The Beit Al -Mashara Financial Consulting Company issued its eighth annual report on Islamic finance in the State of Qatar, which discusses the results of the work of Islamic financing institutions for the year 2024, and the report also provides a clear picture of the performance of Islamic financing institutions and the financial and economic sector in the State of Qatar, with the aim of providing a cognitive base for institutions, researchers and those interested in the local Islamic finance sector, and the report reviews the results of 2024 with a cumulative study of five years (2020 – 2024).
Dr. Khalid bin Ibrahim Al -Sulaiti, Vice -Chairman of the Board of Directors of the Consultation House for Financial Consulting, said that “Islamic finance report in the State of Qatar” monitors the performance of Islamic financing institutions in the State of Qatar from Islamic banks, takaful insurance companies, Islamic financing and investment companies, in addition to reviewing the performance of Islamic financial products represented in investment funds and Islamic instruments and affiliated with the Islamic financial market movement, as well as providing an analysis of the performance of the Qatari economy in general.
He added that Qatar has established its position as a major center for the Islamic financial industry worldwide and the prospects of growth appear promising, while the same sector witnessed during the past year important transformations and qualitative developments in the level of performance, expansion and support technologies, which enhances the need to keep pace with these changes through data analysis and follow -up trends, in order to provide a more comprehensive and accurate vision around the present and foreseeing the future, in an effort to achieve the balance between the balance between Legal dimensions, development goals, economic and social sustainability.
Increase in deposits by 8.2 %
The Islamic Finance Report in the State of Qatar showed that the assets of Islamic finance achieved a growth rate of 4.1% on an annual basis to reach the level of 683 billion Qatari riyals in 2024, and Islamic banks acquired a share of 87.4% of these assets, while the share of Islamic Sukuk reached 11.2%, and Takaful insurance companies were 0.7%, and the remaining shares were distributed to investment funds and other Islamic financial institutions.
In 2024, the assets of Islamic banks achieved a growth of 3.9%, reaching 585.5 billion Qatari riyals, and deposits increased by 8.2% to the level of 339.1 billion riyals, and the private sector deposits constituted 57%, and funds amounted to 401.5 billion riyals, with an increase of 4.9%, heading towards the real estate sector and the government sector and then personal funds, and revenues have achieved growth in them With a rate of 12.6% and reached 29.5 billion riyals, and its profits amounted to 8.7 billion Qatari riyals, with a growth rate of 6%.
In the symbiotic insurance sector, the assets of the Takaful insurance companies grew by 7.1% on an annual basis, reaching 5.1 billion riyals in 2024, and the assets of the insurance documents campaign achieved a growth of 6.3% and reached 2.6 billion Qatari riyals, and insurance contributions increased by 18.6%, as they exceeded 1.9 billion riyals, and the results of the takaful insurance companies varied between achieving insurance surpluses And record insurance deficit.
In Islamic financing companies, the assets of those companies amounted to 2.53 billion Qatari riyals, with a marginal increase of 0.8% on an annual basis in 2024, and the funds provided by these companies increased by 5.7% to the level of 1.9 billion riyals, and their revenues amounted Islamic financing between achieving profits exceeding 178.5 million riyals, and incurred losses of approximately 12 million riyals.
Islamic investment companies
In Islamic investment companies, the assets of Islamic investment companies grew by 5.2%, reached 549.5 million riyals, and their revenues amounted to 59.7 million riyals, with a growth of 44.1%, and the results of their business varied between achieving profits and losses, and profits reached 17.5 million riyals, and in the field of Islamic sukuk, the Islamic exported instruments increased by 161%, where Islamic banks issued sukuk during the year 2024 at a value of 9.5 billion riyals, with an increase of 300%, and the Qatar Central Bank issued sukuk with an amount of 16.9 billion riyals during the year 2024, an increase of 118.5% compared to 2023.
In Islamic investment funds, the assets of these funds amounted to 944.6 million riyals, with an increase of 1%, and their performance was uneven during the year 2024 and on the Qatar Stock Exchange, the Islamic Rayyan index closed at an increase of 2.23%, and the performance of the shares of Islamic financing companies listed was varying between an increase of 2.3%, and a decrease of (19.6%).
According to the report, the Islamic financial sector in the State of Qatar is divided into four main sectors represented in: Islamic banks, takaful insurance companies, Islamic financing companies, and Islamic investment companies, in addition to Islamic financing products represented by sukuk, investment funds and Islamic indicators. These institutions operating in these financial sectors are subject to direct supervision by the Qatar Central Bank; In addition to the presence of some financial institutions that practice Islamic financial activities within the framework of the Qatar Financial Center.
The banking sector in the State of Qatar includes four Islamic banks out of a total of sixteen banks, including four traditional local commercial banks, a specialized bank (Qatar Development Bank), and seven branches of traditional foreign banks, in addition to the presence of a representative office for a foreign bank. It also operates under the supervision of the Qatar Financial Center Authority, Qio Infost, Banak Lakha, and the branch of the Abu Dhabi Islamic Bank (Qatar), and these banks operate in the field of wholesale and Islamic investment banking.
60 branches for Islamic banks
The Qatari Islamic banks operate through an internal and external branch network of more than 60 branches, and these Islamic banks acquire more than a quarter of the market share of the banking sector in the State of Qatar, and three of these banks are ranked among the ten largest Islamic banks in the world in terms of assets, so the Qatar Islamic Bank became the sixth largest Islamic bank, and Al -Rayyan was ranked seventh, and the Dukhan Bank ranked ten. Globally.
At the level of the total economy, the Islamic Finance Report said that the Qatari economy continued the march of growth during the year 2024 despite the geopolitical turmoil and the uncertainty that controls the global economy and the continuation of the battle to curb inflation and interest rates, and the Qatari banking sector maintained its stability while strengthening its hardness and flexibility through monetary policies and the third national development strategy «2024-2030), while the prospects for economic growth in Qatar seem promising in Qatar The announcement of the start of the production of the first phase of the expansion of the northern field, which is the largest gas project under construction in the world in the middle of next year. The expansion project of the North field consisting of 3 stages increasing the production capacity of the State of Qatar from gas by 85 % of 77 million tons annually is currently to 142 million tons annually by 2030.
The report monitored the acceleration of the growth of the tourism sector in light of the focus on diversifying the national economy, and despite the pressure of low energy prices, the general budget of the state continued to achieve financial surpluses in 2024, and the financial and banking sector still has a high degree of hardness, with strong levels of accommodation and comfortable liquidity rates and high levels of coverage of allocations to ward off potential risks, as the year 2024 witnessed the start of implementation The third national development strategy (2024-2030) is the culmination of the Qatar National Vision 2030, which aims in its financial and economic part to reach sustainable economic growth by transforming into a competitive, productive, diversified and motivated economy, and a financial sustainability that enhances the stability, safety and flexibility of government budgets in the long run.
According to estimates of the National Planning Council, the Qatari economy achieved positive growth in 2024 at a rate of 2.6%, according to the data issued by the Council, the GDP of the year 2024 reached fixed prices 713.4 billion riyals compared to 695.5 billion riyals in 2023, and at the current prices the GDP reached 795.3 billion riyals compared to 788.3 billion riyals in 2023 and at a rate Growth of 0.9%, and the growth of the GDP for the year 2025 is 2.4%. The contribution of the financial activities and insurance sector to the local product was 10.3%, as it amounted to 82 billion riyals, according to current prices compared to 82.1 billion in 2023, with a marginal decrease of (0.1%).
Achieving cash surpluses
The government budget continued to achieve cash surpluses, as the government budget in 2024 achieved a surplus of 5.6 billion riyals, and revenues amounted to 213.3 billion riyals, a decrease of (16.2%) from 2023, as oil and gas revenues decreased by (18.3%) and reached 172.8 billion riyals, and oil and gas revenues formed 81%of the total revenues, and reached The expenses are 207.7 billion riyals, with a decrease of (1.7%), and according to the declared budget for the year 2025, revenues are expected to reach 197 billion riyals compared to expenditures of up to 210.2 billion riyals, and a cash deficit is estimated at (13.2) billion riyals.
According to the data of the National Planning Council, the rate of inflation continued to slow down, and the inflation rate during the year 2024 was according to the general level of consumer prices 1.2%, and according to the main components the rise in the entertainment and culture group appeared, as it increased by 7.9%, then the communications group by 2.6%, and education by 1.7%, and it decreased in the housing group, electricity, water, gas and fuel by (2.9%), while the rise was The decrease in the rest of the groups is marginal and simple, and inflation is expected to be in 2025 at 1.4%.