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Qatar banks set to finance projects worth $100bn

Qatar: Thursday, September 05 - 2013 @ 17:50

Qatar’s banking sector is braced for the challenge of financing the expected $100 billion boom in projects scheduled in the region until 2022.

Leading global and regional experts on the projects and finance industries speaking at the summit will confirm whether Qatar’s financial sector has enough liquidity to provide the capital and project finance required to deliver mega projects in the country, in the years leading up to 2022 and beyond.

This will be followed by a comprehensive overview of Qatar’s project finance and banking sector from lenders’ perspectives, with panels discussing the most attractive opportunities and strategies that lending institutions and stakeholders can adopt in order to succeed in Qatar’s lucrative banking sector.

There will also be sessions on infrastructure finance, where speakers will examine the challenges and capital market options for financing mega projects.

“Project finance stakeholders will have access to the latest information on infrastructure financing and gain a better understanding of the implications of emerging risks, as well as determining which capital market options (from sukuks and syndications to PPPs and IPOs) are the best way forward in funding mega infrastructure projects,” says Edmund O’ Sullivan, chairman at MEED Events, organisers of the Qatar Banking Summit.

MEED is hosting the Qatar Banking Summit – scheduled September 10 to 11 at the Renaissance Doha City Centre Hotel – to discuss the issues surrounding this mega-investment.

Qatar’s financial sector is a key foundation of its rapidly developing economy – with finance, insurance and reinsurance outputs now accounting for about ten per cent of the country’s GDP last year.

Total assets for Qatar’s banking industry increased at a compound annual rate of 30 per cent in the past ten years to approximately $225bn, while bank lending to domestic customers in the same period grew to $130bn.

“We are talking about a huge scale of infrastructure financing requirement,” says Bhupendra Jain, head of corporate banking at International Bank of Qatar.

“The metro alone is going to be approximately $35bn and the Port project is estimated at $7bn to $8bn. Then there are roads, electricity and water, sewage, Aviation City, the stadiums for the World Cup plus hotels, new shopping malls, Lusail City etc,” explains Jain.

“The bonding requirements for these projects will be a percentage of these numbers and that’s a very complex algorithm. We expect infrastructure finance demand will be in excess of $100bn.”

Bankers say they expect the aggregate balance sheets of Qatar’s banks will continue to grow as government investment in projects flows to construction companies and other service providers.

Huge increases in deposits with local and international banks operating in Qatar are also expected, and will provide huge leverage for domestic borrowers.

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Thursday, September 5- 2013 @ 17:50 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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