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Research Reports

Qatar Banking Sector

July, 2016

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Executive Summary

What is this report about?
E conomic growth in Qatar is underpinned by large-scale government expenditures in various infrastructural projects envisioned as part of Qatar National Vision 2030 document. Hosting the FIFA World Cup in 2022 has only accelerated the process. Private sector credit growth has grown in line with the on-going diversification of the economy. But analysts expect it to moderate in the coming years, as growth is stalled due to fall in hydrocarbon prices. Adoption of IFRS 9 will lead to changes in reporting, and will have an adverse impact in the banksÄö√Ñ√¥ profitability in the coming years, as provisions will rise, driving up impairment charges. In this report, we have analyzed the financial position of the banks and their performance in the last five years (2010-15), and forecasted the banking industries profitability for 2017.

Who will benefit and why?
The report will benefit anyone tracking the Qatar banking sector, and its many players; especially investors, fund managers, financial analysts and investment bankers. In addition, this report would help regulators and educational institutions that require an analysis of the banking sector in Qatar, and the challenges that are plaguing the industry.

How exhaustive is this report?
We have analyzed the status and trends the Qatar Banking sector during the period 2010-15, including discussions on income statement and balance sheet parameters. The report also examines the profitability of the banking sector, and frames expectations for the future. We have discussed lending to both private and public sectors, and the impact of low oil price on deposits. Finally, we enumerated the changes in the reporting framework, as the country adopts IFRS 9 standards, and profiled the major players in the sector.

FAQ

Is regular update for this available?
The report will be updated annually. However, if required, upon specific request we could provide you with an update.

Can I only download certain sections of the report?
Yes. The user can access certain sections of the report upon request, and this will be available at a nominal price.

Key Questions Addressed

  • Why has private sector lending risen in the recent past?
  • What has been the impact of low oil prices on the Qatar banking sector?
  • What is the outlook for loan growth in Qatar?
  • What will be the impac

Table of Contents

  • Executive Summary
  • Flourishing Qatar banking sector
  • Private sector lending has risen in recent past
  • Government deposits have declined due to low oil price
  • Steady profitability in the overall banking sector
  • Loan growth expected to decline as private sector gets crowded out
  • Qatar issues sovereign bonds to tide over deficit
  • Strategies for 2016 and beyond
  • IFRS changes will be incorporated by 2018
  • Islamic banking profile rises in Qatar
  • Masraf Al Rayan has the highest return per unit of risk
  • Appendix

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