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Financial Report |
QATAR DEVELOPMENT BANK grew in importance and stature,
together with petrochemical industries,
in diversifying the sources of national income.
The high petroleum prices during 2004 and 2005 coupled with revenues generated
from massive capital investments in LNG projects led to a rapid growth in
Gross National Income and improvement in the balance of payments position.
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Although petroleum still remains the main source of contribution towards the Gross National Income, the non-petroleum sector has also made commendable progressive contribution towards it. The investment of both the public and private sector in non-petroleum activities has increased. The investments have been channelised into diverse industries other than the traditional non-petroleum sectors, viz. infrastructure development projects, transport, communication, energy distribution, high way construction, tourism promotion, hotel development and electronics.
The construction sector is witnessing a boom as the Government expedites the process of development of facilities and utilities in preparation for upcoming events in the near future and the Doha Asian Games in 2006. The construction sector is therefore expected to contribute strongly towards the Gross National Income during the forthcoming years.
The small and medium industrial sectors continued to register robust growth during 2005. the number of industrial establishments totaled 372, in which private sector investment was to the tune of Qatari Riyal 3.9 billion. Government investment in the petrochemical sector, and oil and gas industries, grew rapidly with the successful implementation of mega size projects in Ras Laffan and Mesaeed industrial cities. Qatar Petroleum derived the lions share of its revenues from the petrochemical industries.
The result achieved by QATAR DEVELOPMENT BANK during 2005 underline the important steps taken by the Bank towards the development of petrochemical industries and diversification of the sources of national income for the State of Qatar. This was achieved by financing the small and medium industries with the objective of increasing the countrys industrial growth and expanding the productive bases of its economy.
QATAR DEVELOPMENT BANK is committed to certain objectives, which is considered by the bank as essential for the economic development of the country bearing in mind the competitive threat prevalent in international trade of manufactured products. These objectives are:
Increased funding to small and medium industries
Increased support to industrial establishments importing raw materials for their projects
Providing guarantees for industrial exports
Promoting industrial projects that serve different sectors of the business community
Assisting private sector investors in investment decisions through project evaluations
Strengthening relations with regional and foreign financial, and development institutions
Application of new and innovative measures to enhance customers service
The Bank continued its efforts to appraise projects presented to it by the private sector and finance these in accordance with the banks approved funding norms and criteria. During 2005, ten industrial projects, with a combined project cost of QR 93 mn, were financed to the tune of QR 32.37 mn by the Bank. In addition, the Bank also disbursed QR 5 mn to eleven industrial establishments to finance their raw material import requirements for their industrial projects.
In accordance with the directives received from local industrial development authorities, the bank prepared several industrial investment opportunity profiles for the benefit of potential private sector investors. The investment profiles are prepared in close cooperation with the technology holders from industrialized nations and aim to assist private sector investors in arriving at investment decisions related to promising and profitable projects. The projects listed as per the investment profiles are short-listed based on certain criteria, the most important of which is the competitive advantage and incentives offered by the State of Qatar. The Bank conducts regular market surveys to identify project requirements during pre-feasibility stage as a measure to integrate the local industries with gaps in the production supply chain. The foreign investors are encouraged to establish local joint venture projects with Qatari partners given the abundance availability of energy and petrochemical feedstock in the country. Through its projects evaluation and promotion efforts, the Bank strives to ensure the continuous flow of viable industrial projects for private sector investment consideration. This also helps the local investors save time, money and resources which otherwise would be expended through individual efforts.
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