The College of Islamic Studies at Hamad Bin Khalifa University in Qatar hosted a roundtable on the 28th February 2023 which was attended by executives from Qatar Central Bank, Qatar Financial Centre, QIIB, Dukhan Bank, Lesha Bank and others. The discussions revolved around three key issues, namely Qatar becoming an Islamic Sukuk hub, Qatar’s fintech strategy and Qatar’s national climate change action plan. The attendees discussed opportunities, challenges and potential collaborations to overcome the challenges and further develop the Islamic banking and fintech sectors in Qatar.
Qatar Financial Centre CEO Yousef Al Jaida noted that: “Qatar’s mission to become an Islamic Sukuk hub offers vast opportunities for Islamic finance firms to grow in and from the country. Against this backdrop, the Qatar Financial Centre has launched the Sustainable Sukuk and Bonds Framework, based on the International Capital Markets Association’s Green Bond Principles, Social Bond Principles and Sustainable Bond Guidelines — the first regulatory framework of its kind in the GCC.”
Qatar Central Bank launched a new fintech strategy earlier this month that is in line with Qatar National Vision 2030. The fintech strategy is based on the following four key strategic pillars: (1) fintech foundations and infrastructure, (2) growth drivers and focus areas, (3) ‘fintalent’ and capability excellence; and (4) ‘fintouch’.
The first pillar, fintech foundations and infrastructure, is centered around developing the infrastructure to support fintechs, including developing the fintech regulatory framework in Qatar.
The second pillar involves leveraging Qatar’s strengths to create a niche fintech market. A key area of focus is ethical and green fintech, which Qatar aims to develop by using its strength in Islamic banking and its growing focus on ESG.
The third pillar, fintalent and capability excellence, involves establishing a world-class fintech curriculum in cooperation with Qatari universities, including a national fintech internship program.
Finally, the fourth pillar is focused on improving the general well-being of the community by creating a seamless cashless banking system and introducing crowdfunding and other concepts.
QIIB has launched its ‘Swift Go’ service, another addition to its digital payment solutions, and the first ‘Swift Go’ service to be launched in Qatar. This service will allow customers to receive cross-border payments into their accounts without delay.
QIIB noted that SMEs and retail customers will particularly benefit from this service. QIIB’s long-term foreign currency rating went up to ‘A+’ with a stable outlook from Capital Intelligence Ratings, which noted that QIIB has strong liquidity, a specialized business model and strong government support.
Finally, Dukhan Bank, the third-largest Islamic bank in Qatar, successfully listed on the Qatar Stock Exchange on the 21st February 2023. Following the listing, Dukhan Bank disclosed its financial results for the year ending December 2022, which showed a profit of QAR1.25 billion (US$342.72 million), a 5% increase from 2021. The bank’s board of directors also recommended a dividend distribution of 16% to shareholders.
Amjad Hussain is a partner at K&L Gates. He can be contacted at [email protected].