QIB Named Qatar’s Safest Islamic Bank and 2nd in GCC by Global Finance

Qatar Islamic Bank (QIB), Qatar’s leading digital and Shari’a-compliant bank, has once again distinguished itself on the global stage by being named Qatar’s Safest Islamic Bank and the second safest in the Gulf Cooperation Council (GCC) by Global Finance’s “World’s Safest Banks” rankings for 2024. This recognition comes as no surprise to industry watchers, given QIB’s consistent track record in delivering financial stability, technological innovation, and exemplary service to its customers. This latest accolade reinforces QIB’s position as a key pillar of stability within Qatar’s growing Islamic finance sector, reflecting the country’s strategic vision of economic diversification and financial strength.

With the Qatar National Vision 2030 driving ambitious growth and development across sectors, QIB’s evolution into a digital powerhouse and its commitment to maintaining safety and resilience stand as a testament to its alignment with the nation’s economic goals. In this article, we’ll explore QIB’s achievements, financial stability, commitment to digital transformation, and how it’s setting benchmarks within the global Islamic banking sector.

QIB’s Financial Strength

Over recent years, QIB has demonstrated remarkable financial resilience, achieving strong asset growth and earning high ratings from global credit agencies despite challenges posed by global economic uncertainties. For the nine months ending on September 30, 2024, QIB reported assets totaling QAR 197.5 billion, making it the largest Islamic bank in Qatar by asset size and a leader within the GCC. This significant growth reflects QIB’s ability to adapt to evolving economic landscapes, bolster its balance sheets, and deliver value to stakeholders.

High Credit Ratings

The financial world relies on credit ratings to assess the stability and risk profile of financial institutions. In 2024, three major rating agencies affirmed QIB’s strong financial standing:

• Fitch Ratings confirmed QIB’s credit rating at ‘A’ with a stable outlook in July 2024, highlighting its robust capital position and risk management strategies.
• Moody’s Investors Service assigned QIB an ‘A1’ rating with a stable outlook in June 2024, recognizing QIB’s strategic approach in managing liquidity and its strong capital reserves.
• Capital Intelligence Ratings (CI) gave QIB a ‘AA-’ rating with a stable outlook in April 2024, further reinforcing confidence in QIB’s creditworthiness.

These ratings reflect QIB’s success in maintaining a strong capital base, managing risk effectively, and adhering to the highest standards in Shari’a-compliant banking. This financial strength has enabled QIB to navigate challenges while continually delivering reliable banking services, reinforcing its title as Qatar’s Safest Islamic Bank.

Qatar’s Safest Islamic Bank

Global Finance’s recognition as Qatar’s Safest Islamic Bank underscores the institution’s commitment to stability and secure banking practices. This accolade highlights QIB’s robust risk management framework, proactive approach to financial resilience, and its alignment with Qatar’s economic growth. QIB’s safety ranking is not just a testament to its financial health but also an acknowledgment of its dedication to customer security and trust—qualities that are critical in today’s complex and often unpredictable financial landscape.

In Global Finance’s 2024 “World’s Safest Banks” report, QIB ranked as the safest Islamic bank in Qatar and the second safest in the entire GCC region. This recognition places QIB among an elite group of banks that excel in managing risk, adhering to regulatory standards, and prioritizing financial stability. It also elevates Qatar’s status as a leading hub for Islamic finance, which is particularly significant as the country strives to attract international investors and build a diverse, resilient economy.

The Customer Experience

QIB’s strategic focus on digitalization has transformed it into a leading digital bank within the Islamic finance sector, making it a pioneer in tech-driven banking services in Qatar. The bank’s ongoing digital transformation initiatives are designed to improve customer experience, optimize internal operations, and deliver Shari’a-compliant services that meet the evolving needs of modern banking clients. As of 2024, a remarkable 99% of QIB’s transactions are conducted through digital and self-service channels, a testament to its commitment to making banking efficient, accessible, and customer-centric.

An Award-Winning Mobile App

QIB’s digital transformation is best exemplified by its award-winning mobile app, which offers over 280 services, from personal banking to credit applications. The app has redefined the banking experience for QIB’s customers, allowing them to manage accounts, apply for loans, and perform transactions with ease. More than half of QIB’s personal financing and credit card applications are now processed instantly through the app, setting a benchmark for seamless digital banking in the region.

The app’s intuitive design, security features, and range of services make it a standout in the market, attracting a growing base of digitally-savvy customers. QIB’s focus on digital transformation not only reflects a commitment to convenience but also aligns with Qatar’s National Vision 2030, which emphasizes economic diversification and the use of technology as a driver of growth.

Qatar’s National Vision 2030

Qatar’s National Vision 2030 is an ambitious framework aimed at transforming Qatar into a diversified, knowledge-based economy that balances financial growth with environmental sustainability and social responsibility. QIB’s strategic initiatives align closely with this vision, reinforcing its role as a catalyst for economic growth, innovation, and social progress within Qatar.

QIB’s contribution to Qatar’s National Vision 2030 is evident in its approach to cost efficiency and financial performance. In 2024, QIB achieved the best cost-to-income ratio in Qatar at 17.3%, showcasing its ability to operate efficiently while maintaining profitability. The bank’s Return on Assets (ROA) reached 2.5%, and its Return on Equity (ROE) stood at 17.7%, both of which exceed local market benchmarks. These strong financial metrics indicate QIB’s focus on sustainable growth and its role as a cornerstone of Qatar’s economy.

Beyond financial metrics, QIB has committed itself to social and environmental initiatives, from supporting educational programs to investing in community-based projects. Through these initiatives, QIB is not only strengthening its brand but also supporting Qatar’s broader goals of economic stability, social progress, and environmental sustainability.

Related: QIB Wins 16 Awards at Global Finance Digital Bank Event

Financial Performance

QIB’s financial performance in 2024 has been remarkable, especially considering the global economic challenges faced by the banking sector. For the first nine months of 2024, QIB posted a record net profit of QAR 3,265 million, reflecting its ability to adapt to changing market conditions and capitalize on growth opportunities. This financial strength can be attributed to QIB’s prudent approach to risk management, diversified asset portfolio, and commitment to upholding Shari’a principles.

As Qatar continues to experience steady economic growth and invest in infrastructure, QIB is well-positioned to play a pivotal role in financing projects that contribute to national development. The bank’s stability, combined with Qatar’s supportive regulatory environment, has enabled QIB to sustain profitability while expanding its footprint in the Islamic finance sector.

Why QIB Stands Out

QIB’s distinction as Qatar’s Safest Islamic Bank and its high ranking within the GCC is the result of several strategic advantages:

1. Commitment to Digital Innovation: QIB’s robust digital infrastructure has redefined convenience for customers, offering a range of online services that cater to diverse financial needs.
2. Comprehensive Shari’a Compliance: QIB’s strict adherence to Shari’a principles ensures that all products meet ethical and religious standards, fostering customer trust.
3. Solid Financial Metrics: QIB’s superior ROA and ROE metrics highlight its profitability and efficient management, setting a standard for other Islamic banks.
4. Advanced Risk Management: By maintaining high credit ratings and adhering to rigorous risk management practices, QIB assures customers and investors of its stability.
5. Customer-Focused Approach: Through its digital channels and personalized financial services, QIB places customer satisfaction at the core of its strategy.

QIB Group CEO on Financial Security

Bassel Gamal, the Group CEO of QIB, underscored the importance of safety and trust in banking. “Our focus on fortifying the strength and security of our institution remains our top priority,” he remarked. “This recognition as Qatar’s Safest Islamic Bank is a testament to our team’s dedication, our board’s support, and our unwavering commitment to excellence.” Gamal’s emphasis on safety, innovation, and customer satisfaction reflects QIB’s mission to offer secure, reliable services that earn the confidence of its stakeholders.

Gamal also highlighted QIB’s role in shaping the future of Islamic banking within Qatar, describing the bank’s digital transformation as an essential part of its growth strategy. By continuing to adapt to market trends and customer expectations, QIB aims to maintain its leadership within Qatar and expand its influence across the GCC.

Importance of Safety

Global Finance’s focus on recognizing the safest Islamic banks reflects a growing emphasis on resilience, stability, and security within the sector. In an era marked by economic volatility, customers and investors alike prioritize safety, particularly when it comes to Shari’a-compliant banking, which adheres to ethical financial principles. For QIB, this title as Qatar’s Safest Islamic Bank signifies more than just financial success; it represents a commitment to protecting customer assets, maintaining transparency, and building long-term trust.

In Islamic banking, the principles of fairness, risk-sharing, and transparency form the foundation of customer relationships. QIB’s focus on safety is therefore essential to its Shari’a-compliant model, as it assures customers that their funds are managed responsibly. This emphasis on safety is expected to remain a focal point as QIB expands its product offerings and further strengthens its position within Qatar and the broader GCC region.

Innovation, and Expansion

Looking ahead, QIB has an ambitious vision for growth, innovation, and expansion. The bank plans to continue investing in advanced technologies, such as AI and blockchain, to enhance service efficiency, improve security, and streamline transactions. Additionally, QIB is exploring opportunities to expand its presence across the GCC, tapping into new markets and reinforcing its reputation as a leader in Islamic finance.

In alignment with its strategic goals, QIB is expected to launch new Shari’a-compliant products that cater to a wide range of customer needs, from personal finance to wealth management. The bank’s commitment to customer-centricity, coupled with its expertise in risk management, positions QIB as a reliable partner for clients navigating the evolving financial landscape.

QIB as a Model

Qatar Islamic Bank’s recognition as Qatar’s Safest Islamic Bank is a reflection of its financial resilience, strategic vision, and dedication to customer satisfaction. From its strong asset base to its award-winning digital platforms, QIB has set a high standard for Islamic banking globally. Its alignment with Qatar’s National Vision 2030 further reinforces QIB’s role as a driver of economic and social progress in Qatar, contributing to a sustainable, diversified, and resilient economy.

As Qatar continues to emerge as a leader in Islamic finance, QIB stands at the forefront, embodying the potential of Shari’a-compliant banking to address modern financial challenges while upholding ethical principles. For those following QIB’s journey and the evolution of Islamic banking in the Middle East, stay connected to our finance section for the latest updates, insights, and analyses on the institutions that are shaping the future of finance in the region and beyond.