The Islamic finance report in Qatar, released by Bait Al Mashura Financial Consulting, has revealed that Islamic finance assets saw a year-on-year growth of 4.1 percent, reaching QAR683 billion ($187.6 billion) in 2024.
This report, which tracks the business performance of Islamic finance institutions for the year, highlighted that Islamic banks represented 87.4 percent of these assets, while Islamic sukuk constituted 11.2 percent, Qatar News Agency (QNA) reported.
Takaful insurance companies accounted for 0.7 percent, with the remaining shares distributed among investment funds and other Islamic financial entities.
Furthermore, it was noted that Islamic banks’ assets increased by 3.9 percent in 2024, amounting to QAR585.5 billion. Deposits also saw a rise of 8.2 percent, reaching QAR339.1 billion, with private sector deposits making up 57 percent of the total. Financing reached QAR401.5 billion, marking a 4.9 percent increase, primarily directed toward the real estate and government sectors, followed by personal financing. Revenues rose by 12.6 percent to QAR29.5 billion, while profits saw a growth rate of 6 percent, totaling QAR8.7 billion.
In terms of the Takaful insurance sector, the report indicated that Takaful insurance companies’ assets grew by 7.1 percent year-on-year, reaching QAR5.1 billion in 2024. Policyholder assets also increased by 6.3 percent, totaling QAR2.6 billion, while insurance subscriptions surged by 18.6 percent, surpassing QAR1.9 billion. The operating results of Takaful insurance companies varied, with some achieving insurance surpluses while others recorded deficits.
Remarkable growth in revenues
Regarding Islamic finance companies, the report stated that their assets reached QAR2.53 billion, reflecting a slight increase of 0.8 percent year-on-year in 2024. Financing provided by these companies rose by 5.7 percent to QAR1.9 billion, with revenues reaching QAR277.2 million, marking a 14.7 percent increase. Revenues derived from financing and investment activities accounted for 84 percent of the total revenues. The operating results of Islamic finance companies showed variability, with profits exceeding QAR178.5 million and losses around QAR12 million.
Concerning Islamic investment companies, the report noted that the assets of the two Islamic investment companies grew by 5.2 percent, reaching QAR549.5 million, while their revenues rose to QAR59.7 million, reflecting a growth of 44.1 percent. Their operating results were mixed, with profits totaling QAR17.5 million.
In the domain of Islamic sukuk, issuances saw a remarkable increase of 161 percent. Islamic banks issued sukuk amounting to QAR9.5 billion ($2.6 billion) in 2024, a 300 percent rise. Additionally, Qatar Central Bank issued sukuk worth QAR16.9 billion in 2024, marking a 118.5 percent increase compared to 2023.
Regarding Islamic investment funds, the report noted that the assets of these funds totaled QAR944.6 million, representing a 1 percent increase, while their performance showed variability throughout 2024. On the Qatar Stock Exchange, the Al Rayan Islamic Index closed with an increase of 2.23 percent, whereas the performance of listed Islamic finance companies varied, with increases of 2.3 percent and decreases of 19.6 percent.
Balancing Sharia principles and development goals
According to the report, the Islamic financial sector in the State of Qatar is segmented into four primary sectors: Islamic banks, Takaful insurance companies, Islamic finance companies, and Islamic investment companies, alongside various Islamic finance products such as sukuk, investment funds, and Islamic indices.
Dr. Khalid bin Ibrahim Al Sulaiti, vice chairman of Bait Al Mashura Financial Consulting, stated, “The Islamic Finance in Qatar Report monitors the performance of Islamic finance institutions in the country, including Islamic banks, Takaful insurance companies, and Islamic finance and investment companies. It also reviews the performance of Islamic financial products, such as investment funds and Islamic sukuk, tracks the movement of the Islamic financial market, and provides an analysis of the overall performance of the Qatari economy.”
He further added that Qatar is solidifying its status as a significant hub for the global Islamic finance industry, with promising growth prospects on the horizon. Meanwhile, the sector itself has undergone substantial transformations and qualitative advancements in performance, expansion, and supporting technologies over the past year. This underscores the necessity of adapting to these changes through data analysis and trend monitoring, aiming to deliver a more comprehensive and precise perspective on current and future prospects, while striving to balance Sharia principles with developmental objectives and economic and social sustainability.
