Global finance The Safest Banks Index, published annually in November, assesses the financial health and stability of the world’s 1,000 largest banks. Where do Qatar’s banks stand? Overall it’s doing very well, with five banks occupying seven spots on our various lists of the safest banks.
Qatar is one of the safest, most stable and prosperous countries in the Middle East. The country has a sophisticated banking system that provides both Islamic and conventional banking services, and eight banks are ranked among the 1,000 safest banks. The banking system supports the country’s economy, and oil and gas serve as the backbone of Qatar. QIA has begun acquiring shares in all domestic banks listed on the Qatar Exchange and has ownership interests in eight banks ranked among the world’s 1,000 largest. The country is working to diversify its economy and has created new opportunities, such as in technology, manufacturing and agriculture.
Oil revenue fuels Qatar’s sovereign wealth fund, the Qatar Investment Authority (QIA), which now has assets of more than $500 billion, according to the Sovereign Wealth Fund Institute. Revenues from the oil and gas industry, as well as investment income from the QIA, have created a budget surplus for the Qatari government. As a result, rating agencies assigned Qatar strong investment grade sovereign ratings: AA from S&P and AA- from Fitch. In January, Moody’s upgraded the country’s rating to Aa2 for the first time since 2007. Bank ratings fluctuate along with a country’s sovereign rating, and next year’s safest banks list is likely to see improved scores for Qatari banks.
Our proprietary algorithm evaluates each bank based on its ratings from the world’s leading agencies – Fitch, Moody’s, S&P – to determine the 100 safest in the world. Additional rankings include Safest Commercial Banks, Safest Emerging Market Banks, Safest Islamic Banks and others. Bank rating data is valid as of August 2023. Global Finance ratings of the eight Qatari banks ranged from 9.5 to 18. The ratings were effective as of August 2023.
Qatar National Bank
Qatar National Bank (QNB) is one of the safest banks in the Middle East, ranking 43rd.district among the safest commercial banks in the world and 14th among the safest banks in emerging markets. QNB is also one of the largest banks in the region, with assets of over $325 billion, and is ranked second on our list of the safest banks in the Middle East. The bank’s ownership structure is split 50% between each QIA and the private sector. Although QNB’s operations extend beyond Qatar’s borders, QNB has helped transform Qatar from a traditional commodity-based economy into a global powerhouse.
Qatar Islamic Bank
In the Islamic banking sector, Qatar Islamic Bank is the safest Islamic bank in the region and the largest Islamic bank in Qatar with assets of approximately QR189.2 billion. It is also among the 50 safest banks in emerging markets, ranking 43rd.
Dukhan Bank
Dukhan Bank is one of the largest Shariah compliant banks in Qatar and the third largest bank in the country. The bank’s assets amount to QR75.4 billion and the state owns about 43% of its shares. It is ranked among the 100 safest banks in emerging markets and among the 10 safest Islamic banks in the Middle East.
Qatar International Islamic Bank
Qatar International Islamic Bank offers products tailored to corporates and high net worth clients. The Shariah-compliant bank is privately owned, with QIA owning a 16% stake and having a presence in Morocco. It is also ranked among the 100 safest banks in emerging markets and among the top 10 safest Islamic banks in the Middle East.
Masraf Al Rayan
Of the 1,000 largest banks in the world, Masraf Al Rayan is the second largest Islamic bank in Qatar, about 33% of which is owned by the state. The bank entered the list of the 100 safest commercial banks, taking 95th place. The bank offers Shariah-compliant products and services to the retail, corporate and private banking sectors. The bank is rated only by Moody’s.