Qatar Central Bank Governor Expects Real Growth to Reach 5.5 Percent this Year

Doha, February 18 (QNA) - Qatar Central Bank (QCB) Governor HE Sheikh Abdullah bin Saud Al Thani has expected the real growth rate in the State of Qatar during the year 2013 to reach 5.5 percent. Addressing the opening session of the conference 'Qatar Projects2013', QCB Governor said preliminary estimates show that the State of Qatar's Gross Domestic Product (GDP) at the current prices grew in 2012 by 11 percent to about QAR 700 billion, and thus the Qatari economy surpassed the stage of the powerful growth in the past years to enter the stage of sustainable and moderate growth to achieve the aspirations of Qatar National Vision 2030. He explained that the performance of the banking system in the country clearly reflected these facts, with a total increase in commercial banks assets in 2012 rising by 18 percent to around QAR 817 billion, customer deposits by 26 percent to about QAR 458 billion and credit facilities during the same period by more than 27 percent to about QAR 477 billion. HE Sheikh Abdullah bin Saud stated that the Qatar National Vision 2030 is looking forward to achieving a risk free functioning financial system, that required the introduction of a number of important developments on the banking filed aimed at realigning the regulatory bodies on banks, insurance and investment companies and the stock market as well as revitalizing the capital market in Qatar, including the establishment of the Qatar Credit Information Bureau and the financial stability department at Qatar Central Bank. QCB Governor said the aforementioned efforts culminated in the enactment of Qatar Central Bank Law No. 13 of 2012 which is viewed an important step in establishing and strengthening financial stability and the development of the framework of financial control and the expansion of its scope, adding that it also lays the basic foundation for further cooperation between the control bodies in the State of Qatar for the development of regulatory and control policy and its implementation with the application of international standards in accordance with best practices. He said that the new law of the bank, which came in the light of the successive global developments and their different implications, included new responsibilities such as license for insurance and reinsurance companies, and Insurance Brokerage, bringing the entire financial sector under the supervision of Qatar Central Bank. In addition, it identified the bank as the supreme authority responsible for drawing up the appropriate control and regulatory policies and for supervising all financial services and markets in the state, he added HE Sheikh Abdullah bin Saud pointed out that in order to achieve the mentioned goals, the new law stipulated that a financial stability and risk control committee shall be set up to help promote the creation of a homogeneous and cooperative regulatory environment in the state. The committee will be assigned to examine potential risks for all services and business activities and the financial markets and find solutions and proposals. (QNA)