Islamic Banking
Discover what makes QIB's Islamic banking different. Explore our Shari’a-compliant financial solutions rooted in ethical practices and complete transparency.
Islamic banking
Shari’a supervisory board
The Shari'a Supervisory Board monitors the Bank's compliance with Islamic Shari'a principles and reviews all processes and products. It operates as an independent body of specialist jurists in Fiqh al-Muamalat.
His Eminence, Sheikh Walid Bin Hadi
Chairman
Sheikh Dr. Abdulaziz Khalifa Al-Qasar
Member
Dr. Mohamad Ahmaine
Member
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Provide Islamic advice and guidance based on requests from QIB's management.
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Review auditors' reports for Shari'a compliance and report findings to members.
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Determine whether contracts, transactions, and dealings presented to the board comply with Shari'a principles.
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Approve QIB marketing materials presented to the board.
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Ensure by all possible means that earnings from sources or methods prohibited by Shari'a are directed to charitable causes.
Islamic Banking principles
Sukuk/Securitization
The Bank provides structuring, arranging, and placement services for companies seeking financing through Sukuk issuance. We also offer advisory services in this area. Islamic finance and Islamic financial markets present significant opportunities here. New issues are distributed to investors in the primary market, while existing securities trade in the secondary market. The capital market allows companies to raise long-term financing. Sukuk serve as the Islamic equivalent of bonds. They comply with Islamic law and its investment principles, and provide access to both Islamic investors and companies that require Shari’a- compliant financing in the capital market. Sukuk rely on the concept of asset monetization. They can be issued on existing assets or on specific assets that will become available in the future. In some cases, Sukuk function as Islamic securitization similar to conventional asset-backed securitization. A corporate entity transfers its assets to a bankruptcy-remote vehicle, which acquires the assets using proceeds from the securities issuance.
Istisnaa
This is a form of contractual relationship whereby the client agrees with the Bank to execute a certain project at an agreed price. The Bank commissions one or more construction companies to execute the project and bears all the costs of raw materials and salaries.
Murabaha sale
QIB provides this service to clients who need to acquire goods from abroad through letters of credit. The customer approaches QIB to import specific goods and provides detailed specifications, including description, quantity, and price. QIB then imports the goods to sell to the customer at a price that covers costs plus an agreed profit margin. The customer repays QIB in instalments over an agreed period.
Musawama sale
This transaction begins when a customer wants to purchase a particular commodity. The Bank buys the goods from a third-party supplier at a negotiated price. The customer is not involved in this initial negotiation. The Bank then offers the goods to the customer at a marked-up price. The customer has a fixed period to accept or reject the offer. Upon acceptance, the customer pays the sale price in instalments over an agreed timeframe. Musawama sale transactions typically involve goods purchased from the local market.
Mudaraba investment
Mudaraba is a partnership financing model. QIB provides the capital for a business project or transaction, while the customer contributes their expertise and management capabilities. This creates a joint venture where profits are shared according to a predetermined ratio. QIB has successfully implemented numerous Mudaraba projects and continues to use this financing mode regularly.
Musharaka investment
Musharaka Investment is the key feature that distinguishes an Islamic bank from a conventional commercial bank. Under this model, QIB provides a share of the financing required for a customer's business venture or asset purchase and becomes a partner in the enterprise. Profits or losses are shared between QIB and the customer according to a predetermined ratio. QIB has successfully financed numerous businesses and projects in Qatar using Musharaka partnerships.
Ijarah
Under this method, QIB purchases an asset such as a building, machinery, or equipment and leases it to customers. Before entering an Ijarah agreement, QIB conducts a feasibility study to assess profitability and ensure Shari'a compliance.
Social responsibility
At QIB, we integrate social and environmental responsibility into everything we do. Our approach reflects our commitment to our stakeholders and the communities we serve.
Our vision is built on these core principles:
- Build strong relationships across all sectors of society to identify community needs and foster meaningful partnerships.
- Support diverse activities through sponsorships in education, health, sports, environmental initiatives, and programs for individuals with special needs.
- Contribute to charitable organizations and their work, with a focus on those operating in Qatar.
Understanding Islamic Banking
What’s the difference between Islamic and traditional banking?
Islamic banking is guided by Shari'a law and prohibits interest-based transactions. Instead, it focuses on ethical, asset-backed financing. Traditional banking, by contrast, operates through interest on loans and deposits.