According to Qatar Central Bank’s data, the Sukuk’s maturity periods varied as follows: QR1.5 billion (an addition to an existing issuance) with a maturity date of January 16, 2029, and a yield of 4.5%, and QR1.5 billion (an addition to an existing issuance) with a maturity date of August 24, 2030, and a yield of 4.5%.

In a post on X (formerly Twitter), the bank clarified that total bids for the Sukuk reached approximately QR8 billion. The central financial institution also unveiled support measures for banks in response to Iranian attacks that severely weakened the Gulf’s third-largest economy.

The central bank will now offer unlimited local currency repurchase facilities against eligible securities held by local banks in order to ensure deep liquidity in the local market. This new facility offers maturities of up to three months, enabling Qatari banks to manage cash flow with greater certainty amid the ongoing volatility.

The industry’s senior executives, while interacting with The Banker, also said that Qatar Central Bank would reduce the reserve requirement on deposits from 4.5% to 3.5%, releasing further liquidity into the system. The central bank has been quizzing lenders about their liquidity in past weeks.

Qatar’s economy has been among the worst affected by the ongoing Middle East conflict. An attack from Iran on the Gulf country’s Ras Laffan liquefied natural gas (LNG) production hub knocked out 17% of the nation’s energy export capacity, in addition to creating an estimated annual revenue loss worth USD 20 billion, which may span for the next three to five years.

However, Qatar Central Bank has been proactive in ensuring the banking and finance industry doesn’t feel the heat. It has already permitted banks to offer borrowers the option to defer loan principal and interest payments for a period of up to three months, in accordance with lenders’ existing internal policies and supervisory guidance.

Analysis from S&P Global Ratings projected Qatar and Bahrain as the most vulnerable in the Gulf region to external outflows of foreign and local funding. However, for Qatar, the government has a proven record of supporting both the Islamic banking and the wider finance sector.

“Liquidity continues to be strong, capital levels significantly exceed regulatory requirements, and provisioning provides strong coverage against credit risk. Banks continue to hold substantial liquidity in both domestic and foreign currency, and resources are sufficient to meet customer demand, support normal market activity, and meet any short-term funding pressures under stressed conditions,” QCB said while reacting to the S&P report.

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