The 2023 fiscal year proved successful for all the Qatari banks that made it to this year’s list – with each bank reporting either growth in net profits or assets.
Six Qatari banks have surged to Forbes Middle East’s 30 Most Valuable Banks list.
Combined, the six Qatari banking powerhouses are worth $73.6 billion.
In a recent report, the Fitch global rating group upgraded Qatar’s Long-Term Foreign-Currency Issuer Default Rating from “AA-” to “AA” highlighting that the Qatari banking sector assets reached 255% of gross domestic product in 2023.
As the banking sector plays such a pivotal role in the Qatari economy, the Qatar Central Bank put measures in place to increase the cost for banks to obtain short-term foreign financing.
This move decreased the gross foreign liabilities of banks to $181 billion by the end of 2023 from $197 billion at the end of 2021.
Forbes observed that the banking sector in the Middle East and North Africa region has shown remarkable resilience, driving a 14% increase in the aggregate market value of the 30 most valuable listed banks over the past 12 months, reaching $581.1 billion as of February.
#5 Qatar National Bank Group (Market value: $38 billion)
The Doha-based Qatar National Bank Group (QNB) made it to the top five in Forbes’ list.
Following the enactment of Decree No. 7 of 1964, the bank was established as the nation’s first Qatari-owned commercial bank. Ownership is equally divided between Qatar Investment Authority and private individuals.
With a presence in over 28 countries across Africa, Asia and Europe, QNB is the biggest bank in Qatar and the largest financial institution in the region.
On Monday, Qatar News Agency (QNA) reported that QNB witnessed a year-on-year increase in net profit. In the first quarter (Q1) of 2024, the bank’s net profit surged to QAR 4.14 billion (approximately $1.1 billion). This marks a 7% increase from Q1 in 2023 where the net profit was QAR 3.88 billion (approximately $1.06 billion).
The QNA report added that due to good growth in loans and advances, the bank’s total assets in March rose by 5% compared to last year. The bank also reported an increase in customer deposits.
#13 Qatar Islamic Bank (Market value: $13.1 billion)
Emiri Decree no. 45 incorporated Qatar Islamic Bank (QIB) in 1982, establishing it as the first Islamic financial institution in Qatar. The bank’s activities focus mainly on corporate, retail, and investment banking, adhering to Islamic shariah principles set by QIB’s shariah supervisory board.
Today, the bank has a network of 23 branches across Qatar, as well as a presence in London through QIB-UK and Lebanon through Arab Finance House. QIB also has a branch in Sudan.
At the end of the 2023 fiscal year, QIB reported a 7.5% surge in net profit attributable to shareholders. Profit increased to QAR 4.305 million (approximately $1.1 million) compared to QAR 4.005 million (approximately $1.09) for the year 2022. For Sheikh Jassim Bin Hamad Bin Jassim bin Jaber Al Thani, QIB Chairman, this growth was attributable to the bank’s unwavering commitment to high standards of customer service and automation.
“Notably, 99% of all transactions are now self-serve. Digital sales have contributed significantly to our total sales volume in 2023. This achievement reflects our commitment to delivering exceptional customer experiences through end-to-end digital solutions, powered by modern technologies such as Artificial Intelligence and data science,” he said.
#21 Masraf Al Rayan (Market value: $6.3 billion)
Masraf Al Rayan, established in 2006 as a Qatari shareholding company under the Qatar Commercial Company Law and licensed by the Qatar Central Bank, provides Shariah-compliant banking services. The bank divides its three main divisions into retail, wholesale, and private banking.
In 2021, the bank merged with Al Khalij Commercial Bank, signifying a milestone for Qatar according to Fahad Al Khalifa, who had been appointed as the bank’s Group Chief Executive Officer that year.
“The merger is a turning point in Qatar’s banking sector, enabling growth for corporates facilitating landmark deals, fostering SME development and lending, supporting our private clients to manage and grow their wealth, and helping our retail customers to reach their potential,” he said.
Currently, the bank has over 16 branches and 111 ATMs. Internationally, Masraf has subsidiaries in the United Arab Emirates, the UK and France.
In 2023, its total assets stood at QAR 164 million (approximately $45.1 billion).
#23 Dukhan Bank (Market value: $5.8 billion)
Number 23 on Forbes’ list initially emerged onto the Qatari banking scene in 2008 under the name Barwa Bank and began operating as a Shariah-compliant bank in 2009.
After a merger in 2018 between Barwa and the then International Bank of Qatar, the bank rebranded as Dukhan Bank (DB) in 2020. Three years later, DB was listed on the Qatar Stock Exchange.
The end of the 2023 fiscal year marked the bank’s reported highest profits to date. By last December, the bank’s net worth was evaluated at QAR 1.3 billion – an almost 4% surge.
Remarking on this milestone, Sheikh Mohammed Bin Hamad Al Thani, the Chairman of Dukhan Bank, emphasised that “moving forward, we are committed to leveraging our core strengths to seek out new opportunities, cultivate innovation, and provide exceptional value to our shareholders. Simultaneously, we aim to expand our existing market share with a focus on sustainable growth.”
#24 Commercial Bank (Market value: $5.76 billion)
Qatar gained independence from the British in 1971, and four years later, the Commercial Bank (CB) was established. It is the country’s first private bank, spearheaded by Hussain Alfardan.
In 2023, CB recorded a net profit of QAR 3.02 billion (approximately $827 million). This is a far cry from its humble beginnings in the 70s.
Abed Aziz, the first staff member to be hired by the Bank, said that in the early days, “he (Hussain Alfardan) only had one shop. From 1 January 1975 for four months we stayed in his offices.” At the time, aside from Aziz, the CB had only one other employee.
However, in its very first year, the bank generated profits.
By pioneering the introduction of small personal loans and vehicle loans to customers in 1988, along with issuing credit and debit cards in 1991, CB laid a solid foundation for sustained success into the 21st century with the dawn of advances in technology during the 1990s.
#27 Qatar International Islamic Bank (Market value: $4.6 billion)
An Amiri Decree established Qatar International Islamic Bank (QIIB) in 1990, and it started operations the following year. The bank’s operations started with just one branch in Msheireb, Doha.
Today, as the nation’s second-largest Islamic banking network, the privately owned Shariah-compliant bank has 17 branches, a digital branch and over 84 ATMs across Qatar.
The bank’s main divisions are corporate and retail banking, as well as treasury and investment.
Remaining true to Qatari heritage and values, QIIB’s assets grew by 9.3% in 2023 and reached $16.9 billion, while its net profit recorded $320 million.
In April this year, the bank also garnered the PCI-DSS – 4.0 certification from SISA International, which is the highest certification in payment security and protection of bank card data. For Jamal Abdullah Al Jamal, QIIB’s Deputy CEO, this milestone signified that the bank was “at the forefront of banks and institutions in the State of Qatar… which is an additional indicator that we are on track in the fields of data protection and digital transformation.”