Wednesday, Dec 15, 2010
Gulf News
Bank says LNG exports will repay $103b as part of a manageable redemption schedule
Dubai: Hydrocarbon-rich Qatar has a debt pile of $103 billion (Dh378 billion) much higher than its gross domestic product which analysts say wont impact its development.
We estimate that Qatars total debt issuance by the sovereign banks and corporates will reach a cumulative $103 billion as of end-2010, Standard Chartered Bank said in a report released recently.
Qatars debt redemption schedule is manageable in the near- to medium-term, and the states returns on LNG exports should help it build considerable reserve assets over the long term, it said. Qatars debt of $103 billion is quite manageable. It is a cash-rich country. Qatars sovereign wealth fund is investing in major international companies as asset prices are currently low, making investment more attractive.
The funding is in the form of debt and cash as cost of fund in Qatar is quite low compared to other regions, Iftekhar Ahmad, Chief Financial Officer of Doha-based Ali Bin Ali Group, told Gulf News.
Qatar on Monday became the worlds largest exporter of liquified natural gas. Qatar promised to realise the vision to reach LNG production capacity of 77 million tonnes of LNG per annum by the end of 2010, Energy Minister Abdullah Bin Hamad Al Attiyah said.
This milestone brings to fruition years of investment in infrastructure and expertise which has enabled us to go from zero to 77 million tonnes in a mere 14 years.
Qatar today has invaluable credentials as a key innovator in the global LNG market, with a reputation for delivering LNG to global markets safely, reliably, and efficiently.
Rohit Walia, Executive Vice-Chairman and CEO, Bank Sarasin-Alpen Group and Alpen Capital Group, told Gulf News: Although Qatar has accumulated a significant debt pile in recent years, this debt is dwarfed by the value of its assets.
By Saifur Rahman, Business Editor
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