Bait Al-Mashura for Financial Consultations issued its fifth annual report on Islamic finance in the State of Qatar, which discusses the results of Islamic finance institutions’ business for the year 2022. The report reviews the results of the year 2022 with a cumulative study for five years (2018-2022).
Prof. Dr. said Khalid bin Ibrahim Al-Sulaiti, Vice Chairman of the Board of Directors of Bait Al-Mashura for Financial Consultations, stated that the “Islamic Finance Report in the State of Qatar” monitors the performance of Islamic financing institutions in the State of Qatar, including Islamic banks, Takaful insurance companies, and Islamic financing and investment companies, in addition to reviewing the performance of Islamic financial products represented in Islamic investment funds and sukuk and track the movement of the Islamic financial market.
fair financial system
He added: There is a noticeable increase in the levels of demand for Islamic financial services in Qatar and the world, as Islamic finance seeks to establish a fair financial system that enhances ethical values and pushes towards the economic well-being of the individual and society on clear foundations based on a framework of transparency and governance. Statement and clarity to stakeholders is one of the most important basic pillars. in legitimate financial transactions,
Hence, he added, the role of the reports that support this objective and stand on pointing out the weaknesses and strengths in the industry and the areas of development and innovation. We, at Bait Al-Mashura, have been keen to strengthen these rules, which are considered a basic starting point for researchers, interested parties, and even institutions, through the series of reports, research, and studies that we publish that discuss the Islamic finance sector in the State of Qatar, and give a clear picture of its reality and a forward-looking vision for its future.
Prof. Dr. explained Al-Sulaiti said that the performance of the Qatari economy exceeded expectations, achieving a growth rate of 4.8% in 2022, as the gross domestic product in 2022 at constant prices, according to estimates by the Planning and Statistics Authority in the State of Qatar, amounted to 690.1 billion riyals, compared to 658.3 billion riyals in 2021, and at current prices the output reached The domestic economy amounted to 863.8 billion riyals, compared to 654 billion riyals in 2021, with a growth rate of 32%. GDP growth for the year 2023 is expected to exceed 3%. The contribution of the financial and insurance activities sector to the GDP was 8.1%, reaching 70.4 billion riyals at current prices, compared to 62.9 billion riyals in 2021, with a growth rate of 11.9%.
Islamic finance assets
According to the report, Islamic finance assets in the State of Qatar grew by 6.5% in 2022, reaching 635 billion riyals. Islamic banks acquired 87% of these assets, while Islamic sukuk accounted for 11.3%.
At the sectoral level, the assets of Islamic banks recorded a growth rate of 7.3% in 2022 to reach 544.3 billion riyals, and deposits in them grew by 1.6%, reaching 317.8 billion riyals, while private sector deposits accounted for 54%, and financing amounted to 380.5 billion riyals, with a growth of 12.3%. More towards the real estate sector, the government sector, and then personal finance. Revenues increased by 18.1% and amounted to 23.3 billion riyals, and their profits recorded approximately 7.7 billion Qatari riyals, with a growth rate of 2.8%. In the Takaful insurance sector, the assets of Takaful insurance companies amounted to about 5 billion Almost riyals, with a growth of 11.9%, and the assets of insurance policyholders recorded 2.6 billion Qatari riyals, with a growth rate of 8.9%. Takaful insurance contributions reached the level of 1.5 billion Qatari riyals, an increase of 9.3%. The results of the Takaful insurance companies varied between achieving insurance surpluses amounting to A total of approximately 73.4 million Qatari riyals, and recording an insurance deficit of 5.7 million riyals.
In Islamic finance companies, the assets of these companies amounted to 2.5 billion Qatari riyals, declining by (1.9%). Revenues from financing and investment activities account for 90% of these total revenues, and the results of Islamic finance companies’ business varied between achieving profits that exceeded 125.7 million riyals in total, and recording losses amounting to approximately 8 million riyals.
investment funds
In the Islamic investment companies sector, the assets of the two Islamic investment companies grew by 1.3%, to 509 million riyals, and their revenues amounted to 62.3 million riyals, a growth of 52.8%, and their profits exceeded 16 million riyals.
In the field of Islamic sukuk, issued Islamic sukuk decreased by (48%). Islamic banks stopped issuing sukuk during the year 2022, while the Qatar Central Bank issued sukuk amounting to 5.4 billion riyals during the year, a decrease of (29%) compared to 2021.
In the Islamic investment funds sector, the assets of those funds exceeded 910 million riyals, registering a marginal decline by (0.9%), and their performance was mixed during the year 2022. As for the Qatar Stock Exchange, the Al Rayan Islamic Index closed down by (2.66%), and the performance of shares was The listed Islamic finance companies varied between an increase of 13% and a decrease of 36%.
