Islamic Finance Assets Up 4.1% In 2024, Reaching Qr683bn

Doha, Qatar: The Qatari economy sustained its growth within expected parameters during 2024, notwithstanding global volatility and the persistent challenges of inflation and interest rate dynamics.

The monetary and banking sectors demonstrated continued stability, reinforcing their robustness and adaptability through strategic monetary policies and the directives of the Qatar National Vision 2030 (QNV2030), the third phase of whose strategy was initiated this year.

Islamic finance assets in the State of Qatar experienced a 4.1 percent growth in 2024, reaching QR683bn ($187bn). Islamic banks accounted for 87.4 percent of these assets, while Islamic Sukuk represented 11.2 percent.

Within the Islamic banking sector, assets expanded by 3.9 percent in 2024, totaling QR585.5bn. Deposits rose by 8.2 percent reaching QR339.1bn, with private sector deposits constituting 57 percent.

In a statement, Prof. Khalid Ibrahim Al Sulaiti, Vice Chairman of the Board of Directors of Bait Al Mashura Finance Consultations said: "The Islamic finance sector experienced significant transformations and qualitative advancements in performance, expansion, and supporting technologies. This necessitates a close monitoring of these changes through data analysis and trend tracking to offer a more comprehensive and precise perspective on the current state and to anticipate future trajectories. Our endeavor is to strike a balance between Sharia principles, developmental objectives, and economic and social sustainability.

"Driven by our mission at "Bait Al Mashura Finance Consultations", we remain dedicated to issuing this annual report. This commitment reinforces our role in supporting the progress of the Islamic financial industry, both domestically and internationally, by providing knowledge that serves decision-makers, researchers, and specialists. Our approach is grounded in rigorous academic methodology and professional analysis, relying on accurate data and verified information," he added.

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On the other hand, Financings reached QR401.5bn, an increase of 4.9%, predominantly directed towards the real state and government sectors respectively, and subsequently personal finance. Revenues posted a growth rate of 12.6 percent, amounting to QR29.5bn, while net profits reached QR8.7bn, equivalent to 6 percent increase.

In the Takaful insurance sector, the assets of Takaful companies increased by 7.1 percent to QR5.1bn. Policyholders' assets also grew by 6.3 percent, reaching QR2.6bn. Insurance contributions saw a significant rise of 18.6 percent, exceeding QR1.9bn. The performance outcomes for Takaful insurance companies varied, with some achieving insurance surpluses while others incurred deficits

For Islamic finance companies, total assets amounted to QR2.53bn, a marginal increase of 0.8 percent. Financings extended by these companies grew by 5.7 percent to QR1.9bn. Revenues reached QR277.2m, an increase of 14.7 percent. Revenues from financing and investment activities constituted 84 percent of the total.

The findings of the Islamic finance companies' financial demonstrated mixed results, with some reporting profits collectively exceeding QR178.5m, while others recorded losses of approximately QR12m.

Islamic investment companies saw their combined assets grow by 5.2 percent, reaching QR549.5m. Their revenues increased by 44.1 percent reaching QR59.7m. Performance outcomes varied, with some realising profits and others incurring losses; total profits for the sector reached QR17.5m.

In the Islamic Sukuk market, issued Islamic Sukuk increased by 161 percent. Islamic banks issued Sukuk valued at QR9.5bn in 2024, a 300 percent surge, while the Qatar Central Bank issued Sukuk worth QR16.9bn during the year, an increase of 118.5 percent compared to 2023.

Islamic investment funds' assets stood at QR944.6m, reflecting a 1 percent increase. Their performance during the year was varied.
On the Qatar Stock Exchange, the Al Rayan Islamic Index closed with a gain of 2.23 percent.

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