Gulf Times – Qatar ‘to lead GCC in credit growth’

Ample liquidity, huge government spending and declining non-performing loans will drive credit growth in Qatar this year, according to a new study.
Domestic credit growth in Qatar is expected to be between 15% and 20% in 2012, the “strongest” in the GCC, Saudi-based Samba Financial said in its GCC economic outlook report. Leading the pack with Qatar will be Saudi Arabia where the domestic credit is expected to be stronger than
four other GCC countries, it said.
While GCC banks are generally “well-capitalised and profitable”, private credit growth remains subdued in the region as both banks and borrowers look to strengthen their balance sheets following the regional credit crunch and real estate slump in 2009.

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