He praised Qatar Central Bank Governor Sheikh Abdullah bin Saud Al Thani performance Islamic finance in State Qatar, stressing that it witnessing continuous development through policies and systems that are being updated to ensure continued competitiveness at regional and international levels.
In his introductory speech to a report issued by the Bait Al-Mashura Financial Consulting Company, which dealt with Islamic finance in the State of Qatar, Sheikh Abdullah bin Saud Al-Thani explained that the assets of Islamic finance in Qatar amounted to 528 billion riyals ($144 billion), of which the assets of banks constituted. Islamic 86%. Read also Its volume will exceed 3 trillion dollars.. Experts discuss the future of Islamic finance at a conference in Doha The new issuance of the Qatari currency..a system for tracking banknotes from their introduction to the market until their return to the bank During a conference in Doha, a call to establish an Islamic market for commodities and minerals in the Middle East Supported by financial and legislative facilities… Expectations for greater growth of the real estate sector in Qatar
During the speech, he noted the successful banking merger of Barwa Bank with International Bank of Qatar, which resulted in Dukhan Bank. He also referred to Masraf Al Rayan’s efforts to merge with another banking merger with Al Khaleej Commercial Bank (Al Khaleeji), noting that this step would contribute to strengthening the strength of Qatari Islamic banks globally. This new banking entity is expected to be the fifth largest Islamic bank in the world, with assets of $47 billion.
An unprecedented crisis
The Governor of the Qatar Central Bank said, “The global economy and the financial and banking sector went through an unprecedented crisis during the year 2020, represented by the effects and repercussions of the Corona pandemic (Covid-19), and this crisis constituted a new challenge to the financial and banking system in the State of Qatar.”
He added, “Thanks to the measures that were taken, which focused on ensuring business continuity, supporting liquidity and providing targeted support to the affected sectors, we were able to mitigate the effects of this shock, maintain the flow of credit to the economic sectors, and achieve financial and banking stability in the country.”
He continued, “During this crisis, banks witnessed a state of pressure on their systems and budgets through the requirements of harmonization between the continued granting of credit, the reclassification of assets and the monitoring of provisions for credit losses, and the banks in the State of Qatar continued to apply the accounting standard for calculating the provision for expected credit losses, in addition to updating the construction of scenarios. However, the results of the banking sector were good, as banks maintained their asset quality standards, and credit grew by 8.6%.
financial technology
The governor stressed that financial technology is no longer an option, but rather an urgent necessity that should speed up the adoption of its applications, noting that the current crisis has revealed the ability of the banking sector in the State of Qatar to adapt quickly to changes and adopt technological solutions in accordance with the best technical standards and preventive and supervisory controls.
For his part, Dr. Khaled Ibrahim Al-Sulaiti, Vice Chairman of the Board of Directors of Bait Al-Mashura Financial Consultations, said that the Islamic finance sector has shown flexibility and solidity in facing the repercussions of the Corona pandemic, in light of the great digital transformation witnessed by the sector, which produces new opportunities for growth.
The Islamic finance report in the State of Qatar 2020 showed that the assets of Islamic banks in Qatar witnessed a growth of 8.4% in 2020, while deposits grew by 8.7%, and financings grew by 7.9%.
According to the report, the Islamic financial sector in the State of Qatar diversifies to include 4 main sectors: Islamic banks, Takaful insurance companies, Islamic finance companies, and Islamic investment companies, in addition to Islamic financing products represented in sukuk, investment funds and Islamic indices.