KOLEJ PROFESIONAL MARA BANDAR MELAKA

ACCOUNTING FOR ISLAMIC FINANCE

ACC3603 2022/2023

GROUP MEMBER:

NAME NUMBER ID
AHMAD NAHDAN BIN KASYFUN NAZIR BMF21-01-012
WAN MUHAMMAD ATIQULLAH BIN WAN MOHD SUKRI BMF21-07-011
MUHAMMAD SHAFIQ HAKIM BIN MUHAMAD KHARANI BMF21-07-019
MUHAMMAD SYAHMI BIN MUHAMMAD ZULHELMI BMF21-07-020
CHE MUHAMMAD AZAM BIN CHE DAUD BMF21-07-004

LECTURER NAME:
MUNIRAH BINTI SALIM

DATE OF SUBMISSION:
20 JUNE 2023

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NO CONTENT PAGE

1 ACKNOWLEDGMNET 3

3 MALAYSIA 4

4 INDONESIA 7

5 KUWAIT 14

6 INDIA 20

7 SUDAN 24

8 BRUNEI 28

9 EGYPT 32

10 JORDAN 36

11 OMAN 40

12 PAKISTAN 43

13 DIFEERENCES SOFP 44

14 DIFFERENCES SOPOL 44

15 CONCLUSION 46

16 REFERENCES 47

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ACKNOWLEDGEMENT

We are grateful to God for allowing us to successfully complete the assignment set by
Mrs. Munirah Binti Salim, our Islamic Accounting (ACC3603) lecturer.

We had some misunderstandings while working on this project, but we were able to
resolve them. We thank Mrs. Munirah Binti Salim for her guidance and support.

We also thank our team members for their collaboration, resilience, and mindset. Their
contributions were essential to the success of our project.

Finally, we thank our parents and other supervisors for their support. We are grateful
for their guidance and advice.

COMPANY PROFILE:

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MAYBANK ISLAMIC (ISLAMIC BANK OF MALAYSIA)

A. CORPORATE DATA

• Company name: Maybank Islamic Berhad

• Headquarters: Kuala Lumpur, Malaysia

• Founded: 1983

• CEO: Datuk Seri Abdul Farid Alias

• Market share: 26.2% (financing) and 23.2% (deposits)

• Products and services: Islamic banking, takaful, investment banking, and asset
management

• Network: Over 400 branches in Malaysia, as well as in key financial centers such as
Indonesia, Singapore, London, and the Middle East.

B. MAIN ACTIVITIES

The main activies of Islamic Maybank Berhad are :

• Islamic financing: Maybank Islamic provides a range of Islamic financing products,

including home financing, car financing, and personal financing. These products are
structured to comply with Shariah principles, which prohibit the payment or receipt
of interest.
• Takaful: Maybank Islamic also offers a range of takaful products, which are Islamic
insurance products. Takaful products are designed to protect individuals and
businesses against financial loss, while also complying with Shariah principles.
• Investment banking: Maybank Islamic provides a range of investment banking
services, including underwriting, mergers and acquisitions, and asset management.
These services are designed to help businesses grow and expand.
• Asset management: Maybank Islamic also offers a range of asset management
services, including unit trusts, funds, and bonds. These services are designed to help
individuals and businesses save and invest for the future.

C. BOARD OF DIRECTORS

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 The board of directors of Islamic Maybank Berhad in 2022 :

• Chairman: Dato' Zulkiflee Abbas Abdul Hamid

• Independent Non-Executive Directors:
• En. Dali Sardar
• Prof. Dr Aznan Hasan
• En. Shariffuddin Khalid
• Dato' Azmi Bin Mohd Ali
• Puan Natasha Kamaluddin
• Non-Independent Non-Executive Directors:
• Tan Sri Dato' Sri Zamzamzairani Mohd Isa
• Dato' Khairussaleh Ramli
• Dr Hasnita Dato' Hashim
• Cheng Kee Check
• Edwin Gerungan
• Anthony Brent Elam

Financial Information of Islamic Maybank Berhad Years 2022 :

No Financial information Ringgit Malaysia (RM)

1. Revenues 11,128,600,000
2. Profit/loss before tax 4,534,069,000
3. Profit/loss distributed to shareholders 2,045,000
4. Total assets 320,100,000,000
5. Total liabilities 252,600,000,000
6. Net current assets 67,500,000
7. Zakat contribution 8,940,000

2. Financial Standard Used by Islamic Maybank Berhad.

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 • International Financial Reporting Standards (IFRS): IFRS are a set of accounting
standards developed by the International Accounting Standards Board (IASB). IFRS
are used by most countries in the world, and they are also used by Islamic banks.

• Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI):

AAOIFI is an Islamic organization that develops accounting, auditing, and Shariah
standards for Islamic financial institutions. AAOIFI standards are used by some
Islamic banks, but they are not as widely used as IFRS.

• Shariah Standards : Shariah standards are developed by Shariah scholars to ensure

that Islamic financial products and services comply with Islamic law. Islamic banks
must comply with Shariah standards in order to obtain a Shariah certification.

3. The Classification of Investment Account for Unrestricted Investment Account

and Restricted Investment Account Based on The Financial Standard Used by
Islamic Maybank Berhad.

Islamic Maybank Berhad classifies investment accounts into two categories: unrestricted
investment accounts and restricted investment accounts.

• Unrestricted investment accounts are investment accounts that can be invested in

any type of asset, including Shariah-compliant stocks, bonds, and real estate. The
returns on these accounts are not guaranteed, but they have the potential to
generate higher returns than restricted investment accounts.

• Restricted investment accounts are investment accounts that can only be invested in
Shariah-compliant assets, such as Islamic funds and Sukuk. The returns on these
accounts are more predictable than unrestricted investment accounts, but they also
have the potential to generate lower returns.

The classification of investment accounts is based on the financial standard used by Islamic
Maybank Berhad, which is the Accounting and Auditing Organization for Islamic Financial
Institutions (AAOIFI). AAOIFI is an international organization that develops accounting,
auditing, and Shariah standards for Islamic financial institutions.

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AAOIFI standard 20:2009, which is the standard on investment accounts, states that
investment accounts should be classified as either unrestricted or restricted. Unrestricted
investment accounts should be invested in any type of asset, while restricted investment
accounts should be invested in Shariah-compliant assets.

The classification of investment accounts is important because it helps investors to

understand the risks and potential returns of their investment. Unrestricted investment
accounts have the potential to generate higher returns, but they also have the potential to
lose more money than restricted investment accounts. Restricted investment accounts have
lower risk, but they also have lower potential returns.

1. BACKGROUND OF BANK SYARIAH INDONESIA

Corporate Data

• Name: Bank Syariah Indonesia

• Headquarters: Jakarta, Indonesia
• Founded: 1 February 2021
• Parent company: Bank Mandiri, Bank Negara Indonesia, and Bank Rakyat Indonesia
• CEO: Hery Gunardi
• Website: https://www.bankbsi.co.id/

BSI is the largest Islamic bank in Indonesia. It has been operating for over 20 years and has
a strong track record of financial performance. The bank has a wide network of branches
and ATMs across Indonesia, which makes it easy for customers to access their banking
services. BSI offers a wide range of Islamic banking products and services, which meets the
needs of a diverse range of customers. The bank also has a strong focus on customer
service and has been recognized for its excellent customer service.

BSI's success can be attributed to a number of factors, including its strong brand
recognition, wide network of branches, diversified product portfolio, and strong focus on
customer service. The bank is well-positioned to continue to grow in the future due to these
factors.

Here are some of the ways BSI is helping the Indonesian economy:

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 • Providing financial services to underserved communities: BSI is committed to
providing financial services to underserved communities in Indonesia. The bank has
a number of programs in place to help these communities, such as microfinance and
Islamic banking products.
• Investing in Indonesia's infrastructure: BSI is investing in Indonesia's infrastructure
through a number of initiatives, such as financing the construction of roads, bridges,
and power plants. These investments are helping to boost Indonesia's economy and
create jobs.
• Supporting small and medium-sized businesses: BSI is supporting small and medium-
sized businesses (SMEs) in Indonesia through a number of initiatives, such as
providing loans and business advisory services. These initiatives are helping to boost
the growth of SMEs, which are a major driver of economic growth in Indonesia.

BSI is a leading Islamic bank in Indonesia that is playing a positive role in the country's
economy. The bank is committed to providing financial services to underserved
communities, investing in Indonesia's infrastructure, and supporting small and medium-sized
businesses. These initiatives are helping to boost Indonesia's economy and create jobs.

Main activities

1. Collecting funds in the form of deposits in the form of demand deposits, savings, or other
forms of equivalent based on the Wadi’ah Agreement or other contracts that are not
contrary to sharia principles.

2. Raising funds in the form of investment in the form of Deposits, Savings, or other forms
equivalent thereto based on Mudharabah Akad or other contracts that are not contrary to
sharia principles.

3. Distributing profit-sharing financing based on the Mudharabah Akad, Musyarakah Akad, or

other contracts that are not contrary to sharia principles

4. Distributing Financing based on Murabahah Akad, Salam Akad, Istishna’ Akad, or other
contracts that are not contrary to sharia principles.

5. Distributing Financing based on the Qardh Agreement or other contracts that are not
contrary to sharia principles

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6. Distributing Financing for leasing - movable or immovable goods to Customers based on
the Ijarah Agreement and/or - lease purchase in the form of ijarah muntahiya bittamlik or
other contracts that are not contrary to sharia principles.

7. To take over debt based on Hawalah Akad or other contracts that are not contrary to
sharia principles

8. Conducting debit card and/or financing card business based on sharia principles

Board of directors

NAME POSITION FIELD OF DUTY

Hery Gunardi President Director -

Bob Tyasika Ananta Vice President Director -

Ngatari Retail Banking Director Retail Banking

Anton Sukarna Sales & Distribution Sales & Distribution

Director

Achmad Syafi Information Technology Information Technology

Director

Tiwul Widyastuti Risk Management Director Risk Management

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Tribuana Tunggadewi Compliance & Human Compliance & Human
Capital Director Capital

Ade Cahyo Nugroho Finance & Strategy Finance & Strategy

Director

Zaidan Novari Wholesale Transaction Wholesale & Transaction

Banking Director Banking

Moh. Adib Treasury & International Treasury & International

Banking Director Banking

FINANCIAL INFORMATION

Revenues

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From this profit and loss statement , it stated that the total revenue from the Bank Syariah
Indonesia as Mudharib is 19,6222,865 Rp Million.

Profit/loss before tax

As we can see the profit before zakat and tax expense in 5,656,674 Rp Millionn. So we need
to minus with the zakat expense in order to get profit before tax only which is

5,656,208 Rp million – 141,405 Rp million (zakat expense)

= 5,514,803 Rp million

Profit/loss distributed to shareholders

Bank Syariah Indonesia distributed cash dividends of 25% of the company’s net profit to
shareholders.

Total assets

It stated that the total assets is 305,727,438 Rp million for year 2022.

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Total liabilities

It stated that the total liabilities is 73,655,791 Rp million for year 2022.

Net current assets

Net current assets = Total assets – Fixed assets

= 305,727,438 Rp million – 1,484,573 Rp million

= 304,242,865 Rp million

Zakat Contribution

It stated that the zakat contribution for year 2022 is 141,405 Rp million.

2. FINANCIAL STANDARDS USED BY BANK SYARIAH INDONESIA.

1. Statements of Financial Accounting Standards ("SFAS") (IFRS)

SFAS Aare the Indonesian financial accounting standards issued by the Indonesian
Institute of Accountants (IAI). BSI applies SFAS in the preparation of its financial
statements, except for those standards that have been superseded by Sharia
Financial Accounting Standards (PSAK Syariah).

2. Statements of Sharia Financial Accounting Standards ("SFAS Sharia")

(IFRS)
SFAS Sharia are the Indonesian Sharia financial accounting standards issued by the
IAI. These standards are based on the Sharia principles of Islamic finance. BSI
applies SFAS Sharia in the preparation of its financial statements for Islamic products
and services.

3. Interpretation of Financial Accounting Standards (“ISAK”) (IFRS AND

AAOIFI)
Issued by Institute of Indonesian Chartered Accountant. ISAK are the interpretations
of PSAK issued by the IAI. These interpretations provide guidance on the application
of PSAK. BSI applies ISAK in the preparation of its financial statements.

4. Pedoman Akuntansi Perbankan Syariah Indonesia (PAPSI) (PAPSI

Revised 2013).
PAPSI are the Indonesian Sharia banking accounting guidelines issued by the
National Sharia Board of the Financial Services Authority (OJK). PAPSI provide
guidance on the accounting for Islamic banking products and services. BSI applies
PAPSI in the preparation of its financial statements for Islamic banking products and
services.

5. Capital Market and Financial Institution Supervisory Agency

("BAPEPAMLK")’s (IFRS)
Regulation No. VIII.G.7 regarding the Presentations and Disclosures of Financial
Statements of Listed Entity, enclosed in the decision letter No. KEP-347/BL/2012.

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 The regulation is now a regulation under Indonesian Financial Services Authority
("OJK").

3.CLASSIFICATION OF INVESTMENT ACCOUNT

Accounting standard Restricted investment account unrestricted investment

account
IFRS BSI would record the BSI would record the
balance of the restricted balance of the
investment account at fair unrestricted
value. Any changes in fair value investment account
would be recognized in profit or at fair value.
loss However, any
changes in fair value
would be recognized
in other
comprehensive
income
until the investment
is sold or
otherwise disposed
of, at which
point the gain or loss
would be
transferred to profit or loss
AAOIFI Account that is used to Available to all customers,
invest funds in Shariah- regardless of their Sharia
compliant assets that are compliance status.
specifically designated for a • Mudharabah
particular purpose. For • Musharakah
example, a bank may have a • Wakalah
restricted investment account • murabaha
to invest in sukuk (Islamic
bonds) that are issued by the
government.
PAPSI Those that are Those that are not
subject to certain restrictions, subject to any
such as the type of investments restrictions. For
that can be made in the example, a Wadiah
account. For example, a account is
MUAMALAT account is a an unrestricted
restricted investment account, investment
and it can only be used to account, and it can
invest in Shariah-compliant be used to invest in
products. any type of product

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Kuwait Finance House

Vision:
To lead the international development of Islamic financial services, and become the most
trusted and sustainably most technologically advanced Shari’a-compliant bank in the world.

Mission:
To deliver superior innovation and customer service excellence while protecting and enhancing
the interests of all our stakeholders.

MAIN ACTIVITIES

1. Treasury: KFH's treasury division managed the bank's assets and liabilities, and
provided liquidity and risk management services.

2. Islamic microfinance: KFH provided Islamic microfinance products and services to low-
income individuals and businesses.

BOARD OF DIRECTORS

• Mr. Hamad Abdul Mohsen Al-Marzouq Chairman since 2014

• Mr. Abdul Aziz Yacoub Al-Nafisi Vice Chairman since 2014
• Mr. Noorur Rahman Abid Board Member since 2014
• Mr. Motlaq Mubarak Al-Sanei Board Member representing Kuwait Investment Authority
since 2017

Financial information

Kuwait Finance House (KFH) reported a net profit of KD 243.4 million (USD
845.5 million) for the year ended 31 December 2021, an increase of 64% compared
to KD 148.4 million (USD 502.8 million) for the year ended 31 December 2020. The
increase in net profit was mainly due to the following factors:
Increase in financing income: Financing income increased by 10% to KD 1,116.5
million (USD 3,822.1 million) for the year ended 31 December 2021, compared to KD
1,015 million (USD 3,426.1 million) for the year ended 31 December 2020.

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 Increase in investment income: Investment income increased by 13% to KD
494.4 million (USD 1,675.4 million) for the year ended 31 December 2021, compared
to KD 438.1 million (USD 1,509.3 million) for the year ended 31 December 2020.
Reduction in operating expenses: Operating expenses decreased by 1% to KD
550.7 million (USD 1,867.1 million) for the year ended 31 December 2021, compared
to KD 556.5 million (USD 1,881.5 million) for the year ended 31 December 2020. KFH's
total assets increased by 10% to KD 122.6 billion (USD 408.2 billion) as of 31
December 2021, compared to KD 111.4 billion (USD 370.7 billion) as of 31 December
2020.
The increase in total assets was mainly due to the following factors:

Increase in customer deposits: Customer deposits increased by 12% to KD

104.1 billion (USD 343.7 billion) as of 31 December 2021, compared to KD 93.2 billion
(USD 310.4 billion) as of 31 December 2020. Increase in financing: Financing increased
by 7% to KD 120.4 billion (USD 403.4 billion) as of 31 December 2021, compared to
KD 112.9 billion (USD 373.9 billion) as of 31 December 2020. KFH's capital adequacy
ratio was 18.1% as of 31 December 2021, which is well above the regulatory
requirement of 12%. The bank's liquidity ratio was 1.5 as of 31 December 2021, which
is also well above the regulatory requirement of 1.0. KFH's strong financial
performance is a result of its sound business model, prudent risk management, and
strong focus on customer service. The bank is well-positioned for continued growth in
the future.
• Liquidity ratio: KFH's liquidity ratio as of December 31, 2022 was 1.5.
KFH's financial performance has been strong in recent years. The bank has reported
consistent growth in assets, equity, and net profit. KFH's capital adequacy ratio and
liquidity ratio are well above the regulatory requirements. These factors suggest that
KFH is a financially sound institution.

Here are some of the key drivers of KFH's financial performance:

• Strong growth in Islamic banking: Islamic banking is a growing industry, and
KFH is one of the leading Islamic banks in the world. The bank has a strong presence
in key Islamic banking markets, such as the Middle East, Southeast Asia, and Africa.
• Diversified product portfolio: KFH offers a wide range of Islamic banking
products and services, including retail banking, corporate banking, investment

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 banking, and treasury services. This diversification helps to reduce the bank's risk and
improve its profitability.
• Strong focus on customer service: KFH has a strong focus on customer service.
The bank has a dedicated customer service team that is available 24/7 to help
customers with their banking needs. This focus on customer service has helped KFH
to attract and retain customers. KFH is a well-managed and financially sound
institution.
The bank has a strong track record of financial performance and is well-positioned for
future growth.

FINANCIAL STANDARDS

Kuwait Finance House (KFH) is a Shariah-compliant bank that uses a variety of financial
standards to ensure that its products and services are in line with Islamic law. Some of the
most common financial standards used by KFH.

1. Accounting and Auditing Organization for Islamic Financial Institutions

(AAOIFI)
The AAOIFI is an international organization that develops accounting,
auditing, governance, and Shariah standards for Islamic financial
institutions. KFH is a member of the AAOIFI and complies with its
standards.
2. International Financial Reporting Standards (IFRS)
KFH's financial statements are prepared in accordance with International
Financial Reporting Standards (IFRS), which are the globally accepted
accounting standards for public companies. IFRS provides a framework for
consistent and comparable financial reporting, which helps investors,
creditors, and other stakeholders make informed decisions about the bank.
In addition to IFRS, KFH also complies with the Basel III capital adequacy
framework, which sets minimum capital requirements for banks. Basel III
is designed to strengthen the financial system and reduce the risk of
systemic shocks. KFH's commitment to high standards of financial
reporting and disclosure is an important part of its corporate governance
framework. The bank's board of directors is responsible for overseeing the
financial reporting process, and the management team is responsible for

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 ensuring that the bank's financial statements are accurate and reliable.
KFH's financial statements are audited by an independent auditor, who
provides an opinion on the fairness of the financial statements. The
auditor's opinion is an important assurance to investors and creditors that
the financial statements are reliable. KFH is committed to transparency
and accountability, and its financial reporting practices reflect this
commitment. The bank's financial statements are available to the public
on its website, and the bank also publishes an annual report that provides
a detailed overview of the bank's financial performance and activities

CLASSIFICATION INVESTMENT ACCOUNT

Accounting standard Restricted investment Unrestricted investment

account account
AAOIFI Any Shariah-compliant asset, Only assets are approved by
more flexible, higher risk SSB, less flexible, lower risk
IFSB Any Shariah-compliant asset, Only assets are approved by
more flexible, higher risk SSB, less flexible, lower risk

COMPANY PROFILE :

SUDDARUSSALAM CO-OPERATIVE URBAN BANK LTD HYDERABAD (INDIA)

A. CORPORATE DATA

• Headquarters: The bank's headquarters is located at 20-3-624, Hussaini Alam Road,

Hyderabad, Telangana, India.
• Established: The bank was established in 1987.
• Licensed by: The bank is licensed by the Reserve Bank of India.
• Registration: The bank is registered under the Co-operative Societies Act, 1952.
• Working Capital: The bank's working capital is more than 490.09 Crores (Indian
Rupees).
• Number of Branches: The bank has 9 branches in Hyderabad, Telangana, India.
• Awards and Recognition: The bank has been awarded the "Best Co-operative Urban
Bank" award by the Reserve Bank of India for the years 2017, 2018, and 2019. The

17
 bank has also been awarded the "Golden Peacock Award" for excellence in corporate
governance by the World Council for Corporate Governance.
• Products and Services: The bank offers a wide range of products and services,
including savings accounts, current accounts, fixed deposits, loans, and insurance.
The bank also offers a number of Shariah-compliant products and services.

B. MAIN ACTIVITIES

The main activities of Darussalam Co-operative Urban Bank Ltd Hyderabad are:

• Accepting deposits: The bank accepts deposits from individuals and businesses.
These deposits can be in the form of savings accounts, current accounts, or fixed
deposits.
• Lending: The bank lends money to individuals and businesses. These loans can be
used for a variety of purposes, such as buying a home, starting a business, or
consolidating debt.
• Investing: The bank invests its deposits in a variety of assets, such as government
bonds, corporate bonds, and stocks. These investments help the bank to generate
income and to grow its assets.
• Providing other financial services: The bank also provides a variety of other
financial services, such as money transfers, bill payments, and insurance. These
services help the bank to meet the needs of its customers.

C. BOARD OF DIRECTORS

The Board of Directors of Darussalam Co-operative Urban Bank Ltd Hyderabad is composed
of 15 members. The Board is responsible for the overall management of the bank and for
ensuring that the bank complies with all applicable laws and regulations.

The current Chairman of the Board is Mr. Syed Akbar Nizamuddin Hussaini. Mr.
Hussaini is a scholar and vice chancellor of Arabic University. The Vice-Chairman of the
Board is Mr. M.A Qhayum. Mr. Qhayum is a retired NABARD Officer.

The other members of the Board are:

• Mr. Mohammed Abdul Aleem

• Mr. Mohammed Abdul Majeed
• Mr. Mohammed Abdul Wahab
• Mr. Mohammed Riyazuddin

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 • Mr. Mohammed Saleem
• Mr. Mohammed Younus
• Mr. Mohammed Zakir
• Mr. Mohammed Zubair
• Ms. Saira Sultana
• Mr. Syed Ahmed Quadri
• Mr. Syed Akhtar Hussain
• Mr. Syed Irfan Hussain
• Mr. Syed Mansoor Ali

No Financial information India Rupee (INR)

1. Revenues Rs. 34 crores

2. Profit/loss before tax Rs. 24 crores

3. Profit/loss distributed to shareholders Rs. 13.2 crores

4. Total assets Rs. 490.09 crores

5. Total liabilities Rs. 457.34 crores

6. Net current assets Rs. 32.75 crores

7. Zakat contribution Rs. 600,000

FINANCIAL INFORMATION OF DARUSSALAM CO-OPERATIVE URBAN BANK LTD

HYDERABAD YEARS 2022 :

2. Types of Financial Standards used by DARUSSALAM CO-OPERATIVE URBAN

BANK LTD HYDERABAD

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Darussalam Co-operative Urban Bank Ltd Hyderabad uses a number of financial standards,
including:

• Basel III: Basel III is a set of international banking regulations that were adopted
in response to the financial crisis of 2008. The regulations are designed to make
banks more resilient to financial shocks and to reduce the risk of systemic risk.
• International Financial Reporting Standards (IFRS): IFRS is a set of
accounting standards that are used by most countries in the world. The standards
are designed to provide a consistent and transparent reporting of financial
information.
• Indian Accounting Standards (Ind AS): Ind AS is a set of accounting standards
that are used in India. The standards are based on IFRS, but they have been
adapted to meet the specific needs of the Indian market.
• Reserve Bank of India (RBI) guidelines: The RBI is the central bank of India.
The RBI issues guidelines for banks on a variety of topics, including lending, deposit
taking, and risk manageme

3. Unrestricted Investment Account

Based on the financial standard used by Darussalam Co-operative Urban Bank Ltd. Which is
the Indian accounting standard as Accounting Standard by Institute of Chartered
Accountants of India. Hence, the investment account type is “unrestricted investment
account”. This is because India did not apply AAOFI standard at all.

AL-BARAKA BANK

A. COMPANY BACKGROUND

The International Islamic Trade Finance Corporation is an autonomous entity within the
Islamic Development Bank Group created with the purpose of advancing trade to improve
the economic condition and livelihood of people across the Islamic world. ITFC has
consolidated all the trade finance businesses that used to be handled by various windows
within the IDB Group. It commenced operations in Muharram 1429H (January 2008G). The
consolidation of the IDB Group’s trade finance activities under a single umbrella increased
the Corporation’s efficiency in service delivery by enabling rapid response to customer needs
in a market-driven business environment.

As a leader in Shari’a-compliant trade finance, ITFC deploys its expertise and funds to
businesses and governments in its member countries. Its primary focus is to encourage
intra-trade among OIC member countries. As a member of the IDB Group, ITFC has unique
access to governments in its member countries and it works as a facilitator to mobilize

20
private and public resources towards achieving its objectives of fostering economic
development through trade. The Corporation helps businesses in member countries gain
better access to trade finance and provides them with the necessary trade-related capacity
building tools in order to help them compete successfully in the global market.

MISSION

“We exist to be the catalyst for the development of trade among OIC member countries and
with the rest of the world”.

The mission statement is aligned with the Corporation’s mandate as stated in the Article 5 of
ITFC’s Articles of Agreement (AOA).

“Our purpose shall be to promote trade of member countries of the Organization of Islamic
Cooperation (OIC) through providing trade finance and engaging in activities that facilitate
intra-trade and international trade.”

VISION

“ITFC is to be a recognized provider of trade solutions for OIC member countries’ needs”.

ITFC is fully committed to fulfil its mandate and aspire to build a sustainable organization
that will deliver high impact for its stakeholders.

B. MAIN ACTIVITIES

Al Baraka Bank is a global Islamic bank with a presence in over 30 countries. The bank's
main activities include:

1. Retail banking: Al Baraka Bank offers a wide range of retail banking products and
services, including savings accounts, current accounts, loans, credit cards, and investment
products.

2. Commercial banking: Al Baraka Bank provides a range of commercial banking products

and services to businesses, including trade finance, letters of credit, and working capital
loans.

3. Investment banking: Al Baraka Bank provides a range of investment banking services to

corporate and institutional clients, including underwriting, mergers and acquisitions advisory,
and asset management.

4. Treasury and markets: Al Baraka Bank's treasury and markets division is responsible for
managing the bank's assets and liabilities, as well as providing hedging and other financial
services to its clients.

5. Islamic finance: Al Baraka Bank is a pioneer in Islamic finance and offers a wide range of
Sharia-compliant products and services.

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Al Baraka Bank is committed to providing its customers with innovative and Sharia-compliant
financial solutions. The bank's focus on Islamic finance has helped it to grow rapidly and
become one of the leading Islamic banks in the world.

Here are some of the key features of Al Baraka Bank's products and services:

• Sharia-compliant: All of Al Baraka Bank's products and services are Sharia-compliant,

which means that they are in line with Islamic law.
• Innovative: Al Baraka Bank is constantly innovating and developing new products
and services that meet the needs of its customers.
• Global: Al Baraka Bank has a global presence, which allows it to provide its
customers with access to a wide range of financial products and services.
• Trusted: Al Baraka Bank is a trusted financial institution with a long history of
providing excellent service to its customers.

If you are looking for a Sharia-compliant financial institution with a global presence, Al
Baraka Bank is a good option to consider.

C. BOARD OF DIRECTORS

NAME TITLE

Mr. Abdullah Saleh Kamel Chairman - Non Executive Director

Mr. Mohamed Ebrahim Alshroogi Vice Chairman

Dr. Jehad Abdul Hamid El-Nakla Board Member

Dr. Khaled Abdulla Ateeq Board Member

Mrs. Dalia Hazem Khorshid Board Member

Dr. Ziad Ahmed Bahaaeldin Board Member

Mr. Saud Saleh Al Saleh Board Member

Mr. Abdul Elah Abdul Rahim Sabbahi Board Member - Executive Director

Board Member and President &

Mr. Adnan Ahmed Yousif
Chief Executive
Mr. Fahad Abdullah Al Rajhi Board Member - Non Executive Director

Dr. Mohamed Moncef Chiekh-Rouhou Board Member

Mr. Naser Mohamed Al Nuwais Board Member

Mr. Abdulmalek Mezher

FINANCIAL INFORMATION Secretary to the Board

22
 Components Amount (US$)

Revenues 1,139,749
Profit/Loss before tax 289,309
Profit/Loss distributed to
shareholders 712,023
Total Assets 28,249,999
Total Liabilities 10,797,416
Net currents assets 17,452,583
Zakat contribution 28,494

FINANCIAL STANDARDS USED BY THE BANK

The financial statements are prepared in accordance with the Financial Accounting
Standards issued by the Accounting and Auditing Organization for Islamic Financial
Institutions (“AAOIFI”) and the Shari’ah rules and principles as determined by the Shari’ah
Committee of the Corporation. For matters which are not covered by AAOIFI standards, the
Corporation uses the relevant standard issued or adopted by the International Accounting
Standards Board (the “IASB”) and the relevant interpretation issued by the International
Financial Reporting Interpretations Committee of the IASB.

The accompanying financial statements are prepared under the historic cost convention
except for the measurement at fair value of investments in equity capital; see Note 2(h).

Adoption of the new Accounting Standard

The Corporation has adopted Financial Accounting Standard (“FAS”) 25 issued by AAOIFI
which covers the recognition, measurement, presentation and disclosure of investments in
Sukuk, shares and similar investments that exhibit characteristics of debt and equity
instruments made by the Islamic financial institutions. The adoption of this standard has an
impact on the classification of investments and adjustment to the reported balance of
reserves as disclosed in note 16.

INVESTMENT ACCOUNTS

Al Baraka Bank, as an Islamic bank, follows the principles and standards of Islamic finance
in its operations. In terms of the classification of investment accounts, Al Baraka Bank may
also categorize them into Unrestricted Investment Accounts and Restricted Investment
Accounts. Here's a general description of each category:

23
1. Unrestricted Investment Accounts: These accounts provide the account holders with the
flexibility to withdraw their funds at any time without any restrictions or penalties. The
profits generated from these accounts are distributed among the account holders based on
the agreed-upon profit-sharing ratio. The funds deposited in unrestricted investment
accounts are typically invested in Sharia-compliant avenues, such as murabaha (cost-plus
financing), mudaraba (profit-sharing), and musharaka (partnership).

2. Restricted Investment Accounts: These accounts have specific terms and conditions that
restrict the withdrawal of funds for a certain period or subject to certain conditions. The
profit-sharing arrangement for restricted investment accounts may differ from that of
unrestricted investment accounts. The terms and conditions for these accounts are agreed
upon between the bank and the account holder, outlining the restrictions and limitations on
the withdrawal of funds.

The exact classification and features of investment accounts at Al Baraka Bank may vary
based on their specific product offerings and customer agreements. It's important for
customers to carefully review the terms and conditions associated with their investment
accounts to understand the specific features, benefits, and limitations. For the most accurate
and up-to-date information regarding the classification and features of investment accounts
at Al Baraka Bank, it is recommended to refer to their official documentation or contact the
bank directly.

Brunei - Bank Islam Brunei Darussalam

History of Bank Islam Brunei Darussalam (BIBD)

The merger of Islamic Bank of Brunei and Islamic Development Bank of Brunei resulted
in the formation of BIBD, Brunei's largest bank and flagship Islamic financial institution, in
2005. It is a globally acknowledged financial institution governed by global best practices and
led by a seasoned management team. Through continual service, product, and technological
improvements, BIBD is devoted to satisfying the demands of our customers from all walks of
life.

With about 900 staff and B$ 10.7 billion in assets under management, BIBD proudly
serve over 216,000 customers as Brunei's premier Islamic bank and largest financial services
provider. Retail, corporate, and international clientele are among their valued customers.

BIBD have seventeen branches strategically located throughout Brunei's four districts
and the largest network of ATMs in the country, serving more than a quarter of the Bruneian
population. Because of BIBD's nationwide presence, they have the largest contact center in

24
Brunei, as well as a digital mobile chat capacity, and they provide their customers with ease
through solutions such as online and mobile banking.

BIBD is Brunei's only bank that services all segment of the retail banking market. BIBD
have been continually recognized for their dedicated customer service and capacity to deliver
value to all of our stakeholders, owing to our strong focus on innovation and excellence. BIBD
are also able to provide smooth and creative services to their customers and ensure that
customer’s banking experience with us is unique and best-in-class because of our people's
ongoing hard work, effort, and commitment.

Since the beginning of their transformative journey, BIBD has achieved significant
gains in the growth of its capabilities, including improvements in overall service delivery and
branch design that depicts Brunei Darussalam's Islamic visual canvas. This particular character
distinguishes BIBD from other financial institutions in Brunei Darussalam, while also setting a
service benchmark that is really "Bruneian at Heart." The combination of all of these activities
puts BIBD in a better position to deliver on its goals and forge ahead in the local and
international arenas.

BIBD’s Main Activities

Bank Islam Brunei Darussalam (BIBD) is a full-service Islamic bank in Brunei Darussalam, with
the following primary activities:

I. Retail banking: In Brunei, BIBD offers a comprehensive range of retail banking

products and services to people and enterprises. Savings accounts, current accounts,
loans, mortgages, credit cards, and investment goods are examples of these
products and services.

II. Corporate banking: BIBD offers a variety of corporate banking products and services
to Brunei businesses of all sizes. Loans, mortgages, trade finance, and investment
goods are examples of these products and services.

III. Treasury: The treasury department at BIBD is in charge of managing the bank's
assets and liabilities, as well as providing customers with hedging and other financial
services.

IV. Investment banking: The BIBD's investment banking section offers a variety of
services to Brunei's enterprises and governments, including mergers and
acquisitions, initial public offerings, and debt and equity financing.

V. Islamic banking: BIBD provides individuals and businesses in Brunei with a variety of
Islamic banking products and services. These Shariah-compliant products and
services are intended to fulfil the needs of Brunei's Muslim community.

25
In addition to these primary tasks, BIBD offers a variety of ancillary services, including:

I. Insurance brokerage: BIBD is a licensed insurance broker and can provide its
customers a variety of insurance products and services.

II. Foreign exchange: foreign exchange services, such as currency exchange, wire
transfers, and foreign currency accounts.

III. Wealth management: BIBD's wealth management team offers high-net-worth

individuals and families a variety of services, including investment advising, estate
preparation, and tax planning. BIBD is devoted to offering a diverse range of high-
quality financial products and services to its consumers. The bank is also devoted to
assisting Brunei's economic development and playing a beneficial role in the
community.

BIBD’s Board of Directors

Name Tittle
Yang Berhormat Chairman
Dato Seri Setia Dr Awang Haji Mohd Amin
Liew bin Abdullah
Yang Mulia Executive Director
Awang Junaidi bin Haji Masri
Yang Mulia Independent Director
Haji Sofian bin Mohammad Jani
Yang Mulia Independent Director
Dr Jan Hendrik van Greuning

BIBD’s Financial Information (2022)

Components Amount (BND)

Revenues 317,000,000
Profit/Loss before Tax 257,560,000
Profit/Loss distributed to shareholders 174,595,000
Total assets 11,560,091,000
Total liabilities 10,266,745,000
Net current assets 1,121,600,000
Zakat contribution 500,000

26
Bank Islam Brunei Darussalam’s Financial standard

BIBD, or Bank Islam Brunei Darussalam, follows the International Financial Reporting
Standards (IFRS). This indicates that BIBD's financial statements are prepared in conformity
with the International Financial Reporting Standards (IFRS), which are a set of globally
recognized accounting standards.

The International Accounting Standards Board (IASB) develops a set of accounting

standards known as IFRS. Companies all across the world use IFRS to create their financial
accounts. The International Financial Reporting Standards (IFRS) are intended to present a
consistent and comparative picture of a company's financial performance and condition.

BIBD is able to offer its stakeholders with a clear and accurate view of its financial
performance and position by using IFRS. This is critical for stakeholders including investors,
creditors, and regulators because information helps them to make educated decisions
concerning BIBD.

BIBD is not the only bank that follows IFRS standards. Many other banks throughout
the world utilize IFRS as well. This is due to the fact that IFRS is regarded as the gold standard
for accounting standards. It is an internationally recognized set of standards that delivers a
consistent and comparative picture of a company's financial performance and situation.

The following are some of the advantages of implementing IFRS:

Increased comparability: IFRS gives a consistent and similar picture of a company's financial
performance and condition, making it easier to compare different companies for investors,
creditors, and regulators.

Error risk is reduced since IFRS is a comprehensive collection of standards that gives clear
guidance on how to account for a wide variety of transactions. This can help to lessen the
likelihood of financial reporting errors.

Improved transparency: The International Financial Reporting Standards (IFRS) encourage

corporations to publish more information about their financial performance and status. This
can aid in increasing transparency and accountability.

Overall, IFRS is a useful instrument that can assist businesses in improving their financial
reporting. It can help to improve comparability, reduce error risk, and boost transparency.

BIBD’s Classification of Investment Account

Customers of Bank Islam Brunei Darussalam (BIBD) have access to both unrestricted and
limited investment accounts, among other categories. Below are illustrations of each:

I. Unrestricted Investment Account: An illustration of this is BIBD's Syariah-compliant

Savings Account. Customers can deposit and withdraw money from this account

27
 without any restrictions, and they can also benefit based on the bank's current profit
rate. Institutions, businesses, and individuals can all access the account.

II. Accounts with Restricted Investments: One such account is the Term Investment
Account-i of BIBD. Customers of this account must deposit money for a predetermined
amount of time (from one month to five years) in order to earn a bigger profit based
on the bank's current profit rate. Customers are unable to withdraw their money
without being charged a fee before the maturity date. Institutions, businesses, and
individuals can all access the account.

Investment accounts offered by BIBD, both unrestricted and restricted, are Shariah-compliant
and made to help clients reach their financial objectives while upholding Islamic values.

Egypt – Faisal Islamic Bank of Egypt

History of Faisal Islamic Bank of Egypt (FIBE)

The first Egyptian Islamic and commercial bank is Faisal Islamic Bank of Egypt (FIBE).
On July 5, 1979, the bank formally began operations. However, the Bank's founders met more
than five years before that date and agreed to build a bank in Egypt functioning in line with
Islamic Sharia to serve as a model for Islamic banking around the world.

His Majesty the King The notion was proposed in front of a number of Egyptian
individuals and authorities by Prince Mohammed Al-Faisal Al-Saoud*, Chairman of the Board
of Directors. The general population and government authorities both liked and accepted the
idea. The bank was established by Law No. 48 of 1977, which was later approved by the
Egyptian Parliament, and it was licensed as an economic and social institution in the form of
an Egyptian Joint-Stock Company that operated in accordance with Islamic Sharia principles.

The articles of incorporation were revised under law No. 142 of 1981 and again under
law No. 97 of 1996. The demand for the Bank's shares surpassed its subscription shares by
five times, resulting in continuous increases in the Bank's capital to $ one billion as authorized
capital vs $ 506.2 million as issued and fully paid-up capital at the end of 2019. The number
of accounts managed by the bank for his customers surpassed 1.7 million. At the end of 2020,
the bank's total assets were worth EGP 107.8 billion.

Nowadays, His Royal Highness Prince Amr Mohammed Al-Faisal Al-Saoud is the
Chairman of the Board of Directors as a successor to the late His Royal Highness Prince
Mohammed Al-Faisal Al Saoud. The bank provides all retail and corporate banking services
and investment activities in the Arab Republic of Egypt and abroad, through 38 branches and
its head office located at 3, 26th July St., Cairo.

28
Faisal Islamic Bank of Egypt’s Main Activities

Mobilize resources

The bank's fund was derived from two sources. The first one is collected from paid-up
capital, reserves, and provision. It is known as internal resources. The second one is known
as external resources which include the client’s account and saving pool. Due to the benefits
of Islamic saving pools, the Bank's clients in Egypt and the Islamic world have been in high
demand. The Bank has been successful in planning and carrying out the process of collecting
deposits and saving money, which is regarded the backbone of investment activity, which in
turn reflects the basis of Islamic banking activity. Such success can be attributed to a variety
of benefits provided by the bank to its depositors. The Islamic formulae provided by the Bank
through its various saving pools, whether in local or foreign currency, include current accounts,
general investment accounts, three-year saving certificates, and seven-year saving certificates
with accumulated return "Namaa."

The account's minimum deposit limit is kept low in order to attract a wide range of
customers that other banks were unable to attract. Furthermore, Faisal Bank is the only bank
that permits withdrawals from deposits during the term without depriving the bank of revenue
computed on the remaining portion. It is also worth noting that the bank's deposit base is
very stable, because it is spread across eight hundred thousand accounts, the majority of
which are small depositors.

Investment activity

This activity is the foundation of Islamic banking. FIBE undertake the investment
activity base on its policy that governed by the rules of Islamic Shariah. Example of Forms of
investment, according to the Bank's policy, include funding through Musharaka (partnership),
Mudaraba, Murabaha sale, Salam sale (Forward sale – advance payment contract), leasing of
services (IJaara) and Istisnaa (manufacturing), in addition to incorporating companies and
shareholding in their capital. This method of investment used because it is allowed in Islam.

Offering bank services

To provide high-quality financial services to its customers, the Bank has implemented
cutting-edge technology. All the bank's branches have been completely converted from
manual to computerized systems. Modern electronic services include signature matching
devices, automatic teller machines (ATM), phone banking, online banking services, Visa
Electron Cards, electronic collection of checks, issuing cheque books, international and local
Swift transactions, inquiry about protest and bankruptcy procedures, and dealing room for
securities, as well as the Reuters Market Data System.

FIBE’s Board of Directors

29
 Name
Yusuf Bin Abbas Bin Hassan Ashaari
Amr Mohamed Al Faisal As Saud
Abdelhamid Mohamed Bin Abou Mousaa
Sayed Saad Mahrous Abdel-salam
Rafat Muqbil Hussein
Khalid Omar Abdel Rahman Azzam
Ali Gomaa Mohammed abdulwahab
Nasr Farid Mohammed Waseel
Ibrahim Bin Khalifa Aal-Khalifa
Majed Ghaleb Mohamed Ghaleb
Mohamed Mohsen Mohamed Mahjoub
Hamdi Sobh Toha Dawood
Abdelhady Mohamed Abdelhady
Tittle
Executive officer & Director
Chairman
Governor & Executive Director
Representative Director
Assistant of CEO & Executive Director
Director
Deputy Chairman of Religious Supervisory
Board
Chairman of Religious Supervisory Board
Representative Director
Director
Director
Member of Religious Supervisory Board
Member of Religious Supervisory Board

FIBE’s Financial Information (2022)

Components Amount (EGP)

Revenues 23,570,000,000
Profit/Loss before Tax 4,475,000,000
Profit/Loss distributed to shareholders 4,760,000,000
Total Assets 15,470,000,000
Total Liabilities 131,685,460,000
Net current assets 5,169,470,000
Zakat Contribution 1,200,000,000

Faisal Islamic Bank of Egypt Financial Standard

Faisal Islamic Bank of Egypt maintained to adhere to AAOIFI Shariah criteria in its accounting
practices in 2020. These criteria are updated on a regular basis to reflect the most recent
advancements in Islamic finance and to ensure that the bank's financial transactions adhere

30
to Islamic principles. Accounting, auditing, governance, ethics, and Shariah compliance are
among the financial operations covered by the AAOIFI standards. Faisal Islamic Bank of Egypt
ensures transparency and consistency in its accounting practices by following to these
standards, which helps to develop trust with its clients and stakeholders. The AAOIFI
standards ensure that the bank's financial transactions comply with Islamic principles and are
transparent and consistent in their accounting treatment.

Classification of Investment Account

Faisal Islamic Bank of Egypt provides its customers with a variety of investment
accounts that are classed based on their characteristics and perks. The following are the most
typical investment accounts offered by the bank:

I. Mudaraba Investment Account: This account is founded on the Mudaraba principle, in

which the bank acts as a partner in the customer's investment and shares profits based
on a pre-agreed ratio.
II. Wakala Investment Account: Based on the Wakala principle, the bank works as an
agent for the customer's investment and charges a fee for its services.
III. Murabaha Investment Account: Based on the Murabaha principle, the bank buys and
sells assets on behalf of the customer and charges a profit margin on the transaction.
IV. Musharaka Investment Account: This account is based on the Musharaka principle, in
which the bank and the customer form a partnership to finance a project or enterprise
and share earnings and losses based on a pre-determined ratio.

These investment accounts are intended to fulfil the different needs of Faisal Islamic Bank of
Egypt customers and to assist them in achieving their financial objectives while following to
Islamic principles.

The Mudaraba Unrestricted Investment Account is an example of an unrestricted

investment account offered by Faisal Islamic Bank of Egypt. Customers can invest their money
in this account without regard to the amount or length of the investment. To earn profits for
consumers, the bank operates as a Mudarib (fund manager) and invests the assets in Shariah-
compliant investment possibilities. Profits are divided between the bank and the consumer
according to a predetermined profit-sharing ratio. The Mudaraba Unrestricted Investment
Account allows consumers to deposit and withdraw funds at any time, with no penalties or
fees. Individuals and corporations looking for a flexible investment alternative with potentially
better returns than typical savings accounts may consider this account.

JORDAN ISLAMIC BANK

A. COMPANY BACKGROUND

Established in Amman- the Hashemite Kingdom of Jordan and registered as a public

shareholding limited liability company in the Companies Registry on 28/11/1978 under

31
reference No. 124 pursuant to the requirements of the bythen effective Companies Law and
in accordance with the provisions of Jordan Islamic Bank Law No. 13 of 1978, which was
superseded by the Banks Law No. 62 of 1985 that was abolished pursuant to the Banks Law
No. 28 of 2000 effective as of 02/08/2000, which included a special chapter on Islamic
Banks. On 1/5/2019, this law was amended.

OUR MISSION

Commitment to consolidate the values of the Islamic Sharia by dealing with all people
according to the teachings and principles of the Islamic Law (Sharia) to serve the public
interest of the society.

Commitment to equally serve the interests of all stakeholders including shareholders,

investors, borrowers, and employees.

Commitment to attain the latest innovative products in banking industry and technology, as
well as looking forward to gaining the trust of all people in our distinguished services that
are in line with recent developments and changes within the framework of compliance with
our Islamic Sharia.

B. MAIN ACITIVITIES

One of the top Islamic banks in Jordan is Jordan Islamic Bank (JIB). JIB abides by the
principles of Islamic finance as an Islamic financial institution, which forbid interest-based
transactions and encourage moral and ethical banking practises. The primary pursuits of JIB
are as follows:

1. Retail Banking: JIB provides various retail banking services to individuals, including
savings accounts, current accounts, personal finance, home financing, and vehicle financing.
These services are offered in compliance with Islamic principles, such as profit-sharing
arrangements instead of interest-based loans.

2. Corporate Banking: JIB offers a range of Sharia-compliant banking services to corporate

clients, including financing solutions, working capital financing, trade finance, project
finance, and treasury services. These services are designed to meet the financial needs of
businesses while adhering to Islamic principles.

3. Investment Banking: JIB provides investment banking services, including advisory

services for mergers and acquisitions, underwriting, and capital market activities. JIB assists
clients in accessing capital markets, issuing securities, and managing investment portfolios
in compliance with Islamic finance principles.

4. Treasury and Capital Markets: JIB engages in treasury and capital market activities to
manage its own investment portfolio and provide liquidity management services to its
clients. These activities involve trading in Islamic financial instruments, such as Sukuk
(Islamic bonds), commodity murabaha, and Islamic funds.

32
5. International Banking: JIB offers international banking services, including trade finance,
correspondent banking, remittances, and foreign currency transactions. These services
facilitate cross-border transactions and support international trade in compliance with
Islamic finance principles.

6. Electronic Banking: JIB provides electronic banking services, allowing customers to access
their accounts, make transactions, and perform various banking activities through online
banking platforms, mobile banking applications, and ATMs.

7. Socially Responsible Initiatives: JIB actively engages in socially responsible initiatives,

including corporate social responsibility programs, charity activities, and community
development projects. The bank aims to contribute to the well-being of society and promote
sustainable development in line with Islamic values.

C. BOARD OF DIRECTORS

NAME TITLE

H.E. Mr. Musa Abdulaziz Mohammad Shihadeh Chairman oh the board

H.E. Mr. Hamad Abdulla Ali Al-Oqab Vice-Chairman of the board

H.E. Mr. Adnan Abdulla Al-Sulaiman Al-Bassam Member

H.E. Mr. Hood Hashem Ahmed Hashem Member

H.E. Mr. Nour “Moh’d Shaher”
Member
“Moh’d Lutfi” Mahayni
H.E. Mr. Salem Ahmad Jamil Al Khaza’aleh Member

H.E. Ayman Abdel Karim Hatahet Member

33
H.E. Mr. Issa Haidar Issa Murad Member

H.E. Mrs. Malak F. R. Ghanem Member

FINANCIAL INFORMATION

Components Amount (JD)

Revenues 14,044,769
Profit/Loss before tax 88,554,031
Profit/Loss distributed to
shareholders 27,000,000
Total Assets 4,449,172,148
Total Liabilities 1,343,324,412
Net currents assets 3,105,847,736
Zakat contribution 351,119.23

FINANCIAL STANDARDS USED BY THE BANK

IFRS has a number of advantages over the previous accounting standards that JIB used. For
example, IFRS provides more guidance on how to account for complex financial instruments.
This helps to ensure that JIB's financial statements are more accurate and reliable.

IFRS also requires JIB to provide more disclosures in its financial statements. This helps
investors and other stakeholders to understand JIB's financial performance and position.

Overall, the adoption of IFRS has been a positive development for JIB. It has helped to
improve the quality of the bank's financial reporting and to make it more comparable to
other banks around the world.

34
Here are some of the benefits of using IFRS in Jordan Islamic Bank:

Improved comparability: IFRS is a global standard, which means that JIB's financial
statements are more comparable to those of other banks around the world. This makes it
easier for investors and other stakeholders to understand JIB's financial performance and
position.

Increased transparency: IFRS requires more disclosures in financial statements, which

makes it easier for investors and other stakeholders to understand JIB's financial
performance and position.

Reduced risk: IFRS provides more guidance on how to account for complex financial
instruments, which helps to reduce the risk of financial reporting errors.

Improved efficiency: IFRS can help to improve JIB's internal control systems and processes,
which can lead to improved efficiency and effectiveness.

However, there are also some challenges associated with using IFRS in Jordan Islamic Bank:

1. Cost: The cost of implementing IFRS can be significant, as JIB needs to invest in training,
systems, and processes.

2. Complexity: IFRS can be complex, which can make it difficult for JIB to understand and
apply the standards correctly.

3. Compliance: JIB needs to comply with IFRS requirements, which can be time-consuming
and resource intensive.

Overall, the benefits of using IFRS in Jordan Islamic Bank outweigh the challenges. IFRS is a
global standard that provides a consistent and transparent way of reporting financial
information. This can help JIB to improve its financial reporting, attract investors, and
reduce risk.

INVESTMENT ACCOUNTS

Based on the financial standards used by Jordan Islamic Bank (JIB), the classification of
investment accounts can be categorized into two main types: Unrestricted Investment
Accounts and Restricted Investment Accounts. Here's an explanation of each:

1. Unrestricted Investment Accounts: These are investment accounts that provide the
investor with the freedom to withdraw their funds without any restrictions or limitations. The
profit generated from these accounts is distributed among the account holders based on the
profit-sharing ratio agreed upon at the time of opening the account. The funds deposited in
unrestricted investment accounts are typically invested in Sharia-compliant avenues, such as
murabaha (cost-plus financing), mudaraba (profit-sharing), and musharaka (partnership).

2. Restricted Investment Accounts: These are investment accounts where the investor
agrees to keep their funds invested for a specific period or subject to certain conditions or

35
restrictions. The profit-sharing arrangement for restricted investment accounts may differ
from that of unrestricted investment accounts. The terms and conditions of these accounts
are defined and agreed upon between the bank and the account holder, outlining the
restrictions and limitations on the withdrawal of funds.

The specific terms and conditions for unrestricted and restricted investment accounts at JIB
may vary, as they are determined by the bank's internal policies and the agreements made
with individual account holders. It's important for customers to carefully review the terms
and agreements associated with their investment accounts to understand the specific
features, benefits, and limitations of their accounts. Consulting with JIB or referring to their
official documentation will provide the most accurate and up-to-date information regarding
the classification and features of investment accounts offered by the bank.

1. Background of Bank Muscat (Oman)

Corporate Data

- Name: Bank Muscat, Oman

- Headquarters: Muscat, Oman
- Founded: 30 April 1982
- CEO: Sheikh Waleed Khamis Al Hashar.
- Website: https://www.bankmuscat.com/en/Pages/default.aspx

Bank Muscat is Oman's premier financial entity, boasting a robust foothold in diverse banking areas
including corporate, personal, investment, Islamic, treasury, private, and asset management. Its vast
network extends not only within Oman, boasting the most extensive branch and electronic channel
array in the country, but also beyond, with physical branches in Saudi Arabia and Kuwait, along with
representative offices in Dubai (UAE), Iran, and Singapore.

Bank Muscat has been instrumental in the nation's progressive journey, actively contributing to
developmental projects and initiatives aimed at fortifying the national economy. Through strategic
Corporate Social Responsibility (CSR) and Sustainability initiatives, we have continued to uphold our
commitment to the nation, effectively catering to various sectors.

36
 2. Main Activities
1. Serving Individual Customers: Bank Muscat provides various retail banking services such as savings
and current accounts, personal loans, credit cards, mortgages, and wealth management solutions.
2. Assisting Businesses: The bank offers corporate banking services, including lending and financing
solutions, trade finance services, cash management, project finance, and treasury services, to
support the needs of businesses, institutions, and government entities.
3. Investment Expertise: Bank Muscat provides investment banking services such as advisory
services for mergers and acquisitions, capital raising, debt and equity issuances, and underwriting.
4. Islamic Banking: Bank Muscat has a dedicated Islamic banking division that offers Sharia-compliant
banking products and services, including financing, investment products, and banking solutions
that adhere to Islamic principles.

3. Board Of Directors

Name Position Field Of Duty

Chairman -
Sheikh Khaled bin Mustahail Al
Mashani
Sheikh Ahmed bin Hamed bin Deputy Chairman -
Hilal Al Sadi
Mr. Nasser bin Mohamed Al Director Human Resources
Harthy
Director Investment Banking
Sheikh Said bin Mohammed Al
Harthy
Sheikh Saud bin Mustahail Al Director Marketing and Business
Mashani Development
Mr. Khalid Nasser Al Shamsi Director Risk Management
Mr Sunder George Director Finance
Dr. Saif bin Salim Al Harthi Director Human Resources
Director Business
Dr. Faisal bin Abdullah bin
Shaban Al Farsi

37
Financial Information of Muscat Bank Years 2022 :

No Financial information Ringgit Malaysia (RM)

1. Revenues 106,600,000,000
2. Profit/loss before tax 5,100,000,000
3. Profit/loss distributed to shareholders 4,500,000,000
4. Total assets 126,300,000,000
5. Total liabilities 109,100,000,000
6. Net current assets 17,200,000,000
7. Zakat contribution 183,400,000

Financial Standard Used by Muscat Bank.

Bank Muscat, the leading financial institution in Oman, follows a set of financial standards to ensure
the reliability and transparency of its financial statements. These standards include:

• International Financial Reporting Standards (IFRS), which are a set of global accounting
standards developed by the International Accounting Standards Board (IASB).
• Oman Accounting Standards (OAS), which are a set of accounting standards developed by the
Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
• Central Bank of Oman (CBO) Regulations, which are the regulations governing the banking
sector in Oman.

In addition to these financial standards, Bank Muscat also adheres to the principles of transparency,
accountability, and integrity. This means that its financial statements are clear, accurate, and free from
material misstatement.

38
By following these standards and principles, Bank Muscat ensures that its financial statements are
reliable and transparent. This allows its stakeholders to make informed decisions about the bank.

The Classification of Investment Account for Unrestricted Investment Account and Restricted
Investment Accounts is Based on The Financial Standard Used by Muscat Bank.

• Unrestricted investment account (URIA): A URIA is an investment account where the Islamic
financial institution (IFI) has the freedom to decide how the fund is invested. The customer
does not have any specific investment instructions for the URIA.
• Restricted investment account (RIA): An RIA is an investment account where the customer
provides parameters for how the IFI may invest the fund. The customer may specify the asset
class, economic sector, or geographic region where the fund may be invested.

The classification of investment accounts is important for Islamic financial institutions because it
allows them to follow Sharia principles. Sharia prohibits the charging or receiving of interest, and it
also prohibits transactions that involve uncertainty or excessive risk. By classifying investment
accounts, IFIs can make sure that they are investing funds in a Sharia-compliant manner.

In Muscat Bank Oman, URIAs are classified as assets on the balance sheet, while RIAs are classified as
off-balance sheet items. This is because URIAs are considered to be more liquid than RIAs, and they
are also less risky.

The classification of investment accounts is also important for investors. Investors who want to invest
in Sharia-compliant products should look for investment accounts that are classified as URIAS. This
will ensure that their funds are invested in a Sharia-compliant manner.

1. Background of HBL Bank (Pakistan)

Corporate Data

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 - Name: Habib Bank Limited (HBL)
- Headquarters: Karachi, Pakistan
- Founded: 1941
- Key People: Sultan Ali Allana (Chairman), Muhammad Aurangzeb (President And CEO).
- Website: https://www.hbl.com

HBL has a rich history that is as fascinating as it is inspiring. It traces its roots back to 1941, starting as
a local bank and blooming into one of Pakistan's largest, extending its reach to over 15 countries
worldwide.

1974 marked a significant turn of events as HBL was nationalized. Even then, it never faltered in its
commitment to excellence and led the industry by storm, carving out a lion's share for itself in inward
foreign remittances. Small industries, traders, and farmers found a reliable partner in HBL as it
dominated the loan market for these sectors.

HBL isn't just known for its pioneering spirit in banking. It also stands tall as a beacon of societal
contributions. From sparking a resurgence of international cricket in Pakistan through HBLPSL to
fortifying the nation's economy via the Ehsaas Emergency Cash Program, HBL continues to carve out a
niche for itself as an institution that transcends banking and touches lives.

2. Main Activities

1. Retail Banking: HBL Bank provides retail banking services to individual customers, including
savings and current accounts, personal loans, credit cards, debit cards, mortgages, and consumer
financing.
2. Corporate Banking: The bank offers corporate banking services to businesses, institutions, and
government entities. These services include working capital financing, trade finance, cash
management solutions, corporate loans, project finance, and treasury services.
3. International Banking: HBL Bank facilitates international banking activities, including foreign
currency accounts, foreign trade services, remittances, foreign exchange transactions, and
correspondent banking services.

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4. Islamic Banking: HBL Bank has a dedicated Islamic banking division that provides Sharia-compliant
banking solutions to cater to the needs of customers seeking Islamic finance products and
services.

3. Board of Director
Name Position Field Of Duty
Chairman -
Mr Sultan Ali Allana
Mr Muhammad Aurangzeb President and CEO -
Mr. Moez Ahamed Jamal Director Financial Sector
Director -
Mr. Shafiq Dharamshi
Mr. Salim Raza Director Banking and Financial Sector
Dr. Najeeb Samie Director Investment Sector
Ms. Saba Kamal Director Human Resources
Mr. Khaleel Ahmed Director Accounting Sector

Financial Information of HBL Bank Years 2022 :

No Financial information Ringgit Malaysia (RM)

1. Revenues 40,500,000,000
2. Profit/loss before tax 5,800,000,000
3. Profit/loss distributed to shareholders 3,200,000,000
4. Total assets 105,300,000,000
5. Total liabilities 64,300,000,000
6. Net current assets 41,000,000,000
7. Zakat contribution 1,900,000,000

Financial Standard Used by HBL Bank.

HBL Bank, a leading financial institution in Pakistan, follows a set of financial standards to ensure the
reliability and transparency of its financial statements. These standards include:

• International Financial Reporting Standards (IFRS), which are a set of global accounting
standards developed by the International Accounting Standards Board (IASB).

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 • Islamic Financial Accounting Standards (IFAS), which are a set of accounting standards
developed by the Accounting and Auditing Organization for Islamic Financial Institutions
(AAOIFI).
• Directives issued by the State Bank of Pakistan (SBP), which are the regulations governing the
banking sector in Pakistan.

In addition to these financial standards, HBL Bank also adheres to the principles of transparency,
accountability, and integrity. This means that its financial statements are clear, accurate, and free from
material misstatement.

The Classification of Investment Account for Unrestricted Investment Account and Restricted
Investment Account Based on The Financial Standard Used by HBL Bank.

Investment accounts at HBL Bank are classified into two categories: unrestricted investment accounts
(UAs) and restricted investment accounts (RAs).

• Unrestricted investment accounts are those where the investment account holder (IAH) gives
the Islamic financial institution (IFI) full discretion to make investment decisions. The IAH does
not have any specific requirements or restrictions on how the IFI invests their money.
• Restricted investment accounts are those where the IAH provides the IFI with specific
investment instructions, such as the purpose, asset class, economic sector, and period for
investment. The IAH is entitled to receive a specific return on their investment, as specified in
the investment mandate.

The classification of investment accounts is important because it helps to ensure that the IAH is aware
of the risks and rewards associated with their investment. It also helps to protect the IAH from losses
if the IFI does not perform as expected. Additionally, it helps to ensure that the IFI's balance sheet is
properly presented.

HBL Bank follows the financial standards set by the Accounting and Auditing Organization for Islamic
Financial Institutions (AAOIFI) when classifying investment accounts. The AAOIFI standards provide

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clear guidance on how to classify investment accounts, which helps to ensure that HBL Bank's financial
statements are reliable and transparent.

DIFFERENCE OF COMPONENTS STATEMENT OF FINANCIAL POSITIONS

Acc
ASSETS Cash receivable Fixed asset Investment Intangible

MALAYSIA ✓ ✓ ✓ ✓ ✓

BRUNEI ✓ ✓ ✓ ✓ ✓

INDIA ✓ ✓ ✓ ✓ ✓

SUDAN ✓ ✓  ✓ 

JORDAN ✓   ✓ ✓

EGYPT ✓ ✓ ✓ ✓ ✓

OMAN ✓ ✓ ✓ ✓ ✓

PAKISTAN ✓ ✓ ✓ ✓ ✓

KUWAIT ✓ ✓ ✓ ✓ ✓

INDONESIA ✓ ✓ ✓ ✓ ✓

LIABILITIES LOANS Cureent Account Due to bank Deffered tax

MALAYSIA ✓ ✓ ✓ ✓

BRUNEI ✓ ✓ ✓ ✓

INDIA ✓ ✓ ✓ ✓

SUDAN ✓ ✓ ✓ 

JORDAN  ✓  ✓

EGYPT ✓ ✓ ✓ ✓

OMAN ✓ ✓ ✓ ✓

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 PAKISTAN ✓ ✓ ✓ ✓

KUWAIT ✓ ✓ ✓ ✓

INDONESIA ✓ ✓ ✓ ✓

EQUITY Common stock Capital Reserves Retained earnings

MALAYSIA ✓ ✓ ✓ ✓

BRUNEI ✓ ✓ ✓ ✓

INDIA ✓ ✓ ✓ ✓

SUDAN  ✓ ✓ ✓

JORDAN  ✓ ✓ ✓

EGYPT ✓ ✓ ✓ ✓

OMAN ✓ ✓ ✓ ✓

PAKISTAN ✓ ✓ ✓ ✓

KUWAIT ✓  ✓ ✓

INDONESIA ✓ ✓ ✓ ✓

DIFFERENCE OF COMPONENTS STATEMENT OF PROFIT OR LOSS

Return on Equity
INCOME Foreign Exchange Dividend
Investmet

MALAYSIA  ✓ ✓

BRUNEI ✓ ✓ ✓

INDIA ✓ ✓ ✓

SUDAN ✓ ✓ ✓

JORDAN ✓ ✓ 

EGYPT ✓ ✓ ✓

OMAN  ✓ ✓

PAKISTAN ✓ ✓ ✓

KUWAIT ✓  

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INDONESIA ✓  

EXPENSES Employee expenses dpreciation Allowance

MALAYSIA ✓ ✓ ✓

BRUNEI ✓ ✓ ✓

INDIA ✓ ✓ ✓

SUDAN ✓ ✓ 

JORDAN ✓ ✓ 

EGYPT ✓ ✓ ✓

OMAN ✓ ✓ ✓

PAKISTAN ✓ ✓ ✓

KUWAIT ✓ ✓ 

INDONESIA ✓  ✓

COUNTRY TAX ZAKAT

MALAYSIA ✓ ✓

BRUNEI ✓ ✓

INDIA ✓ ✓

SUDAN ✓ 

JORDAN ✓ 

EGYPT ✓ ✓

OMAN ✓ 

PAKISTAN ✓ ✓

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KUWAIT ✓ ✓

INDONESIA ✓ ✓

Conclusion

The financial standards in Islamic banking are a complex and evolving field. The report
has identified a number of key findings, including:

The Islamic financial industry is growing rapidly, and the need for strong financial
standards is becoming increasingly important.
The existing financial standards for Islamic banking are not always clear or consistent.
There is a need for a more comprehensive and harmonized set of financial standards
for Islamic banking.
The report recommends that the Islamic financial industry work together to develop a
more comprehensive and harmonized set of financial standards. This would help to
ensure the stability and growth of the Islamic financial industry, and would also help
to attract more investors and customers.

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