In February 2011, Qatar Central Bank (QCB) issued a directive ordering conventional banks to wind up their Shariah-compliant banking branches, which took the banking industry in Qatar by storm. At the time, the Shariah-compliant asset allocation of conventional banks averaged about 10% of their total assets, while full-fledged Shariah-compliant banks in Qatar had assets of nearly one-fifth of the total banking assets in the country. It was then that Qatar Development Bank (QDB) made the crucial decision to transform itself into a Shariah-compliant bank. The primary aspiration for conversion, however, was faith motivated. The management had a strong desire to create a Shariah- compliant institution aligned with the principles of Islam. Relevant experience, a skilled and committed workforce, and a strong willingness to change were among the critical determinants for the successful conversion of QDB. This case study seeks to look into the the approach adopted by the management to transform the bank.
