Qatar’s Islamic fintech market is projected to grow to $4 billion by 2027, according to the recently released Global Islamic Fintech (GIFT) Report 2023-2024.
With transaction volumes reaching $2.1 billion in 2022-2023, Qatar emerged as a significant player in the global Islamic fintech arena. It boasts a favorable ecosystem by positioning itself as a hub for innovation and investment in the Middle East.
Expanding market
According to the report, the climb in Qatar’s Islamic fintech market will underscore the sector’s remarkable growth trajectory. Home to 24 of the 417 identified Islamic fintech firms globally, the country ranks as the sixth largest hub of Islamic fintech firms. Furthermore, the GIFT index ranks Qatar as the eighth most conducive ecosystem for Islamic fintech. This highlights the nation’s commitment to fostering innovation and development within the industry.
Market dynamics
Based on transaction volumes, the global Islamic fintech market size reached $137 billion in 2022-2023. It is expected to grow on average by 17 percent annually to reach $306 billion by 2027.
In addition to Qatar’s growth forecasts, the report also reveals that Saudi Arabia, Iran, Malaysia, the UAE, Indonesia and Kuwait are the major markets in the global Islamic fintech space in transaction volume, collectively accounting for 85 percent of its size. Besides, two dominant regional centers are emerging in Southeast Asia and the Arab world, with Malaysia and Saudi Arabia at the forefront. This regional dominance signifies the growing influence and potential of Islamic fintech in shaping financial landscapes across the globe.
Read: Tech boom: MENA emerges as global digital economy hub
Challenges and opportunities
Qatar’s Islamic fintech market caters to a young, digitally-native and finance-conscious global demographic. Despite the sector’s promising growth, Islamic fintech faces challenges such as access to capital, consumer education, regulatory hurdles, talent acquisition, and geographic expansion complexities. However, industry leaders remain optimistic about the sector’s potential to drive meaningful change in financial inclusion and equity globally.
With the continued support of the Qatar Financial Center, the country fosters its favorable ecosystem for Islamic fintech firms. As the country continues to nurture its Islamic banking sector and support an environment conducive to fintech innovation, the nation will play a pivotal role in shaping the future of Islamic finance on a global scale.
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