Agriculture is a driver of economic growth. An updated 2018 World Bank report emphasizes that agricultural development is one of the main tools to end extreme poverty, feed about 9.7 billion people by 2050 and raise the poor’s income two to four times compared to other sectors. About 65% of poor adults in 2016 earned a living through agriculture. Also, agricultural products accounted for one-third of global Gross Domestic Product (GDP) in 2014. Islamic Finance with its profit and loss sharing feature and the variety of Islamic financial contracts (e.g. Muzarah, Musagah, Diminishing Musharakah, Murabaha, Salam, Ijarah and Istisnaa) is well-positioned to play a fundamental role in the agricultural sector development while contributing to economic and social development.
This paper attempts to shed light on the best practices in Islamic agriculture financing by analyzing the Sudanese experience since Sudan has a rich agricultural experience supported by its full fledge Islamic financial system. The research can contribute to mitigating the literature gap in Islamic agriculture financing while supporting policymakers and financial institutions in Qatar in the achievement of economic diversification through agriculture reform. To do so, it examines the current contribution of Islamic banks and the Qatar Development Bank (QDB) in agriculture finance in Qatar.