Doha, Qatar: Last year witnessed an increase in the issuance of (governmental) Sukuk (issued by Islamic banks) by 86.6 percent, as Islamic banks resumed the issuance of Sukuk, while Qatar Central Bank’s issuance of Sukuk increased by 42.8 percent compared to the year 2022.
During the period 2019-2023, the total Sukuk issued during the period was QR53bn, where government Sukuk accounted for 60 percent of the total Sukuk issued, annual report on Islamic Finance in Qatar 2023 has revealed.
Exceeding the bonds, Sukuk issued by QCB in last year represented the majority of the public debt issuance during the year, where Sukuk issued by QCB in 2023 represented 58.3 percent of total debt instruments issued during the year.
QCB issued Sukuk valued QR7.7bn on two phases for 5 years. In June, QCB issued Sukuk valued QR4.65bn for 5 years, while Sukuk issued in September were valued at QR3.06 billion with a maturity of five years.
During the five years (2019-2023), QCB issued QR31.7bn of Sukuk, representing 35 percent of the total issuance of Sukuk and government bonds during the period.
As per the data accessed from the reports, in last year, QIB issued sukuk valued QR650m during the months of September, November, and December with a maturity of 5 years.
During the period 2019-2023 the total Sukuk issued by Qatar Islamic Bank amounted to QR10.2bn, while Sukuk issued by Masraf Al Rayan amounted to approximately QR4.7bn, and Sukuk issued by International Islamic Bank amounted to QR4.6bn.
The total amount of Sukuk issued by Dukhan Bank during the period was QR1.8bn. These Sukuk varied from Finance Sukuk to permanent capital Sukuk.
In last year, the assets of Islamic investment funds increased by 4.1 percent, reaching around QR942m. The net value of assets attributable to unit holders in Al Rayan Gulf Fund increased by 21 percent, and by 4.1 percent in Bait Al Mali. The net value of assets attributable to unit holders in Al Rayan Qatar ETF decreased by (6.2 percent), and in First Investor Fund by (13.1 percent).
Islamic banks represent 28 percent of Qatar’s total banking sector. Islamic banks have experienced a compound annual growth rate of 6.3 percent in their assets over the last five years (2019-2023), surpassing the 4.4 percent growth rate of conventional commercial banks during the same period.
The Islamic finance continues its development through expansion to enter new markets as the sector is undergoing rapid expansion.
The assets of Islamic banking sector in Qatar experienced a 3.6 percent increase in last year. As per the latest statistics released by the Qatar Central Bank, the assets of Islamic banks in the country reached QR563.7bn, up from QR544.3bn in 2022. The growth rate of conventional banks stood at 3.3 percent.
