5 leading Islamic finance banks in the Kingdom of Bahrain

By Leandra Monteiro

Islamic banking refers to a system of banking, which is consistent with Islamic law also known as Shari’a law. Islamic banks focus on generating returns on investments through investment tools that are Shari’a compliant.

According to Fitch Ratings, Bahrain’s Islamic banking sector growth is expected to continue growing in 2022-2023, following strong momentum in 2021. This is likely driven by the steadily rising public demand for Islamic products and the expected improvement in the operating environment.

Here are 5 Islamic banks in Bahrain to take a look at:

Al Baraka Islamic Bank

Al Baraka Islamic 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.

As one of the leading financial institutions in the Islamic banking sector, the bank offers a full range of products and services in accordance with the Shari’a.

Al Salam Bank

Al Salam Bank, one of the pioneering Shari’a-compliant Banks in the Kingdom, is licensed and regulated by the Central Bank of Bahrain as an Islamic Retail Bank. Al Salam Bank offers its customers a comprehensive range of innovative Shari’a-compliant financial products and services through its extended strong network of branches and ATMs utilising its technologies to meet various banking requirements.

In addition to its Retail Banking services, the Bank also offers Corporate Banking, Private Banking, Investment Banking as well as Treasury Services. The Bank’s management team comprises of a highly qualified and internationally experienced professionals with proven expertise in key areas of banking, finance and related fields.

Bahrain Islamic Bank

Bahrain Islamic Bank (BisB) was established in 1979 as the first Islamic commercial bank in the Kingdom of Bahrain. Since its inception, BisB has recorded a steady growth. The Bank has been maintaining its top position in the Islamic banking sector through adopting innovative Islamic investment and financing products, supported by superior retail and corporate banking services.

The Bank is listed on the Bahrain Stock Exchange. The major shareholders are leading local and regional financial institutions. The Bank operates under the supervision and the regulatory framework of the Central Bank of Bahrain. The Bank, with 9 local branches, has established the largest network among Islamic banks in the Kingdom. These branches offer quality banking services, financing and investment opportunities compliant with Sharia’a requirement for individual and corporate customers.

Khaleeji Commercial Bank

Khaleeji Commercial Bank is known to be one of the leading Islamic banks in the Kingdom of Bahrain. Established in 2004, the bank has gained a well-acclaimed reputation in the field of Islamic banking. Khaleeji Commercial Bank has achieved key milestones over the years. The Bank strives to be a leader in local and regional Islamic banking as it is listed on Bahrain Bourse and Dubai Financial Market. It also offers innovative products and services to its clients. The Board of Directors of the Bank is composed of recognised veterans and prominent personalities in the field of banking. The Managerial Team consists of a group of banking experts and professionals. There also exists a Shari’a Supervisory Board comprised of specialized jurists prominent both within the region as well as around the world. The Supervisory Board on a regular basis oversees the bank’s compliance, workflow, and activity guidance, ensuring adherence to the principles and provisions of Islamic Shari’a.

Kuwait Finance House-Bahrain

Kuwait Finance House-Bahrain is one of the leading providers of Islamic commercial and investment banking services. Established in January 2002 as a wholly owned subsidiary of Kuwait Finance House-Kuwait, an industry leader for more than 40 years and specialises in conceptualising the development and introduction of innovative, Sharia’a compliant banking and investment products, all of which are delivered by a staff of experienced professionals.

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