* Latest data from the QCB points to strong confidence among global investors in Qatar's economy
Non-resident deposits within Qatar’s commercial banks witnessed a robust 35% year-on-year expansion in May 2019; outpacing the 3% rise in total deposits; indicating the strong confidence among global investors on the local economy amidst the continuing economic blockade imposed by the Saudi-led quartet.
Non-resident deposits amounted to QR188.43bn, according to figures released by the Qatar Central Bank.
Various reports including that from the International Monetary Fund (IMF) said the non-resident deposits initially declined (after the embargo started in June 2017) but rebounded later; indicating the resiliency in the domestic macro economy.
Non-resident deposits have been increasing especially from January this year when it stood at QR161.62bn, rising to QR170.59bn in February, QR176.44bn in March and QR178.64bn in April 2019.
Between May and December last year, non-resident deposits had a chequered path, with them increasing from May until September but only to witness decline for the next two months.
"Recovery in non-resident deposits and foreign bank funding helped banks increase private sector credit and banks have been able to diversify the geographical composition of non-resident deposits," the IMF said in its latest Article IV consultation report with Qatar.
Of the QR188.43bn non-resident deposits; some QR184.98bn was within the Qatari banks and the remaining QR3.44bn with the foreign lenders.
A large chunk of the non-resident deposits with the Qatari lenders was within the traditional segment (QR160.94bn) and the remaining QR24bn with Islamic lenders.
In the case of resident deposits, the country’s commercial banks witnessed a 4.27% year-on-year decline to QR617.83bn in May 2019.
Total deposits in Qatar’s commercial banks registered a 2.65% year-on-year growth to QR806.26bn in May 2019 with those in the public sector witnessing a 1% jump to QR360.75bn; even as public sector deposits shrank 10.68% to QR257.08bn.
Within the private sector deposits, those from the personal segment registered 6.83% growth to QR191.89bn, while those from companies/institutions declined 5.08% to QR168.86bn.
Among the public sector deposits, there was a 0.29% dip in those from the government (QR76.61bn), 15.56% in deposits of government institutions to QR151.84bn and 8.24% in semi-government entities to QR28.63bn in May 2019.
Of the QR806.26bn total deposits, those with Qatari banks amounted to QR782.61bn and those with foreign banks stood at QR23.65bn. Of the total deposits within local lenders, traditional banks' share was QR556.3bn and Islamic banks' at QR205.85bn.
The weighted average interest rates on demand deposits stood at 0.23% in May 2019 compared to 0.28% in the previous year period; savings deposits at 0.26% (0.29%); time deposits for one month at 3.02% (2.3%), those for three months at 2.96% (2.8%), those for six months at 3.25% (3.25%), those for one year at 3.79% (3.41%) and those for more than one year at 3.86% (3.57%).