Islamic finance assets in Qatar touch QR656bn in 2023: Bait Al Mashura

Islamic finance assets in Qatar grew 3.3% year-on-year to QR656bn in 2023, of which Islamic banks accounted for 87.6 % of the total and sukuk for 11.1%, according to Bait Al Mashura, a leading domestic Shariah-principled financial consultancy firm.

The assets of Islamic banks grew 3.6% on an annualised basis to QR563.7bn in 2023 with financing witnessing a marginal increase of 0.6% to QR382.7bn, the firm said in its latest report.

"The Islamic finance has several promising prospects for the growth that are underlying in its continuous expansion, and accelerated development in terms of environment and penetration of new ecosystems," Prof Khalid bin Ibrahim al-Sulaiti, the vice-chairman of Bait Al Mashura, said in the report.

Islamic financial sector in Qatar is diverse, and comprises Islamic banks, takaful companies, Islamic finance firms and Islamic investment companies, in addition to Islamic finance products represented in Islamic sukuk, investment funds, and indices.

Total deposits declined 1.4% year-on-year to QR313.4bn in 2023 with private sector deposits constituting 59% of the total in the review period.

In the takaful sector, the assets of insurers reached QR4.2bn, which however fell 5.9% year-on-year; policyholders’ assets were valued at QR2.2bn (a decline of 3.6%). Insurance subscriptions exceeded QR1.4bn, an increase of 8.8% on an annualised basis.

In the case of Islamic finance companies, their assets were QR2.5bn, a marginal increase by 0.8%. Financing provided by these companies increased by 4.8% to QR1.8bn, and revenues reached QR241.8bn, increasing by 7.7%.

In Islamic investment companies, the assets of the two such companies grew by 2.7% to QR522.3mn, and their revenues were QR41.4mn, which fell 33.5%, and their profits reached QR5.9mn in the review period.

Sukuk issued by Islamic banks increased by 86.6% to QR4.2bn; while those issued by Qatar Central Bank was valued at QR7.7bn, which showed an increase of 42.8% year-on-year.

The assets of Islamic investment funds exceeded QR942mn, increasing by 4.1%, and their performance varied during the year, the report said.

In Qatar Stock Exchange (QSE), the Al Rayan Islamic index increased by 3.76%, and the performance of the shares of listed Islamic finance companies varied between an increase of 29% and a decrease of 16%.

At the macroeconomic level, the growth returned to its norm during 2023 leveraging from the event legacy resulting in modern infrastructure and tourism, it said, highlighting that as per estimation, Qatari economy grew by 1.8%.

Expansion in North Field resulted in a financial surplus, in addition to enhancing services, logistic, industrial, and trade and finance sectors as indirect results, it added.