Doha, September 09 (QNA) – Qatar’s Islamic banking sector continues to demonstrate steady growth, consolidating its position within the national financial system, driven by overall banking sector strength, evolving regulatory frameworks, expanding digital services, and rising demand for sukuk and sustainable finance.
The latest Qatar Central Bank (QCB) data from its 2025 Financial Stability Report issued in August highlights the resilience and stability of the Qatari banking sector. Total bank assets grew by 5.1%, propelled by credit growth in both the public and private sectors. Asset quality continued to improve amid declining non-performing loans (NPLs) and strengthened risk coverage provisions, while capital reserves and liquidity remained well above regulatory minimums.
According to the report, the banking sector’s capital adequacy ratio reached 19.9% in 2025, up from 19.6% in 2024, with the Tier 1 capital ratio rising to 15.7% from 15.2%. The NPL ratio dropped to 3.4% from 3.6%, while the NPL provision coverage ratio climbed to 84.6% from 77.4%. Liquid assets accounted for 25.2% of total assets and 58.8% of short-term liabilities.
Meanwhile, the 9th Annual Report on Islamic Finance in the State of Qatar by Bait Al-Mashura Finance Consultations details the expansion of the broader Islamic finance ecosystem. Total sector assets reached QAR 718.5 billion in 2025, up from QAR 682.3 billion in 2024. Islamic banks held the largest share at 85.8%, QAR 616.5 billion, reflecting a 5.3% annual growth rate that exceeded conventional commercial banks, which stood at 5%, representing nearly 28% of total Qatari banking assets. Sukuk ranked second with roughly 11% of total Islamic financial assets, followed by Takaful (Islamic insurance) at 0.7%, with the remainder spread across Islamic finance, investment companies, and investment funds.
Domestic assets of Islamic banks reached QAR 554.3 billion, registering a 4.6% growth, while deposits rose 7.5% to QAR 364.4 billion, accounting for nearly 35% of total banking sector deposits. Total financing provided by Islamic banks grew 4.2% to QAR 418.3 billion, representing about 29% of total banking sector financing.
The substantial footprint of Qatar’s four Islamic banks, Qatar Islamic Bank (QIB), Masraf Al Rayan, Dukhan Bank, and Qatar International Islamic Bank (QIIB), is underscored by their strong market shares across major economic sectors. Islamic banks accounted for 63% of total consumer financing, 44% of real estate financing, 42% of construction financing, and 34% of industrial financing, with 96% of their total financing directed toward the domestic market.
In this conducive environment, economists and industry experts interviewed by Qatar News Agency (QNA) believe that Islamic banking in Qatar is experiencing multifaceted growth, driven by digitalization, financial innovation, and sustainable financing.
CEO of QIIB Dr. Abdulbasit Ahmed Al Shaibei…
Read More: Qatar news agency
