- Qatar’s Islamic finance sector experienced a significant surge in assets, reaching QR656 billion ($180 billion) in 2023.
- Islamic banks dominated the sector, representing 87.6% of total assets, with notable growth in personal finance revenues.
- The Takaful insurance sector saw mixed fortunes, with a decrease in assets but a surge in insurance subscriptions.
- Islamic finance and investment companies displayed resilience with marginal asset growth and impressive revenue increases.
- Islamic investment funds saw a slight asset increase, while Issued Islamic Sukuk experienced a significant uptick.
- Qatar Stock Exchange (QSE) witnessed a notable increase in the Al Rayan Islamic index, reflecting the sector’s overall resilience and growth.
Qatar witnessed a notable growth in its Islamic finance sector in the year 2023, with assets surging by 3.3%, reaching an impressive QR656 billion ($180 billion).
- This surge was highlighted in the seventh annual report on Islamic Finance in Qatar by Bait Al-Mashura.
- The report meticulously reviewed the performance of various Islamic finance institutions in the country, shedding light on Islamic banks, Takaful insurance companies, and Islamic finance and investment firms.
The vice chairman of Bait Al-Mashura, Prof. Dr. Khalid bin Ibrahim Al Sulaiti, emphasized the comprehensive nature of the report, which delved into the performance of Islamic finance institutions, analyzed Islamic financial products such as investment funds and sukuk, and provided insights into the movement of the Islamic financial market. Additionally, the report offered a general analysis of the Qatari economy, providing a holistic view of the financial landscape.
Dr. Al Sulaiti expressed optimism about the future of Islamic finance in Qatar, noting its continuous expansion and accelerated development.
He stressed the importance of closely monitoring these developments to understand the past, present, and future of Islamic finance accurately.
He suggested that such insights are crucial for steering the sector towards its objectives of development and social sustainability.
Islamic Banking Sector
Islamic banks emerged as significant players in Qatar’s financial landscape, representing 87.6% of the total Islamic finance assets.
In 2023, the assets of Islamic banks grew by 3.6%, reaching QR563.7 billion. While deposits experienced a slight decline of 1.4%, private sector deposits remained robust, accounting for 59% of the total.
Financing activities, particularly in real estate and governmental sectors, recorded marginal growth, reaching QR382.7 billion.
Notably, personal finance witnessed a substantial increase in revenues, soaring by 30.6% to QR30.3 billion, with profits reaching approximately QR8.2 billion, marking a growth rate of 7.1%.
Takaful Insurance Sector
The Takaful insurance sector, excluding General Takaful, experienced mixed fortunes in 2023.
Despite a decrease in assets by 5.9%, amounting to approximately QR4.2 billion, insurance subscriptions surged by 8.8%, surpassing QR1.4 billion.
However, the sector grappled with variations in achieving insurance surpluses and deficits, reflecting the complex dynamics at play.
Islamic Finance and Investment Companies
Islamic finance and investment companies displayed resilience in 2023, with assets reaching QR2.5 billion, marking a marginal increase of 0.8%.
These companies extended financing by 4.8%, amounting to QR1.8 billion, while revenues soared to QR241.8 billion, recording an impressive growth rate of 7.7%.
Islamic Investment Funds and Sukuk
Islamic investment funds witnessed a slight increase in assets, surpassing QR942 million, while the performance of these funds varied throughout the year.
Meanwhile, Issued Islamic Sukuk saw a significant uptick of 86.6%, with QR4.2 billion worth of Sukuk issued by Islamic banks. The Qatar Central Bank also issued Sukuk valued at QR7.7 billion during the year.
Qatar Stock Exchange (QSE)
In the Qatar Stock Exchange (QSE), the Al Rayan Islamic index closed with a notable increase of 3.76%.
The performance of shares in listed Islamic finance companies ranged from a remarkable increase of 29% to a modest decrease of 16%, reflecting the diverse nature of the market.
Overall, the Islamic finance sector in Qatar demonstrated resilience and growth in 2023, underlining its importance in the country’s financial landscape.
With robust performances across various segments, coupled with promising prospects for the future, Qatar’s Islamic finance industry remains a key driver of economic development and sustainability.
