Qatar’s Islamic finance sector marked a triumphant year in 2024, with total assets surging 4.1% year-on-year to 683 billion Qatari riyals ($187.5 billion), as detailed in Bait Al Mashura Financial Consulting’s 8th Annual Report, released on June 9, 2025. Islamic banks led the charge, commanding 87.4% of assets at 585.5 billion riyals, a 3.9% increase, fueled by robust growth in sharia-compliant lending and deposits. Sukuk issuances saw explosive growth, with Islamic banks issuing 9.5 billion riyals, a staggering 300% rise, while the Qatar Central Bank (QCB) boosted its sukuk by 118.5% to 16.9 billion riyals, enhancing liquidity in the market. Takaful insurance, though a smaller player, contributed 0.7% to total assets at 4.8 billion riyals, reflecting steady demand for sharia-compliant insurance. Islamic investment funds grew 1% to 944.6 million riyals, driven by increased investor interest in ethical wealth management.
The sector’s financial health shone through, with revenues climbing 12.6% to 29.5 billion riyals and profits rising 6% to 8.7 billion riyals, showcasing improved operational efficiency and cost management. The Al Rayan Islamic Index on the Qatar Stock Exchange rose 2.23%, signaling market confidence, though individual Islamic finance firms showed varied performance, with share prices ranging from 2.3% gains to 19.6% declines, reflecting competitive pressures and global market volatility. Notably, Qatar Islamic Bank (QIB) reported a 7.2% profit increase, while Masraf Al Rayan maintained stable growth despite challenges.
This performance aligns with a global Islamic finance surge of 10.6% in 2024, reaching $4.3 trillion, per S&P Global Ratings, driven by a 29% spike in foreign currency sukuk and strong banking asset growth in core markets like the GCC, Malaysia, and Türkiye. Qatar’s success is bolstered by its National Vision 2030, which emphasizes economic diversification and innovation. The QCB’s regulatory support, including fintech initiatives like mobile banking and blockchain-based sukuk platforms, has enhanced accessibility and efficiency. Additionally, Qatar’s hosting of major events, such as the 2022 FIFA World Cup, continues to drive investor confidence, with infrastructure investments supporting financial sector growth.
Challenges remain, including global economic uncertainties and competition from other Islamic finance hubs like Malaysia and the UAE. However, Qatar’s strategic focus on digital transformation and sustainable finance positions it as a leading player in the global Islamic finance arena, reinforcing its role as a regional hub for sharia-compliant investments.
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