Analysis

SMEs to spur diversification of the Qatari economy
OBG
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SMEs are often at the forefront of innovation and experimentation. However, encouraging a thriving small-business culture is a challenge in economies that are heavily concentrated in single, vertically integrated industries such as oil and gas. The path of economic development in such countries typically crowds out smaller enterprises, leaving markets dominated by a handful of larger corporations. Changing…

Analysis

New partnership framework at the heart of Qatar's infrastructure investment push
OBG
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With Qatar increasingly looking to engage the private sector in undertaking national infrastructure projects, efforts are under way to introduce a new legal framework governing public-private partnerships (PPPs) in the country. The proposed PPP law, which aims to further incentivise and mobilise private investment, is currently passing through the final stage of the legislatorial process, with…

Analysis

Recent diplomatic difficulties encourage local industry expansion in Qatar
OBG
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The blockade imposed on Qatar by Saudi Arabia, the UAE, Bahrain and Egypt in June 2017 has had many significant effects on the country and its economy, not to mention the wider region. Yet while much of this was initially disruptive, there is a sense among government officials and business leaders that the situation also presents opportunities that Qatar and businesses operating in the country…

Analysis

Financial technology changing Qatar's banking landscape
OBG
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Qatar was quick to embrace the financial technology (fintech) revolution, having long recognised that digital technologies can raise both competitiveness and security. The push to digitise has been given an added boost by the blockade, as it has driven all sectors of the economy to invest in safer and more advanced fintech systems. Banks have been supportive of national fintech initiatives…

Analysis

Measures put into place to boost liquity in Qatar's banking sector
OBG
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With Qatar in the midst of a bold capital investment programme – seeing almost $500m per week being spent on infrastructure developments – the financial sector has a vital role to play in maintaining the smooth flow of money to the domestic economy. In 2016 a liquidity squeeze resulted in a 4.6% drop in M2 money supply, while the sector’s loan-to-deposit ratio (LDR) reached 100.1%, in…

Analysis

Mergers on the cards as the cost of borrowing rises and growth decelerates among lenders in Qatar
OBG
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With 10 domestic commercial banks and a number of financial institutions operating out of the Qatar Financial Centre (QFC), the Gulf nation is emerging as a financial services centre for the region. However, with banks’ cost of borrowing rising and the buoyant growth trend likely to approach a natural plateau in the next two to three years, there are signs that the market could be about to…

Analysis

Family-owned businesses in Qatar encouraged to list publicly
OBG
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Investment Holding Group (IHG) announced it would make an initial public offering (IPO) subscription for 60% of its stock in January 2017. The announcement meant the company would be the first new listing in the GCC for 2017, and the first IPO on the Qatar Stock Exchange (QSE) since Mesaieed Petrochemical in 2014. Listing Impact The IPO was significant because it marked the first occasion…

Analysis

Islamic banking in Qatar well integrated within the local financial system
OBG
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Islamic financial services (IFS) have come a long way in a relatively short period. According to the Islamic Financial Services Board (IFSB), the international body that acts as the global regulator for the sector, $1.89trn of assets were managed in sharia-compliant structures internationally in 2016. As the sector grows, so do the demands placed upon it, meaning greater regulatory oversight…

Analysis

Sharia-compliant bonds a permanent fixture in Qatar's regional finance services
OBG
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With governments across the GCC feeling the pinch from low global oil prices, sukuk (Islamic bonds) are witnessing a renewed trend of issuances. According to the ratings agency Fitch, new issuances of sukuk in core markets rose by 26% in 2016, with the trend continuing into the first half of 2017. Moreover, Fitch expects the absolute market share of sukuk to pick up, as more sovereigns turn…

Analysis

New medical insurance scheme in Qatar to strengthen the sector
OBG
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Efforts are under way to relaunch a compulsory health insurance scheme, with initial expectations of its launch in 2017. While details were still being ironed out at time of press, insurers are hopeful that the system will provide the sector with a new and lucrative business. Underwriters have been setting up new medical systems in preparation for the launch, and providing input as to what…