IslamicFinance.de

Qatar Central Bank (QCB) is preparing to establish a centralised Sharia’h supervisory in Sharia’h governance. Currently, the Sharia’h governance structure of Islamic banks is mostly decentralised. Individual banks have their own Shaira’h Supervisory Boards to oversee their operations and ensure their compliance with the Islamic principles. The establishment of a centralised Sharia’h supervisory body will help achieve greater market-wide consistency and credibility. Qatar’s Islamic banks have registered a Compound Annual Growth Rate of 10.3% since the segregation of Islamic business from the conventional banks back in 2012. Conventional banks lag behind at 9.8% annualized growth during the same period.

According to Qatar Central Bank (QCB) Governor Sheikh Abdulla bin Saoud al-Thani, Qatar is witnessing a robust momentum in fintech. The country is opening up increasing opportunities for digital payments, money management, lending, loyalty and rewards, remittances, investments and advisory services. Sheik Abdulla said the QCB’s recently launched new strategy would need to ensure that fintech firms are enhancing the financial system. Although there have been some success stories, he said banks and insurance companies in the region have been slow to embrace innovation. The fintech industry in Qatar remains very small, but it has seen a few startups such as Hasalty. As a mobile application, Hasalty improves financial literacy for children supported by the Qatar Business Incubation Centre.

Qatar is planning to set up a central Shariah committee for Islamic banks to create consistency in Islamic finance. According to Central Bank Governor HE Sheikh Abdulla bin Saoud al-Thani, this move ensures that the country’s financial regulations are benchmarked to international standards. A recent report by the World Bank and the Bahrain-based General Council for Islamic Banks and Financial Institutions suggested further action by regulators to strengthen the sector’s governance. One of the action points of the Qatar Central Bank (QCB) is assessing remuneration and commission framework of financial advisers and insurance intermediaries and implementing an appropriate conduct of business regime. In 2016, the QCB issued new regulations for insurers on licensing, controls, accounting, risk management and actuaries’ reports and also stipulated minimum capitalisation levels and limits on risky asset classes. QCB's new strategy is looking at supporting the growth of the asset management sector through aligning requirements across regulatory frameworks.

Sheikh Abdullah bin Saud Al Thani, the governor of the Qatar Central Bank (QCB), issued operating instructions and governance principals for insurers operating in Qatar. The instructions relate to licensing, regulations and controls, risk management, accounting and actuaries reports. The new law stipulates that listed insurance companies must have capital greater than QAR100 mn or their risk-based capital requirement, while unlisted insurance companies must have capital higher than the figure set by the QCB.

Because some banks were mixing up their traditional and Islamic banking operations, Qatar's banking regulator communicated conventional banks to close their Islamic operations.
A study conducted by a Qatar University student prooves the assertions by the Qatar Central Bank (QCB) that it directed commercial banks to wind up their Shariah-compliant operations by the year-end since some banks did not keep their two operations separate.

Barwa Bank will participate in Qatar Real Estate and Investment Exhibition (QREX 2011) from March 22 to 25, to highlight its new home finance offering, which is arranged through the “Ijara” instrument.
Visitors of Barwa Bank’s stand in QREX 2011 can apply for home financing of up to QR10m, allowing them flexible, Shariah compliant repayment options of up to 20 years. Repayment terms are highly competitive and linked to the Qatar Central Bank (QCB) lending rate, meaning that customers will benefit from having their rates track the market conditions.

Doha Bank wants to continue investing in Islamic finance even as it focuses on cross-border funding. The bank will also explore various other options including Islamic asset sales after the recent Qatar Central Bank (QCB) directive to commercial banks on their Islamic operations.
Doha Bank, which is predominantly a commercial bank with 89% of its assets in conventional side, is also planning to grow across the border.

Doha Bank wants to continue investing in Islamic finance even as it focuses on cross-border funding. The bank will also explore various other options including Islamic asset sales after the recent Qatar Central Bank (QCB) directive to commercial banks on their Islamic operations.
Doha Bank, which is predominantly a commercial bank with 89% of its assets in conventional side, is also planning to grow across the border.

The issuance by the Qatar Central Bank (QCB) of a directive requiring the country’s conventional banks which have opened Islamic banking windows (IBWs) to close them down by the end of 2011 may result in operational complexities in the implementation of the directive.
Both Professor Rifaat Abdel Karim and Islamic bankers such as Richard Thomas agree that the complexities lie with trying to match short-term deposits placed with the IBWs with their longer term liabilities.