Qatar ‘Energy Bank’ is credit ‘positive’ for GCC, says Moody’s

The Moody’s logo

The Moody’s logo is displayed outside of the company’s headquarters in New York. “We expect Qatar to increase its liquefied natural gas (LNG) production by around 30% in the next five to seven years,” Moody’s says.

Qatar’s proposed Shariah-principled Energy Bank is credit “positive” for Islamic finance in the Gulf Co-operation Council (GCC), according to Moody’s, a global credit rating agency. “The establishment of Energy Bank as an Islamic lender (rather than a conventional bank) is one of several GCC sovereign initiatives over these years to grow the Islamic finance sector regionally and globally,” the rating agency said, expecting the lender to support the GCC’s energy sectors regionally and internationally. Qatar is all set to launch Energy Bank with a targeted capital of $10bn to fund hydrocarbon-centric projects across the world, a move that will make Doha a leading player across verticals in the global oil and gas industry.


The Qatar Financial Center (QFC)-based bank, which already has got commitments to the tune of $2bn from international investors (of the $2.5bn paid up), will progressively scale up its capital base to become the world’s largest Islamic lending institution. It is expected to be operational by the fourth quarter of this year. The bank’s establishment follows the end of Qatar’s self-imposed moratorium on the development of new natural gas projects. “We expect Qatar to increase its liquefied natural gas (LNG) production by around 30% in the next five to seven years,” it said, adding likewise, Kuwait is also committed to expand their oil production capacity through major upstream investment over the next two years. Kuwait Petroleum Corporation committed to increasing production capacity by up to 4.75mbpd by 2040 from around 3.2mbpd at end-2018.

Sources and photo-credits: Gulf Times