Qatar’s Banking Sector Remains Resilient With Stable Growth in Feb

Qatar’s banking sector continued to demonstrate resilience and stability in February 2026, with key indicators reflecting a healthy and well-balanced financial system despite minor monthly adjustments.

Total banking sector assets stood at QR2.173 trillion in February, marking a marginal decline of 0.5 percent month-on-month. However, the sector maintained a positive trajectory overall, recording a 1 percent increase compared to year-end 2025, underscoring sustained growth momentum.

The loan book remained steady on a monthly basis, while registering a 1.8 percent increase since the start of the year. Deposits witnessed a slight moderation of 0.5 percent month-on-month, but continued to show growth of 1.6 percent compared to year-end 2025. Consequently, the loan-to-deposit ratio (LDR) edged up to 138 percent in February from 137 percent in January, reflecting continued lending support to theeconomy.

A closer look at deposit trends reveals a constructive shift in composition. While public sector deposits declined modestly by 1.3 percent month-on-month, this was balanced by encouraging growth in private sector deposits, which rose by 1 percent during the month and 3.8 percent year-to-date. Growth was supported by both companies and institutions, as well as the consumer segment, highlighting strengthening domestic economic activity and confidence.

Within the public sector, performance was mixed. Government deposits saw a temporary contraction, while semi-government institutions recorded a healthy increase, signaling ongoing activity and diversification within the segment.

Non-resident deposits experienced a mild decline of 2.3 percent month-on-month; however, their share in total deposits increased to 19.8 percent, up from 18.8 percent at the end of 2025, indicating Qatar’s continued attractiveness to international investors.

On the lending side, the overall loan book stability was supported by robust expansion in international lending, which surged by 11.7 percent month-on-month and 26.1 percent since year-end 2025. This strong growth highlights the sector’s expanding global footprint and ability to capture opportunities beyond domestic markets.

Although public sector loans declined by 2.7 percent during the month, the government segment posted solid growth, reflecting ongoing fiscal activity. Meanwhile, private sector lending remained broadly stable, with the services segment playing a key role in offsetting declines in other areas.

Importantly, the sector’s asset quality and liquidity indicators remained strong. Loan provisions to gross loans held steady at 4 percent, while Stage 3 loans remained stable, reflecting prudent risk management. Liquidity levels also remained robust, with liquid assets accounting for 30 percent of total assets, in line with the previous month.

Overall, Qatar’s banking sector continues to exhibit sound fundamentals, supported by stable asset quality, strong liquidity buffers, and steady growth in key segments. The performance in February 2026 reaffirms the sector’s resilience and its capacity to support the country’s economic expansion in a dynamic global environment.

Looking ahead, the outlook for Qatar’s banking sector remains positive, supported by strong economic fundamentals, ongoing infrastructure development, and prudent regulatory oversight. With continued diversification of funding sources, steady private sector participation, and expanding international lending activities, the sector is well-positioned to navigate global uncertainties while sustaining growth.

The stable performance across key indicators further reinforces confidence in the banking system’s ability to underpin Qatar’s long-term economic objectives.