Qatar banks' credit to real estate at $34 bln

According to the central bank’s 2015 annual report, the total assets of the banking sector increased by 10.7 percent to QR1.113 trillion in 2015. 

The banks continued their robust growth in 2015, mostly driven by strong expansion of total credit facilities and strong growth in ?nancial securities portfolio.

Credit facilities constituted 67.3 percent of overall assets which made as the largest asset portion of the banks’ asset side of the balance sheet.

Total credit facilities reported QR748.7bn as of the end of 2015 with an overall growth of 15.1 percent from 2014. Among other categories of assets, ?nancial securities portfolios held by the banks reported QR156.4bn with a share of 14.1 percent of total assets.

Compared to 2014, ?nancial securities portfolio increased by 13.1 percent in 2015. Third major categories in the assets side, dues from banks & Financial Institutions (FIs) comprised QR114.3bn with a share of 10.3 percent of total assets. Compared to past year, due from banks and FIs declined by 3.1 percent in 2015.

Other types of assets speci?cally, cash and balances with QCB reported QR40.2bn, long- term investments (equity participations in subsidiaries & associates and real estate investments) accounted QR35.9bn and other categories of assets comprised QR17.2bn as of end of 2015. Domestic credit is the single largest asset in the banks’ balance sheet.

Total domestic credit reported QR660.7bn as of the end of 2015. In 2015, domestic credit accounted 59.4 percent of total assets with an annual growth rate of 12.7 percent over 2014.

“ As a ratio to total credit, domestic credit comprised 88.3 percent while cross-border credit included 11.7 percent as of end of 2015. Faster expansion of credit facilities has improved the economic deepening in Qatar during the past decade,” the QCB document noted.

In 2015, public sector credit increased by 2 percent over 2014. In the public sector, credit to government increased by QR12.1bn (18.7 percent increase) while credit to government institutions declined by QR279m (0.2 percent decline) and credit to semi-government institutions declined by QR7.1bn (25 percent decline) in 2015 over 2014.

As of the end of 2015, public sector credit recorded QR238.3bn outstanding credits. Credit to public sector represents 36.1 percent of total domestic credit and current share is the lowest in past 5 years.

For private sector, the banks’ credit reported QR422.5bn with an annual increase of 19.7 percent from 2014 to 2015. The year 2015 witnessed robust credit growth in sectors such as industry, contractors, real estate, consumption and general trade.