Islamic Financial Services
From The Report: Qatar 2020
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Sharia-compliant banks are the dominant players in Qatar’s IFS sector, and the merger between Barwa Bank and International Bank of Qatar is a crucial step in increasing the sector’s share of the country’s overall banking market, which has experienced a decline in recent years. Although conventional players still dominate both the banking and insurance sectors, recent growth figures indicate that there is an increasing appetite for sharia-compliant banking and takaful (Islamic insurance), particularly in the domestic market. Looking ahead, the QCB’s decision to standardise and centralise sharia regulations looks set to boost confidence and encourage growth. This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank.

Articles from this Chapter

Overview

Confidence boost: With rising demand for sharia-compliant services and efforts to streamline regulations, the sector is poised for growth
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Islamic financial services (IFS) are playing an increasingly important role in Qatar’s economy, and the sector is poised for growth as the gas-rich country continues to invest in infrastructure and the expansion of its energy sector. In 2019 the country’s first bank merger, between Barwa Bank and conventional lender International Bank of Qatar, created a new sharia-compliant entity with a 6% market share, and the Qatar Central Bank (QCB) signalled its intent to create a centralised standards…

Interview

Personalised offerings: Bassel Gamal, Group CEO, Qatar Islamic Bank, on simplifying services while improving convenience for customers
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Interview:Bassel Gamal In what ways will Islamic banks and their conventional counterparts continue to expand their influence over the short to medium term? BASSEL GAMAL: Islamic banks have developed strong capabilities and capacity to structure and finance major infrastructure projects as well as to address all of the banking needs of corporates and individuals. The products and services offered by Islamic banks are on par with conventional banks, and the same is true for the level of customer…

Analysis

New standards: The central bank is looking to consolidate sharia supervision and create standardised Islamic banking regulations
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In 2019 the Qatar Central Bank (QCB) announced its plans to introduce standardised criteria for sharia compliance. The bank revealed that it was working with a consultancy firm to “prepare principles and standards that govern the various Islamic banking products and transactions, and the legal supervision thereof”. Qatar’s four local Islamic banks currently employ their own sharia supervisory boards, which ensure that their financial transactions conform to Islamic principles. However,…

Analysis

Consolidating assets: The completion of the country’s first bank merger comes alongside wider changes in the financial services sector
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Mirroring a trend seen across the Gulf, two Qatari lenders announced the country’s first bank merger in 2019. In April of that year Barwa Bank and International Bank of Qatar (IBQ) announced the finalisation of negotiations and clearance of regulatory requirements necessary to consolidate operations. The merged entity, which operates as Barwa Bank, has total assets worth approximately QR80bn ($22bn) and a shareholder equity base of over QR12bn ($3.3bn). Notably, the merger resulted in the…

Interview

Socio-economic focus: Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank (QIIB), on the contribution of sharia-compliant offerings
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Interview:Abdulbasit Ahmed Al Shaibei What role can Islamic financial services play in facilitating the country’s move towards sustainable economic development? ABDULBASIT AHMED AL SHAIBEI: The banking sector plays a pivotal role in Qatar’s economic development and there is no doubt that Islamic finance is an effective and important component of the Qatari economy. There are many factors that have strengthened the presence of Islamic banks and given them greater momentum, ultimately enabling…