Credit growth to see boost by 4% in H2 2024

Doha: Qatar s credit growth is estimated to accelerate from 2.8 percent y o y in 2023 to 4 percent by the end of this year. According to a report by F...

Doha: Qatar’s credit growth is estimated to accelerate from 2.8 percent y-o-y in 2023 to 4 percent by the end of this year. According to a report by Fitch Solutions, analysts note that the stronger demand across various markets and slower pace of loan repayment are the primary reasons behind the growth.

However, the loan growth is expected to further surge to 5 percent y-o-y by the end of next year due to the lower cost of borrowing. On the other hand, robust asset growth, in addition to the expansion in the bond portfolio will drive asset growth higher in 2024 and 2025, says researchers.

Market experts stressed that credit growth is expected to remain significantly below the past decade’s average of 9.7 percent, as demand for credit remains lower than the funding needed for the large-scale projects implemented during the World Cup hosted in Qatar approximately two years ago.

This year, diverse factors have continued to drive lending activity across the country. Industry leaders highlight the higher demand for credit is primarily due to Qatar’s hosting of global events.

This is followed by a resilient demand from the realty market that adhered to the central bank’s introduction of new financial measures to facilitate real estate financing in the past year. Plans to initiate the North Field expansion project that are worth $19.2bn in 2024 will also boost demand in the construction realm.