Arab Islamic Bank

What Arab Islamic Bank does

Arab Islamic Bank is a Sharia-compliant public shareholding company incorporated in Palestine in 1995, listed on the Palestine Stock Exchange (ticker: AIB) and operating as a subsidiary of Bank of Palestine. It is the first Islamic bank established in Palestine and the largest Islamic lender in the West Bank and Gaza by market position, with US$101.1 million in paid-up capital and 1,316 shareholders as of December 31, 2025. The bank distributes retail, SME, and corporate products through 24 branches and offices spanning major Palestinian governorates, a network of 64 ATMs, a mobile branch, a contact center, and a Dubai International Financial Centre representative office serving Palestinian expatriates in the UAE.

The product platform covers current, savings, fixed-deposit (Mudarabah), and financial-inclusion accounts; Islamic Visa credit, installment (Easy Life), prepaid (Shopping), and deposit-secured (Haya) cards; and Sharia-compliant financing instruments including Ijara (home and auto), Murabaha (commodity, gold-backed, gold-guaranteed), Istisna'a (construction), and dedicated programs for education, healthcare, and travel. Digital channels include the 'Banki' mobile app, internet banking, IBURAQ instant payments, E-SADAD bill payment, QR merchant payments, video banking (8 AM–11 PM), pre-booked branch appointments, and Western Union and SWIFT international transfers. The bank is supervised by the Palestine Monetary Authority and integrates with PalPay, Visa, SWIFT, and Western Union rails.

Revenue is generated primarily through profit on Islamic financing (individual rates of 7-9% decreasing base; USD Ijara 4.75-5%), card issuance and transaction fees (e.g., $15 annual card commissions), trade finance commissions (letters of credit and guarantees, supported by a US$10 million EBRD trade finance facility), and Western Union/FX treasury activity. Customer acquisition runs through the multi-channel distribution network plus community and ESG partnerships with UN Women, Cooperation for Development, and SOS Children's Villages.

Name

Arab Islamic Bank

Legal name

Arab Islamic Bank

Website

https://aib.ps

Company type

Public

Founded year

1995

Operating status

Operating

Headcount range

501–1,000 employees

Ownership category

akta.pro rank

Product category

Islamic Retail and Commercial Banking

NAICS

Commercial Banking (522110)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Islamic Retail Banking (FSABAGAA)

akta.pro secondary industries

Islamic SME & Commercial Banking (FSABAGAB), Islamic Corporate Banking (FSABAGAC), Islamic Trade Finance & Supply Chain (Shariah-compliant) (FSABAGAE), Islamic Deposit & Account Products (Current/Savings/Investment Accounts) (FSABAGAI)

Keywords

• Islamic banking services
• Sharia-compliant financing
• Retail banking accounts
• Corporate trade finance
• Digital payment services

Headquarters

HQ city

Ramallah

Offices23 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

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

Revenue model

1. Financing Income: Profit from Islamic financing products including Ijara (leasing), Murabaha (cost-plus), Mudaraba, Istisna'a, and auto financing. Interest rates for individual financing range from 7-9% (decreasing base) and Ijara in USD from 4.75-5%.
2. Fee and Commission Income: Fees from account services, card issuance (annual commissions for Easy Life cards at $15, Shopping cards at $15), international transfers (Western Union commissions), and trade finance services.
3. Trade Finance: Income from letters of credit, banking guarantees, and trade finance facilities including the EBRD trade finance program.

Pricing tiers

Go-to-market motion1 record

Distribution channels6 records

Marketing channels6 records

Core offering

Arab Islamic Bank delivers Sharia-compliant retail and corporate banking through a network of 24 branches, 64 ATMs and digital channels. Its core offering spans deposit accounts (current, savings, fixed deposit, financial inclusion), payment and credit cards (Visa Islamic credit cards, Easy Life installment card, Shopping prepaid card, AIB debit card), Islamic consumer and corporate financing (Ijara home, auto, education, health, travel, Istisna'a construction, commodity, gold-backed, SME and corporate financing), trade finance instruments (letters of credit, bank guarantees), international transfers (SWIFT, Western Union), merchant POS services and digital banking services (mobile app, internet banking, IBURAQ instant payments, QR, E-SADAD bill payment, video banking).

Product overview

Arab Islamic Bank is a Sharia-compliant Islamic bank operating in Palestine since 1995, offering a comprehensive portfolio of banking products and services. The bank's offerings include deposit accounts (current, savings, fixed deposit, financial inclusion), Islamic credit cards (Visa Signature, Platinum, Classic), installment cards (Easy Life), prepaid cards (Shopping Card), and debit cards. Its financing programs cover real estate (Ijara), automotive, education, healthcare, travel, gold-backed loans, commodity finance, and Istisna'a for construction. The bank provides digital banking through mobile app, internet banking, and 64 ATMs, along with E-SADAD bill payment, IBURAQ instant payments, QR payments, video banking, and pre-booking services. Business services include corporate and SME financing, letters of credit, banking guarantees, POS devices, and Western Union and SWIFT international transfers. Treasury services include foreign currency exchange. The bank maintains a Dubai representative office serving the Palestinian diaspora.

Differentiator

Problem solved

Functional benefit

Brands

• iBURAQ: Electronic payment system under Palestine Monetary Authority supervision for instant transfers and payments.
• Banki
• Haya Card
• Easy Life Card

Products and services

• Islamic Visa Credit Cards Sharia-compliant Visa-branded credit cards including Signature, Platinum, and Classic tiers, enabling purchases at points of sale and online globally, with cash withdrawal capabilities and installment plans up to 24 months.
• Easy Life Card A local installment card enabling purchases at approved points of sale with flexible payment options in 12, 24, or 36 monthly installments, compliant with Islamic Sharia principles.
• Shopping Card A prepaid card allowing secure online shopping and point-of-sale purchases with funds loaded in advance, featuring a dedicated sub-account for enhanced security against fraud.
• AIB Debit Card Chip-based debit card with PayWave functionality for contactless payments, usable at ATMs and point-of-sale terminals worldwide, with a daily withdrawal limit of $1,500.
• AIB Current Account A current account enabling efficient money management through cash withdrawals and deposits via ATMs, branches, and electronic services, available in all currencies with free SMS notifications.
• AIB Savings Account A Sharia-compliant savings account with dividend benefits, regular prize draws, and access to credit cards, debit cards, and electronic banking services.
• Fixed Deposit Account A term deposit investment account operating on Mudarabah (profit-sharing) principles, available in USD, JOD, ILS, and EUR with minimum deposit requirements ranging from 35,000 JOD to 150,000 ILS.
• AIB Financial Inclusion Account A basic banking account offering essential services to individuals without existing bank accounts, with no opening fees, free SMS, and transaction limits of $2,000 monthly and $12,000 annually.
• Ijara Financing Home financing program where the bank purchases property and leases it to customers with installments, transferring ownership upon final payment. Covers apartments and stores with financing up to $300,000 over 25 years.
• Islamic Car Finance Sharia-compliant auto financing for new and used vehicles up to 5 years old, with repayment periods up to 7 years and financing up to 100% of the vehicle value.
• Istisna'a Financing Financing for construction of houses or manufacturing of goods according to customer specifications, with repayment periods up to 12 years, fixed monthly installments, and free Takaful insurance.
• Commodity Finance Murabaha-based financing for purchasing commodities, with financing up to $80,000, repayment periods up to 84 months, and free Takaful life insurance.
• Gold-Guaranteed Loans Murabaha financing using gold as collateral, offering up to 75% of estimated gold value with repayment periods up to 60 months and secure gold custody in the bank's treasury.
• Education Financing Ijara-based financing for educational fees covering school to postgraduate studies and professional certificates, with financing up to 100% of educational installments.
• Health Services Financing Healthcare financing covering surgeries, dental treatments including implants, fertility services such as IVF, and other medical interventions through hospitals and healthcare centers.
• Travel Financing Leasing-based financing for Hajj, Umrah, and family vacations, covering airline tickets, hotel accommodations, and other travel expenses with repayment periods up to 36 months.
• Mobile Banking Service (Banki App) Mobile banking application for Android and iOS providing account access, bill payments, transfers, card management, and other banking services with biometric authentication support.
• Internet Banking Service Online banking platform enabling account management, bill payments, transfers between Arab Islamic Bank accounts, external transfers, financing applications, and currency rate viewing.
• ATM Services Automated teller machines offering cash withdrawals, instant cash and check deposits, balance inquiries, mini statements, and PIN changes. The bank operates 64 ATMs across Palestine.
• QR Payment Service Mobile-based QR code payment service enabling instant merchant payments through the Banki application, available in dollars, dinars, and shekels.
• Pre-Booking Service Branch appointment scheduling service allowing customers to book visit slots up to 5 days in advance, reducing wait times through the bank's website or branch turn machines.
• Video Call Service Video banking service connecting customers with call center representatives via mobile app, internet banking, or website for card issuance, inquiries, account requests, and other services daily from 8 AM to 11 PM.
• Digital Services Center Contact center providing 24/7 customer support via phone, WhatsApp, Facebook Messenger, email, and video calls for inquiries, complaints, and service requests.
• iDplus Digital Identity Digital financial identity application developed by the Palestine Monetary Authority enabling remote identity verification using facial recognition for secure banking access and transaction approval.
• E-SADAD Bill Payment Platform Comprehensive digital bill payment platform integrated with the bank's mobile and internet banking, enabling payment of bills for telecommunications, utilities, education, municipalities, e-wallets, and insurance companies.
• IBURAQ Electronic Payment System Centralized instant payment system enabling 24/7 real-time money transfers between local banks and electronic wallets in Palestine across four currencies (dinar, dollar, shekel, euro).
• Point-of-Sale (POS) Device Merchant payment terminals accepting Easy Life cards, Visa Electron debit cards, e-wallets, and other payment methods, integrated with the PalPay network.
• Letter of Credit Services Import and export letter of credit services including sight, acceptance, deferred payment, transferable, back-to-back, revolving, mixed, advance payment, and stand-by letters of credit.
• Banking Guarantees Various bank guarantee products including bid bonds, performance bonds, maintenance bonds, payment guarantees, advance payment guarantees, transit guarantees, and temporary release of goods.
• Western Union Money Transfer International money transfer service through Western Union's global network of over 525,000 locations in more than 200 countries, enabling quick send and receive capabilities.
• SWIFT Money Transfer International money transfer service using SWIFT messaging system for sending, receiving, and converting funds through local and international transfers with the bank's SWIFT code AISBPS22XXX.
• Corporate Financing Sharia-compliant financing solutions for large enterprises using Murabaha, Mudaraba, Istisna'a, and lease-to-own instruments.
• Small Enterprise Financing Financing and advisory services for small and medium enterprises, providing flexible Sharia-compliant banking and financing solutions across varied operational fields.
• Projects Financing in Jerusalem Specialized financing program for Jerusalem-based businesses in tourism, services, information technology, and trade sectors, offering up to 96,000 NIS with Murabaha financing and 4% cashback.
• SunRef Energy Financing Program Eco-friendly project financing for renewable energy and energy conservation initiatives, supported by the European Union through the French Barbarko Association with grants covering 10-25% of financing value.
• Dubai Representative Office International representative office in the Dubai International Financial Centre serving Palestinian expatriates and providing investment advisory services, with approximately 150,000 Palestinians residing in the UAE.

Quantifiable outcome

• Trade finance facility increased from US$2mn to US$10mn with EBRD
• +1 more outcomes

Named customers1 record

Segments4 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

Feature5 records

Partnerships

Five partnerships are on record, tiered minor and core.

• SOS Children's Villages (قرى الأطفال SOS)minorStrategic or Co-development Partner · 17 June 2026MoU signed to sponsor a house in SOS Children's Village and support struggling families in Palestinian society.
• Cancer Counseling Center (مركز الاستشاري للسرطان)minorStrategic or Co-development Partner · 15 April 2026MoU signed for cancer awareness and support initiatives.
• Palestine Monetary AuthoritycoreOthers · 1 January 2026Regulatory partner for digital identity (iDplus), E-SADAD bill payment platform, and IBURAQ instant payment system. The bank operates under PMA supervision and uses its digital infrastructure.
• UN WomenminorStrategic or Co-development PartnerPartnership for sustainability and social responsibility initiatives supporting women's economic empowerment.
• Cooperation for Development (مؤسسة التعاون)minorStrategic or Co-development PartnerPartnership for development and social responsibility programs supporting Palestinian communities.

Scale indicators7 records

Recent moves7 records

Expansion highlights6 records

Regional players

• Jordan Islamic Bank: Leading Islamic bank in neighboring Jordan with full Sharia-compliant retail and corporate offerings; comparable in product architecture (Ijara, Murabaha, Mudaraba) and regulatory environment, though operating in a different national market.
• Bank of Jordan: Jordanian commercial bank with regional branch footprint and Sharia-compliant windows; relevant regional peer for benchmarking retail finance pricing and trade finance capabilities.

Broad incumbents

• Al Rajhi Bank: Largest Islamic bank globally by assets; comparable for benchmarking Islamic product breadth, digital banking scale, and Sharia-governance practices relevant to AIB's Islamic franchise.
• Bank of Palestine: Largest conventional bank in Palestine and parent company of Arab Islamic Bank; directly comparable as a full-service commercial bank operating across the same branches and customer base, but conventional (interest-based) rather than Sharia-compliant.
• Dubai Islamic Bank: Flagship UAE Islamic bank operating where AIB's Dubai IFC representative office is located; relevant for understanding the competitive landscape and licensing pathway AIB may pursue for the diaspora opportunity.
• Arab Bank (Palestine): Branch of regional heavyweight Arab Bank Group with full retail, corporate, and trade finance capabilities in Palestine; competes with AIB for corporate customers, letters of credit, and remittance flows.

Direct peers

• Palestine Investment Bank: Palestinian bank offering investment and commercial banking services including trade finance; competes with AIB in the corporate and SME segments across West Bank and Gaza.
• National Bank of Palestine: Palestinian commercial bank with comparable branch and digital footprint; competes for SME financing, deposits, and remittance customers in the same domestic market.
• Palestine Islamic Bank: Direct competitor offering Sharia-compliant retail, corporate, and trade finance products to individuals and businesses in Palestine; one of the principal rivals for Islamic banking market share alongside AIB.
• Quds Bank: Palestinian commercial bank offering retail, SME, and trade finance services overlapping with AIB's retail and corporate banking segments within West Bank and Gaza.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• Facebookfacebook.com/ArabIslamicBank
• Instagraminstagram.com/arabislamicbank
• LinkedInlinkedin.com/company/arab-islamic-bank

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 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 Arab Islamic Bank