAD AL KHALIFA: The government has indicated that it remains committed to executing its $200bn development plan, in spite of the reduction in oil prices. Non-essential capital projects will be assessed on their merit, and possibly delayed or scaled back. However, associated 2022 FIFA World Cup projects are most likely to continue as planned. Therefore, there is no…

Analysis

Bolstering regulations: The central bank is taking measures to protect against volatility
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During her visit to Qatar in late November 2015, Christine Lagarde, the managing director of the IMF, issued a statement endorsing the regulatory work carried out by the Qatar Central Bank (QCB) in recent years. “Substantial progress has been made on enhancing financial sector regulation, including adopting the international regulatory framework for banks, Basel III,” she wrote. “The banking system in Qatar is well placed to weather lower oil prices, weaker non-hydrocarbons growth and higher…