Qatar’s reserves support the economy and attract capital


Economic and financial experts stressed that the increase in international reserves supports the Qatari economy as a wall against any challenges or difficulties facing Qatar due to the global and regional economic conditions.
They stressed that the continuous rise of these reserves confirms the success of the financial and economic policy pursued by the state, represented by the Qatar Central Bank, which manages the international reserves portfolio.
Yesterday, the Qatar Central announced that the international reserves and liquidity in foreign currencies of the Qatar Central Bank continued to grow, reaching 239.7 billion riyals. An increase of 13.55%. The official reserves of the Qatar Central Bank grew to reach 181.4 billion riyals.
The Qatar Central Bank revealed that its official reserves increased at the end of last May, compared to what they were at the end of the same month of 2022, by about 27.601 billion riyals, to reach 181.373 billion riyals, driven by the rise in the “Central” balances of bonds and foreign treasury bills by about 20.818 billion riyals. to the level of 136.132 billion riyals in May 2023.
The official reserves consist of major components, which are foreign bonds and bills, cash balances with foreign banks, gold holdings, special drawing rights deposits, and Qatar’s share in the International Monetary Fund.
In addition to the official reserves, other liquid assets (which are deposits in foreign currency), so that the two together constitute what is known as “total international reserves.” Gold stocks increased by the end of last May by about 8.733 billion riyals to 21.051 billion riyals.
On the other hand, the balance of special drawing rights deposits from the State of Qatar’s share in the International Monetary Fund decreased at the end of last May by 71 million riyals, compared to May 2022, to reach the level of 5.252 billion riyals, and balances with foreign banks decreased by about 1.879 billion riyals, to 1.879 billion riyals. The level of 18.936 billion riyals by the end of May this year, compared to May of last year.
And financial expert Abdullah Al-Khater confirms that the reserves support the confidence of international institutions in the economy, and contribute to attracting investments and capital to the local market, which leads to more recovery in the market and the creation of new job opportunities, and an increase in the domestic product, including the contribution of the private sector.
He added that the economic indicators confirm the country’s success in adapting to the current economic conditions, as evidenced by the increase in international reserves, which are an important indicator of the strength of the economy, and the ability to provide resources without the use or use of this reserve, or the use of foreign investments or assets owned by the Qatar Investment Authority.
He pointed to the continuation of the state’s policy of increasing and strengthening international reserves, and focusing on investments secured by international guarantees such as government bonds or sukuk and securities guaranteed by governments.
He explains that the state’s directions and policy related to foreign investments and reserves were good throughout the year, and the importance of having strong investments abroad that were chosen by the Qatar Investment Authority very carefully, and deep feasibility studies, which had the greatest impact on these investments achieving good returns and appropriate to the economic situation. Qatar Central Bank efficiently, so it was a flexible policy commensurate with the economic conditions in the world, so that it rises and falls according to these variables.


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