Qatar Economic Outlook Issue Number 13

Figure 2-27: Private sector account with then 
banking sector
 
441
681
510
834
0
100
200
300
400
500
600
700
800
900
-15
-10
-5
0
5
10
15
20
25
30
35
2016 2017 2018 2019 Q
1
Q
2
Q
3
Q
4
Q
1
Q
2
Q
3
Q
4 
(N
ov
)
2020
2021
QR
b
illi
on
Poin
ts
& 
%
Non-resident deposits
Resident deposits
Foreign Credit
Domestic Credit
Total deposits (R-axis - QR bln)
Total credits (R-axis, QR bln)
Source: QCB and prepared by PSA

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Part 2 - Economic Performance 2017 - 2020 
 
 
81 
the banking sector during the year’s first 
three quarters, while public enterprises, as in 
2018 and 2019, again increased their 
borrowing during the same period, as Figure 
(2-28) indicates. On the other hand, the 
government continued to use its deposits 
with the banking system during Q1 of 2020, 
but it rapidly increased its deposits during Q2 
of 2020 with a view to supporting the banking 
sector to contend with the economic 
repercussions of Covid-19. However, public 
enterprises concomitantly withdrew part of 
their deposits with the banking sector. The 
final outcome for 2020 was a decline in the 
total public sector deposits at a rate higher 
than the decline in public sector credit, which 
led to a further gap between the two, 
widening from QR 44 billion in December 
2019 to an average of QR 61 billion in 2020, 
i.e., a growth rate of 37%. 
As for the period (January – November 
2021), the gap increased to an average of 
QR 114 billion, with a maximum of QR 135 
billion in April 2021, and a minimum of QR 95 
billion in September 2021, with a gap 
widening of 87% compared to the average of 
the same period of 2020, given that the 
government and public enterprises resumed 
borrowing from the banking system with an 
average of 18.4%, while the growth of 
deposits remained only modest at around 
2%.