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Qatari Banks no Longer in Need of More Aid, Reports Government


Qatar : 09 February 2010

Like most other countries, Qatar has had to bail out its banking sector. Back in December 2009, the state took a 5% capital stake as a “preventative” measure to shore up its ailing banking sector during the financial crisis. The tactic, which cost the Qatari Government $900 Million seems to have paid off, with Qatars Sheikh Abdullah bin Saud al-Thani declaring on Tuesday that no more Government intervention was necessary.

Perhaps Qatar have been fortunate in that its economy has been sheltered from most of the ramifications of the global slowdown and most Qatari banks have had little exposure to regional debt troubles, in particular Dubai World’s debt.

Other Government still face the dilemma of withdrawing stimulus packages or continuing to inject large sums of money to bolster their economies until the green shoots of recovery start to show.

Not so for Qatar, which could see its GDP grow to an impressive 17% in 2010, according to Sheikh Abdullah. A huge expansion in Qatari natural gas facilities is likely to be the reason why the GDP will jump by 16.1 % according to a recent poll by Reuters.

This leap in GDP is followed by Arabian giant, Saudi Arabia, whose economy is anticipated to grow by 3.8 percent in the next 12 months.

Qatar’s economy has had a tough time of late; consumer prices fell 5.2% in the first 11 months of 2009, an oversupply of housing meant rental prices were decimated and hydrocarbon prices also plummeted.

Fears regarding double digit inflation were assuaged by Sheikh Abdullah who reiterated his previous predictions that inflation in 2010 would be in “single digits.”

Ibrahim al-Ibrahim, (the Emir of Qatars advisor) also re-iterated that Qatar would be prudent in ensuring its economy would grow in a sustainable fashion, with growth controlled by the ability of its economy to “absorb” the economic growth.

Paul Holdsworth, Staff writer, Gulf Jobs Market News, 9th February, 2010

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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