Interview: Fahad bin Abdulla Al Khalifa, Group CEO, AlRayan Bank, on Islamic banks pushing the sector’s digital transformation
How does the recent growth of Qatar’s Islamic finance sector shape its next phase of development in financing and retail banking?
AL KHALIFA: Reaching QR393bn ($104.8bn) in Islamic finance assets by the first quarter of 2026 confirms the sector’s role as a structural pillar of Qatar’s financial system, shifting the focus from scale to the quality and direction of growth. On the financing side, this supports a transition from traditional lending to a more strategic role in national development, directing capital towards priority sectors under Qatar National Vision 2030, including sustainable infrastructure, knowledge-based industries, small and medium-sized enterprises (SMEs), health care, education and logistics. In retail banking, competition is expected to shift from price to proposition, with differentiation driven by digital experience, advisory quality, ethical positioning and lifestyle integration. This creates scope to translate sharia principles into practical offerings such as savings products, home financing and wealth-building tools tailored to a younger customer base. For corporate credit, the scale of the balance sheet enables participation in larger and more complex transactions, including project finance, public-private partnerships and cross-border deals. It also supports greater use of risk-sharing structures and capital markets solutions that remain sharia compliant while meeting global standards, reinforcing the sector’s role in Qatar’s next phase of economic transformation.
What potential do you see for Islamic banks to lead the digital-finance transformation in Qatar?
AL KHALIFA: The growth in transaction volumes reflects a structural shift, where digital is no longer a channel but the default environment for customers. Islamic banks are well positioned to lead this transformation due to the rules-based nature of sharia-compliant products, which supports digitisation, automation and smart contract development, alongside strong digital infrastructure and a supportive regulatory framework. The priority is moving from digitalising processes to redesigning the banking experience end to end. This includes embedding services within digital ecosystems that integrate payments, savings, investments and lifestyle solutions, as well as strengthening collaboration with financial technology firms in areas such as SME financing, data-driven credit assessment, micro-investing and automated advisory. At the same time, artificial intelligence can enhance efficiency and customer experience, while responsible data use enables more tailored, sharia-compliant offerings.
In what ways do opportunities and risks shape the expansion of sukuk (Islamic bonds) in Qatar’s capital markets over the next three to five years?
AL KHALIFA: Sukuk is set to play a central role in Qatar’s capital markets development, with three main areas of opportunity. Sovereign and quasi-sovereign issuances can continue to establish benchmark yield curves, supporting price discovery and strengthening Qatar’s visibility among global investors. At the corporate level, sukuk provides diversified funding for sectors such as energy, infrastructure, real estate, logistics and telecommunications, aligning long-term assets with long-term sharia-compliant capital.
In parallel, environmental, social and governance (ESG)-linked and green sukuk offers a clear pathway to finance renewable energy, water management, sustainable transport and social infrastructure, aligning Islamic finance with Qatar’s broader sustainability goals. Meanwhile, on the risk side, maintaining market depth and secondary liquidity is essential to avoid pricing distortions as issuance grows. ESG-linked structures, for example, must demonstrate credible use of proceeds and measurable impact to mitigate reputational risks, while interest-rate volatility requires careful management of maturities to limit refinancing pressures. Addressing these factors will be key to ensuring balanced and credible market development for Qatar.
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