The Islamic banking sector in Qatar continued its strong growth momentum over the past year. Despite global economic challenges, the sector showed remarkable resilience and stability. The Islamic banking sector in Qatar saw its total assets rise by 3.9 percent, reaching QR585.5 billion by the end of last year.
Additionally, deposits in this sector climbed by 8.2 percent to QR339.1 billion. Notably, private sector deposits made up 57 percent of this total. Financing activities also experienced a healthy boost, increasing by 4.9 percent to QR401.5 billion. Most of this financing focused on real estate and government projects, followed closely by personal finance.
Moreover, the Islamic banking sector in Qatar recorded strong revenue growth. Revenues jumped by 12.6 percent, reaching QR29.5 billion. Net profits also rose by 6 percent, totaling QR8.7 billion. These results highlight the sector’s growing contribution to Qatar’s overall financial landscape.
A recent report by Bait Al Mashura Finance underlined that Islamic banks played a significant role in supporting different economic sectors. The consumer sector accounted for 64 percent of total financing by commercial banks, including both Islamic and conventional institutions. The contracting sector followed at 44 percent, then real estate at 42 percent, and the industrial sector at 34 percent.
Interestingly, 96 percent of financing by Islamic banks targeted the local market, compared to 95 percent for conventional banks. This strong local focus reflects Qatar’s broader economic goals.
Qatar’s economy has maintained a steady growth trajectory, driven by expansion in natural gas production from the North Field and a booming tourism sector. The country’s monetary and banking sectors also showed robust stability. Strategic monetary policies and Qatar National Vision 2030 supported this performance.
The financial strategy aims to build a competitive and diversified economy while ensuring fiscal sustainability. The Islamic banking sector in Qatar forms one of four pillars of the nation’s Islamic financial industry. Other pillars include Takaful (Islamic insurance), Islamic finance companies, and Islamic investment firms.
This diverse ecosystem offers Shariah-compliant products like Sukuk, Islamic investment funds, and various Islamic indices. All institutions operate under strict supervision by the Qatar Central Bank, with some also regulated under the Qatar Financial Centre.
Furthermore, the sector benefited from the momentum created by the FIFA World Cup 2022. By Q3 2024, non-oil sectors contributed 64 percent to real GDP, up from 39 percent in 2013. The financial sector’s share also rose from 5 percent to 8 percent.
Overall, the Islamic banking sector in Qatar stands as a strong pillar of economic diversification and stability, continuously supporting national development goals.
