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Qatar: Bait Al-Mashura Finance Consultations (BAM) recently published its annual report on Islamic Finance in Qatar, providing an overview of the performance of various Islamic finance institutions in the country.

The report analyzed the progress of Islamic Banks (IBs), Takaful Insurance companies (TIs), and Islamic Finance and Investment companies (IFIs) in 2022. It also examined Islamic financial products, including investment funds, sukuk, and the overall movement of the Islamic financial market.

Report Proceedings

The report revealed that Qatar’s economy exceeded expectations in 2022, with a growth rate of 4.8%. The country’s GDP at constant prices (2018) reached QR690.1 billion, a significant increase from QR658.3 billion in 2021. The financial and insurance activities sector contributed 8.1% to the GDP, amounting to QR70.4 billion at current prices.

In terms of Islamic finance assets, it highlighted a 6.5% growth in 2022, reaching QR635 billion. Islamic banks accounted for 87% of these assets, while Islamic Sukuk represented 11.3% of the total.

Moreover, the report provided insights into the performance of different sectors. Islamic banks experienced a 7.3% growth in assets, reaching QR544.3 billion. Financing grew by 12.3%, totaling QR380.5 billion, primarily directed toward the real estate and government sectors. Revenues increased by 18.1%, amounting to QR23.3 billion.

In the Takaful insurance sector, assets reached around QR5 billion, reflecting an 11.9% growth. Policyholders’ assets amounted to approximately QR2.6 billion, with an 8.9% increase. Takaful insurance contributions grew by 9.3%, reaching QR1.5 billion.

Within the Islamic finance companies’ sector, assets declined by 1.9%, amounting to QR2.5 billion. Financing decreased by 3.3%, totaling QR1.69 billion, while revenues increased by 2% to QR224.5 billion.

Islamic investment companies witnessed a growth of 1.3% in assets, reaching QR509 billion. Revenues increased by 52.8%, amounting to QR62.3 million.

Furthermore, it indicated a 48% decrease in issued Islamic Sukuk, as Islamic banks halted their issuance in 2022. However, the Qatar Central Bank issued Sukuk totaling QR5.4 billion during the year.

At the Qatar Stock Exchange, the Al Rayan Islamic index saw a decrease of 2.66%. Listed Islamic finance companies’ shares ranged from a 13% increase to a 36% decrease.

The report provides valuable insights into the sector’s progress, offering researchers, institutions, and interested parties a comprehensive understanding of the Islamic finance landscape in Qatar.