Qatar's Islamic banking system, from the QCB to the banks of Doha

Islamic finance in Qatar covers the Sharia-compliant banks, takaful insurers, sukuk and funds supervised by Qatar Central Bank or, inside the Qatar Financial Centre, by its own regulator, within a market kept separate from conventional banking.

Two regulators for one emirate

Qatar Central Bank supervises banks, finance companies and, since Law 13 of 2012, insurers in the domestic market. Entities based in the Qatar Financial Centre fall instead under the QFC Regulatory Authority, whose rules follow the British model.

The end of Islamic windows in 2011: a radical decision

In February 2011 the central bank ordered conventional banks to stop their Islamic activities before the end of the year. The stated aim was to avoid commingling of funds and clarify supervision, a stricter choice than in neighbouring Gulf countries.

What happened to the transferred Islamic portfolios

The banks concerned stopped opening Islamic accounts and contracts, let existing financings run to maturity or sold them to Islamic banks. Customers often had to choose between staying with their bank under a conventional contract or following the portfolio.

In-house Sharia boards and central bank oversight

Every Qatari Islamic bank has a Sharia supervisory board that approves products and writes an annual report. The central bank frames their governance through its prudential instructions, while AAOIFI standards serve as a reference for many contracts.

Four large Islamic banks listed in Doha

The domestic market is built around Qatar Islamic Bank, founded in 1982, Masraf Al Rayan, Qatar International Islamic Bank and Dukhan Bank. All are listed on the Qatar Stock Exchange and offer accounts, financing, cards and private banking using Murabaha, Ijara or Musharaka contracts.

Mergers that tightened the sector

Masraf Al Rayan absorbed Al Khalij Commercial Bank, a conventional bank converted in the process. Barwa Bank and International Bank of Qatar merged in 2019 before taking the name Dukhan Bank. These deals created larger but fewer players.

Lesha Bank, the Qatar Financial Centre exception

Licensed by the financial centre's authority, Lesha Bank, formerly Qatar First Bank, focuses on Sharia-compliant investment banking, asset management and real estate financing. It does not serve the general public like a classic retail bank.

Financing a car or a personal need

For a car, the bank buys the vehicle from the dealer and resells it to the customer with a fixed margin under Murabaha. For a cash need, many use a commodity Murabaha, in which a commodity is bought and then resold to provide liquidity.

Sovereign sukuk and bank funding

The state launched an international Ijara sukuk as early as the 2000s. Today the central bank regularly issues riyal sukuk on behalf of the government, giving Islamic banks a high-quality liquid asset in which to place their surplus funds.

Capital sukuk issued by the banks

Qatari Islamic banks also issue perpetual Additional Tier 1 sukuk, often structured as Mudaraba, to strengthen their capital under Basel III. These securities, listed abroad, can suffer losses or deferred distributions as provided in the contract.

Takaful: from motor cover to family plans

Several companies, including Qatar Islamic Insurance, offer compulsory motor cover, health, home and family takaful on a Wakala model, where the operator manages the participants' fund for a fee. Any underwriting surplus may be returned to policyholders under the policy approved by the Sharia board.

Where can an expatriate buy a home?

Law 16 of 2018 allows non-Qataris to acquire freehold or usufruct rights in designated zones such as The Pearl, Lusail or West Bay. Islamic home financing is available only for such properties, usually with mandatory salary transfer.