Qatar’s banking outlook is stable: Moody’s report
14 Apr 2012
(MENAFN) Moody’s issued a report stating that the outlook on Qatar’s banking system is stable, reflecting the country’s strong macro environment and high public spending levels, reported Arab News.
The report also notes that these supportive factors are counterbalanced by high levels of concentrations on both sides of the balance sheet, the banks’ dependence on the domestic economy, which is undiversified and heavily reliant on the oil and gas sector and the credit risks relating to exposures to the construction and real-estate sector.
Moody’s estimates that Qatar’s real GDP will expand by 6 percent in 2012, driven by high oil prices, strong liquefied natural gas export volumes and accelerated public spending, which will stimulate the nonoil economy.