The potential of islamic finance in reinforcing and regaining economic stability in qatar

The COVID-19 has put a severe dent in the resilience of several economies by slowing down the economic growth. The challenge for Qatar was more severe as the occurrence of pandemic collided with the ongoing political blockade from 4 neighboring counties and Qatar’s commitment of hosting 2022 FIFA world cup. This contextual research of COVID-19 attempts to identify the potential of Islamic finance in reinforcing and regaining economic stability in Qatar. The desk research has adopted the explorative method and analyzed the research reports in the context of the current landscape particularly looking from the angles of economic, social, financial and health impact. Government and institution measures in response to COVID-19 and stimulus packages were discussed; and Islamic social finance tools, Zakat, Infaq, Qard Hassan, and Waqf were proven to be resilient to the situation. Moreover, the excessive liquidity in the Islamic banks in Qatar, Formosa Sukuk, Waqf, Zakat and policies based on objectives of Shari’ah have a great potential for reinforcing and regaining the economic stability in Qatar. The research shall help streamline the thought process for the policy makers and the practitioners of Islamic finance industry, especially in Qatar.