Qatar’s Islamic Finance Sector Is Expanding with Sukuk and Fintech Innovation Growth

Doha, Qatar — Based on Qatar’s Islamic Finance Report 2025, the Islamic finance scene in Qatar kept on expanding in 2024, with assets hitting QAR 694 billion—a solid 6.4% increase annually since 2020. Thanks to new regulations and a push towards digital solutions, the sector’s growth is becoming more important in the region’s financial system. Islamic banks control about 29% of Qatar’s banking assets, growing at nearly 7% each year since 2020. Mergers like the one between Al Rayan Bank and Al Khalij Commercial Bank, along with increased borrowing after the World Cup in areas like construction, have helped fuel this expansion.

Houssam Itani, Group Chief Transformation Officer at Al Rayan Bank, pointed out, “Shariah-compliant financing fits well with Qatar’s goals to diversify its economy.” New rules from the Qatar Central Bank (QCB), including aligning with Basel III standards and creating AI safety standards, are meant to keep the financial system stable. Also, partnerships with fintech companies like QPay are pushing digital services forward, including automated compliance tools and blockchain transactions. Qatar’s takaful (Islamic insurance) market brought in around $1.9 billion in 2024, growing quickly at 13.5% annually. Mandatory health insurance for expatriates and AI-based underwriting are helping family and health takaful make up over half of the market, led by companies like Qatar Islamic Insurance and Al Khaleej Takaful.

Abdulrahman Al-Sowaidi, CEO of Qatar Development Bank, commented, “We support projects that combine Shariah principles with sustainability.” Islamic FinTech transactions hit nearly QAR 10 billion in 2024, triple what they were in 2020, according to the Global Islamic FinTech Index. Companies like Wahed, which opened a regional office in Doha after receiving funding from QDB, and blockchain platforms like Wethaq, which focus on small and medium businesses, are making waves. The Qatar Financial Centre (QFC) kicked off initiatives like its Digital Assets Lab and Metaverse projects to promote tokenisation and smart contracts. Yousuf Al-Jaida, the CEO of QFC, shared, “Our frameworks help Qatar stay competitive in emerging technological areas.”

Sukuk issuance, also known as Islamic bonds, has jumped to a staggering 35% in 2024, reaching QAR 30.4 billion, driven by government deals and environmentally sustainable bonds. Notable developments include Qatar’s first sovereign green bond of $2.5 billion, Estithmar Holding’s QAR 645 million sukuk—the first Qatari Riyal-denominated corporate bond abroad—and QIIB’s $500 million sustainability sukuk attracting investors from around the world. Michael Grifferty of the Gulf Capital Market Association noted, “Qatar is strengthening its capital markets to meet changing investor needs.” Non-oil sectors now make up 64% of Qatar’s economy, up from 39% in 2013, supported by the Third Financial Sector Strategic Plan focused on technology and international partnerships.

The Qatar Investment Authority’s $1 billion Fund of Funds has brought firms like B Capital and Rasmal Ventures into the startup scene. Tan Sri Azman Mokhtar, Chairman of Malaysia’s MIFC, observed, “Qatar’s way of combining Shariah compliance with digital innovation shows a clear strategic vision for growth.”
(Source: Qatar Islamic Finance Report 2025 by QFC & LSEG, Zawya.)

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