Qatari banks will struggle this year amid tight liquidity and over-exposure to real estate, a new report on Monday said.

Despite government support, the outlook for the banking sector in the world’s richest country is gloomy due to past 'excessive lending' and 'poor risk management', property consultant Landmark Advisory, the research arm of Dubai-based broker Landmark Properties, said in its latest Qatar real estate report.

Last month the government offered to buy around $4.1bn of real estate investments from Qatar’s banks as it moves to limit the fallout of the financial sector from the global crisis.

arabianbusiness.com