Qatar banks report strongest credit extension growth in GCC, says Kamco Invest

According to the Kamco data, Qatari banks' total credit facilities increased by 8.6% during 2020 to QR1.13tn and lending during the first two months of 2021 rose by 2.4%.

The domestic economic revival helped the banks in Qatar report strongest growth in credit extension within the Gulf Co-operation Council (GCC) region, according to Kamco Invest, a Kuwait-based leading investment entity. Data on credit facility by sector for the six GCC countries showed mixed trends. However, the trends in Qatar and Saudi Arabia showed "strong" growth backed by economic revival, Kamco said in its latest report. According to the data, total credit facilities increased by 8.6% during 2020 to QR1.13tn and lending during the first two months of 2021 has risen by 2.4%, it said, adding lending to the public sector, general trade, contractors and the services sector reported double digit growth in 2020 whereas decline was seen in smaller economic sectors including industry and others. The aggregate net loan growth during the fourth quarter (Q4) of 2020 stood at 1.4% quarter-on-quarter for the GCC banking sector to reach $1.54tn led by a broad-based growth seen in most markets in the GCC.