You are on page 1of 15

Introduction

Al Baraka Banking Group is a Bahrain Joint Stock Company listed on Bahrain and NASDAQ Dubai stock exchanges. It is a leading international Islamic bank. Al Baraka Banking Group offers retail, corporate / investment banking and treasury services strictly in accordance with the principles of the Islamic Shari'a. The authorised capital of Al Baraka Banking Group is US$1.5 billion, while total equity amounts to about US$1.7 billion. The Group has a wide geographical presence in the form of subsidiary banking Units and representative offices in twelve countries, which in turn provide their services through more than 300 branches. These banking Units are Jordan Islamic Bank, Al Baraka Islamic Bank ‒’ Bahrain, Al Baraka Islamic Bank – Pakistan, Banque Al Baraka D'Algerie, Al Baraka Bank Sudan, Al Baraka Bank Limited - South Africa, Al Baraka Bank Lebanon, Al Baraka Bank Tunisia, Al Baraka Bank Egypt, Al Baraka Turk Participation Bank, Al Baraka Bank Syria and a Group representative office in Indonesia. Currently operating with 29 branches in 17 major cities of the country, AIB offers a wide array of Islamic financing products such as Murabaha, Ijarah, Musharakah and Islamic Export Refinance, etc., catering to a diverse cross-section of the economy, including the Corporate, SME and Consumer sectors. Moreover, various Shari’a compliant deposit schemes are available for customers to invest their funds in, along with a variety of other ancillary services such as online banking, ATM/debit card,safe deposit lockers and utility bill payments etc. Al Baraka Islamic Bank (AIB) is a member of Al Baraka Banking Group (ABG) which is a Bahraini Joint Stock Company listed on Bahrain and Dubai stock exchanges and one of the well-known leading international Islamic banks. Al Baraka Banking Group is committed to

over the next few weeks. These banking Units are Jordan Islamic Bank/ Jordan. which in turn provide their services through more than 250 branches. Al Baraka Banking Group offers retail. capitalizing on the Group’s geographical presence and high quality research and development in Islamic financial products for its business expansion in the country.59 billion. The Egyptian Saudi Finance Bank/Egypt. Al Baraka Islamic Bank/ Bahrain. Al Baraka Bank Lebanon/Lebanon . AIB has successfully developed itself as a major unit of Al Baraka Banking Group operating in the region.with a short-term rating of A-3. AIB strongly relies on its ability to be an effective and efficient market player through renewed focus on superior customer service. and representative office.Tunisi Al Saudi/ Tunisia. ABG Head Office Organization Chart Head of Financial Control Head of Credit & Risk Management Head of Operations & Administration Head of Legal & Compliance Head of Strategic Planning Head of Treasury & Investments Head of Financial Institutions Shareholders Head of Internal Audit Board . the Group has a wide geographical presence in the form of subsidiary banking Units in 12 countries. corporate and investment banking and treasury services strictly in accordance with the principles of the Shari’ah. It has been rated by Standard & Poor's as BBB.expanding its presence in Pakistan. Al Baraka Islamic Bank/ Pakistan. With assets of US$11. and strict adherence to Shari’ah rulings and principles.2 billion. Banque Al Baraka D'Algerie/ Algeria. Building on the expertise and experience of its workforce and the growing awareness of Shari’acompliant banking solutions among the masses.5 billion. while the total equity amounts to about US$ 1. Al Baraka Turk Participation Bank/Turkey. Indonesia. Faced with growing challenges in this rapidly developing market. The authorized capital of Al Baraka Banking Group is US$1. which is evident from the rapid growth being undertaken by Al Baraka Islamic Bank in the country and its plans to have its Pakistan operations localized as a Bank registered in Pakistan. development of Islamic alternatives to conventional financing facilities. Al Baraka Bank Syria (under establishment).Bank Et-Tamweel Al. Al Baraka Banking Group is the biggest Islamic banking group listed on the Bahrain Stock Exchange in terms of capitalization. Al Baraka Bank Sudan/Sudan. Al Baraka Bank Ltd/ South Africa.

President & Chief Executive Deputy Chief Executive Audit and Governance Committee Board Executive Committee Board Affairs & Remuneration Committee Board Risk Committee …………………………………………………………………………………………………………………………………… ……………………….C.Pakistan Branches (AIB) at 'A/A-1' (Single A/A-One). Al Baraka Islamic Bank currently stands in terms of credit rating JCR-VIS Credit Rating Co Ltd. along with a variety of other ancillary services such as online banking.. has reaffirmed the medium to long term ratings of Albaraka Islamic Bank B. ATM/debit card. © . Moreover. Introduction Emirates Vision . operations The presence of Al Baraka Islamic Bank in the Pakistani market dates back to more than 20 years ago and the Bank has the honor of being the pioneer of Islamic banking in Pakistan. Outlook on the assigned rating is stable. various Shariah compliant deposit schemes are available for customers to invest their funds in. Over the years. including the Corporate. the bank has successfully developed and maintained its identity as one of the leading providers of a host of banking products and services in strict compliance with Shariah principles. which in turn had earned the bank a high standing in Pakistan and the trust of the Pakistani businessmen and investors communities. It had 29 branches that offer all types of Islamic banking products and services. catering to a diverse cross-section of the economy. etc. Al Baraka offers a wide array of Islamic financing products such as Murabaha. SME and Consumer sectors. Musharaka and Islamic Export Refinance. safe deposit lockers and utility bill payments etc.S. Ijara.

It has far reaching benefits. dedicated and unrivalled services. Values Service Quality – quick. Alhamdolillah.” Mission “Provide quality and efficient Shariah compliant financial products and services to customers all over the country through an expanding branch network. based on the teachings of the Quran and Sunnah. dedication and service quality. integrity. The reason behind this phenomenal growth is the fact that Islamic Banking is based on ethical practices and promotes honesty. Integrity– Teamwork will be encouraged at all levels. Emirates Global Islamic Bank Limited. increments and career progression will depend on merit. In Pakistan. a dedicated Islamic Commercial Bank. Recruit the right person for the right job. Staff will be motivated to work in the best interest of the shareholders and personal interests will be subordinated to those of the institution and its customers. 2 in Lahore. transparency and fairness. This network will be of 25 branches in 2008. Promotions. Emirates Global Islamic Bank Limited is committed to the cause of extending the reach of Islamic Banking in Pakistan and thereafter globally. commenced operations in February 2007. Dedication – staff will be empowered to perform to the best of their abilities. staffed by motivated professionals and powered by state of the art technology”. Strong and trusted: . Presently the Bank has ten branches in Pakistan (5 in Karachi. achieved by adhering to stated values of innovation. Gujranwala & Quetta). It has become one of the fastest growing industries not only in the world but also in the region. which can be enjoyed by both Muslims and non-Muslims alike. 1 each in Peshawar. All the right reasons: Islamic Banking is emerging as a major trend on the global financial scene and the quantum of this industry presently stands at over US$ 300 Billion.“To become a recognized and highly respected Islamic commercial bank offering a wide range of Shariah compliant products and services to a cross-section of society. complemented with superior service and cuttingedge technology. Islamic Banking is expected to grow rapidly to achieve a 12% share of the banking industry by 2012. EGIBL believes in making a positive contribution to society by continuously striving to provide Halal alternatives to conventional banking products. Incorporated in Pakistan and sponsored by leading investors from the United Arab Emirates and Saudi Arabia. Emirates Global Islamic Bank Limited aims to become a major player in the rapidly growing Islamic banking industry by offering Riba-free yet highly competitive banking products.

Emirates Global Islamic Bank Limited is backed by leading investors from United Arab Emirates and Saudi Arabia. ………………………………………………………………………………………… Emirates operation ……………………………………………………………………………………. The stakeholders. about Islamic banking concepts among general public. The other major shareholder of Emirates Global Islamic Bank Limited is Al Rajhi family of Saudi Arabia.1 per cent in June 2009. The sponsoring shareholder of the bank. who are committed to the cause of Islamic banking. which is a brokerage firm based in Lahore. including bankers and practitioners must play their due role in promotion of Islamic banking products. . This group is also a major shareholder in the Al Rajhi Bank of Saudi Arabia which is the largest Islamic bank in the world with assets over SAR 100 Billion. United Arab Emirates. a high quality property development company which is a joint venture with National Logistics Cell (NLC) for development of the Karachi Financial Towers. I. Chundrigar Road. the biggest challenge to promote Islamic banking in the country is lack of awareness about Islamic banking concepts among general public.. a member of the ruling family of Sharjah. Islamic banking continued to flourish and increased its share in banking system to 6. is the Chairman and cofounder of Emirates Investments Group. The second major issue is capacity of banking sector where share of Islamic banking needs to be improved. is a leading investment company which has strategic investments in the property development and financial services sectors in the Middle East and Asia Pacific regions. Emirates Investments Group (EIG). a state of the art commercial complex on I. The apprehensions and confusion about Islamic banking among masses needs to be removed. Other major investments of the group in Pakistan include Trust Securities and Brokerage Limited (TSBL).1 per cent at the end of June 2010 from 5. the growth and challenges faced by Islamic Banking in Pakistan? Islamic banking institutions have improved their market share in Pakistan's banking industry despite prevailing depressive economic situation. EIG has setup ENSHAANLC. headquartered in Sharjah. Karachi. Shiekh Tariq Bin Faisal Al Qassimi. However.

which had enjoyed a significant and successful presence since it was established in Pakistan. For this reason. Meanwhile. The merger creates a high value-addition not just for the merged financial institutions. The merger reflects Al Baraka Group's strategy to expand in the Pakistani market as part of its strategies to strengthen its presence and operations in promising Islamic markets. but also for the banking and financial market in Pakistan. This requires that we continue the efforts to achieve further expansion in these operations given the huge size of the Pakistani market. about Al Baraka Islamic Bank's merger with Emirates Global Islamic Bank Al Baraka Islamic Bank has the honour of being the first Islamic Bank to undertake the first ever merger in the Islamic banking industry of Pakistan by taking over controlling stake of Emirates Global Islamic Bank (EGIBL). we decided to undertake the merger with and into the Emirates Global Islamic Bank. supported by the extensive resources and expertise of the well established parent company Albaraka Banking Group (ABG) and its twelve subsidiary banking units in various parts of the world. The merger has led to the emergence of a new bank that has assets in excess of US$582 million and a network of 89 branches covering cities and towns in Pakistan. which will be followed by the change of name to 'Al Baraka Bank (Pakistan) Limited' What makes the newly merged Al Baraka Bank (Pakistan) Limited stand out in Pakistan's Islamic banking market The newly merged Islamic bank will have substantial capital resources and a wide branch network that would enable it to play a truly leading role in the Pakistani banking market and provide a full range of Islamic banking services.How is this merger going to be implemented Initially all Al Baraka bank branches will be merged into Emirates Global Islamic Bank Limited. The operations of Al Baraka Bank in Pakistan had achieved excellent results during the past years. 2010. The Central Bank has recently notified de-scheduling of Al Baraka Islamic Bank Pakistan operations on account of its merger with and into Emirates Global Islamic Bank with effect from the close of business on October 29. the regulator has also notified the change of name of Emirates Global Islamic Bank to 'Al Baraka Bank (Pakistan) Limited'. . as well as the solid and wide presence in the Pakistani market. which has been approved by the State Bank of Pakistan.

.We are confident that this merger will benefit the shareholders of both banks as well as the Pakistani economy.

.

.

.

.

.

.

.

Financial statement of al brakha .