Qatari Banks Recognized Among World’s Safest

The annual Safest Bank rankings by Global Finance have highlighted the fiscal stability and strength of Qatar’s banking sector, with five banks securing seven spots across various Safest Bank lists.

Qatar has firmly established itself as a secure and prosperous country within the Middle East, boasting a sophisticated banking system that offers both Islamic and conventional banking services. With eight banks featured in the top 1,000 safest banks globally, the country’s economy is well-supported, primarily driven by its oil and gas industry. The Qatar Investment Authority (QIA) has played a significant role in this, acquiring equity ownership in all domestic banks listed on the Qatar Exchange and holding ownership shares in the top eight banks among the world’s largest 1,000.

In addition to its oil and gas revenues, Qatar’s sovereign wealth fund, the QIA, currently holds over $500 billion USD in assets, as reported by the Sovereign Wealth Fund Institute. The country has also achieved strong investment grade sovereign ratings, with S&P awarding an AA rating, Fitch an AA- rating, and Moody’s upgrading Qatar’s rating to Aa2 in January. As a result, Qatari banks are likely to witness improved scores in next year’s Safest Banks list, considering the direct correlation between bank ratings and their country’s sovereign rating.

Global Finance’s rankings are determined by a proprietary algorithm that evaluates each bank based on ratings from leading global agencies such as Fitch, Moody’s, and S&P, resulting in the identification of the top 100 safest banks worldwide. The scores for the eight Qatari banks ranged from 9.5 to 18, with the bank ratings being valid as of August 2023.

Among the top Qatar banks recognized in the Safest Bank rankings is Qatar National Bank (QNB), ranking 43rd among the Safest Commercial Banks worldwide and 14th among Safest Emerging Market Banks. With over $325 billion in assets, QNB not only secures its position as one of the safest banks in the Middle East but also contributes significantly to transforming Qatar’s economy into a global powerhouse.

Meanwhile, Qatar Islamic Bank, the largest Islamic bank in Qatar with about QAR 189.2 billion in assets, has also emerged as a leader in the Islamic banking sector, securing its spot among the top 50 Safest Emerging Market Banks.

Dukhan Bank, one of Qatar’s largest Sharia-compliant banks, has positioned itself as the third-largest bank in the country, with QAR 75.4 billion in assets and recognition as one of the 100 Safest Emerging Market Banks and among the top 10 Safest Islamic Banks in the Middle East.

Further contributing to Qatar’s banking prestige, Qatar International Islamic Bank offers tailored products for corporations and high-net worth clients. The bank, privately-owned with QIA holding a 16% stake, also shares the rankings among the 100 Safest Emerging Market Banks and the top 10 Safest Islamic Banks in the Middle East.

Rounding up the list is Masraf Al Rayan, the second-largest Islamic bank in Qatar and about 33% government-owned, making its mark as the 95th safest commercial bank. The bank, rated only by Moody’s, provides Sharia-compliant products and services to retail, corporate, and private banking sectors.

In conclusion, Qatar’s banking sector has solidified its position on the global stage, underscoring the country’s commitment to financial stability and economic diversification. With several banks securing positions in Global Finance’s Safest Bank rankings, Qatar continues to bolster its reputation as a secure and reliable financial hub.