Banks in Qatar are over exposed to the Gulf state's real estate sector, according to investment bank SICO’s GCC Banking Sector Outlook for 2013.
Forty percent of private sector lending by banks goes to real estate developers and contractors, while most listed Qatari real estate companies reported disappointing results in 3Q2012.
Asset quality deterioration might be a serious risk for Qatari banks. According to Bahrain-based SICO’s research, Qatari banks have aggressively increased lending to the real estate sector. Real estate related asset quality deterioration is expected now as heavy development in the sector outstrips demand.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.