Doha
Qatar has been rapidly developing its Islamic finance industry and is poised to become a leading hub for the sector. The industry’s total assets grew by a CAGR of 8 percent since 2015 to $129bn in H1 2019, constituting 33 percent of Qatar’s total financial system assets, Qatar Financial Centre’s (QFC) Islamic Finance report noted. The QFC’s annual report, produced in partnership with Refinitiv and published under the title ‘Unlocking Cross-Border Opportunities’, comes as part of a series of research the QFC publishes on trending topics in the financial sector, with this year’s edition revealing key insights into the Islamic Finance industry in Qatar and beyond. According to the report, one key initiative set to strengthen Qatar’s Islamic finance sector is the planned introduction of a centralized Shariah Board, which is expected to raise consistency and hence, improve the integrity of the industry. QFC is also collaborating with Malaysia and Turkey to establish Islamic finance hubs in their respective regions by using common technology. In addition to this, steps are being taken to raise knowledge and awareness of the industry through educational initiatives and events, which should further support the industry’s growth. Islamic banking in Qatar, amounting to $107bn in assets in H1 2019, is also being transformed in terms of its institutions. Qatar’s first bank merger, between International Bank of Qatar and Shariah-compliant Barwa Bank, resulted in the newly reconstituted Barwa Bank. Meanwhile, Qatar’s $1bn takaful sector outperformed conventional insurance in terms of growth over the past two years, mainly driven by Islamic subsidiaries of Qatari insurance operators. Its nonbanking financial institutions, consisting of financing and investment companies, reached a combined asset value of just over$1bn, the report noted. Yousuf Mohamed Al Jaida, Chief Executive Officer & Board Member, Qatar Financial Centre (QFC) Authority commented: ‘QFC sees significant promise in Islamic finance’s expansion globally and in Qatar.—The Peninsula
