Islamic Banking Assets in Qatar Grow 3.9% to QR585.5bn in 2024: Bait Al-Mashura

The assets of Islamic banks in the country grew by 3.9% to QR585.5bn in 2024, according to Bait Al-Mashura Finance.

Quoting figures from the Qatar Central Bank (QCB), Bait Al-Mashura said in 2023 Islamic bank assets in the country totalled QR563.7bn.

Islamic banks accounted for 28% of the total assets of Qatar’s banking sector, the researcher said.

Domestic assets of Islamic banks increased by 4% in 2024 to QR529.7bn, while their reserves rose by 6.3% to QR20.6bn.

Foreign assets amounted to QR35.2bn, a 0.4% decrease year-on-year compared to 2023.

The compound annual growth rate (CAGR) of assets for Qatar’s Islamic banks over the five-year period (2020-2024) reached 5.4%, compared to 3.5% for traditional commercial banks in the country during the same period.

In 2024, Islamic banks in Qatar recorded revenues of QR29.5bn, representing a growth rate of 12.6% compared to 2023.

Financing and investment activities accounted for 91% of these total revenues. This growth was driven by a 13.8% increase in financing and investment revenues, along with an 8.4% decrease in the provision for credit losses compared to 2023.

Over the period 2020-2024, the revenue of Islamic banks grew at a CAGR of 9%.

In 2024, the four Islamic banks in Qatar achieved total net profits of QR8.7bn for their shareholders, compared to QR8.2bn in 2023, representing a 6% growth.

Data from the QCB showed that total deposits in the Qatari banking system grew by 4.1% in 2024.

Islamic bank deposits in Qatar increased by 8.2% during the same period, compared to a 2.2% increase in deposits at conventional commercial banks.

Islamic bank deposits accounted for approximately 34% of the total deposits in the Qatari banking system, reaching a total of QR339.1bn, compared to QR313.4bn in 2023.

Over the period 2020-2024, the compound annual growth rate for deposits in Islamic banks was 5%, compared to 1.5% for conventional banks.

The private sector held the largest share of deposits in Islamic banks, at 57%, followed by the public sector with 38%. Non-resident deposits constituted only 5% of total deposits in Islamic banks.

During 2024, the most significant growth rate was observed in public sector deposits, which increased by 20%. Private sector deposits also grew by 4%, while non-resident deposits declined by 16% compared to 2023.

According to quarterly data from the QCB, financing provided by Islamic banks (in 2024) reached QR401.5bn, an increase of 4.9% compared to 2023.

Credit facilities extended by traditional commercial banks also increased by 4.4%.

The most significant growth in Islamic bank financing in 2024 was observed in the real estate and general trade sectors, increasing by 16% and 12.7% respectively.

Financing for the services and consumer sectors also increased by 4.5% and 2.9% respectively.

Conversely, financing for the industrial and construction sectors declined by 14.2% and 11.3% respectively.

Islamic bank financing represented 30% of total banking sector financing in 2024.

During the period 2020-2024, the CAGR for total financing by Islamic banks was 5.2%, compared to 3% for traditional commercial banks.