Al Baraka Banking
Al Baraka Islamic Bank is one of leading financial institutions in the Islamic banking sector. Throughout its history of 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 Bahrain in particular, and in the Gulf, Arab and Islamic worlds in general.
Al Baraka Islamic Bank offers innovative financial products, particularly in the areas of Islamic investment, international trade, management of short-term liquidity and consumer financing that the bank has lunched under (Taqseet product)…. etc., which are all based on Islamic financing modes. Such financing modes include Murabaha, Wakala, Istisna, Diminishing Musharaka, Mudaraba, Salam and Ijarah Muntahia Bittamleek.
The Bank had achieved excellent results in its banking operations, thanks to its vast wealth of knowledge in the area of the Fiqh (jurisprudence) of Islamic finance, the diverse experience of its senior management team in different fields of Islamic banking and the strength and depth that the parent company, Al Baraka Banking Group, with its strong financial position and standing provides to the bank. Since its inception, Al Baraka Islamic Bank is managing funds on behalf of many large financial institutions and high net worth clients who sought rewarding long-term financial returns by deploying Shari’acompliant financial instruments.
During the year 2010, AIB completed the merger of its branches in Pakistan, which their operations dates back to 1991, with the branches of Emirates Global Islamic Bank Limited, to establish Al Baraka Bank Pakistan Limited as a subsidiary with 64.64% Shareholding. The Head office is located in Karachi. ABPL have assets in excess of Rs. 85 billion a workforce of more than 1400 professionals and a network of 110 branches in 58 cities and towns across the country. ABPL has commenced operations on 29th of October 2010 and consequently, all branches of AIBP and Emirates Global Islamic Bank is re-branded as ABPL.
In July 2012, the Bank acquired 60% of the issued shares of Itqan Capital (previously Al Tawfeek Financial Group). This share increased to 83.07% in October 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, and custody, 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 SAR 200 million and the authorized capital is SAR 360 million. This step represent the Bank and the parent company Al Baraka banking Group’s strategy to enter key regional markets, for Saudi Arabia is the largest Arab economy with strong fundamentals and a stable financial and investment environment, which presents us with significant business and investment opportunities.
As for its strategic plans, the bank continue maintaining the pace of its growth in its business operations with particular focus on commissions and fee – based earnings. The bank also expanding its investment portfolio, continue to develop its infrastructure, particularly with regard to modern information technologies (IT) and related services, improve customer service, provide training and coaching to employees and maintain our special relationship with our customers as their “Partners in Achievement” .
Al Baraka Islamic Bank is a banking institution registered with the Ministry of Industry and Commerce in Bahrain under Commercial Registration No. 14400 and has a Retail Banking license issued by the Central Bank of Bahrain. The bank has an authorized capital of US$ 600 million and issued and paid-up capital of US$122 million. Al Baraka Islamic Bank – Bahrain is one of the banking units of Al Baraka Banking Group, which is a Bahrain Joint Stock Company listed in Bahrain stock exchange and Nasdaq Dubai. Al Baraka Banking Group is a leading international Islamic banking group with Standard and Poor’s rating of investment grade BB+/ Negative/B. The Group offers retail, corporate and investment banking and treasury services, strictly in accordance with the principles of the Islamic Shari’a. The authorized capital of Al Baraka Banking Group is US$1.5 billion, while total equity amounts to around US$1.97billion. The Group has a wide geographical presence in the form of subsidiary banking units and representative offices in 15 countries, which in turn provide their Shari’a-compliant banking products and services through around 500 branches. These banking Units are Jordan Islamic Bank, Jordan; Al Baraka Islamic Bank, Bahrain; Al Baraka Bank Pakistan Limited, Pakistan; 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, Turkey and its branches in Iraq; Al Baraka Bank Syria and a representative office in Indonesia and a representative office in Libya.