Islamic banks represent 28 percent of Qatar’s total banking sector. Islamic banks have experienced a compound annual growth rate of 6.3 percent in their assets over the last five years (2019-2023), surpassing the 4.4 percent growth rate of conventional commercial banks during the same period.
The Islamic finance continues its development through expansion to enter new markets as the sector is undergoing rapid expansion.
The assets of Islamic banking sector in Qatar experienced a 3.6 percent increase in last year. As per the latest statistics released by the Qatar Central Bank, the assets of Islamic banks in the country reached QR563.7bn, up from QR544.3bn in 2022.
The growth rate of conventional banks stood at 3.3 percent, according to seventh annual report on Islamic Finance in Qatar 2023.
The foreign assets within Islamic banks recorded QR35.4bn, by 9 percent, while local assets increased by 4 percent reaching QR509bn. Reserve decreased by (8 percent) compared to 2022. QIIB ranked the first among the four Islamic banks in terms of asset growth in 2023 represented in 9.3 percent, Dukhan Bank assets increased by 7.7 percent, representing QIB growth by 2.8 percent, while Al Rayan bank assets decreased by (2 percent).
QIB continues to be the first among Islamic banks in terms of the volume of assets, reaching QR189bn at the end of the year 2023, followed by Masraf Al Rayan with assets reaching QR164.2bn, Dukhan Bank with QR114.4bn, then QIIB, with assets amounting to QR61.6bn.
During the period (2019-2023), Dukhan Bank topped Islamic banks in the compound growth rate of assets, reaching 9.1 percent, Dukhan Bank 8.2 percent, and in QIB the compound growth was 3 percent, and QIIB 1.6 percent during the period.
The report further noted that the Islamic banking sector in Qatar experienced a 1.3 percent decrease in deposits in 2023, as reported by the Qatar Central Bank. Deposits in Islamic banks decreased in 2023 by 1.4 percent, while the decrease in conventional banks recorded 1.3 percent. Deposits in Islamic banks accounts for around 32 percent of total banking sector in Qatar, where deposits reached QR313.4bn, compared to QR317.8bn in 2022. During the period (2019-2023), the compound annual growth rate of deposits in Islamic banks was 5.1 percent, compared to 2.2 percent in conventional banks.
Regarding the restructuring of Islamic bank deposits for 2023, it stated that the private sector still accounts for the largest percentage of 59 percent, followed by the public sector by 34 percent.
The nonresident deposits accounted for 7 percent of the total deposits in Islamic banks. During 2023, the growth rate was the most prominent in public sector deposits; it increased by 8 percent, while the decrease in private sector deposits was 2 percent, and non-resident deposits decreased by 43 percent compared to 2022.—The Peninsula Qatar
