Qatar Today - - BUSINESS > BANK NOTES -

With oil prices stay­ing low over the com­ing years, we be­lieve that the chal­leng­ing en­vi­ron­ment will last through 2020 at least,” said Olivier Na­jar, coun­try risk an­a­lyst (Mid­dle East and North Africa re­gion) at BMI Re­search. “We ex­pect to see a grad­ual im­prove­ment in the sit­u­a­tion for Qatari banks over the years, as oil prices re­cover mod­er­ately, but there is no get­ting back to the boom years of 2003-2012,” said Na­jar.

"At present, gov­ern­ment bor­row­ing is pro­vid­ing some respite for the banks, but this is not sus­tain­able,” he said. Na­jar said that com­mer­cial banks in Qatar would face a more chal­leng­ing op­er­at­ing en­vi­ron­ment over the com­ing years, given the eco­nomic slow­down brought about by the slump in hy­dro­car­bon prices. In­creas­ing gov­ern­ment bor­row­ing will pro­vide some op­por­tu­nity for as­set ex­pan­sion un­til pri­vate lend­ing re­cov­ers, but this new sec­tor will be less prof­itable.

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