'Qatar And Malaysia Should Facilitate Blockchain Solutions For Sukuk Contracts'

(MENAFN- Gulf Times) Qatar and Malaysia should tap synergies in the Islamic finance to jointly facilitate blockchain-based innovations for smart sukuk contracts, according to a top official of Malaysia International Islamic Financial Centre (MIFC) Leadership Council.
"Fintech accelerator programmes and Malaysia's regulatory sandbox initiatives could facilitate joint blockchain-based innovations for smart sukuk contracts," Azman Mokhtar, chairman, MIFC Leadership Council said in a report of the Qatar Financial Centre (QFC).
This partnership is further enriched by a shared vision for harmonising Shariah-compliant standards and leveraging technology to improve transparency and efficiency in financial transactions and charitable distributions, such as modernising Zakat and Waqf platforms, he said in the Qatar Islamic Finance Report 2025.
"The synergy between Malaysia's digital Islamic banking leadership and Qatar's flourishing Islamic fintech ecosystem suggests a fertile ground for co-developing solutions that address the pressing needs of today while paving the way for a future-ready Islamic finance," he said.
In the area of Islamic finance, Mokhtar said the unfolding relationship between Malaysia and the Gulf Cooperation Council or GCC, with Qatar, as one of the key players, is "emerging as a frontier of immense potential."
This collaboration is driven by a shared commitment to fostering a robust, sustainable, and innovative global Islamic finance sector, according to him.
Mokhtar's comments assume significance in view of the QFC launching its Digital Assets Framework, a comprehensive and innovative regime for the creation and regulation of digital assets in the QFC.
Malaysia, with its commanding presence in the global sukuk market -- holding nearly 50% of all global issuances and $329bn in outstanding sukuk as of 2024 -- and Qatar, with its pioneering efforts in integrating ESG (environment, social and governance) principles, including the $467mn Al Kharsaah Solar Plant, possesses unique strengths.
"When combined, these strengths offer unprecedented opportunities for growth and innovation," he said.
Such a collaborative endeavour has the potential to achieve "significant" milestones, including advancements in green sukuk frameworks to tap into the ESG investment market, which is projected to reach $50tn by 2025.
Additionally, he said, the exploration of blockchain technology for financial services underscores the potential to not only enhance financial inclusivity but also drive positive environmental impacts.
"As we look to the future, it is imperative that our policies and initiatives continue to align with the goal of nurturing a resilient and competitive Islamic finance sector," Mokhtar said.
Key areas for us to concentrate on include regulatory alignment to ease cross-border transactions, human capital development, and fostering innovation through technology. "These priorities will undoubtedly propel us towards achieving a more inclusive and sustainable global financial system," he said, adding the collaborative journey between Malaysia and Qatar serves as a shining example of global cooperation in Islamic finance.
"Steered by shared interests and mutual respect, our partnership not only enhances the economic well-being of our respective nations but also contributes significantly to the global Islamic finance architecture, setting a precedent for future collaboration," he added.

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