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World Cup Real Estate threatens the banks of Qatar with "Major Risks"



Fitch Ratings warned that Qatari banks are suffering from a "high risk" of low asset quality because of their dependence on the local real estate market, which is plagued by projects in preparation for the FIFA World Championship in 2022, as well as lower property prices and rents. .

Fitch said in a report released yesterday that Qatari's government support to local banks since the beginning of the crisis in Qatar has focused on easing the pressure on bank liquidity, which was hit hard by Saudi Arabia, Egypt, the United Arab Emirates and Bahrain for its support to terrorism.

"The exposure of Qatari banks to the expired local real estate market poses a growing risk for asset quality," the agency said, noting that the most exposed banks are Doha Bank, Commercial Bank of Qatar and Qatar International Bank.

Qatar is trying to recover from the withdrawal of $ 30 billion from its banks between June and October 2017, mainly from Gulf depositors.


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