What Safa Bank does

Safa Bank (legal name: Bank Al-Safa Al-Islami / مصرف الصفا الإسلامي) is a Palestine-incorporated, publicly listed Islamic commercial bank headquartered in Ramallah, operating under license from the Palestine Monetary Authority and a dedicated Sharia Supervisory Board. Founded in 2016, it is the newest Islamic bank in Palestine and listed on the Palestine Stock Exchange under ticker SAFABANK since July 2022. The bank serves individual consumers, SMEs, farmers, healthcare seekers, students, Hajj pilgrims, and low-income financial-inclusion customers through a 9-branch network across the West Bank complemented by digital channels (Safa Online, Safa Mobile, SAFA WALLET) and the iBURAQ instant payment system.

The bank operates a full Sharia-compliant product suite anchored by Mudaraba-based savings and investment accounts, Murabaha retail financing (real estate up to $150K, automotive up to $80K, commodity up to $60K, home construction up to $80K), and Istisna'a construction financing, alongside specialized programs in healthcare (Taj), education (Darajat), Hajj (Labbaik), travel (Tarheal), and agriculture. Indicative profit rates are 7% USD and 8% ILS on declining-balance terms. Technology infrastructure includes the iBURAQ instant payment rail, the SAFA WALLET electronic wallet (the first Islamic e-wallet in Palestine), an ATM network with cash deposit capability, Western Union international remittance partnership, and ISO/IEC 27001-certified information security.

The revenue model combines financing income (profit on Murabaha, Ijara, Istisna'a), Mudaraba profit-sharing with investment account holders (semi-annual distribution), and transaction/service fees from transfers, card issuance, E-SADAD bill payment, and digital services. GTM is hybrid: 9-branch direct sales, digital self-service (app, online, wallet), university and community engagement, and partnerships with healthcare providers, universities, the Ministry of Awqaf, and Western Union. Reported scale: 2023 total assets of $446M, financing portfolio of $302M, deposits of $373M; 2024 saw a sharp contraction (-17% assets, -30% financing, -18% deposits) with capital adequacy preserved at 24%.

Name

Safa Bank

Legal name

Bank Al-Safa Al-Islami (مصرف الصفا الإسلامي)

Website

https://safabank.ps

Company type

Public

Founded year

2016

Operating status

Operating

Headcount range

51–100 employees

Short description

Safa Bank is Palestine's newest Islamic bank (founded 2016), offering Sharia-compliant retail, SME, and specialized financing (healthcare, education, Hajj, agriculture) through 9 West Bank branches, a mobile/internet banking platform, the SAFA WALLET, and the iBURAQ instant payment system.

Ownership category

akta.pro rank

Product category

Islamic Retail Banking

NAICS

Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

National Commercial Banks (6021), State Commercial Banks (6022)

akta.pro primary industry

Islamic Retail Banking (FSABAGAA)

akta.pro secondary industries

Islamic SME & Commercial Banking (FSABAGAB), Shariah-compliant Financing Products (Murabaha, Ijara, Tawarruq, Istisna, Salam) (FSABAGAH), Islamic Deposit & Account Products (Current/Savings/Investment Accounts) (FSABAGAI), Shariah Governance, Compliance & Advisory (Shariah Boards, Audit, Fatwa) (FSABAGAJ)

Keywords

• Islamic banking services
• Sharia-compliant financing
• Retail banking Palestine
• Digital banking services
• Consumer financing products

Headquarters

HQ city

Ramallah

Offices9 records

Markets served

GTM type

B2C

Offering type

Services

Cost components

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

Revenue model

1. Financing Income: The bank earns profit from Islamic financing programs including murabaha, ijara, istisna'a, and mudarabah. Profit rates are charged on financing facilities such as real estate financing (up to $150,000), automotive financing (up to $80,000), and commercial financing. Profit rates mentioned: 7% annually in USD, 8% annually in ILS on a declining balance basis.
2. Investment Account Returns: Savings and investment accounts operate on mudarabah (profit-sharing) basis where depositors share profits with the bank. Returns are distributed semi-annually based on declared profit rates.
3. Service Fees and Commissions: Fees from services including wire transfers (Western Union), account services, card issuance, and other banking services
4. Digital Services: Revenue from digital banking services including mobile banking, internet banking, SMS notifications, and electronic wallet transactions

Pricing tiers

Go-to-market motion2 records

Distribution channels6 records

Marketing channels5 records

Core offering

Safa Bank is a Sharia-compliant Islamic bank operating in Palestine, offering deposit accounts (savings, current, investment, financial inclusion) and Islamic financing products under Murabaha, Ijara, Istisna'a, and Mudarabah contracts covering vehicles, real estate, housing, healthcare, education, Hajj, travel, and agriculture. Services are delivered through 9 branches across the West Bank and digital channels including Safa Online internet banking, Safa Mobile app, SAFA WALLET electronic wallet, the iBURAQ instant payment system, and ATMs.

Product overview

Safa Bank is an Islamic bank operating in Palestine since end of 2016, offering a comprehensive suite of Sharia-compliant banking products and services. The bank's digital banking ecosystem centers on three core platforms: Safa Online (internet banking), Safa Mobile (mobile banking app), and SAFA WALLET (electronic wallet - the first Islamic e-wallet in Palestine). Supporting infrastructure includes iBURAQ instant payment system, ATM network with cash deposit capability, and SMS banking notifications. The retail banking portfolio includes Savings Accounts, Current Accounts, Financial Inclusion Accounts, and Special Investment Accounts. Financing products span Vehicle Financing (Tanqol), Real Estate Financing (Mulak), Housing Financing (Manazel), Istisna'a Financing (Ma'amar), Commodity Financing, and specialized programs for Healthcare (Taj), Education (Darajat), Hajj (Labbaik), Travel (Tarheal), and Agriculture. Additional services include Western Union international money transfers, IBAN generation, currency exchange rates, financing calculator, and E-SADAD bill payment service.

Differentiator

Problem solved

Functional benefit

Products and services

• Safa Online (صفا أونلاين) Internet banking platform enabling customers to manage accounts, view balances and transaction history, request account statements, manage cards, transfer funds between accounts and to external banks, pay bills, and access financing information.
• Safa Mobile (صفا موبايل) Mobile banking application available on iOS, Android, and Huawei devices, offering full account management, fund transfers, bill payments, and biometric authentication for secure access.
• SAFA WALLET (محفظة الصفا الإلكترونية) First Islamic electronic wallet in Palestine enabling digital payments and transfers compliant with Sharia principles.
• iBURAQ Instant Payment System Instant payment system operated under Palestine Monetary Authority oversight, enabling real-time fund transfers via IBAN or e-wallet numbers with no fees, 24/7 availability, and QR code payment capability.
• Savings Accounts (حسابات التوفير) Sharia-compliant savings accounts with flexible deposits and withdrawals, ATM cards usable locally and internationally, free SMS and internet banking, semi-annual profit distribution, available in Dollar, Dinar, Shekel, and Euro.
• Current Account (الحساب الجاري) Demand deposit account with deposits and withdrawals in three currencies, checkbook issuance, salary transfer capability, and optional credit card issuance.
• Financial Inclusion Account (حساب الشمول المالي) Basic banking account for low-income individuals and freelancers with free opening, no minimum deposit required, free ATM card, and capped monthly transactions at $2,000.
• Special Investment Accounts (حسابات الاستثمار المخصص) Investment accounts where funds are deployed in specific sectors under Mudaraba contracts, with defined investment parameters and profit/loss sharing arrangements.
• Vehicle Financing - Tanqol (تمويل السيارات - تنقل) Sharia-compliant vehicle financing program enabling purchase of vehicles up to $80,000 with repayment periods up to 72 months.
• Real Estate Financing - Mulak (التمويل العقاري - مُلك) Property financing enabling purchase of residential units or land under Murabaha structure, with financing up to $150,000 and 15% down payment requirement.
• Commodity Financing (التمويل السلعي) Financing for consumer goods including electronics, furniture, and construction materials up to $60,000 with repayment periods up to 72 months.
• Istisna'a Financing - Ma'amar (تمويل الاستصناع - مَعْمَار) Construction financing enabling building of homes or apartments, finishing, or furniture acquisition up to $80,000 with repayment periods up to 72 months.
• Housing Financing - Manazel (التمويل السكني - منازل) Sharia-compliant home financing program for residential property purchase or construction.
• Healthcare Financing - Taj (تمويل الخدمات الصحية - تاج) First Islamic bank to offer healthcare financing covering surgeries, dental treatments, and IVF up to 100% of service cost with repayment up to 72 months at same cash prices.
• Education Financing - Darajat (تمويل التعليم - درجات) Education financing covering school, institute, and university tuition plus training courses up to 100% with repayment periods up to 72 months, with MOU partnerships with Arab American University, An-Najah National University, Birzeit University, and others.
• Hajj Financing - Labbaik (تمويل خدمات الحج - لبيك) First in Palestine: Hajj services financing program for pilgrims who win the Hajj lottery, compliant with Islamic Sharia via Ijara contract.
• Travel Financing - Tarheal (تمويل السفر - ترحال) Travel financing program for Umrah pilgrimages or family vacations, compliant with Islamic Sharia principles.
• Agricultural Financing Program (برنامج التمويل الزراعي) Agricultural sector financing targeting Palestinian farmers and agricultural businesses, covering working capital and fixed assets up to $300,000, with repayment linked to harvest cycles and contracts with processing/export companies.
• Western Union Money Transfers (Western Union الحوالات السريعة) International money transfer service via Western Union network, enabling transfers to over 200 countries at more than 500,000 agent locations, capped at $7,500 per transaction.
• Savings Campaign 2026 (حملة حسابات التوفير) Annual savings campaign with prizes including gold, cash, and Umrah trips to encourage savings behavior among customers. Minimum deposit $200 to qualify for prize draws.
• Car Insurance Installment Product (منتج تقسيط تأمين السيارات) Product enabling installment payments for car insurance policies.

Quantifiable outcome

• 110% revenue growth in Q3 2021 compared to previous year
• +3 more outcomes

Named customers4 records

Segments7 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration1 record

Feature5 records

Partnerships

Eleven partnerships are on record, tiered minor and core.

• Ramallah MunicipalityminorStrategic or Co-development Partner · 1 January 2026Strategic partnership for community development, digital banking services for municipal operations, and joint investment projects. CEO visit to municipality to strengthen cooperation.
• Palestinian Stock Exchange (بورصة فلسطين)coreStrategic or Co-development Partner · 1 January 2025Safa Bank shares are listed and traded on PEX since July 2022 (symbol: SAFABANK). The bank maintains ongoing relationship with PEX for shareholder services and market participation.
• Ernst & Young (مدقق الحسابات)minorOthers · 1 January 2024External auditor for financial statements and regulatory compliance. Appointed as external auditor for multiple fiscal years.
• Sharia Supervisory Board (هيئة الرقابة الشرعية)coreOthers · 1 January 2024Sharia compliance oversight body ensuring all products and services conform to Islamic law. Approves marketing campaigns, financing programs, and new product launches.
• Ministry of Awqaf and Religious Affairs (Palestine)coreStrategic or Co-development Partner · 1 January 2023First-of-its-kind partnership in Palestine for Hajj financing program. Safa Bank signed MoU with the Ministry to provide Islamic-compliant financing for Hajj lottery winners to cover pilgrimage costs under Ijara contract. The Ministry determines prices and services while the bank provides financing.
• Palestinian Monetary Authority (سلطة النقد الفلسطينية)coreStrategic or Co-development Partner · 1 January 2023Regulatory partner overseeing all banking operations, digital payment systems including iBURAQ instant payments, and financial inclusion initiatives. The bank operates under PMA supervision for compliance and new product approvals.
• Healthcare Provider NetworkminorChannel Partner/ Reseller/ DistributorNetwork of approved healthcare facilities for Taj financing program including Arab Specialized Hospital (Nablus), Noor Eye Center (Nablus), Arab Consultancy Hospital (Ramallah), Razzan Specialized Fertility Center (multiple cities), and various dental clinics. Patients can finance 100% of treatment costs at these facilities.
• Educational Institutions NetworkminorChannel Partner/ Reseller/ DistributorPartnerships with universities and schools for Darajat education financing including Arab American University (Jenin), Al-Najah National University (Nablus), Birzeit University, and Al-Azhar Private School (Hebron). MoUs signed for tuition financing programs.
• Palm Farmers Cooperative Association (Jericho)minorStrategic or Co-development PartnerPartnership for agricultural financing program targeting date palm farmers. The Association helps identify and recommend farmers for financing, while the bank provides working capital and equipment financing with repayment tied to harvest cycles.
• Palestinian Businessmen's Association - Hebron ChapterminorStrategic or Co-development PartnerEngagement with local business community to understand needs and develop banking services supporting Hebron's business sector.
• Palestinian Businessmen's AssociationminorStrategic or Co-development PartnerOngoing dialogue with business leaders to develop products supporting Palestinian private sector growth and economic development.

Scale indicators13 records

Recent moves7 records

Expansion highlights6 records

Broad incumbents

• Arab Bank: Major regional bank with significant Palestine presence. Provides regional benchmarking on digital banking, large-ticket corporate financing, and remittance infrastructure relevant to Safa's Western Union partnership.
• Palestine Investment Bank: Palestinian bank serving retail, SME, and corporate clients. Comparable on deposit-gathering, financing products, and PMA-regulated operations; provides a benchmark for non-Islamic competitor scale.
• Bank of Palestine: Largest bank in Palestine by assets and branch network. While conventional (interest-based), it competes for the same retail and SME customers Safa serves and sets the benchmark for digital banking in the Palestinian market.
• Quds Bank: Palestinian commercial bank with retail and SME focus. Comparable on customer base, PMA supervision, and product breadth (deposits, consumer financing, cards).
• Bank Al-Quds: Established Palestinian bank with national branch network and similar SME/retail focus. Comparable on customer segments, regulatory environment, and geographic footprint in the West Bank.

Regional players

• Cairo Amman Bank: Jordanian-headquartered bank with Palestine operations; previously held board representation at Safa Bank. Comparable on cross-border regional banking, regulatory frameworks, and remittance corridors.
• Jordan Islamic Bank: Leading Islamic bank in Jordan operating under analogous AAOIFI/Islamic finance principles. Provides regional benchmark on Islamic retail product design, digital wallet strategy, and Sharia governance.
• Bank of Jordan: Jordanian bank with Palestine operations serving retail and SME customers. Comparable on cross-border trade finance, USD clearing, and remittance products in the Palestinian market.

Direct peers

• Arab Islamic Bank (Palestine): Direct Islamic banking competitor in Palestine with shared Sharia-compliant deposit and financing products. Closest comparable on product breadth, regulatory framework (PMA), and target customer segments.
• Palestinian Islamic Bank: Largest Islamic bank in Palestine, offering a similar Sharia-compliant retail and corporate banking product suite. Safa Bank's current GM previously served as GM here, confirming deep product, regulatory, and customer overlap.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/safabankpal
• Xx.com/alsafabank
• LinkedInlinkedin.com/company/safabank

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

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 Safa Bank