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Qatar’s Islamic banks saw a sharp rise in non-resident deposits in 2025, while financing growth was led by the public sector, according to a report by Bait Al-Mashura Financial Consulting. Non-resident deposits, which accounted for 7% of total deposits at Islamic banks, jumped 50% during the year, outpacing growth in deposits from both the private and public sectors. Private-sector deposits, which made up the largest share of the total at 57%, increased by 6.1%, while public-sector deposits, accounting for 36%, rose by 3.8% from 2024. Overall, deposits at Qatar’s Islamic banks rose 7.5% to QR364.4bn in 2025 from QR339.1bn a year earlier, giving the sector nearly 35% of total deposits in the country’s banking system. The deposit growth came as total deposits in Qatar’s banking system increased by 1.7% during 2025, with Islamic banks outperforming conventional commercial banks, whose deposits declined by 1.1%, according to Qatar Central Bank (QCB) data cited in the report. On the financing side, Islamic banks’ total financing reached QR418.3bn in 2025, up 4.2% from the previous year, but the pace of growth varied widely across sectors, the report indicated, citing QCB-issued quarterly data. Financing to the public sector recorded the strongest growth, rising 20.3%, followed by an 8.8% increase in financing for the contracting sector. Financing for the industrial, real estate, and consumer sectors rose by 3.9%, 3.8%, and 1.5%, respectively, while financing for the services sector declined by 4.3%. Islamic banks accounted for 29% of total banking-sector financing in 2025, while their assets represented 28% of the sector’s total assets. The figures point to a year in which Qatar’s Islamic banks continued to expand their share of the country’s financial system, with a particularly strong increase in deposits from outside the country and a marked rise in financing to the public sector.

The assets of Islamic banks in the country grew by 3.9% to QR585.5bn in 2024, according to Bait Al-Mashura Finance.Quoting figures from the Qatar Central Bank (QCB), Bait Al-Mashura said in 2023 Islamic bank assets in the country totalled QR563.7bn.Islamic banks accounted for 28% of the total assets of Qatar’s banking sector, the researcher said.Domestic assets of Islamic banks increased by 4% in 2024 to QR529.7bn, while their reserves rose by 6.3% to QR20.6bn.Foreign assets amounted to QR35.2bn, a 0.4% decrease year-on-year compared to 2023.The compound annual growth rate (CAGR) of assets for Qatar’s Islamic banks over the five-year period (2020-2024) reached 5.4%, compared to 3.5% for traditional commercial banks in the country during the same period.In 2024, Islamic banks in Qatar recorded revenues of QR29.5bn, representing a growth rate of 12.6% compared to 2023.Financing and investment activities accounted for 91% of these total revenues. This growth was driven by a 13.8% increase in financing and investment revenues, along with an 8.4% decrease in the provision for credit losses compared to 2023.Over the period 2020-2024, the revenue of Islamic banks grew at a CAGR of 9%.In 2024, the four Islamic banks in Qatar achieved total net profits of QR8.7bn for their shareholders, compared to QR8.2bn in 2023, representing a 6% growth.Data from the QCB showed that total deposits in the Qatari banking system grew by 4.1% in 2024.Islamic bank deposits in Qatar increased by 8.2% during the same period, compared to a 2.2% increase in deposits at conventional commercial banks.Islamic bank deposits accounted for approximately 34% of the total deposits in the Qatari banking system, reaching a total of QR339.1bn, compared to QR313.4bn in 2023.Over the period 2020-2024, the compound annual growth rate for deposits in Islamic banks was 5%, compared to 1.5% for conventional banks.The private sector held the largest share of deposits in Islamic banks, at 57%, followed by the public sector with 38%. Non-resident deposits constituted only 5% of total deposits in Islamic banks.During 2024, the most significant growth rate was observed in public sector deposits, which increased by 20%. Private sector deposits also grew by 4%, while non-resident deposits declined by 16% compared to 2023.According to quarterly data from the QCB, financing provided by Islamic banks (in 2024) reached QR401.5bn, an increase of 4.9% compared to 2023.Credit facilities extended by traditional commercial banks also increased by 4.4%.The most significant growth in Islamic bank financing in 2024 was observed in the real estate and general trade sectors, increasing by 16% and 12.7% respectively.Financing for the services and consumer sectors also increased by 4.5% and 2.9% respectively.Conversely, financing for the industrial and construction sectors declined by 14.2% and 11.3% respectively.Islamic bank financing represented 30% of total banking sector financing in 2024.During the period 2020-2024, the CAGR for total financing by Islamic banks was 5.2%, compared to 3% for traditional commercial banks.