Inflation expected to ease further this year

Qatar Central BankQatar Central Bank

QCB Governor said: "Our expectation is that the inflation rate will range between 2 and 5 percent in 2010."

He attributed this to the fact that the prices are currently almost at their lowest level saying the end of the global financial crisis is anticipated during 2010 and the return of growth to international economies, especially those of the United States and the European Union countries, is also expected.

Sheikh Abdullah bin Saud Al Thani announced that the Central Bank will establish a credit institution under the name "Qatar Credit Bureau," which will be inaugurated in May.

The Bank, he said, aims to develop electronic banking industry and create a protected electronic system, noting that QCB is working on a national project to launch e-payment gate in the near future to serve the large segment of the business sector and e-government. This project will be useful to all institutions and services sector that are using payment tools such as cheque or payment of expenses relating to daily life matters.

He added this means that prices in general during the last year have fallen due to several factors. The most important of which was the entry of a number of residential units to the real estate market. This contributed to the decrease in the monthly rent by about 14.2 percent during the same period, he said.

Giving his opinion on the forecast of the International Monetary Fund (IMF) that put Qatar's growth rate during 2010 at about 18 percent, he said: "There is no doubt that these estimates and projections for the growth rates of the domestic economy during 2009 or 2010 reflect the extent of growth Qatari economy is enjoying." It shows that the global financial crisis, whose negative effects were not evaded by many world economies, did not have much impact on the domestic economy. "There is no doubt that this was the fruit of the wise policy adopted by the State of Qatar under H H the Emir Sheikh Hamad bin Khalifa Al Thani," he stressed.

Among the other issues H E Sheikh Abdullah Bin Saud Al Thani revealed to QNA was the Central Bank's decision to set up a consumer protection department to handle suggestions and resolve complaints in coordination with the senior management of the Bank. He pointed out that all local banks will have to appoint a coordinator to cooperate with the proposed department to resolve the problems and complaints received.

Replying to question about complaints from individuals and companies that QCB issued instructions to restrict access to loans and even placed strict conditions that are difficult for the banks to meet and whether such measures are temporary or a long-term strategy, he said: "I do not think that these complaints are valid. The Central Bank with full support of the government has been working to enhance confidence and trust among the public, and working to provide sufficient liquidity for the banking sector through contributions to their capital and the purchase of some of their investment portfolios as well as by providing real estate loans, he stressed.

He stressed that the QCB did not issue any new instructions concerning the tightening of credit or limiting the capability of local banks to grant more credit. The best evidence of this, he said, is that the growth rate of private sector credit throughout 2009 was up to about 11 percent over the corresponding period in 2008. On GDP growth, he said several sectors have contributed to its growth. The most important of which was the oil and gas sector with a contribution of about 64.4 percent of the total increase witnessed in the third quarter of 2009. This sector achieved a growth rate of about 15.7 percent (14.7 percent oil, 17.3 percent for gas). The oil and gas sector was supported mostly by the manufacturing sector, which contributed about 13.2 percent to achieve a growth rate of about 26.5 percent. The government services sector contributed about 22.1 percent to achieve a growth rate of 18.9 percent. It was noticed that most of the other sectors have experienced positive growth rates during this quarter.