Islamic International Arab Bank PLC: Company Profile

Background

Overview

Islamic International Arab Bank PLC (IIAB) is a Jordanian financial institution established as a public shareholding company on March 30, 1997. The bank commenced its operations on February 9, 1998, offering a comprehensive range of Sharia-compliant banking services. IIAB operates under the principles of Islamic law, providing ethical financial solutions to its diverse clientele.

Mission and Vision

IIAB is committed to delivering innovative and creative Sharia-compliant financial solutions targeting retail, SME, and corporate customers. The bank emphasizes its role in the sustainable development of the economy and society by focusing on comprehensive financial solutions and active corporate social responsibility initiatives aimed at reducing poverty and unemployment rates in Jordan.

Industry Significance

As one of the leading Islamic banking institutions in Jordan, IIAB plays a pivotal role in promoting ethical banking practices and financial inclusion. The bank's adherence to Sharia principles distinguishes it in the competitive banking sector, catering to a growing demand for Islamic financial services in the region.

Key Strategic Focus

Core Objectives

Digital Transformation: Enhancing digital banking services to improve customer experience and operational efficiency.

Financial Inclusion: Expanding access to banking services for underserved segments, including SMEs and individuals in remote areas.

Sustainable Development: Supporting initiatives that contribute to the economic and social development of Jordan.

Areas of Specialization

Retail Banking: Offering a range of Sharia-compliant products such as current and savings accounts, personal financing, and real estate financing.

Corporate Banking: Providing tailored financial solutions for large and commercial corporate needs, including working capital financing and project finance.

SME Banking: Focusing on the development and support of small and medium-sized enterprises through specialized financing schemes.

Key Technologies Utilized

Digital Banking Platforms: Revamped mobile applications and online banking services to enhance customer engagement.

ATM Innovations: Introduction of advanced ATM services, including online banknote acceptance and services for the visually impaired.

Primary Markets Targeted

Jordanian Market: Serving individuals, SMEs, and corporate clients across all governorates of Jordan.

Regional Expansion: Exploring opportunities in neighboring Arab and Islamic countries to extend Sharia-compliant banking services.

Financials and Funding

Funding History

IIAB has been a wholly-owned subsidiary of Arab Bank PLC since its establishment. The bank's capital has been increased over the years to support its growth and expansion plans. Specific details regarding total funds raised and recent funding rounds are not publicly disclosed.

Notable Investors

Arab Bank PLC: The parent company, holding 100% ownership of IIAB.

Utilization of Capital

The capital raised has been utilized to:

Branch Expansion: Establishing a network of branches and ATMs across Jordan.

Digital Infrastructure: Developing and enhancing digital banking platforms.

Product Development: Introducing new Sharia-compliant financial products and services.

Pipeline Development

Key Pipeline Candidates

IIAB is focusing on the development of:

Digital Banking Solutions: Enhancing mobile and online banking platforms to offer a seamless customer experience.

SME Financing Programs: Developing specialized financing schemes to support the growth of small and medium-sized enterprises.

Stages of Development

Digital Banking Solutions: Ongoing development with recent enhancements in mobile applications and online banking services.

SME Financing Programs: Implementation of financing schemes in collaboration with the World Bank and Arab Fund through the Central Bank of Jordan.

Target Conditions

Digital Banking Solutions: Improving customer engagement and operational efficiency.

SME Financing Programs: Facilitating access to financing for SMEs to stimulate economic growth and job creation.

Anticipated Milestones

Digital Banking Solutions: Launch of enhanced mobile banking features and expanded online services in the coming year.

SME Financing Programs: Disbursement of funds to qualifying SMEs under the new financing schemes.

Technological Platform and Innovation

Proprietary Technologies

Arabi Islami Call Center: A dedicated customer service center providing support and information on banking services.

Significant Scientific Methods

Digital Banking Platforms: Utilizing advanced technologies to offer secure and user-friendly online banking experiences.

Leadership Team

Key Executives

Mohammed Said Shahin: Chairman

Iyad Asali: General Manager

Naim Rasim AlHussaini: Vice Chairman

Jamal Mah'd Tu'meh: Board Member

Khaldoun Khalil AlJanini: Board Member

Dr. Hana Hunaity: Board Member

Ala’eddin Khatib Tamimi: Board Member

Dr. Nael Fahed Al Husamie: Board Member

Dr. Mohsen Fayez Abu Awad: Secretary of the Board of Directors

Professional Backgrounds and Contributions

Mohammed Said Shahin: Brings extensive experience in banking and finance, contributing to strategic decision-making and governance.

Iyad Asali: With a background in banking operations, he oversees the bank's daily activities and ensures alignment with strategic goals.

Naim Rasim AlHussaini: Provides insights into financial management and corporate governance, supporting the bank's financial health.

Jamal Mah'd Tu'meh: Offers expertise in risk management and compliance, ensuring the bank's operations adhere to regulatory standards.

Khaldoun Khalil AlJanini: Specializes in corporate banking, contributing to the development of services for corporate clients.

Dr. Hana Hunaity: Focuses on strategic planning and business development, driving the bank's growth initiatives.

Ala’eddin Khatib Tamimi: Expert in digital banking, leading the bank's technological advancements.

Dr. Nael Fahed Al Husamie: Provides legal expertise, ensuring the bank's operations comply with Sharia law.

Dr. Mohsen Fayez Abu Awad: Manages corporate communications and public relations, enhancing the bank's brand image.

Market and Competitor Analysis

Market Insights and Dynamics

The Jordanian banking sector includes both conventional and Islamic banks, with Islamic banking gaining significant traction due to its ethical, interest-free financial products. The competitive environment requires continuous innovation and customer-centric strategies to maintain and grow market share.

Competitor Overview

Jordan Islamic Bank: A leading Islamic bank in Jordan with a broad range of Sharia-compliant products and services.

Arab Bank PLC: The parent company of IIAB, offering both conventional and Islamic banking solutions.

Housing Bank for Trade and Finance: A major player in the Jordanian banking sector, providing diverse financial products.

Strategic Collaborations

IIAB maintains partnerships with international financial institutions such as the World Bank and Arab Fund, facilitating financing solutions targeted at SMEs and supporting sustainable development initiatives in Jordan.

Operational Differentiators

IIAB’s exclusive commitment to Sharia-compliant banking, robust digital banking infrastructure, and proactive corporate social responsibility efforts enhance its competitive position in the market.

Strategic Opportunities and Future Directions

Roadmap

Digital Banking Expansion: Continuing to improve digital platforms for seamless customer experience.

SME Support Programs: Developing and implementing specialized financing programs tailored for SMEs.

Regional Growth: Exploring the expansion of Sharia-compliant banking services into neighboring Arab and Islamic markets.

Business Focus

IIAB aims to consolidate its leadership in Islamic banking by prioritizing digital transformation, advancing financial inclusion, and championing sustainable socioeconomic development initiatives.

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