Summer In Qatar

This past month has witnessed a substantial turn of events. The change in the geopolitical situation in the GCC as a result of a number of countries severing all diplomatic ties with Qatar and blocking all borders (air, land and sea) with it has raised some initial concerns and fears about the strength of the Qatari economy. However, key decision-makers in the banking and finance sector have made reassuring statements about the Qatari economy.

The governor of Qatar Central Bank (QCB), Sheikh Abdullah Saoud Al- Thani, af‌f‌irmed that Qatar's banking sector is functioning normally and without disruption to any domestic or international transactions and that QCB has a range of monetary and financial tools that are adequate and capable of ensuring that the banking sector in the State continues to function normally without disruption. Equally, Ali Sherif Al Emadi, the minister of finance, stated that the value of the reserves and investment funds of Qatar are more than 250% of GDP and that there is no reason that people need to be concerned about what's happening or any speculation on the Qatari riyal.

The banking sector has witnessed a number of notable developments over the past month. Qatar National Bank announced that it has priced a US$750 million five-year RegS only Sukuk of‌fering which was issued at par with an annual profit rate of 3.25% (payable semi-annually), representing a spread of 135bps over five-year midswaps.

Meanwhile, Qatar International Islamic Bank (QIIB) recently announced the...