Qatar banking sector maintains resilience as total assets reach QR2.19 trillion in July

In July 2026, Qatar’s banking sector showcased impressive resilience, with total assets remaining stable at QR2.194 trillion, up 2 percent compared to the end of 2025. The sector maintained solid liquidity and experienced growth in its loan book, with overall lending increasing by 0.6 percent month-on-month and reaching QR1.482 trillion.

This 3.2 percent increase from the end of 2025 reflects steady credit expansion even as deposits moderated by 3.2 percent month-on-month, standing at QR1.070 trillion. Despite the decline in deposits, the banking sector’s deposit base remained 2.5 percent higher than in 2025.

The sector’s loan book recorded a monthly increase in July, with overall lending rising due to stronger lending to the public sector, which grew by 1.3 percent month-on-month. Notably, government loans increased by 0.7 percent month-on-month and showed significant growth, up 15.8 percent compared to the end of 2025. Loans to government institutions rose by 1.6 percent month-on-month, while semi-government institutions posted an even stronger performance, increasing by 2.1 percent month-on-month.

Private-sector lending remained broadly stable, increasing by around 1 percent compared to the end of 2025. Retail loans decreased by 1 percent month-on-month but remained 2.3 percent above December 2025 levels. Real estate lending, an essential component of private-sector credit, grew by 0.7 percent month-on-month, although it remained 2.6 percent below December 2025 levels.

Lending outside Qatar surged by 1.7 percent month-on-month, up 58.6 percent since the end of 2025, reflecting the continued expansion of Qatari banks’ international lending activities.

Although deposits contracted in July, the overall deposit base of the banking sector remained above its level at year-end 2025, with total deposits declining by 3.2 percent month-on-month to QR1.070 trillion, yet still 2.5 percent higher than at the end of 2025. Public-sector deposits fell by 8.7 percent month-on-month, but were marginally higher than their 2025 level.

Within the public sector, government deposits declined by 2.1 percent month-on-month, falling 11.2 percent compared to year-end 2025. Semi-government institutions experienced a more modest 0.9 percent month-on-month decline, remaining 17.2 percent above year-end 2025 levels.

Non-resident deposits showed a positive trend, increasing by 2.6 percent month-on-month and being 4.3 percent higher than at year-end 2025, accounting for around 19.1 percent of total deposits, stable compared to the previous year-end. Private-sector deposits declined by 1 percent month-on-month but remained 3.1 percent above the end of 2025 level, indicating continued resilience.

The conventional loan-to-deposit ratio (LDR) increased to 139 percent in July, up from 133 percent in June and 137 percent in December 2025, despite loan quality remaining favorable. Loan provisions to gross loans remained stable at 3.8 percent in July, improving from 4 percent at year-end 2025 and compared to December. This improvement suggests a strengthening provisioning position and underscores the sector’s credit quality and resilience.