Dubai, March 12, 2009: Doha Bank, one of the largest private commercial bank in the State of Qatar, recently organized a knowledge sharing session titled "Global Financial Crisis and Opportunities for Qatar" in Qatar. This knowledge session, conducted in continuation to its efforts towards organizing various knowledge sharing sessions, was attended by Ambassadors, Charge de affairs representing respective foreign embassies operating in the State of Qatar, customers of Doha Bank, renowned bankers, industrialists, analysts, economists, regulators, legislators etc., from across the State of Qatar.
Addressing the audience at the knowledge sharing session, H.E. Sheikh Abdulla Bin Saud Al Thani, Governor Qatar Central Bank and Chief Guest for the evening said, "At the macro level, the economy has achieved a real growth estimated at 16 % in 2008, and growth is projected to continue in 2009 at a rate of 7% at a time when the developed economies are expected to slowdown their growth to a rate not exceeding 2% in the year 2009. The real growth rates in the GCC are also not expected to exceed 2% in 2009 according to the outlooks of the IMF. The optimistic outlook related to the Qatari economy is based on the mega projects to be achieved during the next three years in the gas, petrochemical and other sectors".
He further added, "Globally, the banking sector has witnessed the bankruptcy of a number of banks and financial institutions in the US and Europe. Financial institutions in the developed countries are now unable to play their role as creditors, but the Qatari banks and financial institutions, on the other hand, are enjoying good solvency and financial stability. They registered increases in their net profits of more than 29%, and growths in their total assets of 34%. The overall capital adequacy ratio for Qatari banks, in accordance with Basel standards, is 15 %, which is one of the highest. Further, different government authorities in Qatar have proactively worked on protecting our economy and financial institutions from the consequences of the current financial crisis. Qatar Investment Authority had earlier decided to buy 10% - 20% of the capital of some Qatari banks. This was followed by an equally important decision by the Government to buy the Qatari banks' portfolios of local shares listed on Doha Securities Market as registered in the banks' books at the closing of the 28th of February at the purchase value for each bank after deducting the provisions as at 31st December 2008. The Ministry of Economy & Finance is continuing its efforts exerted to carry out the programs aimed at allocating resources for infrastructure projects without delay despite the decline in oil prices. Qatar Central Bank (QCB) has also taken several measures to face the financial crisis. It is worthwhile to note here the significance and importance of the precautionary measures and instructions issued by QCB over the last few years to mitigate credit risks, with particular emphasis on the risks of financing the real estate sector and the purchase of shares. Corporate governance regulations issued by the QCB in February 2008 which incorporated sound banking principles and guidelines is worth mentioning here. Further, from late 2007, the monetary policy in Qatar has been addressing key issues requiring decisions including the reduction of interest rates, increasing the mandatory reserve ratios, issuing certificates of deposit, granting special credit facilities to Qatari banks with suitable interest rates, and canceling the deposit limit at QCB in accordance with the Qatari monetary market interest rate mechanism. QCB has held many bilateral and multilateral meetings with the managements of banks since last August to discuss the repercussions of the financial crisis. These meetings were very beneficial as they led to useful recommendations and decisions. This helped in preserving the stability of the Qatari banking system from the aftermath of the financial crisis".
In his concluding remarks, H.E. Sheikh Abdulla said "Our banks and financial institutions are sound and fundamentally strong with the continuing support from the leadership and the Government of Qatar. We should continually be aware of which will surface in the coming months as a result of the ongoing financial crisis. Therefore, banks should revisit their credit and investment policies in the light of these challenges and carefully balance between their legitimate wishes to realize growth and development, and their abilities to face the potential risks".
Mr. R. Seetharaman, Chief Executive Officer, Doha Bank addressed the gathering as the key note speaker. Speaking on the occasion Mr. Seetharaman explained in detail the scheme of events leading to the ongoing global financial crisis, the impact of the ongoing crisis in the functioning of the global economy, the impacts on the currency, commodity, bond, stock and property markets, the impact on the financial stability of the world economies, the economic outlook of the world economies in consideration of the ongoing crisis, the policy changes that are required at a macro-economic level and financial/monetary level to come out of the current financial crisis. Mr. Seetharaman further elaborated what this crisis meant for commodity-driven real economies, one like State of Qatar and also explained the measures needed to be implemented in the current context of things.
Mr. Seetharaman continued highlighting the proactive measures taken by the GCC governments to monitor and manage the current situation. Explaining the State of Qatar's emergence as a role model for transformation on economic and social fronts, Mr. Seetharaman said, "The increasing energy demand in last of couple of years world over had enabled the Qatar to generate considerable fiscal surplus thereby substantially improving its balance of payments position which has further enabled this visionary state to invest wisely on various industrial and infrastructural projects. This has enabled State of Qatar to gain expertise on diversification and grow on multi-dimensional front with renewed thrust on hydro-carbon sector especially creating additional facilities towards environmental friendly fossil-fuel LNG. On the social front all the important indicators such as healthcare system, literacy rate and women participation in governance indicate steady improvement resulting in significant transformation. Further, unified stance on most of the key issues be it currency union, controlling of inflation, management of its liquidity etc., are been continually addressed through regular coordination through multiple forums with other GCC states are making us stronger day by day".
"The State of Qatar has also effectively followed the true principles of globalization that is driving the world economies by liberalization and modernization under the astute leadership of His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Amir of the State of Qatar and His Highness Sheikh Tamim Bin Hamad Al-Thani, Heir Apparent of the State of Qatar" he said.
Mr. Seetharaman further highlighted the development projects that are been currently undergoing, establishment of Qatar Financial Center, educational & research institutions being set-up and operational in the State of Qatar. Mr. Seetharaman, further elaborated State of Qatar's strategic relationships with USA, Singapore, South Korea, Japan, China, Euro Countries and Asian Countries.
Mr. Seetharaman explained various developments in the field of energy sector, tourism, infrastructure, education, health, sports that are taking place in State of Qatar currently. He further elaborated how the State of Qatar is developing itself in each stages of energy cycle right from production, refinery, transportation, storage and distribution through collaboration with leading international organizations. Mr. Seetharaman also highlighted various policy initiatives taken by the State of Qatar and various incentives available to boost the investment climate; he said "Today, State of Qatar is one of the best investment destinations in the region in terms of state incentives. e.g. Industrial land being provided at a very nominal price, electricity and natural gas are extremely cheap, there are no duties or taxes for 10 years with stable exchange rates, foreign ownership are permissible between 49% and 100% depending on respective sector. There is absolute freedom to repatriate the capital or profit. The rules and framework is very investor friendly. Government is regularly upgrading the incentives to sustain the attractiveness of State of Qatar, such as setting up of free zone etc. State of Qatar continues to look optimistic due to its proactive policy, friendly investment climate and professional environment."
Mr. Seetharaman also highlighted the developments in banking and financial sector, "State of Qatar banking and financial sector has matured to be second to none in terms of governance, products, service quality, technology and regulatory framework. Further, establishment of Qatar Financial Center brings Qatar prominently into global financial map".
In addition, Mr. Seetharaman also moderated a panel discussion comprising industry experts Mr. Stephen Anderson - Partner, PwC Advisory Practice, Ms. Doris Egli - Schaufelberger - Underwriting Manager SCOR Zurich and Mr. Andrew Farr - Class Underwriter Lloyds, London. The panel session included detailed discussions on the ongoing crisis, challenges & opportunities arising from ongoing crisis, Credit & Bond / Surety Insurance arising from the ongoing crisis, Directors & Officers Liabilities arising from ongoing crisis, prospects of construction industry in the State of Qatar etc.
In his concluding remarks, Mr. Seetharaman said "The ongoing global financial crisis is indeed an opportunity for real commodity driven economies like State of Qatar to showcase their fundamental strengths and come out of the crisis stronger. Further, State of Qatar's strong march towards various socio-economic-environmental efforts enables us to converge ourselves with the Qatar National Vision 2030".
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About Doha Bank
Doha Bank is the largest private commercial bank in the State of Qatar. It was incorporated in 1978 and commenced its banking business (including its International Banking services) in Doha, Qatar on March 15, 1979.
As one of Qatar's leading financial services company, Doha Bank is committed to making banking work for customers and clients like it never has before. Through innovative technologies and the ingenuity of its people, Doha Bank provides individuals and commercial, corporate and institutional clients across Qatar and even internationally, new and better ways to manage their financial lives. The company enables customers to do their banking and investing whenever, wherever and however they choose through an extensive network, and multiple access channels.
The Dubai branch of Doha Bank was opened in 2008.
For further information, please contact:
Ms Tasneem Raza
Watermelon PR
Dubai, UAE
Tel: +971-4-2833655
Email: tasneem@watermelonme.com
© Press Release 2009
