Bahrain is a small island country in the Persian Gulf. It is home to many large financial institutions specifically in its capital city Manama. Bahrain comprises of nearly 70% Muslim population which influences the country’s Banking system. The country not only encompasses several dedicated Islamic banks but has some conventional banks also offering special Islamic windows.
Bahrain’s banking arena is a mix of regional, local and international institutes. It is mostly divided into the wholesale and retail sector. The sharia-compliant banking system almost captures a market share of 30%. There are 6 licensed Islamic Banks in the retail sector and 11 in the wholesale sector. The total assets of these banks amounted to US$ 26.8 billion in 2018.
Following are the list of Top 5 Islamic Banks in Bahrain:
Kuwait Finance House
Kuwait Finance House is considered as one of the pioneers of the Sharia Compliant Banking System. It has its presence in Bahrain, Kuwait, Saudi Arabia, UAE, Turkey, Malaysia, and Australia. It operates through three segments namely Investment, Treasury and Banking.
The banking network is spread across various areas and has 430 branches and more than 790 ATMs. It has acclaimed many awards and recognitions like “Best Islamic Project Finance Provider 2016” by Global Finance; “Best Islamic Financial Institution in GCC 2016” By Global Finance and many the most recent “Best Islamic Bank in the Middle East, Kuwait 2017” by EMEA Finance.
Murabaha International Investment Account: This type of investment is managed in the Murabaha way in international markets. The biggest advantage is that one can make an investment with other currencies as well.
Social Housing Financing: It is sharia-compliant financing which provides a chance to its customers to own a house. In this a Mazaya comes into play which is a social housing plan between KFH and Ministry of housing, thus the financing will be provided by the Ministry of housing in Bahrain.
Bishara Investment Savings Account: This account can be opened in both BHD and US Dollars. It offers special prizes and a chance to win with each BHD 50 invested in the account. Additional prizes are offered to women and children.
Prepaid Platinum Card: Prepay is the sharia-compliant trading system it offers a variety of products some of the features are multiple air miles, special discounts in famous brands, limit of BHD 5000/-
Total Assets and Profits
Total Assets: US $58 Billion (as of December 2018)
Net Profits: US $627.3 Million (as of December 2018)
Khaleeji Commercial Bank BSC (KHCB)
KHCB is headquartered in Bahrain. It has a well-built reputation in the field of Islamic banking in the kingdom. The bank operates through 2 segments namely Corporate Banking & Retail Banking. Apart from being headquartered in Manama, it has 11 other branches spread across the geographical area of Bahrain.
KHCB Credit Cards: This credit card has one of the lowest profit rates in the market at just 3 %. It offers a complete solution for personal and professional use. There are no annual subscription fees on the main as well as the supplementary cards. It also provides free gulf air miles along with the benefit of exclusive discounts and offers.
KHCB Home Finances: It offers flexible financing to Bahrainis as well as expats at nominal interest rates. The loan is available for both residential and commercial properties. It provides financing up to 85% of the value of the property and a maximum of BHD 400,000
Al Waffer Account: This account is completely Sharia compliant and works on the Mudharaba principle. A minimum amount of BHD 500 is required to open the account, this account gives the advantage to win many valuable prizes.
Thabet Account: It is based on the Murabaha Principle. A minimum investment amount of BHD 5000 is required. In this profit is paid on a monthly basis and capital is only paid after the maturity of the term. The bank thereby charges a brokerage of BHD 30 per transaction.
Profit margin and Total Assets
Total Assets: US $ 2.17 Billion (as of 2018-year-end)
Net Profit: US $ 2.12 Million (as of 2018-year-end)
Al Baraka Bank
Al Baraka is the 4th largest bank in Bahrain, listed as a licensed wholesale bank by Central Bank of Bahrain. It offers services in 4 segments namely retail, treasury, investment, and banking. It has presence in Jordan, Sudan, South Africa, Pakistan, in a total of 15 countries and they also have representative offices in Libya and Indonesia. It has spread across all geographical regions through its 496 branches.
Al Baraka Credit Card: It offers 3 types of credit cards namely platinum, titanium and gold. All these come with a set of different benefits and limits. The bank charges no subscription fees and also issues cards on cash collateral.
Mudaraba Investment Account: It enables the customer to deposit a specific sum of money throughout the year for specific periods of time with the chance to withdraw profits at specific intervals. The major advantage is that the account can be opened in US dollar as well.
Taqseet Finance: This kind of a loan is sharia-compliant and comes for different categories such as auto & other goods finance and for mortgage finance as well. For mortgage finance loan it can be executed in 3 different ways according to the convenience of the customer.
Istisna’a: It is an Islamic way of financing which is used for construction and industrial projects. The unique feature of this type of financing is that it allows you to sell an asset which does not exist at the time of contract.
Total Assets and Net Income
Total assets: US $ 23.831 Billion (as of year-end 2018)
Net Income: US $ 217 Million (as of year-end 2018)
Bahrain Islamic Bank (BisB)
BiSB was the first Islamic Bank established in the Kingdom of Bahrain. It operates through 3 segments namely Investment, Corporate, and Retail. The company has 9 branches across
Bahrain. It provides its customers with superior quality banking and investing services which are compliant with Islamic law.
Tas’heel Personal Finance: This kind of personal loan has been designed with an adherence to the sharia principle. It offers a maximum amount of BHD 100,000 for a maximum period of 7 years.
BisB Credit Cards: The bank offers a variety of 6 credit cards with variations from gold to platinum to corporate credit cards. It also offers different schemes and discounts on each of the cards.
Pari Passu: It is a joint housing program launched in association with the Eskan Bank. The main idea of the program is to share the security between both the banks, thereby the customer then avails dual benefits from the “Social Finance facility and The Commercial Banks Mortgage Facility”.
Vevo: It is a youth savings account. It functions on the Islamic principle Mudharabah, in which one only has to provide the capital and the bank will look after the operations and provide the expertise.
Total Assets and Profit Margin
Total assets: US $ 33 million (as of year-end 2018)
Net Profit: 11.4 Million (as of year-end 2018)
It is a Bahrain based Islamic retail bank. Ithmaar Bank offers a wide variety of sharia-compliant products and services. It also has presence in Pakistan through its subsidiary. It operates in three segments namely Retail Banking, Commercial Banking, and Private Banking.
Ithmaar Personal Finance: It is sharia compliant financing system available to GCC nations and all nationalities. It has a maximum limit of BHD 200,000 depending on the customers. It also offers a grace period of 3 months.
Home Financing: The bank provides home finances through two ways Ijara finance and Morabaha finance. The maximum amount of BHD 500,000 through both the financing is available.
7esabi Youth Account: This scheme provides a debit card and all eBanking services to the minors and the minimum balance required is BHD 10. Also, a free order from the parents account to that of the minor will be applied.
Madoraba Account: It offers an opportunity to earn higher profits through flexible time periods. In this system, the investor provides the capital and bank provides the expertise to earn halal profits.
Total Assets and Net Profit
Total assets: US $ 90 Million (as of 31st December 2017)
Net Profit: US $ 16,544 (as of 31st December 2017)