Participants in 8th Doha Islamic Finance Conference: Inflation Rates in Qatar within the Safe Range

Eighth Doha Islamic Finance Conference

Doha, March 16 - Participants in a workshop organized within the activities of the Community Financial Culture Week accompanying the 8th Doha Islamic Finance Conference, organized by Bait Al Mashura Finance Consultations, confirmed that inflation rates in Qatar are within the safe range, as estimates indicate that the average annual inflation rate in Qatar will record 3.1 percent in 2022, and then decline to reach the level of 2.1 percent in 2023.

In this context, Dr. Omar Al-Ababneh, Sharia Supervisory and Audit Officer at Bait Al-Mashura, stressed during the workshop that inflation rates in Qatar are within the safe range, as estimates by the British "Oxford Economics" institution indicate that the average annual inflation rate in Qatar will record 3.1 percent this year, and then drop to reach the level of 2.1 percent next year.

He pointed out that the International Monetary Fund, in turn, expected inflation rates in Qatar to reach the level of 3.2 percent in 2022, and the Economist Intelligence unit of the British Economist magazine suggested that the inflation rate in Qatar would reach 3 percent during the current year, as expected by the HSBC recorded inflation rates to the level of 2.6 percent during this year.

Dr. Al-Ababneh indicated that the fluctuation in inflation rates at levels between 2 and a little more than 3 percent, represents a safe range, which means that inflation is under control in Qatar, especially since this comes at a time when supply chains are experiencing crises as a result of geopolitical turmoil globally, noting that Qatar Central Bank closely monitors the situation and has monetary and financial tools through which it can curb inflation if its levels go out of the safe range, while the strength of the Qatari riyal plays a major role in controlling inflation, as the riyal is denominated in the US dollar and Qatar Central Bank fixes the exchange rate at 3.64 riyals to the dollar. He explained that Qatar is in a position capable of facing the challenges of inflation, while the state's plan, which is being implemented to achieve food security and self-sufficiency, plays a major role in controlling the rhythm of the market, as well as the important role of the Ministry of Commerce & Industry in monitoring and intensifying its inspection campaigns to deter violators and control prices.

On the other hand, the Professor of Islamic Finance and Economics and Program Coordinator at the College of Islamic Studies, HBKU, Dr. Ahmet Faruk said that digital transformations present great opportunities for the Islamic financial industry, foremost of which is increasing access to and facilitation of Islamic financial services, while accelerating payment processes.

In its recommendations, the 8th Doha Islamic Finance Conference called for the establishment of an independent Sharia studies center specializing in Islamic financial technology, to supplement the industry with the provisions of its developments.

Source: QNA