Fitch expects the merger of Qatari banks.
Fitch expects that mergers will occur among Qatari banks due to the pressure on profitability that the banks are facing resulting from the Corona epidemic, especially those that have limited ability to price their products.
According to Arabiyanet, the agency stated in a report that common government ownership in the bank is one of the factors that help in this merger, in order to create banks with strong capital to help them compete and to support the country's development vision 2030.
Al Khaleej Commercial Bank and Masraf Al Rayan recently agreed to merge, creating the largest Islamic banks in Qatar. This will be the second merger in Qatar between an Islamic bank and a conventional bank, after the merger of Barwa Bank and International Bank of Qatar in April 2019.
Yesterday, two sources said that Qatar plans to meet with investors in fixed income instruments, starting in mid-February, ahead of a possible sale of international bonds.
The two sources added that Qatar will hold meetings not linked to a specific deal with investors in Europe from February 15 to 17, in the United States from February 22 to February 24, and in Asia from February 25 to February 1. March, adding that Standard Chartered takes over logistical arrangements.
The Qatar Ministry of Finance has not yet responded to a Reuters request for comment. Standard Chartered declined to comment.
Sources said earlier that Qatar will not only issue bonds this year to pay outstanding papers, but it may decide to increase its current issues due to an expected high demand.
