HE Director General and Chairman of the Board of Directors of the Arab Monetary Fund (AMF) Dr. Fahad bin Mohammed Al Turki said that the Qatari banking sector has an advanced ranking in Arab countries in terms of the capital adequacy ratio, reaching 19.2 percent. This reflects the status of the sector and its ability to absorb shocks, he said.
During his speech today at the Banking Conference 2024, which is being hosted by the State of Qatar, the Director General and Chairman of the Board of Directors of the AMF praised the Qatari banking sector, noting that it accounted for 11.9 percent of the assets of the Arab banking sector, thus achieving the third rank among Arab countries.
He pointed out that the percentage of non-performing facilities in relation to the total facilities in the Qatari sector is still low compared to the average in Arab countries, as the percentage reached about 3.9 percent at the end of last year compared to an average of 7.9 percent in the Qatari banking sector.
His Excellency stre
ssed that the banking sector in Arab countries is the main source of providing economic financing, adding that the AMF’s Arab Financial Economy Report for this year confirmed the strength of this sector, whose assets amount to about $4.6 trillion, equivalent to 150 percent of the gross domestic product of Arab countries. In terms of financial solvency, the Arab banking sector was distinguished by high financial solvency, as the average capital adequacy ratio reached 17.4 percent at the end of last year, which is higher than the internationally targeted rate of 10.5 percent.
HE Dr. Fahad bin Mohammed Al Turki added that banking institutions must innovate and provide financial products that support investment in sustainable infrastructure, clean energy and projects that aim to achieve social and environmental goals. Banks and financial and banking institutions must also integrate sustainability standards into their lending and investment operations, he said.
He stressed that the AMF supports increasing low-co
st financing and developing green financing, in a way that enhances confronting climate change and achieving sustainable development goals, while stressing the importance of striking a balance between environmental sustainability and energy security and maintaining competitiveness when addressing issues. He noted that Arab countries have resources and will in this regard and can apply technologies and models that support the transition to a sustainable economy.
President of the Union of Arab Banks Mohamed el Etreby stressed the importance of the Arab Banking Conference 2024 in establishing a sustainable future for Arab countries, noting that they can achieve many individual and collective gains if they are able to overcome the increasing development challenges and benefit from this conference in the necessary manner.
El Etreby called for enhancing means of implementation by consolidating global and regional cooperation and synergy between countries, while relying on technology and knowledge to enhance partn
erships and consolidate sustainable development in Arab circles in a real and effective manner.
He pointed out that the requirements of sustainable development for Arab countries necessitates working to find more attractive investment policies, noting the role of the private sector in financing sustainable development at the international level, compared to the Arab side, which still needs to increase the effectiveness of the private sector that actually requires keenness to discuss ways to continue and realize cooperation through this conference, which comes at the right time to reach acceptable levels of achieving the 2030 Sustainable Development Goals in the Arab region.
The President of the Union of Arab Banks noted intensive efforts by Arab laws to encourage and stimulate the process of financing sustainable development goals and the move towards a green economy. With some Arab countries issuing green bonds, this confirms the endless awareness of the importance of strong banking sectors in achieving su
stainable development that can contribute to achieving developmental and social dimensions in Arab countries.
Source: Qatar News Agency