Doha [Qatar], June 15: Qatar's Islamic finance sector continued its expansion in 2025, with total assets rising 5.3 percent to QR718.5 billion, driven by strong growth in Islamic banking, sukuk and takaful segments, according to the ninth edition of the "Islamic Finance in the State of Qatar Report 2025" released by Bait Al-Mashura Finance Consultations. Islamic banks remained the backbone of the sector, accounting for 87.8 percent of total Islamic finance assets, while their long-term growth between 2021 and 2025 outpaced conventional banks, reflecting rising demand for Shariah-compliant financial products and Qatar's growing position as a regional Islamic finance hub.
The report comes ahead of the opening of the 12th Doha Islamic Finance Conference, which will kick off tomorrow under the theme 'Islamic Finance in the Age of Agentic Systems'.
Organised by Bait Al-Mashura Finance Consultations in strategic partnership with Dukhan Bank, and with the official sponsorship of the Ministry of Commerce and Industry, the conference and the report together represent an integrated intellectual and regulatory platform aimed at supporting decision-makers, advancing the Islamic finance industry, and promoting the knowledge economy agenda in the State of Qatar.
Held under the patronage of Prime Minister and Minister of Foreign Affairs HE Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, the conference is supported by the General Directorate of Endowments at the Ministry of Endowments and Islamic Affairs as Diamond Sponsor, the Qatar Financial Centre (QFC) as Gold Sponsor, and Damaan Islamic Insurance Company (Beema) as Bronze Sponsor.
Taking place at Al Majlis Hall at Sheraton Grand Doha, the event will bring together representatives from government entities, international organisations, and financial and academic institutions specialising in economics, finance, and technology.
Its outcomes are expected to contribute to the continued development of Qatar's Islamic finance industry and further strengthen its global standing by addressing technological and regulatory transformations and the growing role of intelligent systems in financial services.
Prof Dr Khalid bin Ibrahim Al-Sulaiti, Vice Chairman of Bait Al Mashura Finance Consultations, affirmed that the ninth edition of the "Islamic Finance in the State of Qatar Report" captures an important milestone in the sector's growth journey, highlighting an industry that continues to enjoy strong investment appeal while reinforcing its position as one of the most advanced and stable financial sectors in the region.
He noted that the growth and expansion achieved in recent years reflect the success of the country's prudent economic and financial policies, supported by a robust and effective regulatory and supervisory framework overseen by the Qatar Central Bank and the relevant authorities governing the sector.
He added that one of the defining characteristics of Qatar's Islamic finance industry is its remarkable flexibility and ability to adapt to rapid global developments, whether in advanced financial technology (fintech), environmental and social sustainability requirements, or evolving financial business models.
He stressed that this adaptability has never come at the expense of strict adherence to Shariah principles and rulings, but rather has been achieved through a balanced approach that combines authenticity with innovation.
Prof Dr Al-Sulaiti said that according to the "Islamic Finance in the State of Qatar Report 2025", total Islamic finance assets in Qatar recorded annual growth of 5.3 percent in 2025, reaching approximately QR718.5 billion.
The report highlights the dominant position of domestic Islamic banks, which accounted for 87.8 percent of the total assets of the Islamic financial system.
Islamic sukuk ranked second with a share of 11 percent followed by the takaful insurance sector with 0.7 percent . The remaining share was distributed among Islamic finance and investment companies, mutual investment funds, and other Islamic financial institutions operating in the country.
According to the report, assets of Islamic banks in Qatar grew by 5.3 percent in 2025 to QR616.5 billion, up from QR585.5 billion in 2024, based on Qatar Central Bank data. By contrast, conventional banks posted a growth rate of 5 percent.
Domestic assets of Islamic banks increased by 4.6 percent in 2025, reaching QR554.3 billion, while reserves increased by 3.7 percentto QR21.3 billion.
Local Islamic banks account for nearly 28 percent of total banking sector assets in Qatar. The report highlighted the stronger long-term growth trajectory of Islamic banks, whose assets recorded a compound annual growth rate (CAGR) of approximately 4 percent over the 2021-2025 period, surpassing the 3 percent CAGR achieved by conventional commercial banks over the same period. This reflects growing confidence and rising demand among customers and the wider market for Shariah-compliant financial products and financing solutions.
Qatar's banking sector comprises four Islamic banks out of a total of sixteen banks operating in the country. Together, these four banks command a significant market share, accounting for nearly 28 percent of total banking sector assets.
The sector is further distinguished by having two banks ranked among the world's top ten Islamic banks by assets, with Qatar Islamic Bank (QIB) and Al Rayan Bank ranking sixth and seventh globally, respectively, in 2025.
Qatari Islamic banks operate through a network of over 60 branches, both domestically andinternationally.
In addition, three investment banks operate in the fields of wholesale and Islamic investment banking under the supervision of the Qatar Financial Centre, namely QInvest, Lesha Bank, and the Qatar branch of Abu Dhabi Islamic Bank.
The report also revealed that assets of takaful insurance companies increased by 5.9 percent in 2025 to QR4.7 billion, up from QR4.4 billion in 2024. Damaan Islamic Insurance Company (Beema) recorded the highest asset growth rate during the year at 20.3 percent , followed by Alkhaleej Takaful Insurance at 2.4 percent and Islamic Insurance Company at 1 percent . Meanwhile, the assets of Doha Islamic Insurance declined marginally by 0.9 percent , while the assets of General Takaful decreased by 11 percent compared to 2024. Over the 2021-2025 period, the CAGR of the assets of takaful insurance companies in Qatar stood at 1.1 percent . Beema recorded the highest CAGR at 3.3 percent , followed by Islamic Insurance Company at 1.8 percent.
Total assets of Qatari Islamic finance companies reached QR2.6 billion in 2025, up 3.9 percent year-on-year compared to 2024. Al Jazeera Finance led the sector, with its assets surging by 9.1 percent.
In the Islamic investment sector, which comprises two companies, total assets grew by 4.8 percent in 2025 to QR552.5 million.
The assets of The First Investor reached QR492 million, representing a growth rate of 6.3 percent, while the assets of Investment House decreased by 5.5 percent to QR60 million. Over the 2021-2025 period, the compound annual growth rate for the total assets of the two companies was positive at 3 percent. The compound annual growth rate for Investment House during this period was 10.1 percent, and for The First Investor, it was 2.3 percent.
Regarding sukuk, the Qatar Central Bank issued sukuk worth QR10.1 billion in 2025, accounting for 43.4 percent of the total sukuk and bond issuances during the year. During the five-year period from 2021 to 2025, the Qatar Central Bank issued sukuk totaling QR47.7 billion, representing 44.2 percent of total government sukuk and bond issuances during the period.
Source: Qatar Tribune