About Al Baraka
Al Baraka Islamic Bank (“AIB” or “the Bank”) is one of leading financial institutions in the Islamic banking sector. Throughout its history of more than three decades (since its establishment in 1984), the Bank has played a prominent role in building the infrastructure of the Islamic finance industry. The Bank also played a significant role in promoting the Islamic finance industry and publicizing its merits. The Bank enjoys a good reputation and high standing with the community in the Kingdom of Bahrain in particular, and in the GCC, Arab and Islamic worlds in general.
AIB offers innovative financial products, including investments, international trading, management of short-term liquidity and consumer financing, all of which are all based on Islamic financing modes. Such financing include Murabaha, Wakala, Istisna, Musharaka, Mudarabah, Salam, and Ijara Muntahia Bittamleek.
The Bank had achieved excellent results in its banking operations, thanks to its vast wealth of knowledge in the area of Islamic Fiqh (Jurisprudence), the diverse experience of its executive management team, and the strong and deep financial position of its parent company (Al Baraka Banking Group). Since its inception, AIB is managing funds on behalf of many large financial institutions and high net worth clients (who sought rewarding long-term and financial returns) by deploying Sharia compliant instruments.
In 2010, AIB completed the merger of its branches in Pakistan (whose operations started back in 1991) with Emirates Global Islamic Bank Limited, to establish Al Baraka Bank Pakistan Limited (“ABPL”). Thereafter, in 2016, ABPL acquired and merged with Burj Bank Limited leading to the addition of 74 new branches. ABPL carries total assets over 120 billion Pakistani Rupees and a workforce of more than 2,500 professionals in addition to a network of 188 branches in more than 100 cities and towns across the country.
In 2012, the Bank acquired 60% of the issued shares of Itqan Capital (previously Al Tawfeek Financial Group). This share increased to 83.07% in 2015. Itqan Capital is a closed joint stock company registered in the Kingdom of Saudi Arabia and licensed by the Capital Market Authority. The company engages in asset and portfolio management, as well as custody and research and advisory services. All products and services offered by the company are in strict compliance with the provisions of Islamic Sharia. The company’s paid-up capital is 111 million Saudi Riyals. This step represents AIB and ABG’s strategy to enter key regional markets, as Saudi Arabia is considered the largest Arab economy with strong fundamentals and stable financial and investment environment, which presents the Bank with significant business and investment opportunities.
As for its strategic plans, the Bank continued to maintain the pace of growth in its business operations with particular focus on commissions and fee-based income. The Bank also expanded its investment portfolio, continued to develop its infrastructure, particularly in modernizing its information technologies (IT) and related services, improved its customer services, provided training and coaching to its employees and maintained its special relationship with its customers as “Partners in Achievement”.
AIB is a retail Islamic bank licensed by the Central Bank of Bahrain and registered with Bahrain’s Ministry of Industry, Commerce, and Tourism under Commercial Registration No. 14400. The Bank has an authorized capital of 600 million US Dollars and issued and paid-up capital of 122.5 million US Dollars.
AIB is one of the banking units of ABG (which is a Bahraini Joint Stock Company listed in Bahrain stock exchange and Nasdaq Dubai). The Group offers retail banking, corporate banking, investment banking, and treasury services, strictly in accordance with the principles of the Islamic Sharia. The authorized capital of ABG is 1.5 billion US Dollars, while total equity amounts to around 2.5 billion Dollars. ABG has a wide geographical presence in the form of subsidiary banking units and representative offices in 16 countries, which in turn provide their Sharia compliant banking products and services through more than 600 branches. These banking units are AIB, Jordan Islamic Bank, Al Baraka Bank Pakistan Limited, Al Baraka Bank Algeria, Al Baraka Bank Sudan, Al Baraka Bank Ltd South Africa, Al Baraka Bank Lebanon, Al Baraka Bank Tunis, Al Baraka Bank Egypt, Al Baraka Turk Participation Bank and its branches in Iraq, Al Baraka Bank Syria, BTI Bank Morocco, and a representative office in both Indonesia and Libya.