Minister of Commerce and Industry H E Sheikh Muhammad bin Hamad bin Qassim Al Thani
The 9th Islamic Finance Conference titled ‘ Islamic Finance and Challenges of Web 3.0’ kicked off at the Sheraton Hotel, Doha yesterday.
The event focused on the growing significance of Islamic Finance in the globe and the impact of Metaverse on the financial sector.
The growth of Islamic Finance and the adoption of advanced technology in the financial sector that has helped Qatar to be ahead of countries in the GCC region was highlighted at the event which underscored the many initiatives taken by the State to develop a vibrant financial sector in line with its 2030 National Vision.
Minister of Commerce and Industry H E Sheikh Muhammad bin Hamad bin Qassim Al Thani said the financial sector is a vital pillar in Qatar’s economy which is one of the fastest growing economies in the region due to the adoption of advanced technology and the digital transformation that has paid rich dividends to the state.
“The state has made great strides in the digital sphere of the financial sector which has helped put the country on top in the GCC region,” the Minister said while noting that the country notched an economic growth rate of four percent with a budget surplus surpassing QR89bn last year.
H E said the state has been resilient to many external shocks and had comfortably withstood the global economic challenges during the past years making it one of the vibrant economies in the globe while becoming the world’s fifth-largest market for Islamic finance.
“We will always strive to adopt the best technology that would benefit the financial sector and the economy at large,” the Minister noted. Dukhan Bank Chairman, Board of Directors Sheikh Muhammad bin Hamad bin Jasim Al Thani said technology represents a key part of the economy and the transition of the financial sector. We have seen in recent years vast growth in the quality of services by banks.
However he noted that there are challenges that may arise when the cooperation relationship turns into competition led by giant technology companies to enter financing operations, provide financial services and compete with the banking sector, which may lead to confusion in the work of banks and the financial and banking environment.
However, the financial and the banking sector faced many challenges, he said.
“The Dukhan Bank has been in the forefront in providing transformative technology in Qatar while initiating a number of measures such as listing in the Qatar Stock Exchange and achieving feats such as the fastest bank to adopt Shariah compliance and adopting an effective eco system to minimize risk,” he said.
General Director of the Directorate of Endowments and The Ministry of Endowments and Islamic Affairs Sheikh Dr. Khalid bin Muhammad bin Ghanim Al Thani said the world of technology is moving very fast and added that the world has now reached the decade of the virtual world and AI. Endowment is a key aspect of scientific research and knowledge enrichment.
“Endowments need scientific research. We came forward to partner the conference to support research and development in the financial sector and its development,” he said adding that this year's Islamic conference will shed light on the opportunities and challenges in going forward.
World Bank-USA Director of the Prospects Group Dr. Ayhan Kose said one could say that the cup is half full or half empty applying that to the global economy today. Many who say the cup is half full see the world economy showing resilience and on the path to recovery while those who see the cup half empty look at it otherwise.
“The global economy is to record the weakest growth of 1.7percent in 2023 after a long time. The reopening of China, the Euro area growth turnaround and US consumption growth could have upside growth boosting the global economy this year. However, proper calibration and implementation of monetary and fiscal policy with social protection systems, addressing gender equality, efficient food systems, ending the war in Europe, finding energy solution and mitigating climate effects are key to driving global economic growth,” he said.
Speaking on Islamic Finance in the world of Metaverse panelists noted that the virtual world technologies are not confined to technology companies but rather they have surpassed to engulf the institutions, companies and even governments. The market size of the Metaverse ecosystem was expected to reach $68.5bn in 2022 and exceed $1, 300bn by 2030.The conference sessions reviewed the financial products and services that Islamic finance institutions can provide through virtual world applications touching on the Islamic endowment institution, focusing on the opportunities and challenges of Islamic finance in the current environment. The conference also touched on the Shariah standards and controls governing financial transactions in the metaverse world.
Islamic finance refers to the provision of financial services in accordance with Shariah Islamic law and rules which do not permit receipt and payment of interest, excessive uncertainty, gambling, short sales, or financing activities that that is considered harmful to society.
Instead the parties must share the risks and rewards of a business transaction and the transaction must have an economic purpose without undue speculation and not involve any exploitation of either party.Islamic finance currently encompasses, banking, leasing Sukuk (securities) and equity markets.
Investment funds, insurance and micro finance but the banking and Sukuk assets represent about 95 percent of the total Islamic finance assets.
