Banking Sector Continues To Integrate Advanced Technology

(MENAFN- The Peninsula) Deepak John | The Peninsula

Doha, Qatar: The banking sector of Qatar continues to integrate advanced technology, deliver strong financial results, and align closely with national priorities, all of which point to a bright future.

Qatari banks have distinguished themselves through product innovation, advancing supply chain logistics, trade finance solutions, and transactional banking.

Their strategic investments in digital assets, voice-enabled services, augmented reality, and blockchain technology are setting new benchmarks in the financial sector's digital evolution, noted PwC Middle East 2024 Qatar Banking Sector report.

Qatar's banking sector is at the forefront of transformative journey. Under the guidance of the Qatar Central Bank's Third Financial Sector Strategic Plan of 2023, the country's financial institutions are not only adapting to an evolving landscape but are also taking the lead in shaping it.

By seizing opportunities and responding to increasing competition from sectors like telecommunications, retail, and fintech, the banking sector is positioning itself as a key player in both local and global markets.

The report further noted, in light of the Basel Committee's guidelines on managing and supervising climate-related financial risks and the International Sustainability Standards Board's (ISSB') Climate related Disclosure Requirements (IDRS S1 and S2), there is a global emphasis on banks to integrate climate risk management across their operations.

These guidelines serve as a roadmap for banks to effectively manage and supervise climate-relate financial risks.

Currently, Qatar's financial sector is in the early stages of aligning with these standards. Qatari banks are currently adopting a proactive approach towards understanding and mitigating climate-related risks and enhancing their climate risk disclosures.

This involves not only assessing and managing risks associated with climate change effectively but also embedding these considerations into their governance structures, risk management frameworks, and strategic planning.

Qatari banks have the opportunity to strengthen their operations by embedding climate risk considerations within all aspects of credit and investment management.

This move is essential to ensure that the financial sector's resilience is robust against the evolving landscape of climate risks, marking a significant stride towards sustainable banking practices.

The banks are aligning their operations with ESG principles, demonstrated by significant actions like the issuance of green bonds and the sustainable sukuk, reflecting a strong commitment to sustainable finance and efforts to minimise carbon footprints, which align with Qatar's transformative National Vision 2030.

The financial services sector is one of the major contributors to the country's economy, ranked second after the hydro-carbon industry.

This reflects the prominence of the sector in shaping Qatar's economy as one of the world's most stable, resilient, and competitive economies. With the continuous economic growth, the demand for financial service grows accordingly, supporting the country's position as a financial hub in the region.

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