Qatar is an example for public- private partnership and model governance, says Doha Bank CEO

The event held at the Waldorf Hilton Hotel was organized under the patronage of the Right Honourable Gordon Brown, Prime Minister of the United Kingdom.

Mr. R. Seetharaman, Group CEO of Doha Bank was one of the keynote speakers at the Summit. Mr Seetharaman addressed the audience on post financial crisis strategies. He focused on collaboration amongst the various international financial bodies and global partnerships between the public and private sectors to overcome the economic turmoil.

In his speech, Mr. Seetharaman he highlighted the success of such intervention and partnerships in Qatar commenting that

"The use of public-private partnership will become the most effective methodology to add tangible value to the concept of Gross Domestic Happiness and to promote harmony in our economies. This type of development witnessed in Qatar is a model of public and private interests converging for the benefit of the whole country."

"There was pro-activity on the part of Qatar's government authorities to develop significant public- private partnerships in Qatar to protect the economy and its banking system from the consequences of the current global financial crisis. The Qatar Investment Authority last year offered to invest in new shares between 10%-20% of the capital of the main Qatari banks."

"This was followed by an equally prescient decision by the Government to acquire the Qatari banks' portfolios of local shares listed on the DSM at their book value in the banks' accounts at the end of February 2009 thereby simultaneously stabilizing the local bourse while improving confidence in the banks ongoing stability."

"Subsequent to this by end of May 2009 the Government has offered to buy up to QR15bn ($4.12bn) of Qatari banks' real estate assets at a sale price equivalent to the net value of property loans and investments. The new World Order will redefine economic advantage in terms of such a farsighted distribution of wealth, gross welfare and a balanced economy."

Mr. Seetharaman also noted that

"The global banking sector has witnessed the bankruptcy of a number of major financial institutions in the US and Europe and international regulators' stress tests evidencing that many of the remaining banks are now unable to meet their traditional commitments as safe havens for depositors. However Qatari banks continue to enjoy good liquidity and remain a stable financial presence in the economy. Collectively they registered annualized increases in their net profits of more than 22.7% and in their total assets of 40.1% while the overall capital adequacy ratio for Qatari banks, in accordance with Basel standards, is presently 15%. This performance is amongst the best of any financial sector in the world."

While the Qatar Central Bank ("QCB") has taken these and other public measures to address the financial crisis it is worthwhile to acknowledge the significance and importance of the pre-emptive measures taken by the QCB over the last few years to mitigate potential credit risks."

Mr. Seetharaman also highlighted the major changes in regulatory reforms planned by G20, the current proposals in U.S and European Union and the execution of them in the Global Governance framework. He also highlighted the structural changes being contemplated in regulations amongst the countries in GCC.

Mr. Seetharaman explained in detail the events leading to the ongoing global financial crisis, the impact of the ongoing crisis in the functioning of the global economy, the implications for the currency, commodity, bond, stock and property markets. He also outlined the impact on future financial stability and the outlook for the world economy as a result of the ongoing crisis together with the policy changes he considered are required at macro-economic level, financial and monetary levels to assist recovery.

Mr. Seetharaman elaborated on what this crisis meant for commodity-driven real economies such as Qatar and the measures being taken by the GCC governments to monitor and manage the current situation model for transformation on economic and social fronts. He said that "The increasing worldwide demand for energy has enabled the Qatar to generate a considerable fiscal surplus and substantially improve its balance of payments position which has enabled this visionary State to make wise, strategic investments in a variety of industrial and infrastructural projects.

The State of Qatar has implemented the highest principles of globalization through a policy of liberalization and modernization as a result of the astute leadership of His Highness Sheikh Hamad Bin Khalifa Al-Thani, the Emir of the State of Qatar and His Highness Sheikh Tamim Bin Hamad Al-Thani, Heir Apparent of the State of Qatar".

In his concluding remarks, Mr. Seetharaman said "The ongoing global financial crisis is indeed an opportunity for commodity driven economies like the State of Qatar to showcase their core strengths and emerge from this crisis stronger. It positions the State of Qatar as a model for effective public-private partnership and the highest standards of governance which all converge in the Qatar National Vision 2030."