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Qatar News Agency reported on Sept. 9 that the country’s Islamic banking sector continues to consolidate its role in the national financial system, supported by a strong overall banking industry, updated regulations, broader digital offerings and growing interest in sukuk alongside sustainable finance. Data from the Bait Al-Mashura Finance Consultations report on Islamic finance in Qatar for 2025, cited in the dispatch, placed total Islamic finance assets at QR718.5 billion, an increase from QR682.3 billion in 2024. Islamic banks accounted for QR616.5 billion of that total, equivalent to an 85.8 percent share within the Islamic finance ecosystem and nearly 28 percent of all Qatari banking assets.
The Bait Al-Mashura report highlighted a 5.3 percent annual growth rate for Islamic banks that exceeded the 5 percent recorded by conventional commercial banks. Liquidity metrics remained robust, with liquid assets representing 25.2 percent of total assets and 58.8 percent of short-term liabilities, according to the same assessment. A London Stock Exchange Group review of Qatar’s Islamic finance sector for the prior period noted compound annual growth of 6.4 percent between 2020 and 2024, providing a foundation for the latest expansion.
Dr Khalid bin Ibrahim Al Sulaiti, vice chairman of Bait Al-Mashura Finance Consultations, told Qatar News Agency that digitalization has become a primary driver of growth in Islamic finance, providing models and products capable of meeting customer needs and enhancing financial inclusion. He noted that the global Islamic fintech market has exceeded $198 billion and is projected to reach $341 billion by 2029 at a compound annual growth rate of 11.5 percent, with the artificial intelligence boom serving as a catalyst. An Oxford Business Group sector analysis placed Qatar eighth out of 64 key Islamic fintech markets in the 2024 Global Islamic FinTech Index, with transaction volumes tripling between 2020 and 2024.
Sustainable finance instruments have also supported momentum, with Dr Al Sulaiti pointing to issuances of sustainable sukuk in Qatar that have exceeded QR20 billion. The dispatch referenced Masraf Al Rayan’s QR500 million green sukuk listed on the Qatar Stock Exchange in the first quarter as a notable development. Qatar Islamic Bank issued a $500 million Oryx sustainable sukuk listed on the London Stock Exchange that saw demand exceed the issuance value by more than eight times, according to comments carried in the Qatar News Agency report.
Qatar Central Bank initiatives, including its ESG and Sustainability Strategy for the Financial Sector launched in 2024, have aligned regulatory frameworks with these trends, a separate LSEG assessment found. The strategy focuses on climate risk management, capital mobilization for sustainable projects and embedding sustainability into central bank operations. Oxford Business Group data showed Islamic banking assets reached QR694 billion by the end of 2024 before the further increase detailed in the 2025 Bait Al-Mashura report.
Officials anticipate the sector will maintain its trajectory over the next five years through an expanding asset base, greater private-sector financing and investment in renewable energy and green projects that support Qatar’s economic diversification goals, the news agency dispatch concluded. The Bait Al-Mashura vice chairman linked future progress to continued advances in fintech, artificial intelligence applications and Shariah-compliant digital solutions that meet evolving customer expectations while reinforcing financial stability.
