Qatar's capital market needs short-term good quality Islamic money market products to help the banking sector strengthen the liquidity during the Covid-19 pandemic, according to a top official of the Qatar Financial Center (QFC).
"It is imperative to ensure the continuous operation of efficient and smoothly operating Qatari financial markets. This includes Islamic financial institutions, which require development of short-term and good quality money market products," Thaddeus Malesa, senior advisor for Economics and Research at the Qatar Financial Centre (QFC) Authority, said.
Qatar’s economy is incredibly robust, and the nation has a strong balance sheet, he said, adding it is well positioned to navigate current turbulence despite the expected global economic downturn.
"The credit rating of its banking sector remains one of the strongest worldwide, which is supported by the state’s successful recent bond issuance," he said.
Qatari bonds are of interest to a wide variety of investors, including global money market funds, and international banks seeking US dollar-backed exposure, according to him.
"Crucially, projections for Qatar showcase opportunities for growth with the advent of a market-driven liquidity mechanism," he said.
Malesa highlighted that the Gulf region is facing the twin shocks: The outbreak of Covid-19 and sharply lower oil prices (because of shutdowns mandated by the public health response).
Although the contagious curve in the region is still on the rise, the swift containment and preventive measures witnessed in the region “significantly” contributed to curbing the further spread of the virus, he said, adding the accompanying lock-downs have been “economically painful.”
In response to the oil price rout, the Gulf region has reacted by making current expenditure cuts and instituting hiring freezes.
With consensus oil prices forecast to average in the mid $30s by the end of this year, there is an immediate need for many oil-dependent economies to reorient, according to him.
Qatar is no exception to dominant trends, although it is less exposed than its Gulf neighbours, Malesa said, adding it is protected by having a strong balance sheet and a greater share of non-oil exports.
Qatar has abundant savings in the form of central bank reserves and assets held by its sovereign wealth fund, the Qatar Investment Authority (QIA), he noted.
"Qatar’s proven economic resilience, following the economic blockade imposed on it, has enabled it to withstand unforeseen challenging circumstances," he added.
Qatar’s economy is incredibly robust, and the nation has a strong balance sheet, he said, adding it is well positioned to navigate current turbulence despite the expected global economic downturn.
"The credit rating of its banking sector remains one of the strongest worldwide, which is supported by the state’s successful recent bond issuance," he said.
Qatari bonds are of interest to a wide variety of investors, including global money market funds, and international banks seeking US dollar-backed exposure, according to him.
"Crucially, projections for Qatar showcase opportunities for growth with the advent of a market-driven liquidity mechanism," he said.
Malesa highlighted that the Gulf region is facing the twin shocks: The outbreak of Covid-19 and sharply lower oil prices (because of shutdowns mandated by the public health response).
Although the contagious curve in the region is still on the rise, the swift containment and preventive measures witnessed in the region “significantly” contributed to curbing the further spread of the virus, he said, adding the accompanying lock-downs have been “economically painful.”
In response to the oil price rout, the Gulf region has reacted by making current expenditure cuts and instituting hiring freezes.
With consensus oil prices forecast to average in the mid $30s by the end of this year, there is an immediate need for many oil-dependent economies to reorient, according to him.
Qatar is no exception to dominant trends, although it is less exposed than its Gulf neighbours, Malesa said, adding it is protected by having a strong balance sheet and a greater share of non-oil exports.
Qatar has abundant savings in the form of central bank reserves and assets held by its sovereign wealth fund, the Qatar Investment Authority (QIA), he noted.
"Qatar’s proven economic resilience, following the economic blockade imposed on it, has enabled it to withstand unforeseen challenging circumstances," he added.
