Islamic Financial Services
From The Report: Qatar 2016
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In recent years Qatar’s Islamic financial services (IFS) sector has expanded rapidly, on the back of government support and growing interest among domestic corporations and individuals alike. While tightening liquidity has the potential to result in slightly curtailed growth across the banking sector as a whole in 2016-17, sharia-compliant lenders are widely considered to be in a better position than their conventional counterparts to continue to grow during this slower period. Recent figures reinforce this perception, with Qatar’s four national Islamic banks posting overall asset growth of 17.5% between January 2015 and January 2016, compared with 14.4% growth in the conventional banking segment during the same period, according to the most recent data from the Qatar Central Bank (QCB).

This chapter contains interviews with Khalid Yousef Al Subeai, Acting Group CEO, Barwa Bank; Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank; and Bassel Gamal, Group CEO, Qatar Islamic Bank.

Articles from this Chapter

Overview

Principled finance: Demand for project funding is expected to drive future growth
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In recent years Qatar’s Islamic financial services (IFS) sector has expanded rapidly, on the back of government support and growing interest among domestic corporates and individuals alike. While tightening liquidity has the potential to result in slightly curtailed growth across the country’s banking sector as a whole in 2016-17, sharia-compliant lenders are widely considered to be in a better position than their conventional counterparts to continue to grow during this slower period. Recent…

Interview

Making it count: OBG talks to Khalid Yousef Al Subeai, Acting Group CEO, Barwa Bank
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Interview:Khalid Yousef Al Subeai What role will sukuk (Islamic bond) issuance play in the market going forward? KHALID YOUSEF AL SUBEAI: We set up a $2bn medium-term note sukuk programme in November 2015. Under this programme, the bank is expected to issue a benchmark US-dollar public transaction, with a typical benchmark size of approximately $500m before the end of 2016 or during the first half of 2017, depending on prevailing market conditions and opportunities. As issuers in an Islamic…

Analysis

Sphere of influence: Qatar’s reputation as a centre for Islamic finance is growing
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The maturation of Qatar’s Islamic financial services (IFS) industry over the past decade and a half has led the country’s sharia-compliant institutions to take a two-tiered approach to growing their business. First, the nation’s Islamic financial institutions have focused on serving domestic demand. Second, as in the conventional segment, many of the country’s Islamic institutions have looked outside Qatar for further growth opportunities. For example, as of early 2016 Qatar Islamic Bank…

Interview

Sustainable growth: OBG talks to Bassel Gamal, Group CEO, Qatar Islamic Bank (QIB)
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Interview: Bassel Gamal Do you view the recent growth of sharia-compliant finance in non-Islamic jurisdictions as complementary to, or competitive with, Qatar’s aspirations to become an Islamic financial centre? BASSEL GAMAL: Islamic banking has grown substantially in the GCC as banks introduce additional products and services to provide holistic financial solutions to all clients. A growing number of new customers are becoming aware of the increasing Islamic banking offering. It is no surprise…

Interview

Expanding the market: OBG talks to Abdulbasit Ahmed Al Shaibei, CEO, Qatar International Islamic Bank (QIIB)
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Interview:Abdulbasit Ahmed Al Shaibei What role do you foresee sukuk (Islamic bonds) playing in the coming years? ABDULBASIT AHMED AL SHAIBEI: The decrease in oil prices has translated into a greater momentum for issuances by governments, and an avenue for GCC member states to start tapping this market to finance their deficits. This will have an impact on local funding markets, where liquidity may tighten as the government optimises its spending, pushing local banks to seek funding from…

Analysis

Focus on banking: Across the GCC, Islamic banks are poised for expansion
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With balance sheet growth of 19%, up from 12% the previous year, at the end of 2014 Qatar was home to the fastest-growing Islamic banking segment in the GCC region, according to data released in late 2015 by the international ratings agency Standard & Poor’s (S&P). The country’s four national sharia-compliant lenders – namely Qatar Islamic Bank (QIB), Masraf Al Rayan (MAR), Barwa Bank and Qatar International Islamic Bank (QIIB) – have taken on a growing percentage of overall banking…