| Industry | Financial services |
|---|---|
| Founded | 7 March 1979 |
| Headquarters | Al Salam Tower, Building 722, Road 1708, Block 317, , Bahrain |
Key people | Chief Executive Officer: Yaser Alsharifi |
Number of employees | 329 (2022) |
| Website | bisb |
Bahrain Islamic Bank is a commercial bank based in Manama, Bahrain, founded on 7 March 1979, and started operating from the beginning of the Hijri Year 1400 (2nd of Muharram) which was the 22 November 1979. [1] [2] It is the first Islamic bank in the Kingdom of Bahrain, works under supervision of the Central Bank of Bahrain and is listed on the Bahrain Stock Exchange. [3]
In January 2016, the Moody's Investors Service confirmed its ratings and upgraded the standalone baseline credit assessment (BCA) to b3 from caa1. [4]
In 2017, as part of a five-year growth plan, the bank outlined strategies to boost its performance, one of which involved selling around 82 million dinars (£166 million) worth of unproductive assets, including land and shares. During the initial six months, the bank successfully sold assets worth 14 million dinars. By prioritizing its core lending business and implementing these asset sales, the bank aimed to streamline operations and foster additional growth. [5]
In 2019, the National Bank of Bahrain, which held a stake in Bahrain Islamic Bank, put forward an offer to acquire its remaining shares. The proposed agreement depended on the bank obtaining a minimum 40.94 percent stake in Bahrain Islamic Bank through either cash or a share exchange. The agreed-upon valuation for Bahrain Islamic Bank amounted to 124 million dinars ($329 million). The offer aligned with the trend of mergers in the Middle East's financial sector, driven by reduced government and consumer spending due to weakened oil prices, impacting profit margins. [6]
in 2023, the Bank adopted Nutanix solutions as part of its digital transformation strategy, investing in a suite of solutions including Nutanix Database-as-a-Service, Nutanix Files, Nutanix Data Protection, and Nutanix AHV. [7] [8]
In November, the bank signed a cooperation agreement with telecom services group STC Bahrain, aiming to implement a set of initiatives for small and medium-sized enterprises. [9] In December, the bank signed an agreement with Delmon Gate to offer real estate financing options and benefits for the Bushra housing project located in Alsayah. [10] [11]
In 2021, the bank launched its Future Leaders youth program, featuring the first wearable wristband branded by Mastercard. The program offers a prepaid solution for children and teenagers, enabling parents to issue children's allowances digitally, fostering better financial literacy. The wristband allows kids to conduct transactions, manage their finances and track their spending. [12]
In 2023, the bank announced plans to create the first AI platform for Islamic Banking Sharia Fatwas. The platform will incorporate Fatwas issued by the Sharia Supervisory Board, utilizing over 1,800 Fatawa and Sharia decisions. [13]
The bank celebrated World Children's Day by participating in the Forever Green initiative. A team from the bank, along with 20 children from the Bahrain Down Syndrome Society, took part in the third stage of the campaign organized by the National Initiative for Agricultural Development. The team from the bank planted 100 seedlings at the Samaheej Park. [14] [15]
The bank celebrated Woman's Day by hosting a range of activities, including workshops on mental and professional health, as well as intellectual development. [16]
In 2022, the bank won the Best Islamic bank in Bahrain award from Euromoney, citing that the bank had doubled its profit over the year [17]
In 2023, the bank won the Best Digital Banking Initiative at the Mena Banking Excellence Awards for its achievements in digitization. This included the establishment of the bank's Innovation Lab for testing new products. The bank has also offered tailored digital banking solutions by releasing the Corporate Digital application for startups to open and manage their accounts online, eliminating the requirement to physically visit a branch. [18]
The economy of Bahrain is heavily dependent upon oil and gas. The Bahraini Dinar is the second-highest-valued currency unit in the world. Since the late 20th century, Bahrain has heavily invested in the banking and tourism sectors. The country's capital, Manama is home to many large financial structures. Bahrain's finance industry is very successful. In 2008, Bahrain was named the world's fastest growing financial center by the City of London's Global Financial Centres Index. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil. Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP. Aluminium is the second most exported product, followed by finance and construction materials.
Islamic banking, Islamic finance, or Sharia-compliant finance is banking or financing activity that complies with Sharia and its practical application through the development of Islamic economics. Some of the modes of Islamic banking/finance include Mudarabah, Wadiah (safekeeping), Musharaka, Murabahah (cost-plus), and Ijara (leasing).
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Arcapita founded in 1997, is an asset management firm. Headquartered in Manama, Bahrain, Arcapita also operates from its offices in the United States, the United Kingdom, Saudi Arabia, and Singapore. The firm serves a group of investors in the Middle East region including investment firms, family offices, high net-worth individuals, and sovereign wealth funds. Arcapita completed over 100 investments in the United States, Europe, the Middle East, and Asia for a total transaction value exceeding $30 billion. The board of directors contain nine members, mainly from the Gulf Cooperation Council. Members are chairs, previous chairpersons, or current Chief Executive Officers of sovereign wealth funds, regional investment firms or global financial services firms.
ABC Islamic Bank is a Joint Stock Company that provides investment banking services and asset management services in accordance with Islamic principles. It is a wholly owned subsidiary of Arab Banking Corporation. Its subsidiaries include ABC Clearing Company and ABC Islamic Fund.
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Al Baraka Group B.S.C. is licensed as an Investment Business Firm – Category 1 by the Central Bank of Bahrain and is listed on Bahrain Bourse. It is a leading international Islamic financial group providing financial services through its banking subsidiaries in 15 countries offering retail, corporate, treasury and investment banking services, strictly in accordance with the principles of Islamic Shari'a.
Banking or banking activity that complies with Sharia —known as Islamic banking and finance, or Sharia-compliant finance—has its own products, services and contracts that differ from conventional banking. Some of these include Mudharabah, Wadiah (safekeeping), Musharakah, Murabahah, Ijar (leasing), Hawala, Takaful, and Sukuk.
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