Islamic Financial Services
From The Report: Qatar 2022
View in Online Reader

Qatar’s Islamic banking industry is one of the world’s largest and most experienced, given than its first entity – Qatar Islamic Bank – was established in 1982. Four decades later, as business confidence and economic growth is returning after two years of slowdown, the sector stands ready for renewed expansion. It can build on the important role it played in response to the virus, when it supported many businesses and individuals navigating the economic fallout. However, the situation of recent years has had an impact on the sector: 2020, in particular, saw assets and profits decline. This came after several years of low oil and gas prices – a factor that constrained economic growth in Qatar and many other countries in the region. As a result, the local Islamic finance sector has followed the global trend of industry mergers, with market consolidation a widespread response to tough conditions.

This chapter contains interviews with Bassel Gamal, Group CEO, Qatar Islamic Bank; and Khalid Al Subeai, CEO, Dukhan Bank.

Articles from this Chapter

Overview

Strong and steady: A generally positive showing across the sector in 2021 stands the industry in good stead for the year ahead
OBG
plus

Qatar’s Islamic banking industry is one of the world’s largest and most experienced, given than its first entity – Qatar Islamic Bank (QIB) – was established in 1982. Four decades later, as business confidence and economic growth is returning after two years of the Covid-19 pandemic, the Islamic finance sector stands ready for renewed expansion. It can build on the important role it played in response to the virus, when it supported many businesses and individuals navigating the economic…

Interview

The long game: Bassel Gamal, Group CEO, Qatar Islamic Bank (QIB), on evolving strategies for sustainable expansion and risk mitigation
OBG
plus

Interview:Bassel Gamal What trends do you see in the Islamic banking industry in terms of both organic and inorganic growth? BASSEL GAMAL: The global Islamic finance market is growing rapidly, having increased by double-digit rates to $2.7trn in assets and a roughly 6% share of all banking assets. A few years ago Islamic banks realised that having an Islamic licence was not enough to succeed; they also needed to build a high-performing, competitive bank. This was a pivotal point in the evolution…

Analysis

Going green: Sharia-compliant lenders are adopting sustainable business practices in line with global trends
OBG
plus

Qatar’s Islamic financial services sector is engaged in a shift towards sustainability to take advantage of robust global growth in demand for sharia-compliant investments and rising interest in green finance. Globally, Islamic financial services continue to exhibit strong momentum, with loans expanding at an average compound annual growth rate (CAGR) of 10.5% in 2020 and 2021, according to a 2022 report from credit ratings agency Moody’s. This compares favourably with conventional financing’s…

Analysis

Global stage: The sector is gaining more recognition on an international scale
OBG
plus

After a resilient performance in 2020, the international Islamic finance sector fared positively in 2021 as an improved economic environment, a rise in the number of large projects, and an increased focus on environmental, social and governance (ESG) factors combined to drive demand for services. Despite the twin challenges of the Covid-19 pandemic and the fall in international oil prices that affected many of the world’s heavyweights in Islamic finance, the global sector’s assets grew by 10.6%…

Interview

Innovative outlook: Khalid Al Subeai, CEO, Dukhan Bank, on the impact of digital transformation on the sharia-compliant segment
OBG
plus

Interview:Khalid Al Subeai How do you envision technology will change Qatar’s Islamic financial services sector? KHALID AL SUBEAI: Qatar National Vision 2030, the country’s long-term economic development strategy, prioritises building a knowledge-based economy. This has required equipping our citizens with enhanced digital capabilities and widening the use of financial technology (fintech). Meeting these goals is being achieved through the National Fintech Strategy, ongoing support from…