How do you see the Qatari economy evolving in the next few years, and what factors do you believe will drive growth?
In the next few years, the Qatari economy is expected to undergo significant transformation and growth, driven by a strategic shift towards diversification and sustainability. While the country’s vast natural gas reserves will continue to play a crucial role, the focus is incr-easingly on developing sectors such as clean energy, tourism, sports, and technology.
The implementation of Qatar National Vision 2030, the Third National Develop-ment Strategy, Digital Agenda 2030, and the Third Financial Sector Strategy will be pivotal in steering the country’s transformation. Implementing these national programmes will also help build economic resilience, talent development and digital innovation.
What impact do you expect global economic trends to have on Qatar’s banking sector?
The rapidly changing economic landscape significantly impacts various industries, including banking. After a brief period of high interest rates, we now expect interest rates to reduce slightly. This rate revision directly impacts Qatar’s banking sector, as lower interest rates will reduce borrowing costs and potentially increase credit growth.
The global demand for clean energy also supports Qatar, as the country is the third largest exporter of liquefied natural gas. Strong LNG exports and fiscal stability help maintain liquidity and financial strength.
Additionally, the banking sector’s ongoing digital transformation and alignment with global regulatory standards will allow it to remain competitive and resilient. Qatar’s strategic investments in FinTech and sustainable finance could also open up new growth opportunities, even amid global economic uncertainties.
What are some of the highlights from the bank’s financial performance over the last year?
In the last quarter of 2023, Doha Bank embarked on a large-scale transformation programme. Though we are still in its early phase, the dedication and commitment of our workforce are reflected in our first half 2024 results.
Our net profit has increased by 10.3% to QAR432m ($118m), the second highest increase in the Qatar banking industry. Our asset growth so far this year is 4.6%, the highest amongst our peers. Our capital adequacy stands at 19.7%, well above the regulatory threshold.
In March 2024, Doha Bank issued a four times oversubscribed $500m international bond, which reflected investors’ confidence in the bank’s financial health and future direction.
What are the bank’s strategic priorities over the next three to five years, and how does it plan to achieve them?
With the new leadership team, Doha Bank has articulated a new strategy for 2024-28. To execute this strategy, we have set up a transformation office managed by one of the world’s top consulting firms.
We have also adopted a highly rigorous approach to executing our strategic transformation programme, which includes over 80 high-impact initiatives across 10 dimensions.
Our transformation programme is focused on our core business; stability and sustainability; and digital and IT. Focusing on stability will help us build resilience. Strengthening the core business is vital to ensuring the bank’s financial health. Accelerating digital innovation will help us stay relevant in the future. These transformation principles will help us become a progressive bank that keeps innovation and customer experience at the heart of its culture.
How is the bank addressing sustainability and ESG, and what role do these play in its strategy?
ESG is a critical theme in our strategy. Though we have been practising ESG for over a decade, last year, we accelerated our efforts and added ESG as one of the core strategic guiding principles.
Doha Bank sets itself apart by creating a comprehensive ESG framework that spans all business units and takes into account all stakeholders in the ecosystem.
In the initial phase, we aim to assess environmental and social risks across our portfolio by embedding environmental and social criteria into our credit process. Subsequently, we plan to establish a robust ESG and climate risk management framework to help us identify, evaluate and mitigate climate-related risks and opportunities.
How is digital transformation shaping the evolution of banking in Qatar, and what technological innovations is the bank prioritising?
Digitalisation has been one of the top priorities for banks across the globe. The banks in Qatar are also keeping their focus on digital transformation. Over the last few years, we have witnessed financial inclusion and rapid growth in digital payments, enabled by emerging technologies, the FinTech sector and robust regulations.
Doha Bank has also been one of the agile players that proactively developed digital solutions for its customers. We will continue to embrace digital innovation by adopting emerging trends and technologies like artificial intelligence, with the aim of providing customer-centric solutions.