Bank loans in Qatar are expected to grow at a compound growth rate of 10 per cent a year between 2014 and 2017, according to Qatar National Bank (QNB) CEO Ali Ahmed al-Kuwain.

Addressing MEED’s Qatar Projects conference in Doha today, he said total loans in 2014 were $180bn, and this will rise to $239bn by 2017. In 2015, $196bn of loans will be granted, and $215bn next year.

QNB was the largest lender last year, issuing $92.9bn of loans. Its closest competitor, Qatar Commercial Bank granted $31.8bn.

QNB forecasts that total assets held by the country’s banks will rise at a compound growth rate of 11 per cent, from $278bn in 2014 to $336bn in 2017. Deposits will rise at a compound rate of 11.5 per cent from $165bn to $231bn over the same period.

Al-Kuwain told delegates that QNB expects oil prices to stabilise at $69 a barrel and remain there “for some time”, but that Qatar’s economy will be driven by non-hydrocarbons industries. In November last year, for the first time, non-hydrocarbons contributed more to GDP than the oil and gas sector.

The contribution from the non-hydrocarbon sector grew from 39 per cent in 2000 to 47 per cent by 2010, and he expects it to reach 68.5 per cent in 2017, due to the country’s diversification efforts.

QNB’s estimates put GDP growth at 6.5 per cent last year. This year, it predicts growth of 15 per cent. Next year, this will rise to 7.5 per cent, and again in 2017 to 7.9 per cent as the country prepares to host the 2022 Fifa football World Cup.