A recent economic report indicates that the value of Islamic finance assets in Qatar reached approximately 694 billion riyals by the end of 2024. The report, titled "New Horizons," prepared by the Qatar Financial Centre in collaboration with the London Stock Exchange Group (LSEG), reveals that Islamic financial services and sukuk constitute 97% of total assets. This marks a significant increase in Islamic banking, which reached approximately 586 billion riyals in 2024, boasting a compound annual growth rate of 6.8% since 2020, surpassing the performance of traditional banking services.
The Islamic finance report for Qatar in 2025 was issued during the Islamic Finance Conference organized by the Qatar Financial Centre in partnership with LSEG under the title "Enabling Transformation." This conference gathered a selection of industry leaders and experts in public policy, facilitating high-level discussions focused on strategies for developing and restructuring the Islamic finance industry across various sectors, including financial services and financial technology markets.
The report also highlights key developments in the Islamic finance sector in Qatar over the past five years, emphasizing market trends and regulatory advancements aligned with the third strategic plan for the financial sector in Qatar. Notably, the sukuk market has expanded significantly, with sukuk issuances from Qatari institutions more than tripling from 9.2 billion riyals in 2020 to 30.4 billion riyals in 2024. Additionally, the takaful sector's contributions have risen to 1.9 billion dollars in 2024, with its market share increasing from approximately 6% to 11% between 2020 and 2024.
Moreover, the report indicates substantial growth in financial technology, with the volume of Islamic financial technology transactions tripling to approximately 10 billion riyals in 2024. This sector is expected to continue its upward trajectory, with a compound annual growth rate projected at 10% until 2028. Qatar has also achieved global recognition, ranking eighth in the Islamic financial technology index for 2024.
During the conference, the Qatar Financial Centre released a sukuk guide, providing a comprehensive overview of the sukuk market in Qatar since 2005. This guide details common sukuk structures and the legal and regulatory frameworks governing sukuk issuers registered with the Qatar Financial Centre.
Youssef Mohamed Al-Jaida, CEO of the Qatar Financial Centre, commented on the significance of the event, stating, "This conference embodies our commitment to providing opportunities for exchanging knowledge and dialogue on Islamic finance policies. Through our cooperation with the London Stock Exchange Group to prepare the Islamic finance report in Qatar for the year 2025, we aim to support stakeholders by providing them with the necessary information, data, and tools to benefit from sustainable opportunities in the promising financial sector in Qatar."
The Islamic finance sector in Qatar is witnessing remarkable growth across its various key indicators. The Qatar Financial Centre, in partnership with LSEG, is making strides in enhancing the Islamic finance landscape through initiatives like the Islamic Finance Conference. This event not only showcases the sector's achievements but also emphasizes the importance of collaboration among industry leaders to foster innovation and development.
As the Islamic finance industry continues to evolve, the insights gained from reports like "New Horizons" will be crucial for stakeholders looking to navigate this dynamic market. The emphasis on technology, regulatory compliance, and strategic planning reflects a forward-thinking approach that positions Qatar as a leader in the global Islamic finance arena.
In summary, the report underscores the impressive trajectory of Islamic finance in Qatar, with significant contributions from Islamic banking, sukuk, and financial technology. The continued growth and development of these sectors not only contribute to the overall economy but also align with Qatar's strategic vision for a robust financial future.
