(MENAFN- The Peninsula) Deepak John |The Peninsula
Doha, Qatar: Sustainability and sustainable finance is a major pillar at the Standard Chartered and the bank has integrated sustainability into the organisational decision-making at all levels.“As a leading cross-border bank, we believe we have a unique role to play in facilitating a just transition to net zero carbon emissions and are committed to playing our part through sustainable finance initiatives that will enable this transition”, Muhannad Mukahall, CEO and Head of Corporate, Commercial and Institutional Banking, Standard Chartered Bank in Qatar said.
Speaking to The Peninsula, Muhannad Mukahall underscored that supporting sustainable and responsible growth, including delivering the UN Sustainable Development Goals ('SDGs'), represents a significant opportunity for the bank.“We are increasingly seeing our clients expect ESG matters to be at the forefront of business decision making, so not only is it the right thing to do for the planet, but it is what our customers expect of us.”
In Qatar, about a year ago,“we alongside Siemens Energy announced the issuance of the country's first Green Guarantee. This landmark initiative marked a significant milestone in increasing sustainable and responsible banking practices in Qatar and helped set a new standard for the industry. The Green Guarantee was issued for a Solar Power project being developed in Qatar that is expected to play a major role in the country's national climate change action plan and its objective to reduce the State's carbon footprint while increasing its energy independence. This Green instrument is designed to support the project's successful completion and long-term sustainability.”
“We have also been appointed as Qatar International Islamic Bank's Global Coordinator for the issuance of US$ denominated Regulation S only, 5-year benchmark fixed rate senior unsecured Sustainable Certificates,” he added.
Mukahall further said,“We are proud to be leading the way as we embrace digital transformation to ensure a better experience, and service for our valued clients. Globally, Standard Chartered has a strong focus on providing its customers with a seamless digital banking experience and has launched several digital platforms and mobile apps that allow customers to manage their finances on the go. We have zero tolerance for errors and know and understand the responsibility and accountability that comes with using such technology. The banking industry must strike the right balance between innovation and risk management.”
Standard Chartered has a Responsible Artificial Intelligence Framework, which ensures every AI use case deployed into production adheres to the pillars of fairness, ethics, transparency and self-accountability. In Qatar, the recent establishment of an AI council represents a significant milestone in the nation's AI adoption journey, serving as a central authority to guide and supervise AI-related initiatives in alignment with national priorities and regulatory frameworks.
In terms of expansion,“we already operate in the UAE, Saudi Arabia, Bahrain, Qatar and Oman here in the Gulf, and wherever we operate, we look to support the strategic visions of the respective governments. And earlier this year, we officially launched our fully-fledged branch in Egypt, after operating a representative office for a number of years, he said.
Citing the bank's latest Global Focus report, Mukahall noted that there are favourable insights on Qatar's macroeconomic outlook.
The bank expects growth in Qatar to spike above trend when the planned liquefied natural gas (LNG) capacity expansion begins to go online in 2025.
The report forecasts a 'calm before the upsized gas boom' in Qatar and predicts the post-FIFA slowdown to change pace next year.
Qatar also now aims to increase output at the North Field by 85 percent versus 64 percent previously, which would take natural gas output to 126 million tonnes per annum (mtpa) by end-2027 and 142 mtpa by end-2030, from 77mtpa currently.
The state's investment in the recently upsized gas capacity expansion is likely to support private-sector activity. The research notes private-sector credit growth was c.6 percent y/y in January, exceeding GDP growth, which dipped to 1.0 percent y/y in Q2-2023 from 8.0 percent in Q4-2022.
The planned expansion of LNG output and subsequent boost to GDP is also expected to rein in public debt to c.30 percent by 2027.
Prior to that, the report estimates that public debt will decline to 37.5 percent of GDP by end-2024 and 35 percent by end-2025, from a peak of 73 percent in 2020 – assuming Qatar continues to use its surpluses to pay down external debt (external debt maturities are USD 4.8bn in 2024 and USD 2bn in 2025).
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