Qatar: Personal loans account for largest component of credit |
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DOHA - Personal loans accounted for the biggest share of credit facilities in the country, amounting to QR50bn. This was followed by the public sector with QR37bn, real estate (QR23bn), general trade (QR18.2bn), services (QR17.7bn), contracting (QR10bn), the industrial sector (QR4.5bn), other sectors (QR4.5bn) and credits outside Qatar (QR15.5bn), according to a Qatar Central Bank report.
Personal loans have risen down the years as banks have opened the tap in order to extend credit, particularly in the form of personal loans and car loans. The amount given out as loans for car purchases has risen markedly due to the demand for vehicles as the city further spreads itself out.
The volume of credit facilities extended by banks operating in Qatar is expected to increase this year by between QR80bn and QR85bn, according to financial experts. This would represent a QR30bn rise over the previous year.
The total bank credit facilities in Qatar reached QR160bn at the end of 2007 and are expected to increase by QR20bn every three months this year due to growing demand for personal loans as well as real estate credits and commercial financing.
Deposits are expected to increase to over QR90bn this year. Experts attribute the increase in credit facilities to the rapid growth of the country's economy and financing of major projects being undertaken by the public and private sectors. Personal loans rose to QR40bn this year mainly for investment purposes in real estate by small investors. By contrast, total bank credit facilities in Qatar reached a mere QR44bn in 2003 rising to QR50bn in 2004 and QR102bn in 2006 doubling within only two years with the country's financial market boom.
© The Peninsula 2008
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