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Qatari banks’ securities investment abroad hit QR21.8 billion

Loans and financing of the private sector also increased to QR360.7bn by the end of March

Until the end of March, the total value of Qatari banks’ deals and investments conducted abroad amounted to QR21.8 billion, recent statistics show.

The statistics released by Qatar Central Bank state that these investments were distributed between QR18.7bn for bonds and sukuk and QR3.1bn for other shares, reports Qatar-based Al Sharq.

Following an increase in the number of bank branches in the state, bankers confirm that the local banks, in their operations, largely focus on the domestic market as the main driver of earnings and banking activities.

Loans and financing of the private sector also increased to QR360.7bn by the end of March, and thus business was directed to the domestic market, seizing investment opportunities abroad to expand into secured foreign markets that do not carry a big risk.

Qatar Central Bank issued instructions for banks, including a number of regulations and standards designed to protect banks capitals.

The most prominent instructions were that the banks were not to exceed the following percentages of their investments:

1-Contributions to the companies’ capital with the exception of the subsidiaries must not exceed 30 per cent of the bank’s capital and reserves.

2-Investment in one company must not exceed 5 per cent of the bank’s capital and reserves.

3-Total non-traded investments must not exceed 15 per cent of the bank’s capital and reserves.

4-Real estate investment by Islamic banks will be limited to 10 percent of capital and reserves.