Doha, February 23 (QNA) - Qatar has ranked sixth worldwide as the largest hub for Islamic financial technology, according to the Global Islamic Fintech (GIFT) Report 2025–2026.

The report estimates the size of Qatar's Islamic fintech market at $3.1 billion in 2024–2025 and projects it will grow at a compound annual rate of 9% to reach $4.8 billion by 2029.

Published by DinarStandard and Elipses, in collaboration with the Qatar Financial Center Authority (QFC), the report also places Qatar seventh globally in an index measuring the most conducive environments for the sector.

QFC's Chief Financial Services Sector Officer, Henk Jan Hoogendoorn, said the center continues to foster a supportive business environment in line with the country's Third Financial Sector Strategy, aimed at enhancing access to digital financial services.

Globally, the report forecasts that Islamic fintech across member states of the Organization of Islamic Cooperation will expand by 11.5% annually. The total global market is projected to grow from $198 billion in 2024 to around $341 billion by 2029.

According to the findings, Saudi Arabia, Iran, Malaysia, United Arab Emirates, Indonesia and Kuwait led the Islamic fintech market in terms of transaction volume, each exceeding $3.1 billion in 2024–2025. Together, these six markets account for 93% of total global Islamic fintech activity.

An accompanying survey identified key obstacles facing companies in the sector, including difficulties in securing capital and financing, regulatory complexity and compliance requirements, high customer acquisition costs, pressures linked to geographic expansion, and the need to strengthen consumer awareness of Sharia-compliant digital financial products.

Experts cited in the report said 2026 would mark a shift from experimentation to more serious implementation, with clearer business models emerging — particularly in digital assets, which they described as a structural transformation facilitating payments and transaction settlement with greater transparency and Sharia compliance. (QNA)