The prospects for Islamic Fintech sector in Qatar are bright and the sector is set to witness robust growth in coming years. The Islamic Fintech market size in Qatar is projected to grow at a Compound Annual Growth Rate (CAGR) of 19.6 percent to reach $2bn by 2025, according to report by the Global Islamic Fintech Report 2021. Qatar has also ranked among top 10 countries in the Global Islamic Fintech (GIFT) Index, which is part of the report.
The Index represents countries that are most conducive to the growth of Islamic fintech market and ecosystem in their jurisdictions. The Islamic Fintech market in Qatar was around $849m at the end of last year. The report has considered Qatar’s market as fast maturing ecosystem.
“Our opportunity analysis shows that besides the top five strongest ecosystems, Kuwait, Pakistan, Qatar, Bahrain, and Jordan are fast maturing ecosystems,” said the report released by Salaam Gateway, a source of information on Halal industries, Islamic finance and Islamic lifestyle.
In Qatar, Islamic Fintech is primed for significant expansion in the years ahead. According to a 2019 survey by Elipses, the most important factor for Islamic Fintechs in selecting a base for operations is the strength of the local conventional and Islamic financial industries in the jurisdiction. This bodes well for future Islamic Fintech activity in Qatar, which boasts a robust financial system that includes a long-established Islamic finance sector supported by core competencies.
Several other reports have also confirmed the promising future of Qatar’s Islamic Fintech sector. “Islamic Fintech is expected to experience significant growth in coming years and Qatar has the opportunity to secure a unique advantage over other Islamic Fintech hubs through Shariah-compliant venture capital,” said Qatar Fintech Report 2021.
“Primarily targeting Islamic Fintechs, Islamic venture capital investments could be deployed through Qatar FinTech Hub (QFTH) programs or by partnering with Islamic investment banks. Offering special incentives to set up Islamic VC funds or equity crowdfunding platforms would also drive Islamic VC investments in Qatar-based FinTechs,” noted the report.
Many Fintech companies from across the world looking to enter Qatar and several have registered with QFC, reflecting the vibrancy of Fintech ecosystem in Qatar.
Fintechs established on the QFC platform, enjoy several incentives during their first year, including the waiver of application and first-year registration fees in the first year and rent-free workspace.
Qatar has recognised the Fintech industry as a key component of its knowledge-based economy objective. The National Fintech Strategy, set by Qatar Central Bank (QCB), provides a framework for initiatives that enable the local startup sector and create a favourable ecosystem for international Fintech firms to choose Qatar as their launchpad to the global market.
QCB has partnered with Qatar Development Bank (QDB) and QFC to rollout QFTH to stimulate the sector and rise to meet the evolving needs of the country.
