Non-resident deposits within Qatar’s banking system witnessed a robust 21.75% year-on-year expansion to QR164.26bn in November 2018, indicating the strong confidence among international investors in the local economy amidst the continuing unjust economic and trade blockade by the Saudi-led quartet.
However, total deposits were on the downswing due to the decline in the public and private sector deposits, Qatar Central Bank data for November suggest.
Various reports including from the International Monetary Fund said the non-resident deposits, which initially declined (after the embargo started in June 2017) but rebounded, indicating the resiliency in the domestic macro economy.
From QR199.19bn in January 2017, non-resident deposits touched a low of QR134.92bn in November 2017. Between June and November 2017, deposits had declined approximately QR36bn. However, after November 2017, there was largely a steady accretion in the non-resident deposits.
"Macro-financial indicators are improving in 2018 compared to mid-2017; the CDS (credit default swap) spreads have come down, stock market has recovered, and non-resident deposits have started to flow back in," IMF had said in its report on Qatar in May 2018.
Of the total QR164.26bn non-resident deposits, those with Qatari banks amounted to QR162bn (about 99% of the total non-resident deposits) and those with non-Qatari lenders were QR2.26bn (2%).
Of the QR162bn non-resident deposits with Qatari banks, as much as 91%, or QR146.84bn, was from traditional banks and the remaining QR15.16bn, or 9%, from Islamic banks. A large chunk of non-resident deposits in the foreign banks were from non-Arab entities, which contributed QR2.14bn in November 2018.
Otherwise, total deposits in Qatar’s commercial banks registered a marginal 1.02% year-on-year decline to QR794.08bn in November 2018.
Total private sector deposits were down 0.45% year-on-year to QR357.46bn and total public sector deposits shrank 11.65% to QR272.36bn in November previous year.
Within the private sector deposits, those from personal amounted to QR178.89bn (registering 5.19% growth) and those from companies/institutions were QR178.57bn (a 5.52% decline).
Among the public sector deposits, there was a 12.02% dip in those from the government (QR78.73bn) and 11.71% in those from semi-government (QR30.83bn).
Of the QR794.08bn total deposits, those with Qatari banks amounted to QR772.4bn and those with foreign banks stood at QR21.68bn. Of the total deposits within local lenders, traditional banks' share was QR561.85bn and Islamic banks' at QR210.56bn.
The weighted average interest rates on demand deposits stood at 0.28% in November 2018 compared to 0.12% in the corresponding period of 2017; savings deposits at 0.24% (0.49%); time deposits for one month at QR2.78% (2.57%), those for three months at 3.13% (2.69%), those for six months at 3.22% (3.19%), those for one year at 3.66% (3.16%) and those for more than one year at 3.66% (2.85%).