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Thursday, October 21, 2021

Qatar’s Islamic fintech market to drastically grow by 2025


Qatar’s Islamic fintech Market is forecast to grow by $2.1 billion by 2025 according to the Global Islamic Fintech Report 2021.

Qatar has ranked 10th in the Global Islamic Fintech (GIFT) Index with the country’s “fast maturing ecosystem” making it an exciting hub that “should be on investors’ horizons”, a report said.

The Islamic Financial Technology, or FinTech, market size in Qatar is also projected to grow at a Compound Annual Growth Rate (CAGR) of 19.6 percent and reach $2.1 billion by 2025, the Global Islamic Fintech Report 2021 added.

At the end of 2020, the Islamic fintech market in Qatar was valued at $849 million.

The top 10 fintech markets are currently dominated by Organisation of Islamic Cooperation (OIC) countries, the report noted.

“Islamic Fintech has great potential in and from Qatar. To bolster this, Qatar Financial Centre (QFC) is further developing as an Islamic finance hub, and together with Qatar Fintech Hub, we are actively helping Islamic fintechs gain access to Qatar’s lucrative market and to investors,” said Managing Director Financial Sector Office at QFC Authority Henk Jan Hoogendoorn.

Qatar has an edge over its Gulf competitors with a push to develop Islamic finance and financial services, especially fintech, recognising the 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 make for an attractive ecosystem for local startups as well as international fintech firms to set up base in the country.

Read also: Qatar aims to be Gulf’s ‘financial hub’ by 2022

This framework includes incentives during their first year, waiver of applications and first-year registration fees, as well as rent-free workspaces.

The estimated global Islamic fintech market size reached $49 billion and is expected to grow on average by 21% annually and reach $128 billion by 2025.

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