Moody's Investors Service revised its outlook on Qatar's banking system from negative to stable, reflecting the resilience of the country's economy and banking system, as well as the stable outlook on the Government of Qatar's Aa3 long-term issuer rating.
The Qatari government has been able to rebalance the country's economy following the Gulf dispute, which began in June 2017, without affecting the high level of government spending on infrastructure in preparation for the FIFA World Cup in 2022. Moody's expects average real GDP growth of 2.8% 2018-2022, up from 1.6% in 2017.
"The Qatari economy has rebalanced as supply chain disruptions recovered rapidly following the blockade from the other Gulf States and Egypt," said Nitish Bhojnagarwala, Vice President and Senior Credit Officer at Moody's. "Likewise, the banking system rebalanced its funding profile with the reduced liquidity from GCC sources offset by inflows from government and related entities."
Source: (CNBC Arabia, Edited)
