Islamic Banking
The growth of Islamic banking - or banking that complies with Sharia principles - has been remarkable, with total assets in this segment jumping from US$1.9 billion in 2000 to US$10.3 billion by July 2006, an increase of over 400%. Bahrain has been an innovator in Islamic finance ever since we brought sukuk to the international market. We have continued to lead the significant growth in this sector. At present there are 29 Islamic banks in Bahrain, the largest concentration of Islamic financial institutions in the Middle East, including commercial, investment and leasing banks, insurance companies, and mutual funds.
The total assets for the Islamic banking industry currently stand at US$15.9 billion (CBB, June 2008). At present there are 29 Islamic banks in Bahrain. Islamic banks provide a variety of products, including murabaha, ijara, mudaraba, musharaka, al salam and istisna'a, restricted and unrestricted investment accounts, syndications and other structures used in conventional finance, which have been appropriately modified to comply with Sharia principles.
Bahrain plays host to a number of organizations central to the development of Islamic finance, including the Accounting and Auditing Organisation for Islamic Financial Institutions, the General Council for Islamic Banks and Financial Institutions, the International Islamic Financial Market and the International Islamic Rating Agency.
Islamic Banks like Ithmar Bank, Shamil Bank, Khaleeji Commercial Bank, Al Baraka Islamic Bank and ABC Islamic Bank already discovered the advantages of operating out of Bahrain.
Contact us to find out how the Bahrain Economic Development Board can help you set up and support your business long-term.