Qatar’s Islamic Finance Assets Reach $187 Billion In 2024

Qatar’s Islamic finance assets experienced a 4.1% growth in 2024, reaching $187 billion with Islamic banks accounting for 87.4% of these assets and the Islamic Sukuk’ share was 11.2%, according to Bait Al Mashura Finance Consultations.

In its eighth annual report on Islamic Finance in Qatar, Bait Al Mahura said that within the country’s Islamic banking sector, assets expanded by 3.9% in 2024, totalling $160.83 billion.

The deposits rose by 8.2% reaching $93.15 billion, with private sector deposits constituting 57%. Financings reached $110.29 billion, an increase of 4.9%, predominantly directed towards the real state and government sectors respectively, and subsequently followed by personal finance.

Revenues posted a growth rate of 12.6%, amounting to $8.1 billion, while net profits reached $2.39 billion, equivalent to 6% increase.

In the Takaful insurance sector, the assets of Takaful companies increased by 7.1% reaching $1.4 billion. Policyholders’ assets also grew by 6.3%, reaching $710 million while insurance contributions saw a significant rise of 18.6%, exceeding $520 million.

The performance outcomes for Takaful insurance companies varied, with some achieving insurance surpluses while others incurred deficits, the report said.

Islamic Finance Companies

For Islamic finance companies, total assets amounted to $690 million, a marginal increase of 0.8%. Financings extended by these companies grew by 5.7% to $520 million.

Revenues of these companies reached $76.14 million, an increase of 14.7%.  These revenues from financing and investment activities constituted 84% of the total.

The findings of the Islamic finance companies’ financial demonstrated mixed results, with some reporting profits collectively exceeding $49.03 million, while others recorded losses of approximately $3.3 million.

Islamic investment companies saw their combined assets grow by 5.2%, reaching $150.94 million and their revenues increased by 44.1% reaching $16.4 million. Performance outcomes varied, with some realising profits and others incurring losses; total profits for the sector reached $4.81 million, the report noted.

In the Islamic Sukuk market, issued Islamic Sukuk increased by 161%. Islamic banks issued Sukuk valued at $2.61 billion in 2024, a 300% surge, while the Qatar Central Bank issued Sukuk worth $4.64 billion during the year, an increase of 118.5% compared with 2023.

Islamic investment funds’ assets stood at $259.47 million, reflecting a 1% increase. The performance of these funds varied during the year.

In Qatar Stock Exchange (QSE) the Al Rayan Islamic Index closing price increased by 2.23%. The share performance of listed Islamic finance companies was mixed, with increases reaching up to 2.3% and decreases as significant as 19.6%.

Qatar’s Economy

The report also said that Qatari economy sustained its growth within expected parameters during 2024, notwithstanding global volatility and the persistent challenges of inflation and interest rate dynamics.

The monetary and banking sectors demonstrated continued stability, reinforcing their robustness and adaptability through strategic monetary policies and the directives of the Qatar National Vision 2030 (QNV2030), the third phase of whose strategy was initiated this year.

This performance was underpinned by expansive developments in natural gas production at the North Field, alongside marked progress in the tourism sector. Although decline in the energy prices has posed fiscal challenges, Qatar’s public finances continued to generate budget surpluses but at minimal margins than previous years.