2025-10-09
Qatar Calls for Unified Efforts at OIC Level To Enhance Islamic Finance’s Negotiating Power and Ensure International Economic Stability
Qatar, whose Islamic finance assets have grown rapidly over past two decades, yesterday called for unified efforts at the Organisation of Islamic Co-operation (OIC) level to standardise norms for enhancing negotiating power and establish Islamic finance as pillar of international economic stability.
“It is crucial to unify efforts and co-ordination within the OIC to standardise norms, financial regulations, and shared platforms,” Qatar Central Bank (QCB) Deputy Governor Sheikh Ahmed bin Khalid bin Ahmed bin Sultan al-Thani told the 8th International Conference on Islamic Finance, organised by Hamad bin Khalifa University, in association with the Qatar Financial Centre.
This, according to him, enables cross-border Islamic finance to support trade, investment, and infrastructure development.
“Adopting a co-ordinated financial strategy enhances negotiating power in international forums, helps face external shocks and establishes Islamic finance as a pillar of global economic stability,” he said.
A study in 82 countries showed Islamic banking reduces volatility, supports long-term growth, and expands financial inclusion, especially in areas lacking access to traditional banking services, Sheikh Ahmed said, highlighting the benefits of various mechanisms like Zakat, Waqf, and microfinance, designed to meet local needs and values, offering different growth advantages.
Despite this growth, the sector faces structural and operational challenges, he said, adding these include differing Shariah rulings limiting expansion and cross-border coordination, liquidity constraints in some markets due to limited products, and regulatory “gaps”.
"These factors impact integration and limit the sector's potential," Sheikh Ahmed said.
Islamic finance in Qatar has grown rapidly over the past two decades with assets reaching QR683bn by the end of 2024, registering an annual growth of 4.1%, he said, adding Islamic banking alone accounted for QR585bn, with 6.8% growth annually since 2020.
Highlighting that legislation and infrastructure have supported this growth and that the third strategic plan for the financial sector prioritises Islamic finance; he said this, alongside the fintech strategy, highlights opportunities offered by the state's leadership in Islamic banking and insurance, allowing digital innovation to be a key enabler for Islamic finance.
He said Islamic finance promotes sustainability by incorporating it into Shariah-compliant products, linking finance to real economic activity, making it an ideal tool for investments in social governance, environmental practices, and green sukuk.
Sheikh Ahmed said the assets of Islamic banks globally reached $3.88tn, recording an annual growth of 14.9%. Islamic banking assets rose by 17%, Islamic takaful assets by 16.9% and sukuk issuance by 25.6% in 2024.
"This serves as a vital alternative to capital, especially with increasing competition for access to international capital. Islamic finance in OIC countries has helped build strong financial relationships within the organisation," he said.
Finding that today, the global economy faces a period of disruption and fragmentation, as economic blocs and countries move towards isolationism; he said amidst such challenges, Islamic finance emerges as a flexible tool in a fragmented economic landscape, based on principles of promoting financial stability, financial inclusion, and real economic value.
“It is crucial to unify efforts and co-ordination within the OIC to standardise norms, financial regulations, and shared platforms,” Qatar Central Bank (QCB) Deputy Governor Sheikh Ahmed bin Khalid bin Ahmed bin Sultan al-Thani told the 8th International Conference on Islamic Finance, organised by Hamad bin Khalifa University, in association with the Qatar Financial Centre.
This, according to him, enables cross-border Islamic finance to support trade, investment, and infrastructure development.
“Adopting a co-ordinated financial strategy enhances negotiating power in international forums, helps face external shocks and establishes Islamic finance as a pillar of global economic stability,” he said.
A study in 82 countries showed Islamic banking reduces volatility, supports long-term growth, and expands financial inclusion, especially in areas lacking access to traditional banking services, Sheikh Ahmed said, highlighting the benefits of various mechanisms like Zakat, Waqf, and microfinance, designed to meet local needs and values, offering different growth advantages.
Despite this growth, the sector faces structural and operational challenges, he said, adding these include differing Shariah rulings limiting expansion and cross-border coordination, liquidity constraints in some markets due to limited products, and regulatory “gaps”.
"These factors impact integration and limit the sector's potential," Sheikh Ahmed said.
Islamic finance in Qatar has grown rapidly over the past two decades with assets reaching QR683bn by the end of 2024, registering an annual growth of 4.1%, he said, adding Islamic banking alone accounted for QR585bn, with 6.8% growth annually since 2020.
Highlighting that legislation and infrastructure have supported this growth and that the third strategic plan for the financial sector prioritises Islamic finance; he said this, alongside the fintech strategy, highlights opportunities offered by the state's leadership in Islamic banking and insurance, allowing digital innovation to be a key enabler for Islamic finance.
He said Islamic finance promotes sustainability by incorporating it into Shariah-compliant products, linking finance to real economic activity, making it an ideal tool for investments in social governance, environmental practices, and green sukuk.
Sheikh Ahmed said the assets of Islamic banks globally reached $3.88tn, recording an annual growth of 14.9%. Islamic banking assets rose by 17%, Islamic takaful assets by 16.9% and sukuk issuance by 25.6% in 2024.
"This serves as a vital alternative to capital, especially with increasing competition for access to international capital. Islamic finance in OIC countries has helped build strong financial relationships within the organisation," he said.
Finding that today, the global economy faces a period of disruption and fragmentation, as economic blocs and countries move towards isolationism; he said amidst such challenges, Islamic finance emerges as a flexible tool in a fragmented economic landscape, based on principles of promoting financial stability, financial inclusion, and real economic value.
Source: GULF TIMES