Banking sector set to benefit from Qatar’s growth

25/11/2014 05:53 AST

Qatar is in a strong position to continue its robust economic performance and its banking sector is now set to benefit from the nation’s anticipated economic growth, according to Commercial Bank.

“This year it is expected that Qatar’s economy will grow by an impressive 6.3%. This rate is even more remarkable when we take into account that the hydrocarbon sector has not made any significant increases to gross domestic product in 2014,” Commercial Bank CEO Abdulla al-Raisi told Euromoney Conference.

Economic growth has come instead from the non-hydrocarbon sector and growth here is expected to be 11.5% for 2014, with the financial and construction sectors making especially large contributions.

The huge infrastructural transformation in the country is providing tremendous opportunities for the private sector and project development — particularly infrastructure — is becoming the main driver of economic expansion, he said.

“With high levels of liquidity, Qatar’s banks are well provisioned to finance these major projects and expand their asset bases,” he said.

Moreover, the rapidly growing population has presented a “significant” opportunity on the retail side, he said, adding “the future of our domestic banking market is both healthy and exciting.”

Sustainable economic growth is dependent on a strong and vibrant private sector. Small and medium enterprises (SMEs) are globally recognised as essential drivers for economic diversification, creating new jobs and new sources of innovation, and they will play a big role in Qatar’s economic future.

Despite some notable successes from a number of companies, there is considerable room for development of SMEs in Qatar.

Commercial Bank is aligned with the government’s efforts to assist SMEs with our dedicated and specialised SME business unit providing finance and advice to small and start up businesses that have historically faced difficulty securing finance.

The phenomenal and sustained growth witnessed in Qatar in recent years presents financial institutions with an opportunity to continue the successful performance of recent decades and ensure that Qatar’s past success is sustained and passed onto the next generation, al-Raisi said.

“It is vital, however, to take stock of future prospects to ensure we collectively remain on the right track and are able to keep up this momentum and achieve sustainable and lasting growth,” he added.

Gulf Times