According to QNB Capital’s press release received here on Saturday the growth rate remains broadly in line with the average rate of 15 percent in 2009-10.

Credit growth provides an indication of activity in the economy. The private sector is regarded as key to meeting the employment targets and economic diversification goals envisaged in Qatar's National Vision 2030 and the National Development Strategy 2011-16.

The recovery in private sector credit has been stronger in Qatar than in all the other GCC countries. For example, in the year to October 2011, private sector credit expanded by 9.8 percent in Saudi Arabia and by 2.4 percent in Kuwait. While in the year to September 2011, it grew by 9.2 percent in Bahrain and by 8.9 percent in Oman. Credit growth in the UAE was just 1.3 percent in the year to June.

The real estate is the most important component of credit to the private sector. Its share has risen to 22 percent of total domestic credit from 14 percent in October 2010. The next largest sector is consumption, or retail lending, which grew at 12.7 percent in the year to October 2011, but its share of total credit fell from 19 percent to 17 percent over this period. The services and industry sectors have also expanded at rates of 6.2 percent and 2.8 percent respectively in the year to October.

The largest component of total domestic credit is the public sector. Annual growth in Qatar's public sector credit has been strong, averaging 45 percent in 2006-10 and it was 16 percent in the first ten months of 2011 compared with the same period of 2010. It has accelerated from a low in the middle of 2011 to reach 33 percent in the year to October. The public sector now accounts for 39 percent of total domestic credit compared with 36 percent in October 2010.