Diversification drive and LNG expansion to boost financial sector
The Peninsula
Doha, Qatar: Qatari banks are set to benefit from the country s accelerating diversification agenda and the expansion of liquefied natural gas (LNG) p...
Doha, Qatar: Qatari banks are set to benefit from the country’s accelerating diversification agenda and the expansion of liquefied natural gas (LNG) production, with credit demand expected to grow across tourism, sporting events, and business exhibitions, according to Moody’s Ratings.
The outlook comes as non-hydrocarbon GDP growth is projected to rise to 3.5 percent annually in 2025 and 2026, providing fresh momentum for the banking sector despite mounting pressures on profitability.
“Qatari banks, similar to other GCC banking systems, continue to play a pivotal role in implementing the governments’ economic diversification agendas in the non-hydrocarbon parts of the economy where they conduct the bulk of their lending activities,” Francesca Paolino, Assistant Vice President at Moody’s Ratings, told The Peninsula.
Moody’s expects Qatar’s non-hydrocarbon GDP growth to accelerate to 3.5 percent in 2025 and 2026, compared with 3.4 percent in 2024. Growth will be supported by projects tied to the country’s expanded liquefied natural gas production, along with sporting events, business exhibitions, and tourism-related activity. Private-sector credit growth is forecast to reach 6 percent in 2025, up from 4 percent last year.
On the other hand, aggregate operating income rose 5 percent in the first half of 2025, supported by growth in both net interest and non-interest income.
