Mubasher: Qatar’s sovereign wealth fund has brought around $20 billion home in an effort to underpin banks operating in the GCC nation after the quartet — Saudi Arabia, the UAE, Bahrain, and Egypt — boycotted Qatar since June 2017.
The recent prospectus of the Qatar Investment Authority (QIA) showed that it had placed the funds with local lenders after the country’s political dispute.
“The cash injection came as almost $30 billion of non-resident deposits left Qatari banks,” the prospectus demonstrated.
It is worth noting that Qatar, the world's richest country per capita, depends mainly on foreign cash and foreign deposits, especially from the GCC countries, according to Bloomberg News.
“The country’s central bank has also relaxed a cap on bank loans exceeding deposits that was introduced in 2014 and plans to change the definition of deposits to include long-term debt instruments,” according to the QIA’s prospectus.
