Qatar Banks Borrow to Finance World Cup Building Boom

Qatari banks plan to borrow more than $6 billion to finance a construction boom ahead of the 2022 soccer World Cup as slumping oil prices constrain government deposits. Shareholders in Al Khaliji Commercial Bank approved a $2.5 billion bond program, and Qatar National Bank said it arranged a $3 billion loan. Qatar International Islamic Bank may issue sukuk. Government deposits at Qatar’s banks more than tripled in the five years ended February 2014 before declining 4 per cent the following year. Qatar is spending $182 billion, or 90 per cent of its 2013 gross domestic product, on roads, stadiums and other facilities by 2019 to play host to the World Cup.