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Qatar’s banking sector continues to excel, securing a strong position among Arab countries, according to Dr. Fahad bin Mohammed Al Turki, Director General and Chairman of the Board of Directors of the Arab Monetary Fund. Speaking at the Arab Banking Conference 2024, Dr. Al Turki highlighted Qatar’s impressive capital adequacy ratio of 19.2%, a reflection of the sector’s resilience and its ability to absorb economic shocks.
He also noted Qatar’s significant contribution to the Arab banking sector, representing 11.9% of its total assets, ranking third among Arab nations. “Qatar’s banking sector demonstrates its robustness and strategic importance within the Arab financial landscape,” Dr. Al Turki stated.
During his speech, Dr. Al Turki emphasized the importance of innovation in the banking sector, urging financial institutions to create products that support sustainable infrastructure, clean energy, and projects that aim for social and environmental progress. He stressed the need for banks to integrate sustainability standards into their lending and investment practices, ensuring that financial operations contribute to long-term sustainable development.
In a broader context, he praised the Arab banking sector’s financial health, noting that the average capital adequacy ratio reached 17.4% at the end of the previous year—significantly above the international benchmark of 10.5%. This, he explained, highlights the sector’s financial stability and readiness to support sustainable initiatives.
Mohamed Mahmoud El Etreby, Chairman of the Union of Arab Banks, echoed these sentiments in his opening remarks, emphasizing the critical need for the region to achieve the Sustainable Development Goals (SDGs) by 2030. He noted that overcoming developmental challenges would require coordinated efforts and a transition to sustainable development models, particularly in addressing issues such as water scarcity and desertification.
El Etreby also stressed the importance of regional and international cooperation to attract foreign direct investment (FDI) and strengthen international partnerships, which are crucial to achieving sustainable development. He highlighted the role of FDI in advancing sustainable development in the Arab region, noting the issuance of $14 billion in green bonds between 2015 and 2020, with 84% of these bonds classified as sustainable.
The financial sector, El Etreby explained, has a vital role to play in driving sustainable growth, particularly through the adoption of Environmental, Social, and Governance (ESG) metrics. “The financial sector can help achieve long-term economic goals by aligning investment and lending practices with sustainability objectives,” he said, adding that many Arab banks are already incorporating ESG principles into their operations.
The conference also addressed the growing importance of fintech and other technological advancements within the Arab financial sector. Discussions covered the modernization of regulatory frameworks and the development of green bonds aimed at achieving the SDGs.
Dr. Rola Dashti, Under-Secretary-General and Executive Secretary of the United Nations Economic and Social Commission for Western Asia (ESCWA), delivered the keynote address, further emphasizing the need for sustainable financial solutions in the region.
The conference included two panel discussions: “Sustainable Development Requirements and the Financing Gap in the Arab Region” and “The Role of Financial Markets, Institutions, and Instruments in Financing Development,” both of which explored how the financial sector can contribute to bridging the gap in sustainable development funding across the Arab region.
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