(MENAFN) Qatar may see strong credit growth above 10 percent this year and in 2016 despite tight banking sector liquidity in view of the declining oil price, a new report has shown.
Lending opportunities will continue in the contracting and services sectors, which have averaged credit growth of 27 percent and 17 percent respectively over the first half of 2015.
Banking sector liquidity appears to be tightening as robust double-digit credit growth has not been matched by deposit growth, which is being curtailed by falling public sector deposits.
This is worth monitoring, but Samba Financial Group believes that the authorities have ample resources to address any liquidity and funding issues, although public sector projects may take priority over private sector lending.
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