(MENAFN- Gulf Times) The resiliency of Qatar's financial system was showcased at ‘Sibos 2018 Conference' held last week in Sydney, Australia where Doha Bank CEO Dr Seetharaman delivered insight on the development of the local and global economy.
On Qatar's economy, Seetharaman said it is expected to grow by 2.7% in 2018 and 2.8% in 2019. He said Qatar is planning to increase its LNG production capacity from 77mn tonnes per annum (MTPA) to 110 MTPA.
Citing the IMF, Seetharaman said Qatar's banking system needs no further support from the central bank and sovereign wealth fund as the decline in non-resident liabilities of lenders have subsided.
'A robust regulatory framework and effective supervision have helped ensure the resilience of the financial system. The IMF said the Qatar Central Bank is further strengthening its financial sector surveillance to detect in a timely fashion emerging pressures, including those related to liquidity, real estate sector, the impact of US monetary policy normalisation, and the on-going Gulf crisis. 'Qatar's reserves are more than twice its GDP and in terms of financial stability, Qatar is strong, stable, and functional. In response to the economic blockade, Qatar has emerged strong and has brought various reforms to transform itself into a self-reliant economy, Seetharaman said.
According to Seetharaman, the 2018 budget assumes the same conservative oil price of $45 per barrel as used for the 2017 budget. The monetary and fiscal policy was aligned, he continued. 'In recent times, Qatar's long-term issuer ratings have been changed from negative to stable by Moody's Investors Service, which affirmed the long-term issuer and foreign-currency senior unsecured debt ratings at Aa3.
'According to Moody's assessment, Qatar can withstand the economic, financial, and diplomatic boycott by Saudi Arabia, the UAE, Bahrain, and Egypt in its current form, or with possible further restrictions, for an extended period of time without a material deterioration of the sovereign's credit profile, Seetharaman pointed out.
On the Qatar National Development Strategy 2018-2022, Seetharaman said the government will focus on securing the capital spending required for all major projects, including those related to the hosting of the FIFA 2022 World Cup, 'but within prudent budgets.
'In parallel, the government will undertake policy reforms towards enhancing the business environment and encouraging private sector participation in knowledge-based sectors, he said.
Last updated: October 27 2018 10:10 PM
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