Qatar's banks have had their outlook downgraded to negative from stable by Moody's Investor Service amid weakening operating conditions and continued funding pressures facing lenders in the wake of a political crisis between the sheikhdom and neighbouring countries that include Saudi Arabia and the United Arab Emirates.
The rating agency said concerns about the ability of Qatar to diversify its economy and the impact that will have on the profitability of banks as loan growth stalls and the level of non-performing loans rise underpinned its decision.
"We expect that a prolonged period of uncertainty caused by the ongoing dispute between Qatar and some of its Gulf Co-operation Council (GCC) peers could hamper the government's economic diversification plans and impact growth," analysts at Moody's said.
The UAE, Saudi Arabia, Bahrain and Egypt on June 5 broke diplomatic ties with Qatar and cut off air, sea and land access to the country over Doha’s support for “terrorist groups aiming to destabilise the region”. The dispute is the most serious between GCC members since the organisation’s creation in 1981.
Moody's expects Qatar's economy to slow to 2.4 per cent from an average high of 13.3 per cent recorded between 2006 and 2014. Despite that slowdown however, Qatar is still growing at a faster rate than many of its GCC peers, mainly because of the government's massive spending spree on infrastructure ahead of the country's hosting of the FIFA World Cup in 2022.
"These projects are the main drivers of public and private sector economic growth," the analysts noted in their report.
Even so, the ability of banks to lend will likely be curtailed by the decline in economic growth. Credit growth is expected to decelerate to between 5 per cent to 7 per cent in 2017 and 2018 compared to a high of 15 per cent in 2015.
That decline will take place even as the government tries to build buffers. Qatar's government proceeded with capital injections totalling QAR11.2 billion (Dhs11.3 billion) to increase banks’ capital buffers and allow them to participate in upcoming infrastructure projects; in addition to purchasing of a portion of banks’ real-estate loans and domestic equity investments (at their original cost) for QAR20.9 billion, according to the agency.
Though the government's capacity to extend support to the banking sector remains strong, "it is deteriorating" Moody's said as a result of fiscal pressures. Still, the rating agency said that the government has the ability to support the banks as public sector assets are estimated to be at around $304 billion.
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Read more:
Biggest Qatar bank mulls financing options
Qatar crisis: What you need to know
Qatar banks see foreign deposits fall most in two years amid diplomatic row
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Moody's rates 10 banks in Qatar, six conventional and four Islamic, which all told account for 96 per cent of bank assets in the country. Those banks are Qatar National Bank, Qatar Islamic Bank, the Commercial Bank, Masraf Al Rayan, Doha Bank, Al Khalij Commercial Bank, Barwa Bank, Qatar International Islamic Bank, Ahli Bank, International Bank of Qatar.
To date the fallout form the political crisis appears to have had a limited impact on bank profitability. Qatar National Bank, the biggest bank by assets, said in July that its second quarter profit rose 2 per cent to 3.45 billion riyals, beating analyst expectations.
There have been fears that the Gulf states opposing Qatar may withdraw deposits from Qatari banks, pushing the cost of borrowing higher but so far those concerns have not materialized and Qatari authorities have been adamant they have the financial clout to sustain capital flight stress such a scenario may produce. Qatar finance minister Ali Shareef Al Emadi has said repeatedly that his country's banking system was stable and had ample reserves of cash.
Despite government assurances about being able to meet the challenges to its economy, Qatar is set to continue to tap its foreign currency reserves and borrow abroad to support its economy, to stem an economic slowdown.
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Third Test
Day 3, stumps
India 443-7 (d) & 54-5 (27 ov)
Australia 151
India lead by 346 runs with 5 wickets remaining
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
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NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
Company%20profile
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The specs: 2018 Mazda CX-5
Price, base / as tested: Dh89,000 / Dh130,000
Engine: 2.5-litre four-cylinder
Power: 188hp @ 6,000rpm
Torque: 251Nm @ 4,000rpm
Transmission: Six-speed automatic
Fuel consumption, combined: 7.1L / 100km
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
UAE currency: the story behind the money in your pockets
COMPANY%20PROFILE
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Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Zayed Sustainability Prize
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Specs
Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
SOUTH%20KOREA%20SQUAD
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The%20specs%3A%202024%20Mercedes%20E200
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COMPANY%20PROFILE
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