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Advertisers Bank of Bahrain and Kuwait B.S.C.
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ABC Islamic Bank E.C.
A little over 10 years ago Arab Banking Corporation, via a wholly-owned subsidiary, launched its Islamic Banking Division, that was to become the ABC Islamic Bank based in Bahrain. ABC Islamic Bank was incorporated in Bahrain in 1998 with an issued and paid-up capital of US$42.5 million, with the express purpose of reassuring existing and future customers of the continued purity and integrity of its Islamic products and services.
With the support of the ABC Group's extensive global network, ABC Islamic Bank (E.C.) is able to offer clients throughout the world a medium through which transactions can be structured according to purely Islamic principles.
The Bank provides a full range of Shari'a compliant products and services including tax-efficient financial products, joint ventures, equity-related structures and treasury products, as well as short and longer-term investment opportunities either directly with the Bank or through its special purpose subsidiary companies, namely the ABC Islamic Fund (E.C.) and ABC Clearing Company.
The Fund's objective is to channel clients' funds into Islamic investments to earn halal profits in full compliance with the Shari'a. These investments consist principally of a portfolio of short to medium term Islamic investments to allow for both liquidity and security.
Like the Clearing Company, the Fund is also supervised by a fully independent Board of Directors who oversee its operations. In addition, the ABC Clearing Company is a company incorporated in 1993 under the laws of the Cayman Islands with an authorized capital of US$200 million.
The company takes credit balances of client clearing accounts on a daily basis and purchases blocks of participating shares in the company The shares are next valued on a daily basis by reference to the NAV (Net Asset Value). If the customer's shares in the company fall in value, ABC as a third party irrevocably and unconditionally guarantees that on the sale/redemption of the shares, the customer will receive an amount equal to the price paid for the shares, thereby ensuring that the customer is not prejudiced by a fall in the value of the Company's shares.
ABC Clearing Company is supervised by a fully independent Board of Directors who oversee its operations.
Finally, an independent Board of Directors was elected to oversee the activities of ABC Islamic Bank (E.C.) and its subsidiaries. In the same vein, the bank's Shari'a Control Committee was expanded to include Dr. Wehbah AI-Zuhaili, Dr. Abdulsatar Abu Ghuda, Justice Mohammed Taqi Uthmani, Dr. Abdullatif AI-Mahmood and Dr. Abdulghafar AI-Sharif, all reputed Islamic Scholars.
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Table of Contents The Al Khalifa Dynasty - Ruling Bahrain Since 1783 |
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The Islamic Fund was set up in 1989 operating under a license issued by the Bahrain Monetary Agency. The Islamic Fund is a variable capital company registered in Bahrain with an authorized capital of US$100 million.