Interview: Ahmed I. Hashem, acting group chief executive officer, Dukhan Bank

After the successful World Cup, Qatar is diligently pursuing its National Vision 2030 through a multifaceted approach focused on a number of priorities. These include diversifying its economy through investing in infrastructure and sustainability projects, expanding its tourism sector, enhancing sports and cultural initiatives. The World Cup served as a catalyst for these efforts, helping Qatar transition into a more diversified and globally connected economy.

Qatar can distinguish itself in a competitive regional landscape through a multi-pronged approach. Firstly, its commitment to diversifying the economy beyond oil and gas, focusing on sectors such as finance, technology, and tourism, will bolster its resilience and appeal to investors. Second, fostering innovation and becoming a regional tech hub can attract talent and businesses. Third, a continued emphasis on education and research, exemplified by institutions like Qatar Foundation, can create a knowledge-based economy.

The banking sector can support Qatar’s economic journey by providing access to capital for diversification, facilitating foreign investment, and supporting infrastructure projects. For example, Dukhan Bank, a key player in Qatar’s banking sector, supports the country’s economic journey by offering tailored financial solutions for businesses and individuals, financing infrastructure and oil and gas expansion projects, and adhering to responsible banking practices that contribute to economic stability and growth.

With the active support of the government, the financial industry plays a key role in realising major projects in property, energy, infrastructure, transport, telecommunications and many other sectors. As a bank, our contribution is to develop relationships that serve the evolving needs of business, from corporate lending and project finance to treasury services. On the retail side, the rise of AI and data analytics will create a more sophisticated personal banking sector. For investors, industries such as renewable energy, healthcare, technology, and infrastructure development typically stand out as attractive sectors for foreign investment due to their potential for growth, innovation, and long-term sustainability.

The banking sector plays a crucial role in facilitating state entity privatisation by providing financing, advisory services, market access, and risk management. Qatar has made significant progress in privatisation, with notable examples like the privatisation of telecommunications giant Ooredoo, and the listing of various state-owned companies on the Qatar Stock Exchange. These efforts align with Qatar’s economic diversification strategy, attracting private investment and boosting economic growth.

The resilience of the banking sector amid rising inflation and interest rates differs by country and bank. As long as the financial sector continues to meet the evolving needs of the citizens, residents and the business community, then the economy can build from a strong base. How effectively banks can adjust interest rates to counteract purchasing power erosion determines the impact of inflation. In essence, the banking sector’s strength in this situation hinges on factors such as risk management, asset quality, and the broader economic conditions.

Dukhan Bank is continuing to focus on its ongoing digital transformation program, which has encouraged a new world of innovative, multi-channel banking products and next-generation smart services. This year, our listing on the Qatar Stock Exchange has been the latest milestone in the Bank’s progress. Our objectives now are to attract a broader base of international investors, raise our profile on the global stage, and build on the exciting digital transformation that has begun.

In the face of challenging market conditions, our 2022 financial performance yielded remarkable results. Total income rose by 10% to reach QAR 4.5bn, and our net profits experienced a solid 5% growth to reach QAR 1.25bn. Furthermore, our total assets expanded to QAR 106bn, with total equity showing a commendable 3% increase, now standing at QAR 12.5bn. In terms of industry accolades, we proudly secured the title of “World’s Best Islamic Private Bank” for the second consecutive year at the Global Finance Awards.

The bank’s top priorities for digitalisation include enhancing customer experience through user-friendly digital interfaces. For example, our virtual assistant, named ‘Rashid,’ efficiently addresses customer inquiries on all of the bank’s online channels. We’re also prioritising robust cybersecurity measures, streamlining internal operations for efficiency gains, and developing innovative digital products and services to meet evolving customer needs and preferences.

At our bank, we are fully committed to sustainability Environmental, Social, and Governance principles. We have set clear ESG targets, implemented rigorous reporting and transparency measures, and actively developed sustainable financial products. Our aim is to align our banking practices with the global drive towards a more sustainable and responsible financial industry. Bank financing opportunities in Qatar are abundant across various sustainable energy sectors. Banks can provide capital for solar and wind energy projects, supporting the country’s transition to cleaner sources. Green hydrogen production, with its potential for export, also presents investment opportunities.