The Qatari banking sector has been relatively quiet during the summer period which is expected during this time of the year. Activity in the market, including the banking sector, is expected to rise as we enter the autumn months.
Bait Al-Mashura Finance Consultations recently published a report on Islamic finance in Qatar in 2022. The report notes that Islamic finance assets in Qatar reached QAR635 billion (US$173.02 billion) in 2022, showing an increase of 6.5% from previous years. The Islamic finance assets comprise Islamic banks (87.3%), Islamic Sukuk (11.3%), Takaful insurance companies (0.8%) and other investment funds and Islamic financial institutions.
The report also highlights that the Islamic banking sector in Qatar represents 28% of the overall assets of the banking industry, and that over the last five years, the assets of Islamic banks grew by 9.2%, as compared with a 5% growth rate experienced by conventional banks.
The Qatar Central Bank (QCB) conducted a ‘risk perception survey’ in 2022 which was completed by 16 banks in Qatar. The survey collated data on various risk factors, including cyber risks, liquidity risks, operational risks and others. The QCB published the results of the survey in its Financial Stability Review Report, which showed that the majority of banks consider cyber risks to be ‘high to very high risk’. According to the QCB’s report, ‘uneven global recovery’ and ‘geopolitical uncertainties’ are some of the major risks that banks face in 2023.
The Qatar Credit Bureau launched a new electronic service to support the credit market in Qatar by implementing a secure credit system in line with the latest information security standards. The service, known as the ‘Qatar Credit Bureau’ application, offers a wide range of benefits to users including, among other things, allowing users to easily access credit reports and keeping the public informed of the services, projects and initiatives that the bureau offers. This initiative is in line with the Qatar National Vision 2030 and the bureau’s efforts to keep up with the technological developments in the banking and financial sectors.
Qatar Islamic Bank and Masraf Al Rayan announced that they intend to publish their Q2 2023 financial results on the 16th July 2023 and 17th July 2023 respectively. It is hoped that the results of these banks and other banks in Qatar will drive the banking sector to continue to grow.
Amjad Hussain is a partner at K&L Gates. He can be contacted at [email protected].