Credit facilities drive QDB assets to QR9bn: QCB
August 31 2017 10:42 PM
QDB
Qatar Development Bank continues to facilitate development of SMEs. PICTURE: T K Nasar

Doha

Qatar Development Bank assets have reached QR9bn in end-2016, driven mainly by credit facilities and some increase in placements of its funds with the banks, a recent report has shown. 
QDB assets stood at QR8bn in 2015, the Qatar Central Bank has said in a report. Capital and reserves continued to record sharp growth during the year under review, QCB said.
The share of capital and reserves relative to the balance sheet size is very high and has been increasing rapidly over the years.
The ratio of capital and reserves to total assets has risen steadily from 69% in 2013 to 89% in 2015. Most of this is high quality capital as the share of paid up capital in the total capital and reserves has increased from 82% in 2013 to over 91% in 2016. 
At the same time dependence of QDB on bank funding has declined. It is well-known that the failure rates among start-ups are relatively higher than those among bigger companies but such high level of capital underscores the strong capabilities for further expansion.
“It also underlines the resilience of QDB,” Qatar Central Bank said in its 8th Financial Stability Review. 
Qatar Development Bank (QDB) continued to facilitate development of small and medium-sized enterprises (SMEs), which are expected to provide impetus for the national economy to achieve faster, diversified and sustained growth of the economy as envisioned in Qatar National Vision 2030. 
The focus of the policies was to “inculcate a culture of creativity, entrepreneurial spirit and innovativeness across the nation through providing a supportive environment for entrepreneurs.” 
Fully owned by the government, QDB is not profit-oriented. In addition to providing financial aid, the bank also offers advisory support and guidance to SMEs regarding start up, growth and expansion of their activities. 
Under Tasdeer, QDB offers export financing services, business development services and support for promotion of private sector exporters based in Qatar. 
Through its housing finance scheme, QDB has provided a huge stimulus to the real estate market and fuelled job opportunities.
During the year, QDB took several initiatives for development of SMEs which included policy changes, organisation of workshops for SMEs and facilitation of their participation in international exhibitions.



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