To begin with, Qatar banking sector growth continues to show strong momentum across assets, loans, and deposits. Despite global challenges, the sector keeps expanding. Banks in Qatar recorded consistent improvements in lending, public funding, and liquidity.
Total banking assets increased by 0.6%, reaching QR2.074 trillion. Year-to-date, this reflects a 1.3% gain, which confirms steady Qatar banking sector growth. At the same time, loans grew 0.6% monthly and 3% so far this year. Deposits also rose, up 0.2% for the month and 3.2% year-to-date.
This increase in lending surpassed the rise in deposits, raising the loan-to-deposit ratio to 131%. The number reflects strong credit activity and indicates a solid expansion in Qatar’s banking industry. Both public and private sector borrowing played a key role in this growth.
The public sector drove a large part of this growth. Loans to government bodies rose 3.7% monthly, pushing public sector lending up 1.0% in one month and 7.9% for the year. These gains demonstrate the public sector’s critical role in Qatar banking sector growth.
In the private sector, loans also saw a steady climb. They rose by 0.3% during the month and 1.1% since the start of the year. Segments like contractors, services, and consumption all helped drive this progress. The contractor segment jumped 2.2% monthly, contributing to a 7.8% yearly increase.
Deposits reflected mixed results. Public sector deposits climbed 0.7% monthly and 5.3% year-to-date. Meanwhile, non-resident deposits rose by 0.5% in March and 1.2% this year. Their share in total deposits also grew, reflecting the global reach of Qatar banking sector growth.
Private deposits were more mixed. Consumer deposits rose 1.0% monthly and 3.7% for the year. However, company and institutional deposits dropped by 1.7% in March but still managed a 0.7% gain year-to-date.
Banks also increased provisions for potential bad loans, especially in sectors like contracting and real estate. The provision ratio rose to 3.9%, up slightly from the previous month. Even so, liquidity remained strong, with liquid assets covering over 30% of total assets.
In conclusion, Strong public investment, manageable risks, and solid liquidity continue to drive Qatar banking sector growth.
