With the start of a new fiscal year, Qatar’s banking sector is looking to continue demonstrating resilience and growth to build upon the foundations that were set in 2021 to deal with the COVID-19 pandemic. Throughout the uncertainties related to the long-term impact of the pandemic on various business segments in which the Qatari institutions operate, the banking sector has largely mitigated the risks of COVID-19-induced volatility through increased public and private sector collaboration, coupled with a drive to diversify revenue streams and attract new investors.
Qatari banks’ total assets have increased 0.2% month-on-month, up 6.7% year to date in November 2021 to reach QAR1.8 trillion (US$491.27 billion). Islamic banks in particular have seen an impressive growth margin fueled by a surge of interest from regional businesses, particularly from the Saudi market. Qatar Islamic Bank (QIB) reported a 16% year-on-year jump in net profit to QAR3.56 billion (US$971.62 million) in 2021.
In other news, the 6th annual CEOs and Islamic Finance Roundtable, organized by the Center for Islamic Economics and Finance at the College of Islamic Studies, was held in early January. The discussion-based event aimed to advance the Qatar National FinTech Strategy and Qatar National Vision 2030 by fostering an open dialogue among industry leaders, regulators and academia while providing an opportunity for students to become more involved in the industry.
Discussions highlighted the significant progress Qatar has made in structuring and developing a sustainable and globally competitive fintech ecosystem since the formation of the Qatar National FinTech Taskforce in 2017.
With technological advancements in the Qatari banking sector on the rise, especially within the post-COVID-19 and pre-FIFA World Cup 2022 contexts, banks continue to adapt to market and customer needs, strengthening fintech within the country.
Amjad Hussain is a partner at K&L Gates. He can be contacted at [email protected].