Qatar: Rise of Foreign, Domestic Debts

Qatar: Rise of Foreign, Domestic Debts

Friday, 14 September, 2018 - 12:30
A man walks past a branch of Qatar National Bank (QNB) in Riyadh, Saudi Arabia, June 5, 2017. REUTERS/Faisal Al Nasser
Riyadh- Shujaa al-Bogmi
The Qatari economy continues to face aggravated foreign and domestic debts -- there are several indicators showing that Doha’s economy is facing huge challenges that might affect domestic and foreign investments.

Qatar National Bank data revealed the rise of foreign and domestic debts of the Qatari government and the institutions affiliated with QNB to around QAR574 (around USD158) end of July. The same data showed that the Qatari banks internal claims from the Doha government and its institutions reached around QAR466 billion (USD128 billion) end of July. This indicates a remarkable rise in the first year of diplomatic boycott that Doha is facing by the countries sponsoring the fight against terrorism.

QNB data indicated that the volume of the banking sector claims from the private sector reached around QAR517 billion after it was QAR467 billion, a rise of around QAR60 billion (USD16.5 billion) in one year.

The increase of foreign and domestic debts represents a direct threat to local investments in Doha, as investments require stronger economies. The threats facing Qatar extended to the gas markets in which a global news agency mentioned earlier that Australia has become a danger to Qatar liquid natural gas.

Figures show that foreign investment in Qatar dropped 10.3 percent during the first quarter of 2018. On an annual basis, figures show a drop of QAR77.6 billion (USD21.3 billion), compared to the first quarter of 2017.

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