Doha: The Islamic finance report in Qatar, issued by Bait Al Mashura Financial Consulting, has shown that Islamic finance assets grew by 4.1 percent year-on-year, reaching QR 683 billion in 2024. The report, which monitors the business results of Islamic finance institutions for 2024, highlighted the distribution of assets across various sectors.
According to Qatar News Agency, the report detailed that Islamic banks accounted for 87.4 percent of the total assets, while Islamic sukuk made up 11.2 percent. Takaful insurance companies contributed 0.7 percent, with the remaining shares distributed among investment funds and other Islamic financial institutions. Islamic banks' assets specifically saw a growth of 3.9 percent, reaching QR 585.5 billion. Deposits in these banks rose by 8.2 percent to QR 339.1 billion, with private sector deposits making up 57 percent. Financing increased by 4.9 percent to QR 401.5 billion, primarily directed towards the real estate and government sectors, followed by personal financing. Revenues grew by 12.6 percent to QR 29.5 billion, and profits reached QR 8.7 billion, marking a 6 percent growth rate.
The Takaful insurance sector experienced a 7.1 percent growth in assets year-on-year, reaching QR 5.1 billion in 2024. Policyholder assets grew by 6.3 percent, reaching QR 2.6 billion, while insurance subscriptions increased by 18.6 percent, exceeding QR 1.9 billion. The operating results of Takaful insurance companies varied, with some achieving insurance surpluses and others recording insurance deficits.
The report also covered Islamic finance companies, noting that their assets reached QR 2.53 billion, a marginal increase of 0.8 percent year-on-year in 2024. Financing provided by these companies increased by 5.7 percent to QR 1.9 billion, and revenues reached QR 277.2 million, a 14.7 percent increase. Revenues from financing and investment activities represented 84 percent of total revenues, with operating results varying between profits exceeding QR 178.5 million and losses of about QR 12 million.
In terms of Islamic investment companies, their assets grew by 5.2 percent, reaching QR 549.5 million. Revenues amounted to QR 59.7 million, reflecting a growth of 44.1 percent. Their operating results also varied, with profits totaling QR 17.5 million.
The Islamic sukuk sector saw a significant increase, with issuances rising by 161 percent. Islamic banks issued Sukuk worth QR 9.5 billion in 2024, a 300 percent increase, while Qatar Central Bank issued Sukuk worth QR 16.9 billion, up by 118.5 percent compared to 2023.
Regarding Islamic investment funds, assets amounted to QR 944.6 million, a 1 percent increase, with performance varying throughout 2024. On the Qatar Stock Exchange, the Al Rayan Islamic Index closed up 2.23 percent, with the performance of listed Islamic finance companies fluctuating between increases of 2.3 percent and decreases of 19.6 percent.
According to the report, the Islamic financial sector in Qatar is divided into four main sectors: Islamic banks, Takaful insurance companies, Islamic finance companies, and Islamic investment companies, alongside Islamic finance products such as Sukuk, investment funds, and Islamic indices.
Dr. Khalid bin Ibrahim Al Sulaiti, Vice Chairman of Bait Al Mashura Financial Consulting, emphasized that the Islamic Finance in Qatar Report monitors the performance of Islamic finance institutions in the country, providing a comprehensive analysis of the market. He noted Qatar's growing significance as a global center for the Islamic finance industry, with promising growth prospects and significant transformations in performance, expansion, and supporting technologies observed over the past year. This underscores the importance of data analysis and trend monitoring to align with these changes, achieving a balance between Sharia dimensions, development goals, and economic and social sustainability.