Doha
The balance sheet of Islamic banks in Qatar grew to nearly $90bn in 2019 compared with $82.6bn in 2018, a report by S&P Global Ratings has shown.
In 2013, it stood at $48.8bn, and $58.9bn in 2014, $68.9bn (2015), $75.2bn (2016) and $82.3bn in 2017.
Islamic banks in Qatar are QIB, QIIB, Masraf Al Rayan, Barwa Bank and Qatar First Bank – regulated by the QFC Regulatory Authority.
According to S&P, although growth rates last year were almost the same as in 2018, GCC conventional banks saw faster increases than Islamic banks. This was mainly explained by acquisitions.“In 2020, we expect slower organic and non-organic growth, with Islamic and conventional banks seeing similar rates of 2%-3%,” S&P noted.
S&P projects that average real GDP growth for the six GCC countries will slightly accelerate in 2020 compared with 2019, but this will be primarily spurred by higher oil production.
With the significant decline in oil prices, S&P’s assumption for 2020 is now an average of $30 per barrel, down from $60 at the start of the year. Due to government measures to contain the spread of Covid-19, the rating agency thinks that non-oil growth will decline. This, it said’ will result in “fewer growth opportunities” for banks.
