Bahrain Islamic Bank is a commercial bank headquartered in Manama, Bahrain. It was established on March 7, 1979 and has been operating since 1400 Hijri (2nd day of Muhammad), which is November 22, 1979. It is the first Islamic bank in the Kingdom of Bahrain, operating under the supervision of the Central Bank of Bahrain and listed on the Bahrain Stock Exchange.

History

In January 2016, Moody's Investors Service confirmed its rating and upgraded its Independent Benchmark Credit Assessment (BCA) from caa1 to b3.

In 2017, as part of a five-year growth plan, the bank outlined strategies to improve performance, one of which involved the sale of non-productive assets worth around 82 million dinars (£166 million), including land and shares. In the first six months, the bank successfully sold assets worth 14 million dinars. By prioritizing its core lending business and implementing these asset sales, the bank aims to streamline operations and facilitate additional growth.

In 2019, National Bank of Bahrain, which holds a stake in Bahrain Islamic Bank, made an offer to acquire its remaining shares. The proposed agreement is contingent on the bank acquiring at least 40.94% of Bahrain Islamic Bank through a cash or stock exchange. Bahrain Islamic Bank agreed on a valuation of 124 million (US $329 million). The offer is in line with the consolidation trend in the financial sector in the Middle East, as weak oil prices have reduced government and consumer spending, affecting profit margins.

In November, the bank signed a partnership agreement with telecommunications services group STC Bahrain aimed at implementing a range of initiatives for small and medium-sized enterprises. In December, the bank signed an agreement with Delmon Gate to provide real estate financing options and benefits for the Bushra housing project in Alsayah.

Artificial intelligence platform for Islamic banking

In 2023, the bank announced plans to create the first artificial intelligence platform for Islamic banking Shariah Tevas. The platform will incorporate fatwas issued by the Shariah Supervisory Board, leveraging over 1,800 fatwas and Shariah decisions