Qatar’s Islamic Finance Undergoing Transformative Phase, Says QDB

Doha’s Islamic finance is undergoing a transformative phase, and blockchain and artificial intelligence (AI) offer significant potential to enhance transparency, according to top official of Qatar Development Bank (QDB).

“Qatar is well-positioned to lead globally in Islamic finance, setting benchmarks for innovation and sustainability in the $4.9tn Islamic finance industry,” QDB chief executive officer Abdulrahman Hesham al-Sowaidi said in a Qatar Financial Centre report.

Highlighting that Islamic finance in Qatar is undergoing a transformative phase, driven by innovation; he said the third Financial Sector Strategy highlights Islamic finance as one of five cross-cutting themes on which we will focus on in the next five years.

“A dedicated Islamic finance master strategy has been developed in this regard and is currently being implemented by all concerned stakeholders,” he said.

The Qatar Fintech Hub (QFTH) has been instrumental in fostering Islamic fintech evolution. Since its launch in 2020, the QFTH has supported more than 100 fintech startups, in alignment with the National Fintech Strategy.

“Blockchain and AI offer significant potential to enhance transparency and efficiency in Shariah-compliant finance,” al-Sowaidi said, adding emerging platforms automate compliance, streamline Tawarruq, and scale Murabaha.

However, robust regulations and ensuring Shariah adherence in new technologies are crucial, according to him.

Collaborative efforts among stakeholders are essential to address these challenges, he added.

“We are also keen on investing in leading international Islamic fintech platforms,” he said, citing through Startup Qatar, QDB recently invested in Wahed, a leading global halal investing platform.

Wahed subsequently established its regional headquarters in Doha and aims to expand its operations within Qatar.

“Looking ahead, we are prioritising digital transformation by integrating advanced digital solutions to enhance service delivery and accessibility,” according to al-Sowaidi.

These initiatives reinforce QDB’s commitment to fostering a resilient, diversified economy, one that empowers business, drives exports, and leverages technology for long-term prosperity.

Highlighting that QDB sees the coming years as a pivotal period to strengthen its role as an enabler and orchestrator of Qatar’s business ecosystem, he said its updated 2025-30 strategy is built upon the achievements of previous years, aligning seamlessly with the Third National Development Strategy and Qatar National Vision 2030.

Stressing that its core focus remains on customer-centric innovation; he said “we are reimagining our services to provide tailored, bundled solutions that are adapted to the evolving needs of entrepreneurs and support them at every stage of their journey.

By refining and introducing new services, it aims to create a dynamic support system that fosters sustainable success for businesses in Qatar.

“We are also deepening our strategic focus on priority clusters and intensifying co-ordination with ecosystem partners to drive greater impact,” he added.

Specifically, QDB is enhancing support at the earliest stages of entrepreneurship, particularly in the pre-seed and seed phases, while also fostering joint investment in later stages, expanding guarantee programmes, and strengthening angel investment networks.

“Islamic finance remains a cornerstone of Qatar’s economic landscape, deeply embedded in our national financial framework,” he said.