Latest news with #IslamicBanks
Zawya
08-07-2025
- Business
- Zawya
Qatar: Islamic banking sector assets surge by 3.9% to $160.85bln
Doha: The Islamic banking sector has witnessed robust growth over the past year. It has sustained its growth rate despite global volatility. Economic growth and diversification have been strong drivers of the development and expansion of this sector in Qatar. The Islamic banking sector, assets expanded by 3.9 percent in last year, totaling QR585.5bn. The deposits rose by 8.2 percent reaching QR339.1bn, with private sector deposits constituting 57 percent. The total financings reached QR401.5bn, an increase of 4.9 percent, predominantly directed towards the real state and government sectors respectively, and subsequently followed by personal finance. Revenues posted a growth rate of 12.6 percent, amounting to QR29.5bn, while net profits reached QR8.7bn, equivalent to 6 percent increase, according to a recent report by by Bait Al Mashura Finance. In view of the extent of the contribution made by Islamic banks, alongside the banking sector in Qatar, in financing various sectors, it is noted that the consumer sector constituted the largest sector. This was financed by Islamic banks accounting for 64 percent of the total financing extended by commercial banks (both Islamic and conventional). This was followed by the contracting sector, with 44 percent, then the real estate sector, with 42 percent, and the industrial sector, with 34 percent. It is further noted that the majority of financing extended by Islamic banks was directed toward the local market, accounting for 96 percent of their total financing portfolio, compared to 95 percent of the financing provided by conventional commercial banks being directed toward the local market. The country's economy has sustained its growth momentum at stable natural rates. This performance is underpinned by expansive developments in natural gas production at the North Field, alongside marked progress in the tourism sector. The monetary and banking sectors demonstrated continued stability, reinforcing their robustness and adaptability through strategic monetary policies and the directives of the Qatar National Vision 2030, the third phase of whose strategy was initiated this year. Within its financial and economic framework, the strategy aspires to foster sustainable economic growth by advancing a competitive, productive, and diversified economy that stimulates innovation. It further aims to achieve fiscal sustainability by reinforcing the long-term stability, soundness, and resilience of the State's public finances. Qatar's Islamic financial sector is diversified across four main components: Islamic banks, Takaful (Islamic insurance) companies, Islamic finance companies, and Islamic investment companies. It also includes a range of Shariah-compliant financial instruments such as Sukuk, Islamic investment funds, and Islamic indices. All institutions operating within these sectors are subject to direct supervision by the Qatar Central Bank (QCB). Additionally, certain institutions conduct Islamic financial activities under the regulatory framework of the Qatar Financial Centre (QFC). Meanwhile the Islamic banks in Qatar achieved total revenues amounting to QR29.5bn in the same period reflecting a growth rate of 12.6 percent compared to the year 2023. With a boost from hosting the FIFA World Cup in 2022, Qatar's diversification efforts have significantly shifted its economic structure, with nonoil sectors contributing 64% to real GDP by Q3 2024, a rapid rise from 39% in 2013. The financial sector's contribution also rose, from 5% to 8% of real GDP. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Khaleej Times
26-06-2025
- Business
- Khaleej Times
Global sukuk market increasingly becoming attractive for mainstream investors
At $930 billion in size, the market for sukuk – often described as the Islamic world's equivalent to bonds – is becoming increasingly difficult for mainstream investors to overlook. While sukuk-focused funds remain small, with just $5.8 billion in assets under management, the space has seen notable developments in recent years, including the rise of passive ETFs, a study showed. While the sukuk market grew to $930 billion in outstanding securities by the end of 2024 (up from $863 billion in 2023), the market for funds investing in sukuk is tiny by comparison, data from Morningstar shows. Sukuk funds totalled $5.8 billion in assets in May 2025 (up from $5.0 billion a year earlier). Islamic banks dominate sukuk ownership, resulting in a market characterized by shallow trading and low liquidity. The market for sukuk funds aimed at global investors includes a small but growing cohort of both passive and active options. Fees for passive sukuk ETFs, which largely focus on the investment-grade market, fees range from 0.35 per cent to 0.50 per cent (reasonable, though higher than comparable bond options). Fees for US dollar-denominated actively-managed sukuk funds average 1.34 per cent (pricey compared to conventional global diversified or emerging-markets bond funds). Active sukuk funds often have more room to boost yields by investing in riskier, below-investment-grade issuers. 'As the global sukuk market expands, its relevance and appeal to investors seeking Shariah-compliant options have grown. Still, the market's concentration in specific geographies and heavy exposure to a few issuers makes it less suitable as a long-term core allocation compared to more diversified conventional bond strategies. However, for investors restricted to Shariah-compliant vehicles, the range of both active and passive sukuk funds is widening. Sukuk have not been immune to short-term volatility as geopolitical risks exploded in the Middle East in 2025, but many sukuk managers argue that issuers in the region retain strong fundamentals, and that credit deterioration should be fairly contained,' commented Shannon Kirwin, Principal, Fixed Income Ratings at Morningstar. The sukuk market's infrequent trading and largely buy-and-hold investor base have yielded a key benefit for sukuk investors: historically lower price volatility compared to conventional bonds. However, this feature could diminish if funds become a more meaningful portion of the market – and it should not be mistaken for a lack of credit risk. Standards boards, particularly the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAIOFI) and the Malaysia-based Islamic Financial Services Board (IFSB) play important roles in establishing and maintaining norms in the sukuk market. Currently, the AAIOFI is considering tightening its standards for the treatment of asset-based sukuk (its upcoming Standard 62), which some observers worry could prove disruptive to the market. Fund managers and experts who spoke with Morningstar for this paper, however, expressed optimism that the board would ultimately err on the side of preserving market stability. Despite its lower price volatility, the sukuk market's strong geographic skew towards a few regional markets (Gulf countries dominate hard-currency issuance while Malaysia dominates local-currency issuance) makes the asset class less suitable as a core portfolio building block for conventional investors than a diversified global bond allocation, analysts say. However, for Muslim investors otherwise unable to tap fixed-income funds, the sukuk market offers a compelling solution.
Zawya
17-06-2025
- Business
- Zawya
BankDhofar redefining fund management in today's changing financial landscape
Muscat - In the intricate web of modern finance, banks—whether conventional or Islamic—serve a fundamental and enduring purpose: the effective stewardship of customer funds. From individuals and SMEs to large corporates and institutions, customers entrust banks with their capital, expecting not only safety but also value appreciation. This sacred responsibility has evolved far beyond the basic provision of deposit accounts and simple interest returns. Traditionally, banks have placed client funds in a variety of time-tested instruments: fixed deposits, savings accounts, treasury bills, and government bonds, to name a few. These options offer dependable returns and capital protection, providing a solid foundation for conservative investors. Islamic banks, meanwhile, channel customer funds into Sharia-compliant instruments such as Mudarabah or Wakala-based placements, emphasizing ethical profit-sharing and risk mitigation. However, as markets become more dynamic and customer expectations more sophisticated, banks in Oman and across the region have embraced innovative strategies to maximize the value of their customers' funds. Today, the banking experience is no longer just about security—it's about strategic growth. Creative solutions have emerged to meet this need. Banks are leveraging digital wealth platforms, introducing structured investment products, and offering diversified portfolio options tied to global markets. ESG-aligned funds, sector-focused investments (like tech or green energy), and cross-border investment vehicles are gaining traction. Some banks even offer curated financial planning sessions and digital tools that simulate growth projections based on varying risk appetites. These offerings transform passive funds into actively managed assets with long-term growth potential. Importantly, the role of banks as custodians of wealth is not simply transactional—it is also relational. Banks that excel in this domain recognize that managing client funds is not about short-term gains, but about cultivating long-term financial well-being. They view their clients as stakeholders in a shared journey, deserving of transparency, strategic insight, and personalized advisory. In Oman, where total deposits in the banking system continue to climb year on year, this relationship-based approach has never been more vital. It is not enough to hold funds—it is about making them work harder and smarter for the customer. BankDhofar, one of the largest and most progressive banks in the Sultanate, exemplifies this philosophy in action. With a clear customer-first ethos, BankDhofar has gone beyond traditional fund management to offer a bespoke advisory experience. Through dedicated Relationship Managers and Customer Champions, the bank ensures clients receive the best possible financial guidance whether for short-term liquidity management, long-term investment planning, or Sharia-compliant wealth structuring. The bank's diverse range of instruments, both conventional and Islamic, are tailored to match the unique needs and goals of its varied customer base. From secure deposit products and foreign currency solutions to tailored investment opportunities, BankDhofar is committed to helping clients grow their wealth prudently and sustainably. In managing customer funds, BankDhofar does not merely offer a service it fulfills a stewardship. It is a partner in prosperity, a trusted advisor in uncertain times, and a champion of financial growth. For customers seeking a banking relationship defined by trust, innovation, and commitment to value, BankDhofar continues to lead the way.
Zawya
12-06-2025
- Business
- Zawya
Bank credit in Oman grows 9% to $85bln in April
Muscat – Oman's banking sector recorded robust credit growth of 9.0% during the first four months of 2025, while deposits surged by over 9.3% year-on-year, according to the latest data from the Central Bank of Oman (CBO). Total outstanding credit extended by the banking sector – comprising both conventional and Islamic banks – rose by nine per cent to RO33.6bn as of the end of April 2025, compared to the same period in the previous year, the CBO stated in its monthly statistical bulletin. Of the total credit extended, loans to the private sector grew by 7.0%, reaching RO27.8bn. Non-financial corporations received the largest share of private sector credit, accounting for approximately 46.6% of the total, followed by the household sector at 44.0%. Financial corporations held a 5.6% share, while other sectors made up the remaining 3.7%. In the conventional banking segment, total credit grew by 7.9% year-on-year as of April 2025. Credit extended to the private sector by conventional banks increased by 5.2% to RO21.3bn, while their investments in securities rose by 2.1% to RO5.8bn, according to CBO figures. Investments in government development bonds by conventional banks rose by 6.2% year-on-year to RO2bn in April 2025, while investments in foreign securities increased by 3.7% to RO2.1bn over the same period. Deposits surge 9.3% Deposits across Oman's banking sector grew significantly by 9.3%, reaching RO32.8bn at the end of April 2025. Private sector deposits increased by 7.1% to RO21.5bn. Within this category, household deposits contributed the largest share, accounting for 50.3% of the total, followed by non-financial corporations at 30.4%, financial corporations at 17.0%, and other sectors at 2.3%. Conventional banks saw aggregate deposits rise by 6.1% year-on-year to RO25.7bn by the end of April 2025. Government deposits with conventional banks increased by 6.2% to RO5.8bn, while deposits from public enterprises grew by 11.4% to RO2.2bn. Private sector deposits, which represent 65.2% of total deposits at conventional banks, rose by 4.5% to reach RO16.8bn. According to the CBO, the weighted average interest rate on Omani rial deposits with conventional banks rose slightly from 2.580% in April 2024 to 2.594% at the end of April 2025. Meanwhile, the weighted average lending rate for the Omani rial decreased from 5.604% to 5.555% over the same period. The overnight Omani rial domestic interbank lending rate declined to 4.392% in April 2025, down from 5.212% a year earlier. This decrease is attributed to the reduction in the average repo rate for liquidity injections by the CBO, which fell to 5.0% from 6.0%, in line with the monetary policy direction of the US Federal Reserve. Islamic banking grows by 18% Oman's Islamic banking sector continues to maintain its strong growth trajectory in 2025, with double-digit increases in both credit and deposits. The total assets of Islamic banks and windows grew by 18.1% year-on-year, reaching RO8.9bn by the end of April 2025. Islamic assets now represent approximately 19.6% of the total assets within Oman's banking system. Islamic banking entities provided financing totalling RO7.2bn by the end of April this year, reflecting a 13.5% increase compared to the previous year. Total deposits held by Islamic banks and windows also surged by 22.6%, reaching RO7.1bn in April 2025. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Arabian Business
10-06-2025
- Business
- Arabian Business
Qatar Islamic finance assets hit $188bn
Islamic finance assets in Qatar grew by 4.1 per cent to reach QR683bn ($187.6bn) in 2024, according to a report by Bait Al Mashura Financial Consulting. The report, which monitors the business results of Islamic finance institutions for 2024, showed that Islamic banks accounted for 87.4 per cent of these assets, while Islamic sukuk accounted for 11.2 per cent, Takaful insurance companies accounted for 0.7 per cent, and the remaining shares were distributed among investment funds and other Islamic financial institutions. It also noted that Islamic banks' assets grew by 3.9 per cent in 2024, reaching QR585.5bn ($160.8bn). Islamic finance in Qatar Deposits also rose by 8.2 per cent to QR 339.1bn ($93.2bn), with private sector deposits accounting for 57 per cent. Financing reached QR401.5bn ($110.3bn), a 4.9 per cent increase, primarily directed towards the real estate and government sectors, followed by personal financing. Revenues grew by 12.6 per cent to QR29.5bn ($8.1bn), and profits reached QR8.7bn ($2.4bn), a 6 per cent growth rate. As for Takaful insurance sector, the report stated that Takaful insurance companies' assets grew by 7.1 per cent year-on-year, reaching QR5.1bn ($1.5bn) in 2024. Policyholder assets also grew by 6.3 per cent, reaching QR2.6bn ($714m), while insurance subscriptions increased by 18.6 per cent, exceeding QR1.9bn ($522m). Takaful insurance companies' operating results varied between achieving insurance surpluses and recording insurance deficits. Regarding Islamic finance companies, the report stated that their assets reached QR2.53bn ($695m), a marginal increase of 0.8 per cent year-on-year in 2024. Financing provided by these companies increased by 5.7 per cent to QR1.9bn ($522m), and their revenues reached QR277.2m ($76m), a 14.7 per cent increase. Revenues from financing and investment activities represented 84 per cent of the total revenues. The operating results of Islamic finance companies varied between achieving profits totalling more than QR178.5m ($49m) and incurring losses of approximately QR12m ($3.3m). Regarding Islamic investment companies, the report indicated that the assets of the two Islamic investment companies grew by 5.2 per cent, reaching QR549.5m ($151m), while their revenues reached QR59.7m ($16.4m), a growth of 44.1 per cent. Their operating results varied between achieving profits and incurring losses, with profits amounting to QR17.5m ($4.8m). In the field of Islamic Sukuk, Islamic Sukuk issuances increased by 161 per cent. Islamic banks issued Sukuk worth QR9.5bn ($2.6bn) in 2024, a 300 per cent increase. Qatar Central Bank issued Sukuk worth QR16.9bn ($4.6bn) in 2024, a 118.5 per cent increase compared to 2023. Regarding Islamic investment funds, the report noted that assets of these funds amounted to QR944.6m ($259.5m), a 1 per cent increase, and their performance varied during 2024. On the Qatar Stock Exchange, the Al Rayan Islamic Index closed up 2.23 per cent, while the performance of listed Islamic finance companies varied between increases of 2.3 per cent and decreases of 19.6 per cent. According to the report, the Islamic financial sector in the State of Qatar is divided into four main sectors: Islamic banks Takaful insurance companies Islamic finance companies Islamic investment companies In addition, there are Islamic finance products such as Sukuk, investment funds, and Islamic indices. Dr. Khalid bin Ibrahim Al Sulaiti, Vice Chairman of Bait Al Mashura Financial Consulting, said: 'The Islamic Finance in Qatar Report monitors the performance of Islamic finance institutions in the country, including Islamic banks, Takaful insurance companies, and Islamic finance and investment companies. 'It also reviews the performance of Islamic financial products, such as investment funds and Islamic sukuk, tracks the movement of the Islamic financial market, and provides an analysis of the overall performance of the Qatari economy.' He added that Qatar is consolidating its position as a major centre for the Islamic finance industry globally, and growth prospects appear promising. Meanwhile, the sector itself witnessed significant transformations and qualitative developments in performance, expansion, and supporting technologies over the past year. This reinforces the need to keep pace with these changes through data analysis and trend monitoring, in order to provide a more comprehensive and accurate vision of the present and future prospects, striving to achieve a balance between Sharia dimensions, development goals, and economic and social sustainability.
