The banks of Qatar, well supported by financial measures taken by the government, seem set to run in tandem with the dynamic local economy, producing continued strong growth and new opportunities. Given that Qatar's gross domestic product per capita is expected to reach $63,387 by the end of 2009, making it one of the wealthiest nations in the world, and that the country's construction boom has not been derailed by the global financial crisis, banks are generally bullish about their prospects. But just as some of the large international banks are pulling back due to problems in their home markets, a number of well-capitalised local banks are being established.
How the huge financing needs surrounding Qatar's huge hydrocarbon projects and an estimated $100bn in construction projects in the pipeline will be met is of keen interest. Given that big global banks, such as Royal Bank of Scotland and Citi, are withdrawing from the market and domestic balance sheets are too small to support the very large projects, there is a definite squeeze on funding. But that does not mean that there are not considerable opportunities available at a variety of levels in a market where 40% of the budget is being ploughed into infrastructure. Two new Islamic investment banks, QInvest and Qatar First Investment Bank, were set up recently with paid-up capital of $500m and $430m, respectively, and they are confident there are big opportunities in the market.
