CEO of Qatar International Islamic Bank (QIIB) Dr Abdulbasit Ahmed al-Shaibei emphasised the importance of the axes that will be addressed by the Qatar Economic Forum, which will be launched on Tuesday in Doha, especially those related to the role of banks and the banking system in financing economies in light of the changes the world is witnessing today, such as inflation, in addition to the new economic alliances.
In an exclusive interview with Qatar News Agency (QNA), he said that the banking sector reflects the economic situation in any country, as it is a mirror of the economy in general. The sector's returns and impact go beyond the local markets to reach the foreign markets, as it enhances the confidence of international investors and their positive view of the national economy, he said, adding that internally, the strength of the banking sector predicts the strength of the overall economy, and this is reflected in the increase in social stability and the growth of various positive indicators.
Dr al-Shaibei stressed that the role of the banking sector is central in supporting development, and it is one of the crucial factors that, by virtue of its strength, gives the Qatari economy a great impetus that is clear in the growth figures achieved by various economic sectors, and in increasing the confidence and attractiveness of the Qatari economy.
He said that everyone knows that the Qatari banking sector derives its resilience from various factors and criteria, mainly the wise policy by which the Qatari economy is managed, the optimal management of resources, economic diversification, the large financial resources of the carbohydrate sector, the high financial reserves maintained by the State of Qatar and the advanced legislative and regulatory structure; all of this makes the State of Qatar one of the countries most capable of achieving competitiveness and efficiency in managing the economy, according to the testimony of experts and specialists.
CEO of QIIB stressed that the Qatari banking sector's strength and attractiveness would create an ideal environment for economic recovery, investment prosperity and opportunities that would attract the world's largest companies to the Qatari market, creating a dynamic that contributes to enhancing growth, increasing cash flows and attracting those who wish to invest in Qatar.
Qatar has turned into a well-known global centre, reinforced by the reputation gained through the strength of various economic indicators, especially with regard to the banking sector, as well as the impressive capabilities shown by the country in hosting major international events, the latest of which was the FIFA World Cup Qatar 2022, which demonstrated its ability to play a global role not only in sports, but also in economy and investment, as well as to consolidate its role as a global mediator that believes in diversity, interaction, co-operation and peace, he added.
On the role of the banking system in managing inflation, he explained that the inflation that many countries of the world are currently suffering from affects various economies, although the Qatari economy is one of the least affected given its strength and ability to achieve the targeted growth figures, thanks to its high competitiveness and available resources and appropriate monetary instruments that are used.
He said that inflation in the current situation is imported inflation, meaning that its external causes are due to global geopolitical and economic factors. One of this phenomenon's manifestations was the rise in commodity prices, especially food, services and freight rates, and the disruption of supply chains due to the effects of the COVID-19 pandemic, which affected the entire world. Fortunately, the Qatari economy has all the tools and resources to face the effects of inflation.
He commended the wise measures taken by the Central Bank in the field of monetary policy and controlling inflation, especially through the use of the interest-raising tool, which is the most important monetary tool to keep inflation at the target numbers.
He also praised the International Monetary Fund's (IMF) view regarding inflation management in the State of Qatar, as the fund's estimates confirmed that by the end of 2023, inflation will begin to gradually recede in Qatar.
CEO of QIIB highlighted the history of economic interdependence between the Gulf, China, India and Southeast Asia, which dates back to many centuries, during which trade was a major focus of co-operation. The people of Qatar and the region in general have always been in a non-stop trade movement with India and with Asian countries. Additionally, there are many cultural commonalities between the Arab Gulf region and many Asian countries, and the historical relations between China and the region have never been interrupted. It is enough to recall that the Silk Road passed through the waters of the Arabian Gulf, which meant economic, civilizational and human interaction along this path that is considered one of the oldest and most important trade routes historically. China is trying today to revive this route through the Belt and Road Initiative that was launched in 2013, he said, noting that strengthening cooperation with the Arab Gulf states is one of the contents of this initiative.
Dr al-Shaibei said that the State of Qatar has established economic relations based on deepening ties and cooperation with various countries of the world. In view of the population map of the world and the geographical neighbourhood, the economic relations between the State of Qatar and India, China, and Asian countries, including Southeast Asian countries, had to be very strong, as these countries need energy in view of the economic growth they achieve, their huge population, and their growing needs, in addition to the various other commercial commodity exchanges that have made China, India and East Asian countries at the forefront of the trading partners of the State of Qatar. Therefore, the continuation and strengthening of this cooperation and interdependence is in the interest of all parties, he said, adding that these relations are certainly not intended under any circumstances to be at the expense of relations with other countries. On the contrary, they are an extension of them and are part of the advantages of free and open economic cooperation with various countries of the world.