db posted on January 20, 2009 20:31
QATAR WILL HAVE A BALANCED GROWTH & PERFORMANCE IN 2009
The Qatar Projects Conference 2009 is taking place between 18th January 2009 and 20th January 2009 in Four Seasons Hotel, Doha, Qatar organized by the MEED. This year the event is held under the patronage of H.E. Abdulla Bin Hamad Al-Attiyah, Deputy Premier and Ministry of Energy & Industry. The conference covers all the key sectors shaping Qatar's future and is being attended by government dignitaries, bankers, analysts, economists, regulators, legislators etc.
Mr. R. Seetharaman, Chief Executive Officer - Doha Bank being part of the Economy & Investment panel session titling 'Exploring the opportunities and challenges in the Qatari Financial Services Sector' highlighted the current global crisis, its impact on the functioning of the global economy, the financial stability of the world economies, the economic outlook on the world economies in consideration to the current financial crisis and the policy changes that are required at a macro-economic level and financial/monetary level to come out of the current financial crisis. Mr. Seetharaman also analyzed the financial leverage that had taken place in the west resulting in growth of hybrid products, like derivatives, the creative accounting practices evolved on account of these hybrid-products etc.
Mr. Seetharaman continued saying 'Qatari Banks have not been immune to the global financial slowdown. The global financial crisis has had an impact, causing major declines and volatility in the Doha Securities Market. But recent years of economic diversification as well as ample government support to minimize the impact of a global economic slowdown will ensure relative stability within our economy so that we do not solely rest on the strength of our oil and gas sectors. We are one of the fastest-growing economies in the world, the macroeconomic fundamentals are very strong and the government budget is consistently in surplus, further Qatar's GDP is expected to grow at an average 15-20% for 2009. The banking sector has a strong bond with the economic environment and, hence, is posed for multidimensional growth, both in the number of activities and in the scale of operations. A developing economy requires considerable financing and so the growth opportunity for the banking sector is strong'.
He said 'In the short-term, Qatar will become more concentrated on gas sales and the focus is going to be on the development of the country's hydrocarbon sector. However, the government is also trying to put in a framework that will encourage activity in the private, non-hydrocarbon sector, and efforts are also developing in terms of providing world-class education and health facilities. As Qatar and the GCC region undergoes an economic transformation, the volume of international trade and commerce is increasing tremendously. The strength of our economy is that we look both East and West and as such we are the preferred gateway to the Middle East for foreign investors and organizations throughout the world. Today, Qatar is one of the best investment destinations in the region. Qatar's banking and financial sector has matured to be second to none in terms of governance, products, service quality, technology and regulatory framework. Furthermore, the establishment of the Qatar Financial Center (QFC) brings Qatar prominently into global financial map. QFC has all the ingredients to become a favorite global destination due to a competitive infrastructure, low cost, low risk and a low tax environment. The framework of the QFC is based on international best practices and independently regulated by international experts in a transparent and enforceable manner'.
Mr. Seetharaman continued saying 'The rapid expansion of Qatar's construction sector, along with foreign-investor-friendly laws and regulations, including generous financial incentives and tax breaks, as well as foreign real estate ownership rights, are attracting powerful international investment from renowned global development companies. In the years to come, Qatar is set to be a magnet for leading investors in the construction industry. The country's investment potential is huge. One of our strongest sectors for growth will also be the Islamic banking sector which is now a young segment growing strongly at about 20% per annum. It has got a Global appeal and the market size is set to grow from USD 700 Billion to hit USD 4 trillion in the next five years. It has grown steadily both in the region and throughout the world. Apart from pure play Islamic banks, most of the commercial banks in the region have an Islamic Banking window, hybrid-model'.
He also said 'The Islamic finance industry has shown itself during the global financial turmoil to be one of the relatively safe havens for investments. Islamic finance businesses have been relatively immune to the repercussions of the world financial turmoil because Islamic financial products were different from those inherent in the conventional banking system. Islamic equities also turned out to be the least affected in the meltdown that swept global as well as Arab stock markets'.
To conclude, Mr. Seetharaman said '2009 promises to be a year filled with challenges, but with them come great opportunity. It is a year that promises new global leadership, and a strong potential for growth. Here in Qatar with many planned projects in oil & gas, rail, road, electricity & water, ports, LNG and real estate sectors totaling not less than USD 150 billion, we are well positioned for a balanced growth rate and remain on track to expanding our economy and further integrating into the global economy at large'.