The Shariah-compliant finance industry in Qatar presents "significant" growth opportunities and position the country as a global hub for Islamic finance, according to a top official of Malaysia-based the Islamic Financial Services Board (IFSB).

"The Islamic finance industry in Qatar presents significant opportunities for growth, driven by increasing demand for Islamic financial products, government support, and technological advancements," IFSB secretary-general Dr Ghiath Shabsigh said in a report published by the Qatar Financial Centre (QFC).

With greater awareness and preference for ethical finance, he said Islamic banking, takaful, and sukuk investments are gaining traction among both domestic and international investors.

Qatar National Vision 2030, which emphasises economic diversification and innovation, positions Islamic finance as an important pillar for sustainable development and growth. Furthermore, the Qatar Central Bank is aiming, under its third strategic plan, to give the industry clear direction, support innovation, and promote and raise awareness of Islamic financial services, according to him.

These factors create important opportunities for Qatar’s Islamic financial institutions to expand regionally and internationally, and to position the country as a global hub for Islamic finance.

Since the QFC Regulatory Authority or QFCRA became a member of the IFSB in 2006, and the QFC an observer in 2018, the collaboration has contributed to the development of robust regulatory standards, ensuring a sound and resilient Islamic financial sector, Shabsigh said.

The QFCRA has actively participated in the development of IFSB standards, shaping IFSB policy discussions, and aligning international best practices with industry needs, including standards such as the Core Principles for Islamic Finance Regulation, Conduct of Business Supervision in Takaful Undertakings, and several other standards. Additionally, the QFCRA’s involvement in capacity-building initiatives such as training programmes, workshops, and experience- and knowledge-sharing forums has helped enhance Islamic finance regulatory expertise and institutional capabilities across IFSB membership.

Qatari IFIs (Islamic financial institutions) voluntarily adopt Shariah standards set by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

This voluntary adoption of standards provides flexibility while ensuring that the IFIs adhere to internationally recognised Shariah principles.

The approach to Shariah governance allows Qatari IFIs to tailor their operations to meet both domestic and global customer and investor expectations.

Qatar has become a key player in the global Islamic finance sector, leveraging its strong financial infrastructure and strategic initiatives to drive growth and innovation.

The country has a dynamic Islamic finance industry, with a broad range of Shariah-compliant products. It is a major regional player, hosting two of the region’s 10 largest Islamic banks by asset size.

The Islamic finance industry is considered a vital part of the country’s financial system. Traditional Islamic finance assets reached QR684bn by the end of 2024, constituting 27% of Qatar’s total traditional financial system assets.