High credit facilities for the trade, industry and services sectors
Qatar banks occupy advanced centers in the total list of the 50 most powerful banks in the Middle East
… Qatar gets a strong global classification for foreign currencies for the long and short term
Qatari banks have proven their strength and role in the comprehensive economic development that the state is currently witnessing, as they have contributed strongly to financing investment, commercial, industrial and tourism projects during the last period, and the budgets of the banking system in the country increased to reach record levels that topped the list of Middle East banks in 2024. The banks also witnessed a great expansion during the current period as new branches opened in all regions of the state to cover their services and products You offer it. According to the monthly report of QNB Financial Services on the performance of the banking sector in the State of Qatar, the total assets of the banking sector in Qatar increased by 0.6% on a monthly basis (+1.3% since the beginning of 2025) in March 2025 to 2.074 trillion riyals.
The loan portfolio increased by 0.6% on a monthly basis (+3.0% since the beginning of 2025), while deposits increased by 0.2% on a monthly basis (+3.2% since the beginning of 2025) in March 2025. With loans at a higher rate than deposits during March, the loan rate increased to deposits to 131.0%, compared to 130.5% in February 2025.
The total loan portfolio increased by 0.6% in March 2025, driven by public and private loans. Public sector loans have increased by 1.0% on a monthly basis (+7.9% since the beginning of 2025). The government sector (represented about 32% of public sector loans) was the main driver of growth, as it increased by 3.7% on a monthly basis (+22.7% since the beginning of 2025), while the loans of government institutions (representing about 63% of public sector loans) increased by 0.1% on a monthly basis (+2.4% since the beginning of 2025), while the loans of semi-government institutions decreased by 4.6% on a monthly basis (-3.3% Since the beginning of 2025).
High private sector loans
The report revealed that private sector loans increased by 0.3% on a monthly basis (+1.1% since the beginning of 2025) during March 2025. This increase came driven by consumption, contracting and services sectors. Consumption loans and other sectors (contributing about 20% of private sector loans) increased by 0.5% on a monthly basis (-0.2% since the beginning of 2025), while the contracting sector loans increased by 2.2% (+7.8% since the beginning of 2025), and the service sector loans (contributing by 32%) increased by 0.2% (+0.8% since the beginning of 2025), and the sector loans increased Real estate (contributes about 21%) by 0.3% (+1.5% since the beginning of 2025), and the loans of the public trade sector (contributing about 22%) by 0.3% (+1.5% since the beginning of 2025) during March 2025.
The loans outside Qatar increased by 0.9% on a monthly basis (+0.9% since the beginning of 2025) in March 2025. Public sector deposits also increased by 0.7% on a monthly basis (+5.3% since the beginning of 2025) in March 2025.
Given the details of the sectors, government sector deposits (about 36% of public sector deposits) increased by 2.4% on a monthly basis (+9.9% since the beginning of 2025), while government institutions’ deposits (representing about 53% of public sector deposits) increased by 1.5% on a monthly basis (+4.9% since the beginning of 2025). On the other hand, the deposits of semi-governmental institutions decreased by 7.8% on a monthly basis (-5.4% since the beginning of 2025),
The deposits of non -residents increased by 0.5% on a monthly basis (+1.2% since the beginning of 2025) during March 2025. The percentage of non -resident deposits to total deposits reached 19.1% in March 2025, compared to 18.2% by the end of 2023, indicating the continued dependence of banks on external financing.
Decline in private sector deposits
The private sector deposits also fell by 0.2% on a monthly basis (+2.4% since the beginning of 2025) in March 2025. In terms of details, the deposits of companies and institutions fell by 1.7% on a monthly basis (+0.7% since the beginning of 2025), while individuals deposits increased by 1.0% on a monthly basis (+3.7% since the beginning of 2025), and the percentage of loans allocations increased to the total loans in the sector The Qatari banking reaches 3.9% in March 2025, compared to 3.8% in February 2025. The allocations increased from 2.3% in 2019 to 3.9% in 2024, and remained at 3.9% in March 2025, with banks continuing to form allocations for loans classified within the second and third stages, especially those related to the contracting sectors and real estate.
The proportion of liquid assets decreased to the total assets to 30.2% in March 2025, compared to 30.4% in February 2025, while remaining at health levels. The Qatari banks occupied advanced centers in the total list of the 50 most powerful banks in the Middle East, headed by Qatar National Group, which came from the top of the list of the 10 most powerful banks, and the list of the 50 most powerful banks in the Middle East. The new classification comes from the global institution to confirm the strength of the banking system and Qatar banks and its occupation of the forefront thanks to the strength of its financial centers, the services and products it provides in the market N and its internal and external investments.
On the other hand, Qatar has won a strong global classification in the long and short -term of Capital Intelligence Credit Classification.
Qatar Central Bank announced that this classification was based on a set of factors and criteria set by the World Agency: large hydrocarbon reserves in the state, and the prices of favorable liquefied natural gas and strong demand. In addition to the fact that at the level of the macroeconomic, it is likely that the increase in the per capita gross domestic product, the strong dual surplus (current account and public budget), and the presence of a sufficient reserve margin to protect foreign currencies, will provide reserves despite price fluctuations.
Monetary policy objectives
Since its establishment in 1993, the Qatar Central Bank has applied the cash strategy that the Qatar Monetary Agency has pursued on targeting the exchange rate. The official framework for the exchange rate policy remained based on the installation of the Qatari riyal exchange rate against the US dollar at 3.64.
Maintaining the stability of the exchange rate of the riyal against the dollar represents one of the most important priorities for the monetary policy goals of the Qatar Central Bank, and the monetary policy of the Qatar Central Bank is drawn and implemented to manage short -term interest rates between banks, in order to maintain the stability of the tie price between the riyal and the dollar.
The current work rate of interest rates focuses on the average interest rate among banks for one night as a operating goal and the purpose of this maintenance at the level of the average interest rate between banks for one night with the interest rate on the deposits of the Central Bank of Qatar through liquidity management operations.
The current accounts of commercial banks at the Qatar Central Bank represent the main concept of liquidity in connection with the bank’s monetary policy, as these deposits can be used at any time as means of paying the initiative of banks. Accordingly, these deposits are called “the initial liquidity or” liquidity of the Qatari riyal. “
Qatar Central Bank confirms that the main tasks of the monetary policy committee are to develop and implement the monetary policy of Qatar Central Bank, and the Monetary Policy Committee meets every three months, and in the event of necessity, additional meetings are held. The Department of Monetary Policy in the Department of Economic Research follows up the interest rates on the Qatari riyal continuously, in light of the developments that occur on global interest rates, especially the federal interest rate, and the department submits a report to the monetary policy committee.
Commercial banks operating in the State of Qatar are informed of the decisions of the Monetary Policy Committee electronically through the bank dealing with banks, and the public (the non -banking sector) is informed through the bank’s website and local media, such as newspapers, magazines, audio and visual radio.
Exchange rate
It is the interest rate or return announced by the bank at the beginning of the daily dealing through the QMR monetary mechanism, which is a short -term official interest rate (for one night) set by the bank on lending operations «the bank’s price for lending) and deposit“ the bank’s price for deposit (QCBDR ”that takes place between the bank and banks through the cash market mechanism (QMR). According to the bank’s price for lending (QCBLR) and the bank’s price for deposit (QCBDR) and through the Qatari monetary market mechanism, local banks can borrow from, or deposit at, Qatar Central Bank (electronically) for one night.
Promote financial stability
The national development strategy of the State of Qatar confirms that there are four pillars of development. One of these pillars is the sustainability of economic prosperity. In this regard, one of the challenges contained in Qatar National Vision 2030 “choosing and managing a path that achieves prosperity and avoids economic imbalances and tensions.” Providing economic stability is an essential condition for urging investors to carry out long -term obligations to expand the productive base. Although any economy is subject to crises, chronic or long -term fluctuations such as violent financial disorders would negatively affect economic activity. Perhaps Qatar is one of the few countries in which the waves of fluctuations did not lead to uncomfortable consequences, as happened in some economies associated mainly on natural resources exports. So, through its national vision and strategy related to development, the government realizes that development in the hydrocarbon resources sector is a proper macroeconomic policy in support of a stable environment that will play a decisive role in the expansion and prosperity of non -hydrocarbon sectors.