Qatar Islamic Finance: $188bn in Assets
- Qatar's Islamic finance sector experienced considerable growth in 2024, according to a recent report.
- Islamic banks dominate the sector, holding 87.4% of total assets, which grew to $160.8 billion, a 3.9% increase.
- Deposits in Islamic banks also rose, climbing 8.2% to $93.2 billion, with the private sector contributing 57% of these deposits.
Qatar’s Islamic finance Sector Shows Strong Growth in 2024
Qatar’s Islamic finance sector experienced considerable growth in 2024, according to a recent report. The sector encompasses Islamic banks, Takaful insurance companies, Islamic finance companies, and Islamic investment firms, along with products like Sukuk and investment funds.
Islamic banks dominate the sector, holding 87.4% of total assets, which grew to $160.8 billion, a 3.9% increase. Islamic Sukuk represent 11.2% of the assets, while Takaful insurance holds 0.7%. The remaining assets are distributed among investment funds and other Islamic financial institutions.
Deposits in Islamic banks also rose, climbing 8.2% to $93.2 billion, with the private sector contributing 57% of these deposits. Financing activities increased by 4.9%, reaching $110.3 billion, primarily directed toward real estate, government projects, and personal financing.
The Takaful insurance sector also saw growth, with assets increasing by 7.1% to $1.5 billion. Insurance subscriptions jumped by 18.6%, exceeding $522 million.
Islamic finance companies experienced a slight asset increase of 0.8%, reaching $695 million. Financing provided by these companies rose by 5.7% to $522 million,with revenues climbing 14.7% to $76 million.
Islamic Sukuk issuances witnessed a considerable surge, increasing by 161%. Islamic banks issued $2.6 billion worth of Sukuk,a 300% increase. The Qatar Central Bank issued $4.6 billion in Sukuk, marking a 118.5% increase compared to 2023.
Dr. Khalid bin Ibrahim Al Sulaiti, vice chairman of Bait Al Mashura Financial Consulting, noted Qatar’s strengthening position as a global hub for Islamic finance. He said the sector has seen “significant transformations and qualitative developments in performance, expansion, and supporting technologies.”
What’s next
Continued monitoring and analysis of data trends will be crucial to understanding the evolving landscape of Islamic finance in Qatar and ensuring enduring growth.