Addressing the Challenges of Qatar's Banking System
1.0 Subject Area
Strategic Management 2.0 Project Proposal
The paper will be an investigation of the major challenges that face Qatar’s banking sector. These problems will be analyzed and their possible solutions identified using strategic management theoretical framework. 3.1 Background of Qatar’s Banking Sector
Qatar’s banking sector has had great growth compared to that or the general Middle East region. Its stability guarded it form the global financial crisis that recently occurred. This is because of the close financial tiers that Qatar has with the Gulf region. However, the aftershocks of this phenomenon affected it to some extent (Kamrava, 2009, p. 411). Generally, Qatar’s banking sector was the most impressive Gulf Cooperation Council markets since the last quarter of the year 2008. Issues of declining customer confidence, liquidity and a coerced reluctance to lend have been the major challenges facing this sector (Qatar Development Bank, 2008, p. 12). Lending restrictions by the Qatar Central Bank, such as a loan-to-deposit ratio of 90 percent, contributes to deepening of these challenges. Islamic banking has been continuing to grow in this region in expense of the conventional banks which now view sharia-compliance as vital move to maintain their profitability. The government and Qatar Investment Authority have been trying to mitigate these problems to improve the overall performance (Qatar National Bank, 2009, p. 67). 3.2 Aims of the study
To identify and analyze the major challenges facing the banking sector of Qatar
To determine the possible solutions to this problems using strategic management
3.0 Motivation for this subject area choice
This topic is important for my future career prospects since I intend to invest in Qatar emerging market. I highly believe that the Qatar’s economy has unexploited potential in its banking sector. If exploited, this sector is capable of sending positive external benefits to the general
Strategic Management 2.0 Project Proposal
The paper will be an investigation of the major challenges that face Qatar’s banking sector. These problems will be analyzed and their possible solutions identified using strategic management theoretical framework. 3.1 Background of Qatar’s Banking Sector
Qatar’s banking sector has had great growth compared to that or the general Middle East region. Its stability guarded it form the global financial crisis that recently occurred. This is because of the close financial tiers that Qatar has with the Gulf region. However, the aftershocks of this phenomenon affected it to some extent (Kamrava, 2009, p. 411). Generally, Qatar’s banking sector was the most impressive Gulf Cooperation Council markets since the last quarter of the year 2008. Issues of declining customer confidence, liquidity and a coerced reluctance to lend have been the major challenges facing this sector (Qatar Development Bank, 2008, p. 12). Lending restrictions by the Qatar Central Bank, such as a loan-to-deposit ratio of 90 percent, contributes to deepening of these challenges. Islamic banking has been continuing to grow in this region in expense of the conventional banks which now view sharia-compliance as vital move to maintain their profitability. The government and Qatar Investment Authority have been trying to mitigate these problems to improve the overall performance (Qatar National Bank, 2009, p. 67). 3.2 Aims of the study
To identify and analyze the major challenges facing the banking sector of Qatar
To determine the possible solutions to this problems using strategic management
3.0 Motivation for this subject area choice
This topic is important for my future career prospects since I intend to invest in Qatar emerging market. I highly believe that the Qatar’s economy has unexploited potential in its banking sector. If exploited, this sector is capable of sending positive external benefits to the general