Al Baraka Bank South Africa

What Al Baraka Bank South Africa does

Al Baraka Bank South Africa (Albaraka Bank Limited) is a privately held, fully Shariah-compliant banking institution established in 1989 and headquartered in Durban. It operates as the only dedicated Islamic bank in South Africa, serving retail, business, and cross-border customers across all nine provinces via a branch network, mobile and internet banking, WhatsApp banking, and digital wallets (Samsung Pay, Garmin Pay). The bank holds regulatory authorizations as an Authorised Financial Services Provider (FSP No. 4652), Credit Provider (NCRCP14), and Authorised Dealer in Foreign Exchange, with customer deposits covered by CODI up to R100,000 per depositor.

The product suite spans transactional accounts (Classic, iStart, Pensioner, Foreigner, Business, Corporate, Non-Profit), a tiered investment platform (Tax-Free, Haj Scheme, Participation, Regular Income Provider, Monthly Plan, Premium 365, Premium Plus, Guarantee Deposit), Shariah-compliant unit trusts distributed in partnership with Old Mutual, and Shariah-structured financing (Murabaha, Musharaka, Ijarah) covering residential, vehicle, solar, commercial property, development, trade, asset, and fleet finance. Additional services include Takaful insurance via Bryte Insurance, foreign exchange and cross-border payments, and Islamic wills and estate administration. Profit and loss-sharing is structured on Mudaraba principles with a 40/60 split between the Bank and depositors.

The bank is a subsidiary of the Al Baraka Banking Group, a diversified international Islamic banking conglomerate operating across 11 countries (Algeria, Bahrain, Egypt, Iraq, Jordan, Lebanon, Libya, Pakistan, Sudan, Syria, Tunisia, Turkey). The South African entity generates revenue through transactional fees, Mudaraba profit-sharing on the deposit pool, financing margins on Murabaha/Ijarah/Musharaka contracts, FX spreads, unit trust distribution fees from Old Mutual, and Takaful referral commissions. GTM is hybrid: branch-led sales plus digital self-serve via mobile app and online application portals, targeting both individual retail customers and business/commercial clients across the country.

Name

Al Baraka Bank South Africa

Legal name

Albaraka Bank Limited

Website

https://albaraka.co.za

Company type

Private

Founded year

1989

Operating status

Operating

Headcount range

251–500 employees

Short description

Al Baraka Bank South Africa is a privately held, Shariah-compliant bank established in 1989 and headquartered in Durban, serving retail, business, and cross-border customers across all nine South African provinces as a subsidiary of the Al Baraka Banking Group.

Ownership category

akta.pro rank

Product category

Islamic Retail Banking

NAICS

Commercial Banking (52211), Savings Institutions and Other Depository Credit Intermediation (52218), Trust, Fiduciary, and Custody Activities (523991)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Islamic Retail Banking (FSABAGAA)

akta.pro secondary industries

Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam) (FSABAGAH), Islamic SME & Commercial Banking (FSABAGAB), Islamic Deposit & Account Products (Current/Savings/Investment Accounts) (FSABAGAI), Islamic Private Banking & Wealth (FSABAGAD), Islamic Transaction Banking (Cash Management & Treasury Services) (FSABAGAF)

Keywords

• Islamic retail banking
• Shariah-compliant financing
• Mudaraba investment accounts
• Transactional banking accounts
• Takaful insurance referral

Headquarters

HQ city

Durban

HQ country

South Africa

HQ region

Africa

Offices1 record

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Infrastructure, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Transactional Account Fees: Monthly administration fees, transaction fees (ATM withdrawals, point-of-sale purchases, cash deposits), card replacement fees, and dormant account fees charged on transactional banking accounts. Some accounts have no monthly fee (e.g., Classic Account) but charge per-transaction fees.
2. Murabaha / Musharaka / Ijarah Financing Profit: Profit earned from financing activities structured on Murabaha (cost-plus sale), Musharaka (equity partnership), and Ijarah (lease) contracts. The Bank earns profit spread on these Shariah-compliant financing arrangements for residential finance, vehicle finance, solar finance, and commercial asset/trade finance.
3. Investment Account Profit Sharing: Investment depositors share in profits of the Deposit Pool at a ratio of 40% Bank / 60% Depositors. The Bank acts as Mudarib (investment manager) and retains its share from the overall pool. Individual depositor profit allocation is determined by a points system based on investment amount, duration, and account type.
4. Foreign Exchange Revenue: The Bank is an Authorised Dealer in foreign exchange and earns revenue through foreign exchange spreads on currency conversion for travel, cross-border payments, and investments. A minimum conversion value of 600 units of currency applies.
5. Unit Trust / Wealth Management: In partnership with Old Mutual, the bank offers Shariah-compliant unit trust funds (Equity, Balanced, Income Funds, Global Islamic Equity Feeder Fund) with upfront fees (up to 3.45% incl VAT) and annual advisor fees (up to 1.15% incl VAT).
6. Takaful (Shariah-Compliant Insurance) Referral: Albaraka Financial Services (through Al Baraka Bank) partnered with Bryte Insurance to offer Shariah-compliant Takaful insurance products. Revenue likely derives from referral/commission arrangements for motor, home, commercial, and other Takaful covers.
7. Estate Administration and Executor Fees: The bank offers Wills & Estate Administration services, including free Islamic Will templates and executor services for estate distribution, charging fees for estate administration.

Pricing tiers

Go-to-market motion2 records

Distribution channels12 records

Marketing channels9 records

Core offering

Al Baraka Bank South Africa operates as a Shariah-compliant retail and commercial bank providing transactional current accounts, profit-sharing investment deposits, residential/vehicle/solar financing, unit-trust wealth products, and Takaful insurance referrals. All products are structured under Islamic contracts (Mudaraba, Murabaha, Musharaka, Ijarah) and are distributed through branches, a mobile banking app, internet banking, and WhatsApp banking.

Product overview

Al Baraka Bank South Africa is an Islamic banking institution offering a comprehensive suite of Shari'ah compliant financial products. The bank operates on a platform-plus-modules architecture, providing core transactional banking through multiple account types (Classic, iStart, Pensioner, Foreigner accounts), an extensive investment portfolio including savings accounts (Tax-Free Investment, Haj Investment, Participation Accounts, Premium Investments), and Shari'ah compliant unit trust funds managed in partnership with Old Mutual (Equity, Balanced, Income Funds, and Global Islamic Equity Feeder Fund). The bank also offers financing solutions for residential property, motor vehicles, and solar installations, along with business banking services including trade finance, asset finance, fleet finance, and commercial property finance. Digital banking is supported through the Al Baraka Bank App with mobile wallet integrations for Samsung Pay and Garmin Pay, plus PayShap instant payments. Additional services include Takaful insurance partnerships, estate planning with Islamic Wills, and international banking through cross-border payments and foreign exchange services.

Differentiator

Problem solved

Functional benefit

Brands

• Old Mutual Al Baraka Funds: Shari'ah compliant unit trust funds offered in partnership with Old Mutual, including the Old Mutual Al Baraka Equity Fund, Old Mutual Albaraka Balanced Fund, and Old Mutual Al Baraka Income Fund.

Products and services

• Classic Account Shariah-compliant transactional banking account with Visa debit card, Tap & Go contactless, ATM access, free internet banking, and Real Time Payments. Features no monthly admin fee on active accounts and no fees for local and international point-of-sale purchases.
• iStart Account Transactional banking account for children and youth up to age 21 with no monthly admin fee, no fees for local point-of-sale purchases, three free cash deposits up to R5,000 each, two free ATM withdrawals, and a loyalty cash-back programme on partner purchases.
• Pensioner Account Transactional banking account for customers aged 60 and above featuring two free ATM withdrawals and a loyalty cash-back programme on partner purchases. Minimum balance R50.
• Foreigner Account Shariah-compliant transactional banking account for temporary residents and foreign nationals in South Africa working, studying, or seeking asylum. No monthly admin fee for active accounts and no fees on point-of-sale purchases. Access to 25,000+ saswitch ATMs domestically and Visa-branded ATMs internationally.
• Tax-Free Investment Shariah-compliant investment account offering tax-free profits under Section 12T of the Income Tax Act. Minimum initial deposit R1,000 with additional deposits from R250. 12-month fixed investment period. Maximum R46,000 annual and R500,000 lifetime contribution. May 2026 profit rate: 5.564% p.a.
• Haj Investment Scheme Shariah-compliant dedicated savings account for Haj pilgrimage with minimum R100 deposit and R100 additional deposits over a 12-month fixed term. Includes eligibility for airfare draw, gift upon departure, free Islamic Will, and in-house forex. May 2026 profit rate: 5.227% p.a.
• Regular Income Provider Profit-generating account providing regular monthly income from a lump-sum investment. Minimum R20,000 for a 12-month fixed period with optional monthly profit payouts or reinvestment. May 2026 profit rate: 5.396% p.a.
• Monthly Investment Plan Structured monthly savings plan with adjustable contributions via debit order. Minimum R100 deposit and R100 monthly investments on a 12-month fixed term. May 2026 profit rate: 4.873% p.a.
• Participation Account Flexible profit-generating account with investment periods from 7 days to 720 days. Minimum deposits range from R1,000 to R250,000 depending on term. Profits calculated weekly and distributed based on account-type weighting. May 2026 rates range from 2.025% to 5.564% p.a.
• Premium Investment 365 High-value fixed investment account for qualifying customers requiring superior returns. Minimum R2 million initial deposit for 12-month fixed term with no premature withdrawals; profits paid annually on maturity. May 2026 profit rate: 6.408% p.a.
• Premium Plus Investment Medium to long-term investment account building on the Premium Investment 365 model with enhanced flexibility. Minimum R3 million deposit, monthly profit withdrawal or capitalisation options, and ad hoc additional deposits from R250,000. May 2026 profit rate: 7.419% p.a.
• Guarantee Deposit Account Investment account backing the issuance of bank guarantees for property purchases, rental deposits, and performance guarantees. Guarantees issued up to the equivalent of deposited amount with 35-day profit cycles. May 2026 profit rate: 4.384% p.a.
• Old Mutual Al Baraka Equity Fund Shariah-compliant unit trust fund investing in JSE-listed equities seeking to outperform the FTSE Shari'ah Index. Medium to long-term growth investment with R10,000 lump sum or R500/month minimum. Maximum 3.45% upfront fee and 1.15% annual advisor fee (incl. VAT), distributed in partnership with Old Mutual.
• Old Mutual Albaraka Balanced Fund Moderately aggressive Shariah-compliant unit trust with diversified local and international asset allocation. Regulation 28 compliant and suitable for retirement fund investors. Maximum 3.45% upfront fee plus 1.15% annual advisor fee.
• Old Mutual Al Baraka Income Fund Regulation 28-compliant Shariah-compliant income fund protecting against interest-rate fluctuations. Invests in SA and global non-equity securities including sukuks. Suitable for risk-averse investors seeking inflation-beating returns. Maximum 3.45% upfront fee and 1.15% annual advisor fee.
• Old Mutual Global Islamic Equity Feeder Fund Shariah-compliant feeder fund providing offshore equity exposure through the Old Mutual Global Islamic Equity Fund, investing in developed-market equities. Targets medium to long-term capital growth with higher international asset allocation than Regulation 28 permits.
• Residential Finance Individual home finance based on Musharaka (variable-price equity partnership) principles covering home purchases, refinance, and bond switching. Up to 90% property value with up to 30-year repayment term, fixed 12-month rates reviewed annually. No monthly admin fees or early settlement penalties.
• Motor Vehicle Finance Vehicle financing offering both Murabaha (fixed instalment) and Ijarah (lease) structures. Murabaha features 10% deposit with up to 72-month terms for vehicles up to 6 years old. Ijarah offers up to 84 months for new/demo vehicles. Balloon/residual up to 30%. No monthly admin fees or early settlement penalties.
• Residential Solar Finance Solar energy financing with Musharaka (variable-price) and Murabaha (fixed-price) structures. Musharaka covers up to 20% of property value with a 10-year term. Murabaha requires a 20% deposit with up to 60-month term. No monthly admin fees or early settlement penalties.
• Takaful Insurance Shariah-compliant insurance offered in partnership with Bryte Insurance, covering personal lines (buildings, household, motor, all risks, personal liability) and commercial lines (property, fleet, electronic equipment, liability, fidelity guarantee, business interruption), with Bryte Assist 24/7 roadside, home/business emergency, and medical assistance.
• Wills and Estate Administration Islamic-compliant Will preparation and estate administration services, including free Islamic Will templates, executor nomination, and Shariah-compliant distribution guidance.
• Business Account Shariah-compliant transactional banking account for businesses featuring internet banking, Visa debit card, and merchant facilities.
• Corporate Account Transactional banking account for corporate entities with enhanced features and limits scaled for larger business operations.
• Non-Profit Organisation Account Transactional banking account designed for registered bodies, Islamic bodies with formal constitution, and non-profit organisations, paired with a dedicated Social Responsibility debit card.
• Trade Finance International trade financing facilities enabling South African businesses to fund import and export transactions under Shariah-compliant structures.
• Asset Finance Shariah-compliant financing solutions for business asset acquisitions with flexible repayment terms.
• Fleet Finance Shariah-compliant vehicle fleet financing with competitive pricing and flexible terms for commercial vehicle fleets.
• Commercial Property Finance Shariah-compliant financing for commercial real estate purchases and developments.
• Development Property Finance Shariah-compliant property development financing for construction and development projects.
• Commercial Solar Finance Shariah-compliant solar energy financing solutions for commercial and business installations.
• Attorney Trust Saver Shariah-compliant trust account for attorneys holding client funds, with a 35-day investment period earning profits on held funds under attorney trust rules.
• Cross Border Payments International Shariah-compliant payment services for cross-border transactions including foreign exchange.
• Forward Exchange Contracts Shariah-compliant hedging instruments enabling customers to manage foreign exchange rate risk on future cross-border payments.
• Omnibus Account International banking facility enabling customers to make investments and operate Single Discretionary Allowances under South African exchange-control regulations.
• Foreign Exchange - Notes for Travel Shariah-compliant currency exchange services for travel with a minimum R600 conversion per transaction. Includes 60-day advance booking and 48-hour collection notice.
• Al Baraka Mobile Banking App Full-service mobile banking application for iOS, Android, and Huawei AppGallery enabling statements, payments, limit management, card settings, notifications, SARS payments, and real-time payments.

Quantifiable outcome

• Tax-Free Investment: Maximum R46,000 annual and R500,000 lifetime contribution limit with zero tax on profits earned
• +4 more outcomes

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration8 records

Feature6 records

Partnerships

Six partnerships are on record, tiered core.

• SamsungcoreTechnology or IntegrationAl Baraka Bank partnered with Samsung to integrate Samsung Pay, enabling customers to upload their Al Baraka debit card to the Samsung Pay app for contactless in-store payments. This provides a safe, secure, and convenient alternative to physical cards. No branch visit required — customers self-serve by downloading the app and adding their card.
• GarmincoreTechnology or IntegrationAl Baraka Bank partnered with Garmin to integrate Garmin Pay, enabling customers to make contactless in-store purchases using compatible Garmin smartwatches without needing their phone or physical card. Uses NFC technology with contactless terminals. Security includes PIN requirements every 24 hours or when the watch is removed from the wrist. Up to 10 cards can be stored on the wallet.
• PayShap (South African Reserve Bank)coreTechnology or IntegrationAl Baraka Bank participates in PayShap, an instant payment network backed by the South African Reserve Bank. PayShap enables real-time payments using just a cellphone number or ShapID, 24/7, including weekends and public holidays. Payments up to R5,000 per transaction with fees of free up to R200 and R10 for up to R5,000. Reduces fraud by limiting exposure of bank account details.
• Old MutualcoreStrategic or Co-development PartnerAl Baraka Bank partners with Old Mutual to offer Shariah-compliant unit trust funds: Old Mutual Al Baraka Equity Fund, Old Mutual Albaraka Balanced Fund, Old Mutual Al Baraka Income Fund, Old Mutual Global Islamic Equity Feeder Fund, and tax-free versions thereof. The funds are managed by Old Mutual's investment professionals and supervised by an independent Shari'ah Supervisory Board. Al Baraka distributes these funds through its branch network and digital channels.
• Bryte InsurancecoreStrategic or Co-development PartnerAlbaraka Financial Services (a division through Al Baraka Bank) partnered with Bryte Insurance to bring Shariah-compliant Takaful insurance products to customers. Covers include personal (buildings, household contents, all risks, motor, personal liability) and commercial lines (property, motor fleet, electronic equipment, public liability, goods in transit, fidelity guarantee, personal accident, business interruption). Bryte Assist provides 24/7 roadside, home/business emergency, and medical assist services.
• Al Baraka Banking GroupcoreStrategic or Co-development PartnerAl Baraka Bank South Africa is part of the Al Baraka Banking Group, which operates in 11 countries: Algeria, Bahrain, Egypt, Iraq, Jordan, Lebanon, Libya, Pakistan, Sudan, Syria, Tunisia, and Turkey. The Group provides brand licensing, operational best practices, Shari'ah Supervisory Board oversight, and cross-border collaboration such as the ABG Inter-Franchise Collaboration with Pakistan.

Scale indicators6 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• Al Baraka Banking Group (Bahrain): Parent group and operator of Al Baraka affiliates across 11 countries including Bahrain, Jordan, Pakistan, Egypt, and Tunisia. Provides brand licensing, Shari'ah governance, and operational best practices that the South African entity implements locally.
• Jordan Islamic Bank: Affiliate Al Baraka Banking Group entity in Jordan offering Shariah-compliant retail, commercial, and investment banking. Operates on the same Mudaraba, Murabaha, Musharaka, and Ijarah product framework as the South African operation.
• Dubai Islamic Bank: UAE's largest Islamic bank offering full Shariah-compliant retail, corporate, and investment banking. Comparable product architecture (Mudaraba deposits, Murabaha financing, Ijarah leasing) and similar target customer profile of Muslim retail and SME segments.
• Kuwait Finance House: Major Kuwait-based Islamic bank operating across the GCC, Turkey, Malaysia, and Germany with full AAOIFI-aligned product suite. Comparable scale, product depth, and Shariah governance infrastructure.
• Meezan Bank: Pakistan's leading Islamic bank offering Shariah-compliant retail, corporate, and investment banking with similar Mudaraba/Murabaha/Ijarah product architecture. Comparable product depth and dedicated Islamic banking positioning.
• BankIslami Pakistan: Pakistan-based dedicated Islamic bank with comparable Shariah-compliant retail and commercial product suite. Operates Mudaraba-based deposits and Murabaha/Ijarah financing models comparable to Al Baraka South Africa.

Broad incumbents

• Emirates NBD: UAE-headquartered conventional bank with a significant Islamic banking window (Emirates Islamic). Demonstrates how a broad incumbent competes with dedicated Islamic banks via an embedded Shariah-compliant offering.
• FirstRand (FNB): South African banking group (parent of FNB) with a Shariah-compliant Islamic finance offering in the domestic market. Represents the direct local competitive threat from a broad incumbent with an Islamic window.
• Absa Group: Major South African incumbent providing cash-accepting ATM infrastructure to Al Baraka customers and offering Islamic banking products. The largest conventional competitor for South African Muslim banking customers.
• Standard Bank Group: Africa's largest bank by assets with a presence in South Africa and an Islamic banking offering. Competes for the same Shariah-conscious customer base as Al Baraka with much larger scale and balance sheet.

Market position

Strengths1 record

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/AlbarakaSA

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Al Baraka Bank South Africa