Qatar Islamic Bank (QIB) has been awarded the title of “Islamic Bank of the Year in the Middle East” by “The Banker”, part of the Financial Times Group, at the 2025 Islamic Banking Awards.

The award recognises institutions offering performance, innovation, and leadership in Shariah-compliant financial services across global markets.

The recognition highlights QIB’s position in the Islamic finance sector, particularly its continued investment in digital innovation and focus on offering Shariah-compliant financial solutions.

The bank has expanded its portfolio of digital services while maintaining strong financial performance in a competitive regional market.

In the first quarter of 2025, QIB reported a net profit of 985 million Qatari riyals, marking a 3.1% year-on-year increase. Total assets reached 212 billion riyals. The bank reported a cost-to-income ratio of 16.6%, the lowest in Qatar’s banking sector, and maintained a non-performing financing assets ratio of 1.76%.

QIB’s financing-to-deposit ratio remained within regulatory limits, reflecting what it described as a prudent approach to risk management. The bank also retained strong credit ratings: Fitch affirmed its ‘A’ rating with a stable outlook; Moody’s maintained its ‘A1’ long-term deposit rating; and Capital Intelligence kept the bank’s long-term rating at ‘AA-’, all with stable outlooks.

The bank has introduced several digital features in recent years, including real-time digital onboarding for new customers and instant personal financing through its mobile application. The QIB app now includes more than 300 features.

In addition to core banking services, QIB has launched digital marketplaces within its app. These include a platform for local SMEs and an auto marketplace allowing customers to browse, test drive, and finance vehicles.

Halal Holidays has officially launched its new online travel platform, HalalHolidays.asia, offering halal-certified travel packages and accommodation tailored for Muslim travellers.

The company said in a press release that the platform is designed to serve faith-conscious travellers seeking halal-compliant options across destinations in Asia. These include Thailand, Japan, Turkey, the Maldives, South Korea, Indonesia, and the United Arab Emirates.

All listed packages include 100% halal-certified meals, prayer facilities, modest accommodation, and culturally sensitive services, according to the company.

Vincent Tan, founder of Halal Holidays, said the platform was created to offer reliable, convenient, and fulfilling holiday options for Muslim travellers.

The platform offers themed packages, including halal beach holidays, family-oriented trips, luxury escapes, cultural tours focusing on Islamic heritage sites, and Umrah add-on packages that combine religious travel with leisure activities.

The site is mobile-responsive and allows users to search by destination, travel type, or theme, with information on included halal amenities. Muslim travel consultants are available for support in English, Malay, and Arabic.

The company said it has partnered with halal-certified hotels, tour operators, restaurants, and community centres. Future plans include the development of a mobile app, loyalty programmes, and collaborations with Muslim lifestyle influencers.

Here's a roundup of key developments across the OIC ecosystem during the month of May

Editor's note: The Islamic Development Bank has been noted for launching key development projects across member countries but it has, very recently, been joined by the Asian Development Bank, with each pledging a whopping $1 billion each to co-finance joint initiatives. 

Trade Developments

Image Courtesy: AP News

GCC / Malaysia

Gulf Cooperation Council, Malaysia agree to launch free trade talks

The Gulf Cooperation Council (GCC) countries have agreed to begin free trade talks with Malaysia, as announced during the GCC-ASEAN Summit in Kuala Lumpur.

The decision, made on May 26, 2025, marks the start of negotiations aimed at enhancing trade relations between the GCC and Malaysia. (Zawya)

Saudi Arabia / Syria

Syria, Saudi Arabia agree to boost economic cooperation

Syria and Saudi Arabia have announced plans to enhance economic cooperation for mutual benefit and to create jobs for Syrians, following the easing of Western sanctions on Syria earlier this month.

The announcement came during a visit to Damascus by Saudi Foreign Minister Prince Faisal bin Farhan, who met with Syrian President Ahmad al-Sharaa and other officials.

The easing of sanctions is expected to open the door for foreign investment in Syria, which has been in a civil war since March 2011. (AP News)

Investment

OIC

Development banks pledge $2bn for joint development projects

The Islamic Development Bank (IsDB) and the Asian Development Bank (ADB) have renewed their commitment to development by pledging $1 billion each in co-financing for joint operations in their Common Member Countries through 2030.

The aim is to enhance the effectiveness, impact, efficiency, and sustainability of their development operations. (IsDB News)

Medikids, a healthcare initative - co-founded by Afdhal Aliasar, an Islamic economy and finance practitioner - secured the 2025 Islamic Development Bank (IsDB) Prize for Impactful Achievement in Islamic Economics.

Medikids was awarded for its waqf initiative in Indonesia, which deploys dental clinics for families to yield sustainable funding for waqf assets and social welfare initiatives.

We speak with the IsDB prize laureate on his vision, the initiative's community engagement and scalability.  

What governance safeguards are in place to ensure Medikids' waqf assets are protected and professionally managed over the long term?

Each clinic that is designated as a waqf asset is a distinct legal entity that is administered in compliance with the government's applicable business regulations and overseen by The Waqf Agency of Indonesia. The capital of this business entity is comprised of waqf funds.

The "waqf operator" function is a professional business actor who has demonstrated their trustworthiness and ability to manage the operations of a dental clinic, which is of paramount importance in the operation of this clinic.

MHDC Group, the appointed operator waqf, has a wealth of experience administering the operations of over 30 clinics throughout Indonesia, spanning over 15 years.

Can you describe your approach to community engagement - both in sourcing waqf donations and in reaching underserved patients?

Initially, the waqf fund was primarily sourced from the founders, as well as the doctors who work in all of our clinic networks and other community members who support this program.

The funds are continuing to increase in tandem with the accelerated rise in net profit from the existing clinics. The waqf foundation has collaboration programs with numerous parties, particularly health campuses throughout Indonesia, to conduct social service activities in a variety of locations in order to distribute to the dhuafa patients in need.

We also offer dental treatment to individuals in need at our clinic locations and encourage children to visit the clinic for educational and enjoyable field excursions to learn about dental health.

Have digital tools (e-dentistry, fintech platforms, blockchain-based waqf registries etc.) played a role in scaling or de-risking your model?

The dissemination of clinical information and news has become a prevalent practice through the use of social media on the internet. We deployed digital tools in the initial stages of incorporating social crowdfunding platforms to broaden the pool of donors who wish to partake in this initiative.

We intend to issue Wakaf Sukuk with a social health theme through the Indonesia Stock Exchange in the future.

We are of the opinion that the role of digital platforms will be more significant when we offer social investments through trusted channels that are indeed based on the performance of social activities that have been running well and continue to develop.

Of course, we place a high value on the trust of the waqf, which is motivated by the desire to achieve results that have a positive and sustainable impact on society and the community.

In what ways could your model be replicated or franchised in other Muslim-majority contexts with varying healthcare infrastructures?

It is highly probable that this program will be further developed in numerous locations worldwide, particularly in other Muslim countries, in accordance with the concept of waqf. The demand for high-quality healthcare services is significantly increased in accordance with the economic development of society.

The key to success will be the concept of a productive and independent waqf that can finance the operations of the waqf assets themselves.

We are highly amenable to the prospect of forming partnerships with other organizations in order to establish a sustainable and productive social movement.

Here's a roundup of key developments across the Islamic lifestyle ecosystem during May

Editor's Note: 

It is only when a state institutionalizes a strategy, that you know how important a pattern it is supporting. Macao has launched a new blueprint to attract Muslim travelers while Hong Kong is looking to undergird its position across the global tourism network via a new certification. 

Trade Developments

Image Courtesy: Halal Focus

Thailand

Tourism Authority promotes country as prime Muslim-friendly destination

The Tourism Authority of Thailand (TAT) is promoting the country as a premier Muslim-friendly destination at the Arabian Travel Market 2025.

This initiative aligns with the Amazing Thailand Grand Tourism and Sports Year 2025.

At the event, TAT announced new partnerships with GCC-based airlines such as Emirates and Etihad Airways to improve connectivity and launch co-branded campaigns highlighting Thailand's wellness and luxury experiences.

These efforts aim to help TAT achieve its 2025 target of attracting over 1 million visitors from the Middle East and Africa (MEA). (Halal Focus)

Macao

Macao redefines tourism landscape with halal strategy 

Macao has launched an ambitious halal tourism strategy to attract global Muslim travelers, aiming to tap into the booming USD 225 billion market.

During the Macao International Travel Expo (MITE) 2025, the Macao Government Tourism Office (MGTO) representatives unveiled a plan to position Macao as a halal-friendly destination in Asia.

The strategy focuses on embracing halal tourism development and expanding culturally inclusive travel services to cater to the growing demand from Muslim travelers. (Travel and Tour World)

Vietnam / UAE

Da Nang targets high-spending halal tourists with new Dubai flight

Da Nang is aiming to attract luxury travelers from the Middle East, by enhancing its halal-friendly services and infrastructure.

With a direct air service from Dubai launching in June, the city is building a tailored ecosystem to cater to this lucrative market, known for high spending, long stays, and demand for premium services.

Local hotels and resorts are upgrading their culinary services to better accommodate halal and Middle Eastern guests. (Vietnam Net Global)

Hong Kong

Hong Kong to launch new certification to attract Muslim visitors 

Hong Kong is set to launch the “Halal Q Mark”, a certification for halal-compliant products and services, to strengthen its position in the global halal tourism and retail markets.

The certification will ensure products meet Islamic dietary and ethical standards, while opening new opportunities for local businesses.

Steve Chuang Tzu-hsiung, chairman of the Federation of Hong Kong Industries, stated that the Q Mark will serve as a gateway for companies to engage with the global Muslim market, which includes over two billion people, nearly a quarter of the world's population. (The Islamic Information)

Company News

Malaysia

Halal Holidays launches platform to meet demand for Muslim-friendly travel across Asia

Halal Holidays has officially launched a Muslim-friendly travel platform, to cater to the rapidly growing halal tourism sector, projected to reach US 225 billion by 2028.

The HalalHolidays.asia platform offers fully halal-certified travel packages, accommodations, and seamless booking experiences tailored for faith-conscious travelers.

The launch aligns with industry insights from CrescentRating, which highlight Asia as the next major halal travel hotspot, with Muslim travelers seeking options that meet their religious needs while still providing premium experiences. (Binary News Network)

Operational Development

Image Courtesy: SPA

Saudi Arabia

Royal Commission highlights new and improved services for Hajj pilgrims

Saudi Arabia is prepared to serve the pilgrims arriving for this year’s Hajj, as announced by the Royal Commission for Makkah City and Holy Sites.

The country has invested in infrastructure enhancements in Makkah, Mina, and Muzdalifah, including transport and healthcare projects.

Improvements include pedestrian sidewalks and shaded tracks in central Makkah, as well as expanded prayer yards to accommodate the large crowds.

During Hajj, Makkah's bus network will be enhanced with 400 buses operating on 12 routes, serving 431 stops and four central bus stations. (Arab News)

Türkiye-based telecom operator Turkcell has secured a $150 million Shariah-compliant Murabaha financing facility from Dubai Islamic Bank PJSC to support its infrastructure projects and funding diversification strategy.

The five-year deal was signed in Istanbul and will be used to finance investment in digital infrastructure, including data centers, cloud services, and renewable energy, according to a company statement released on Monday.

The financing is part of Turkcell’s broader efforts to expand access to Islamic capital markets and diversify its debt portfolio. The company said it is utilising a mix of conventional and Islamic instruments, along with local and international debt sources.

Turkcell last year opened discussions with multiple regional investors, and the latest transaction with Dubai Islamic Bank adds to the company’s growing engagement with Gulf-based financiers. The Murabaha facility will also contribute to Turkcell’s existing funding base, which includes export credit agency-backed loans, development finance, and sukuk.

The deal comes amid increased investor interest in Türkiye from Gulf banks. Dubai Islamic Bank has identified Türkiye as a strategic market under its cross-border investment strategy.

Turkcell is listed on the New York Stock Exchange and Borsa Istanbul. The company is currently pursuing a multi-year capital expenditure plan focused on digital and telecommunications infrastructure.

Artificial intelligence has seized popular imagination like no technology in recent memory. From smart translators and virtual assistants to content generations tools and chatbots – AI in its varying forms and applications has taken centre stage. Countries and institutions are scrambling to secure the required infrastructure and the paraphernalia to capitalize on the technology and its apparent benefits. 

While AI and other frontier technologies are seeking to redefine the rules of value, this presents a real-world challenge: an asymmetry between the present education system and the tech labour market.  

AI will affect almost 40 percent of jobs around the world, according to the International Monetary Fund. This calls for a revisit of the current academic structure, in a manner consistent with the scale of transformation expected in the years ahead. Countries across the six-member Gulf Cooperation Council (GCC) bloc seem to be doing just that. 

The UAE has mandated AI education to be integrated into the public-school curriculum, for children as young as kindergarten pupils up to teenagers in Grade 12. The AI curriculum will cover foundational concepts, data and algorithms, ethical awareness, real-world applications, innovation and project design, among others. 

“Mandating AI learning in schools can play a significant role in preparing students for a future where AI-related skills are expected to be in high demand,” Hameed Noor Mohamed, managing director, Alpen Capital tells Salaam Gateway.

“Beyond providing foundational knowledge of a critical technology, it also helps develop essential competencies such as analytical thinking, problem-solving, and digital literacy.” 

Neighbouring Saudi Arabia has also launched an AI high school course, targeting over 50,000 12th-grade students in its initial phase. One-fifth of internet users in the kingdom actively use various AI apps, with youth between the ages of 20 and 29 most engaged with these tools, the Saudi Internet 2024 report revealed. 

Qatar is prioritizing AI integration in the education sector with the curricula being updated with AI foundations. Bahrain, too, has plans to expand the scope of AI teaching, as detailed in the ministry’s education strategy for 2023–2026. 

“The Fourth Industrial Revolution is reaching the Gulf’s shores,” Alex Rattray, managing director – Middle East at North Highland, writes in a LinkedIn post. 

“All these forces – youth demographics, women’s empowerment, diversification, digitisation, and decarbonisation – converge into one reality: the jobs of the future GCC will require vastly different skills. A knowledge economy cannot thrive on yesterday’s skillsets.”

AI is expected to contribute $320 billion to the Middle East by 2030, with Saudi Arabia and the UAE billed as the biggest beneficiaries, according to PwC. AI is expected to contribute over $135.2 billion to the Saudi economy in 2030 - equivalent to 12.4% of its GDP. In relative terms, the UAE is expected to see the largest impact of close to 14% of 2030 GDP.  

“As GCC countries invest in AI technology, there is a need for a generation of skilled technicians to drive the industry in the region. School is the time for learning about technology, its uses and applications, its risks and challenges, but it is also a time to learn how to interact with the AI tools available to students in a way that benefits their learning and their future readiness,” Roland Hancock, Education and Skills Lead, Partner at PwC Middle East tells Salaam Gateway. 

“AI skills development needs to go further if the GCC is to make the most of its investment. Modular, practical and constantly evolving training is required to give future AI engineers the skills to be able to drive the sector. This will come at university and college level, as well as in lifelong learning.”

Overcoming challenges
Akin to all new developments and technologies, AI, especially in the world of academia, comes with its own set of obstacles. The biggest challenge facing schools, cautions Hancock, is keeping pace.

“AI is advancing so rapidly that developing and maintaining relevant educational content and training can be a moving target for schools and educators. Across the world, institutions are grappling with how to design AI programmes that stay current and accessible. The GCC is no exception.”

Sustained investment in teacher training, curriculum innovation, and public-private partnerships (PPPs), Hancock states, will be critical to ensuring educators are equipped to deliver AI education that is timely, relevant, and impactful.

According to Alpen Capital’s Mohamed, one of the primary challenges in imparting AI education is the investment required to build the necessary infrastructure and digital ecosystem. 

“The availability of reliable technology providers to upgrade existing systems and deliver effective staff training adds another layer of complexity to the cost of implementation.” 

“The GCC education sector already faces a shortage of skilled teachers. Finding tech-savvy educators who are comfortable with AI-driven tools and capable of integrating them meaningfully into the curriculum, presents an additional hurdle.” 

Here's a roundup of key developments across the Islamic finance ecosystem during May

Editor's Note: The UAE has signed off on a strategy that aims to double Islamic bank assets in the next six years. Meanwhile, Maldives has unveiled a vision to become a leading centre for Islamic finance. 

Company News

United States

APEX Capital Group launches $10m halal real estate fund

APEX Capital Group, a private real estate investment firm based in Princeton, NJ, has launched the Silk Road Properties Income Fund, a $10 million private real estate fund offering accredited investors the opportunity to earn passive income while adhering to Islamic finance principles.

The fund has received Shari'ah-compliance approval from Joe Bradford, a prominent Islamic finance scholar in the U.S. and is accredited by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). (Manila Times)

Saudi Arabia / Greece

Alrajhi Bank launches payable finance solution 

Alrajhi Bank has launched QUALCO’s ProximaPlus platform, introducing a fully digital Payables Finance solution based on the Goods Murabaha structure.

This milestone is part of the bank’s efforts to digitize its Sharia-compliant supply chain finance (SCF) operations.

The platform addresses operational challenges like manual processing, limited scalability, and lack of real-time data.

By adopting ProximaPlus, Alrajhi Bank now offers an automated, buyer-led SCF solution that enhances efficiency, invoice visibility, and supports regional expansion, while remaining compliant with Islamic finance principles. (IBS Intelligence)

Trade Developments

UAE

UAE approves strategy for Islamic finance, halal industry

The UAE Cabinet has approved a national strategy for Islamic finance and the halal Industry. 

The strategy focuses on developing the Islamic financial industry, leading global Islamic finance activities, and enhancing the export of halal products worldwide. It aims to double Islamic bank assets by the year 2031. 

(Gulf News)

Maldives

President launches Islamic social finance Iinitiative

President Dr. Mohamed Muizzu has unveiled his administration's vision to transform the Maldives into a leading financial center for Islamic finance, driven by digital economic transformation.

At the launch of the Maldives Islamic Social Finance Initiative, President Muizzu described the initiative as a key part of the upcoming National Financial Inclusion Strategy.

 The President called for collective action, aiming to foster partnerships between the financial sector and civil society to address social needs. (Ras Online)

Regulatory

Malaysia

Ph pushes 5-year deadline for Islamic banking units to convert into full banks

The Bangko Sentral ng Pilipinas (BSP) has proposed a new regulation requiring Islamic banking units (IBUs) operated by conventional banks to either transition into full-fledged Islamic banks or meet universal bank capital requirements within five years.

The proposal, under a newly introduced circular, gives conventional banks a five-year transitional period to meet capitalization standards if they continue operating an IBU.

After this period, banks must either convert the IBU into a stand-alone Islamic bank or comply with universal bank capital thresholds, necessitating additional investment. (Manila Bulletin)