What trends do you see in the Islamic banking industry in terms of both organic and inorganic growth?
The global Islamic finance market is growing rapidly, having increased by double-digit rates to $2.7trn in assets and a roughly 6% share of all banking assets. A few years ago Islamic banks realised that having an Islamic licence was not enough to succeed; they also needed to build a high-performing, competitive bank. This was a pivotal point in the evolution of the industry.


What are the next big steps for the Islamic finance sector in Qatar?
The current trend in the banking industry is its full digitization and the adoption of new-age technologies. I believe that the focus will switch from automation, speed, convenience and efficiency to changes that are more revolutionary. Banking in the future will look very different from today, with emerging technologies shaping the way banks and consumers interact.

Which specific challenges do Islamic banks face in adapting to growing demand for adherence to environment, social and governance (ESG) principles?
As ESG concerns grow, banks are being encouraged to integrate sustainability across all their operations. The Covid-19 pandemic has underscored the interdependency of people, societies and nations, and highlighted the need to protect the environment.

Now the attention is turning to the E in ESG—environmental—as we begin to analyze and understand the impact of environmental considerations on risk within lending and investment portfolios.

How are regional business conditions evolving?
Uncertainty describes most of the last 24 months. However, all GCC economies are now recovering from the pandemic thanks to higher oil prices, supportive public spending and improving business conditions. Firms are experiencing a gradual recovery, with only certain sectors still under pressure, such as aviation and hospitality. Consumers are also returning to their pre-pandemic spending patterns and behaviour.

 

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