Interview: Bassel Gamal
What recent shifts in the global economic landscape are impacting Qatar’s banking sector?
BASSEL GAMAL: The banking sector has shown remarkable adaptability in recent years. Qatar’s economic outlook remains positive, with the current growth rate serving as a testament to this optimism. The banking landscape is characterised by stabilised finance expansion stemming from the government’s repayment of substantial borrowings, underpinned by a strong fiscal position. This creates a competitive dynamic among Qatari banks reflected in their recent advancement and results.
The expansion of the North Field – the world’s largest non-associated gas field – promises to create business opportunities for Qatari banks, which will be crucial in financially supporting forthcoming onshore endeavours. Furthermore, increased gas production is expected to drive advancements in downstream industries, leading to more investment and a greater demand for banking services.
Another undeniable marker of Qatar’s global presence is its hosting of the 2022 FIFA World Cup, which firmly established the country on the world stage. Additionally, evolving residential policies are expected to attract expatriates to Qatar, leading to a population increase. These developments present a proliferation of opportunities for the sector in the medium term.
In what ways is the banking sector adapting services and operations in line with recent financial technology (fintech) innovations?
GAMAL: In March 2023 the Qatar Central Bank unveiled the National Fintech Strategy in alignment with Qatar National Vision 2030’s goal of promoting diversification and innovation in the financial sector. Within this context, the Qatari banking sector is actively undergoing a transformation in its services and operations to maintain competitiveness amid the evolving landscape.
The strategic adaptation framework includes several critical dimensions. The sector is harnessing advanced technologies to elevate customer experiences. Digitalisation initiatives, encompassing user-friendly mobile applications and online banking platforms, are being adopted to streamline transactions, offer personalised services and ensure seamless accessibility.
The banking sector is incorporating fintech solutions to optimise internal processes. By embracing automation, artificial intelligence and data analytics, banks are expediting routine procedures, reinforcing risk assessment capabilities and enabling data-driven decision-making. This enhances operational efficiency and facilitates agile responses to market dynamics.
Moreover, the sector is adapting to contemporary payment systems – including contactless payments and digital wallets – to facilitate secure and transparent transactions. Nurturing collaborations with fintech start-ups is one avenue for adaptation. Banks can leverage the agility and creativity of these startups to infuse fresh perspectives and solutions into their offerings, thereby ensuring competitiveness in the evolving financial landscape.
How are sharia-compliant banks integrating environmental, social and governance (ESG) principles into their strategies and operations?
GAMAL: Sharia-compliant banks benefit from key advantages when incorporating ESG principles into their strategies and operations because they operate on ethical principles that parallel responsible ESG practices. Their adeptness in managing funds in accordance with stringent ethical guidelines can seamlessly extend to the realm of ESG investment. Moreover, these banks boast a rich history of community engagement. This positions them favourably for effective stakeholder engagement and the comprehension of local challenges. Nonetheless, the absence of universal standards presents a key challenge. Banks must adhere to diverse criteria for reporting and benchmarking, demanding specialised expertise to navigate ESG implementation.
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