Islamic Finance Assets in Qatar Reach QR 683 Billion in 2024

The Islamic finance report in Qatar, issued by Bait Al Mashura Financial Consulting has shown that Islamic finance assets grew by 4.1 percent year-on-year, reaching QR 683 billion in 2024.

The report, which monitors the business results of Islamic finance institutions for 2024, showed that Islamic banks accounted for 87.4 percent of these assets, while Islamic sukuk accounted for 11.2 percent, Takaful insurance companies accounted for 0.7 percent, and the remaining shares were distributed among investment funds and other Islamic financial institutions.

It also noted that Islamic banks' assets grew by 3.9 percent in 2024, reaching QR 585.5 billion. Deposits also rose by 8.2 percent to QR 339.1 billion, with private sector deposits accounting for 57 percent.

Financing reached QR 401.5 billion, a 4.9 percent increase, primarily directed towards the real estate and government sectors, followed by personal financing. Revenues grew by 12.6 percent to QR 29.5 billion, and profits reached QR 8.7 billion, a 6 percent growth rate.

As for Takaful insurance sector, the report stated that Takaful insurance companies' assets grew by 7.1 percent year-on-year, reaching QR 5.1 billion in 2024.

Policyholder assets also grew by 6.3 percent, reaching QR 2.6 billion, while insurance subscriptions increased by 18.6 percent, exceeding QR 1.9 billion.

Takaful insurance companies' operating results varied between achieving insurance surpluses and recording insurance deficits.

Regarding Islamic finance companies, the report stated that their assets reached QR 2.53 billion, a marginal increase of 0.8 percent year-on-year in 2024.

Financing provided by these companies increased by 5.7 percent to QR 1.9 billion, and their revenues reached QR 277.2 million, a 14.7 percent increase.

Revenues from financing and investment activities represented 84 percent of the total revenues.

The operating results of Islamic finance companies varied between achieving profits totaling more than QR 178.5 million and incurring losses of approximately QR 12 million.

Regarding Islamic investment companies, the report indicated that the assets of the two Islamic investment companies grew by 5.2 percent, reaching QR 549.5 million, while their revenues reached QR 59.7 million, a growth of 44.1 percent.

Their operating results varied between achieving profits and incurring losses, with profits amounting to QR 17.5 million.

In the field of Islamic Sukuk, Islamic Sukuk issuances increased by 161 percent. Islamic banks issued Sukuk worth QR 9.5 billion in 2024, a 300 percent increase. Qatar Central Bank issued Sukuk worth QR 16.9 billion in 2024, a 118.5 percent increase compared to 2023.

Regarding Islamic investment funds, the report noted that assets of these funds amounted to QR 944.6 million, a 1 percent increase, and their performance varied during 2024. On the Qatar Stock Exchange, the Al Rayan Islamic Index closed up 2.23 percent, while the performance of listed Islamic finance companies varied between increases of 2.3 percent and decreases of 19.6 percent.

According to the report, the Islamic financial sector in the State of Qatar is divided into four main sectors: Islamic banks, Takaful insurance companies, Islamic finance companies, and Islamic investment companies, in addition to 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, said, "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 added that Qatar is consolidating its position as a major center for the Islamic finance industry globally, and growth prospects appear promising.

Meanwhile, the sector itself witnessed significant transformations and qualitative developments in performance, expansion, and supporting technologies over the past year.

This reinforces the need to keep pace with these changes through data analysis and trend monitoring, in order to provide a more comprehensive and accurate vision of the present and future prospects, striving to achieve a balance between Sharia dimensions, development goals, and economic and social sustainability.   

 

(QNA)