Qatari banks lift overseas lending 58.6 per cent in seven months
Qatari banks increased overseas lending by 58.6 per cent in the seven months to July, while domestic loans grew 3.2 per cent and sector assets reached 2.194 trillion riyals. Fitch separately removed Qatar from negative watch, retained a negative outlook and forecast an 18.8 per cent economic contraction in 2026; its assessment included lower LNG output and disruption in the Strait of Hormuz.
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Loan growth concentrates overseas
Qatari banks' lending outside the country rose 58.6 per cent in the first seven months of 2026 and 1.7 per cent in July alone. Domestic loan growth was 3.2 per cent over the same period. QNB Financial Services data put the total loan book at 1,482 billion riyals and sector assets at 2.194 trillion riyals. Fitch separately affirmed Qatar's long-term issuer default rating at AA and removed the country from negative watch, while retaining a negative outlook.[1], [2]
LNG disruption drives the contraction forecast
Fitch expects Qatar's economy to contract 18.8 per cent in 2026; its assessment includes disruption in the Strait of Hormuz and lower LNG output. It cited lower risks to LNG facilities since March, removed the negative watch and forecast double-digit growth in 2028. In the banking system, deposits fell 3.2 per cent in July to 1,070.2 billion riyals but remained 2.5 per cent above the end of 2025. The loan-to-deposit ratio rose to 139 per cent from 133 per cent in June.[2], [1]
Buffers remain as the balance-sheet ratio rises
Fitch also listed Qatar's per-capita income, among the world's highest, and its large sovereign assets in the AA affirmation. The banking system's loan-to-deposit ratio rose to 139 per cent; QNB Financial Services said it remained within central-bank guidelines. The rating action recorded the country's sovereign buffers and the LNG-output disruption in the same assessment. In the July banking data, credit growth was concentrated outside the country, while domestic loans rose 3.2 per cent over the same seven-month period.[2], [1]
