PwC Middle East issued its latest report on the banking sector in Qatar, indicating that banks in Qatar are leading the process of shaping the features of the financial sector in the country. The report indicated that the financial sector in Qatar is characterized by making strategic investments in advanced technologies, achieving strong financial results, and aligning with national priorities. The banking sector in Qatar has witnessed steady growth over the past year thanks to the expansion of assets and the growth of the banking portfolio within the framework of the third strategic plan for the financial sector issued by the Qatar Central Bank in 2023, as the increase in total income achieved as a result of the rise in interest rates contributed to achieving general profits. Despite the noticeable increase in operating expenses. Despite the pressures imposed by these costs, the main profitability indicators remained stable, which demonstrates the ability of the banking sector to deal with market fluctuations and maintain financial stability.
Commenting on the report’s findings, Ahmed Al-Kiswani, Partner and Head of the Financial Services Department at PwC Middle East in Qatar, said: “Qatari banks are working to achieve strategic alignment between their operations and national financial goals, accelerating their digital transformation and launching innovative products. This indicates a prosperous future for this sector that enables banks to deal effectively with the challenges and benefit from the opportunities available to them. In general, confidence levels remain high in the financial sector in Qatar, as well as its ability to adapt to recent challenges.”
According to the PwC report, the sector is expected to witness a dynamic shift in light of expectations of declining interest rates and large liquidations of assets. These developments represent a combination of challenges and opportunities, especially in light of the fluctuation of customer needs, which requires banks to adapt quickly to achieve sustainable growth.
Innovation and digital transformation: Qatari banks have established their own position in the field of product innovation, which has strongly contributed to enhancing supply chain logistics services, trade finance solutions, banking transaction services, digital assets, and blockchain technology, which has placed Qatari banks in a leadership position in the process of digital development of the financial sector.
Green investments and environmental, social and corporate governance initiatives: Qatari banks are expanding their range of environmentally friendly products, which contributes to attracting local and international investors, in a move aimed at supporting the sustainable goals of the State of Qatar and continuing to enhance the country’s reputation built on its possession of coherent regulatory frameworks and its commitment to sustainability.
Improvements to regulations and governance models: Recent improvements to governance, risk and compliance models ensure the ability of Qatari banks to align with and exceed regulatory standards. New regulations in open banking and microfinance contribute to enhancing the strategic implementation of initiatives, thus enhancing levels of trust between stakeholders and interested parties.
Opportunities to attract and develop talent: Qatari banks are active in developing local cadres and developing their skills to support their ambitious goals. In light of the scarcity of international cadres, these banks attract international expertise and invest in developing local cadres to ensure the sustainability and flexibility of the workforce in the banking sector.
The financial landscape in Qatar remains stable, with long-term expectations indicating positive results, with growth expected to continue in the coming years. The tangible growth in key elements of the profit and loss statement and balance sheet of Qatari banks indicates the strength of financial performance, which confirms the sector’s flexibility and ability to adapt to changes.
