Despite the global financial crisis, Qatar's economy continues to perform strongly with the 2010 forecast for real gross domestic product (GDP) growth of 18.5% expected to further boost an already well-capitalised and profitable banking sector. Unlike other Gulf Co-operation Council (GCC) states, Qatar's banks have been largely unaffected by global financial concerns or regional issues such as the Dubai restructuring and the dispute between the two Saudi conglomerates, the Saad Group and Ahmad Hamad Algosaibi and Brothers.
As such, the outlook for Qatar's banking system was recently described as stable by rating agency Moody's, based on the country's continuing macroeconomic growth. "For 2010, Moody's expects Qatari banks' pre-provision profitability to remain at good levels and to be supported by higher business volumes and a low-cost base," said Elena Panayiotou, lead analyst for Qatari banks in Moody's Limassol office.
