Qatar’s Islamic finance assets reach 683 billion riyals in 2024

Qatar’s Islamic finance sector grew 4.1% year-on-year in 2024 to reach 683 billion Qatari riyals ($187.5 billion), according to new data from Bait Al Mashura Finance Consultations.

Islamic banks accounted for 87.4% of total Islamic finance assets, followed by sukuk at 11.2%, takaful at 0.7%, with the remainder distributed across investment funds and other Islamic financial institutions, the report showed.

“In the past year, the Islamic finance sector experienced significant transformations and qualitative advancements in performance, expansion, and supporting technologies,” said Khalid Al-Sulaiti, vice chairman of Bait Al Mashura’s board of directors.

Islamic banking assets reached 585.5 billion riyals, marking a 3.9% increase, while deposits rose 8.2% to 339.1 billion riyals, with the private sector contributing 57% of total deposits. Financing increased by 4.9% to 401.5 billion riyals, primarily directed toward the real estate, government, and personal financing segments.

Banking sector revenues increased 12.6% to 29.5 billion riyals, while profits grew 6% to 8.7 billion riyals.

In the sukuk market, issuances rose by 161%. Islamic banks issued 9.5 billion riyals in sukuk, up 300% year-on-year, while Qatar Central Bank issued 16.9 billion riyals.

Takaful sector assets increased 7.1% to 5.1 billion riyals. Policyholders’ funds rose 6.3% to 2.6 billion riyals, while insurance subscriptions grew 18.6% to exceed 1.9 billion riyals.

Islamic finance companies recorded 0.8% growth in assets to 2.53 billion riyals, with financing increasing 5.7% to 1.9 billion riyals. Revenues rose 14.7% to 277.2 million riyals, while total profits reached 178.5 million riyals against 12 million riyals in losses.

Islamic investment firms posted a 5.2% increase in assets to 549.5 million riyals, with revenues growing 44.1% to 59.7 million riyals. Profits stood at 17.5 million riyals.

Shariah-compliant investment funds increased 1% to 944.6 million riyals. The Al Rayan Islamic Index rose 2.23% on the Qatar Stock Exchange during the year. Performance of listed Islamic finance companies was mixed, with share price movements ranging between a 19.6% decline and 2.3% growth.

According to the Qatar Financial Centre, Shariah-compliant finance now accounts for 27% of Qatar’s total financial system, placing it among the leading Islamic finance hubs globally alongside Saudi Arabia and the UAE.

Fitch Ratings earlier affirmed the credit profiles of Qatari Islamic banks, citing high oil prices, stable funding structures, and strong profitability as key strengths.

Globally, Islamic finance grew 10.6% in 2024, supported by banking asset growth and a 29% increase in foreign currency sukuk issuances, according to S&P Global Ratings.

Despite the sector’s growth, Bait Al Mashura’s report noted that challenges remain, including regulatory developments, oil price volatility, and macroeconomic uncertainties, though long-term prospects remain positive.