Advanced fintech puts Qatar at the top of the region

The 9th Islamic Finance Conference titled ‘Islamic Finance and Challenges of Web 3.0’ started at the Sheraton Hotel, Doha yesterday.

The event focused on the growing importance of Islamic finance in the world and the impact of Metaverse on the financial sector.

The growth of Islamic finance and the adoption of advanced technology in the financial sector that has helped Qatar stay ahead of the countries in the GCC region were highlighted at the event which highlighted the many initiatives the state has taken to develop a vibrant financial sector in line with its national vision for 2030.

Minister of Commerce and Industry HE Sheikh Muhammad bin Hamad bin Qassim Al Thani said the financial sector is an important pillar of Qatar’s economy, which is one of the fastest growing economies in the region due to the adoption of advanced technology and the digital transformation that has paid rich dividends to the state.

“The state has made great strides in the digital sphere of the financial sector which has helped put the country on top in the GCC region,” the minister said while noting that the country had an economic growth rate of four percent with a budget surplus exceeding QR89 billion last year.

HE said the state has been resilient to many external shocks and has comfortably withstood the global economic challenges in recent years, making it one of the vibrant economies in the world while becoming the world’s fifth largest market for Islamic finance.

“We will always strive to adopt the best technology that will benefit the financial sector and the economy at large,” the minister said. Chairman of Dukhan Bank, Sheikh Muhammad bin Hamad bin Jasim Al Thani, said that technology represents a key part of the economy and the transition to the financial sector. In recent years, we have seen enormous growth in the quality of the banks’ services.

However, he noted that there are challenges that can arise when the cooperative relationship turns into competition led by giant technology companies to enter financing business, provide financial services and compete with the banking sector, which can lead to confusion in the work of banks and the financial sector. and banking environment.

However, the finance and banking sector faced many challenges, he said.

“Dukhan Bank has been at the forefront of providing transformative technology in Qatar, while initiating a number of initiatives such as listing on the Qatar Stock Exchange and achieving feats of being the fastest bank to adopt Shariah compliance and adopt an effective ecosystem to minimize risk,” he said.

Director General of the Directorate of Endowments and the Ministry of Endowments and Islamic Affairs Sheikh Dr. Khalid bin Muhammad bin Ghanim Al Thani said that the world of technology is moving very fast and added that the world has now reached the decade of the virtual world and AI. Giftedness is a central aspect of scientific research and knowledge enrichment.

“Legiments need scientific research. We came forward to collaborate with the conference to support research and development in the financial sector and its development, he said, adding that this year’s Islamic conference will highlight the opportunities and challenges in the future.

World Bank-USA Director of the Prospects Group, Dr. Ayhan Kose, said that one can say that the cup is half full or half empty by applying it to the global economy today. Many who say that the cup is half full see that the world economy is showing resilience and is on the way to recovery, while those who see the cup as half empty see it differently.

“The global economy will register the weakest growth of 1.7 percent in 2023 after a long time. The reopening of China, growth in the Eurozone and consumption growth in the US could cause upside growth to boost the global economy this year. Proper calibration and implementation of monetary and fiscal policy with social protection systems, addressing gender equality, efficient food systems, ending the war in Europe, finding energy solutions and mitigating climate effects are key to driving global economic growth, he said.

Speaking about Islamic finance in the Metaverse world, the panelists noted that the technologies of the virtual world are not limited to technology companies, but rather have transcended to engulf the institutions, corporations and even governments. The market size of the Metaverse ecosystem was expected to reach $68.5 billion in 2022 and exceed $1,300 billion by 2030. The conference sessions reviewed the financial products and services that Islamic financial institutions can offer through virtual applications that touch the Islamic endowment institution, focusing on whether the opportunities and challenges of Islamic finance in today’s environment. The conference also touched on Sharia standards and controls that govern financial transactions in the metaverse world.

Islamic finance refers to the provision of financial services in accordance with Islamic Shariah law and rules that do not allow the receipt and payment of interest, excessive uncertainty, gambling, short selling or financing activities considered harmful to society.

Instead, the parties must share the risks and rewards of a business transaction, and the transaction must have an economic purpose without undue speculation and not involve any exploitation of either party. Islamic finance currently includes banking, leasing of Sukuk (securities) and stock markets.

Mutual funds, insurance and microfinance, but the banking and Sukuk assets represent approximately 95 percent of total Islamic finance assets.