In a significant move to merge traditional finance with emerging technology, the Qatar Financial Centre (QFC) has announced the tokenisation of sukuk and digital takaful platforms. The initiative aims to enhance transparency, improve settlement speeds, and facilitate real-time risk-sharing, positioning Qatar at the forefront of the global Islamic finance ecosystem. The announcement was made by QFC Authority CEO Yousef Mohamed al-Jaida during the 8th International Conference on Islamic Finance.
Harnessing Blockchain for Shariah Compliance
The QFC is leveraging emerging technologies like blockchain to expand the reach and efficiency of Islamic finance. According to al-Jaida, the new tokenised platforms are just one part of a broader digital transformation. The Centre is also championing smart contracts and AI-driven Shariah advisory tools to automate compliance and auditing processes. These innovations are designed to increase efficiency and global access by creating cross-border digital settlement corridors and tokenising real-economy assets, all while upholding the core principles of Islamic finance.
Building a Digital Asset Ecosystem
To foster this new wave of financial technology, the QFC has established a robust support system through its Digital Assets Lab and the QFC Digital Assets Framework. These initiatives are creating an enabling environment for everything from tokenisation and smart contracts to custody solutions. A key development under this framework is the recent launch of a proof of concept for a blockchain-based digital receipt system. This project, a collaboration between AlRayan Bank, Blade Labs, and Hashgraph, is designed to boost efficiency and regulatory compliance in Shariah-compliant asset-backed finance.
Driving Global Standards in Islamic Finance
With global Islamic finance assets projected to reach $7.5 trillion by 2028, the QFC is also focused on strengthening international cooperation and harmonising standards. Al-Jaida noted that variations in Shariah governance across jurisdictions can create uncertainty for investors. To address this, the QFC has established a comprehensive local framework aligned with the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards. This move is part of Qatar’s Third Financial Sector Strategic Plan, which prioritises integrating Islamic finance across banking, insurance, and capital markets to enhance its visibility both locally and internationally.
About Qatar Financial Centre
The Qatar Financial Centre (QFC) is an onshore business and financial centre located in Doha. It provides a platform for firms to do business in Qatar and the surrounding region by offering its own legal, regulatory, tax, and business environment. The QFC allows up to 100% foreign ownership, 100% repatriation of profits, and applies a competitive corporate tax rate on locally sourced profits.
Source: Zawya
