Al Baraka Bank in South Africa is a fully integrated subsidiary of Al Baraka Group, a Bahrain-based financial institution and a world leader in Islamic banking.

Islamic Banking is embedded in Islamic law and ethics. Despite this, Islamic Banking products are accessible to people of all faiths. The term “Shariah” translates literally to “the path to water”. The Shariah, which refers to Islamic Law, includes laws and guidelines which guides every aspect of a Muslim’s life, including economic and financial activities. The products and services offered by Al Baraka offer are Shariah-compliant, i.e.  in alignment with the precepts of the Shariah.

Money is not considered to be a commodity in Islamic Economics. Rather, it is viewed as a unit of account, medium of exchange and a store of value. In other words, currencies are simply a means to attain an asset, product or service. (The use of money for the purposes of making money in the form of interest is expressly forbidden.)

Wealth can be generated through legitimate trading, provision of services and asset-based investments. The Islamic Finance system prohibits dealings that involve receiving or payment of interest (“riba”), as well as investing in impermissible/unethical industries. One of the requirements for Shariah compliance is absolute transparency and the removal of any uncertainty and ambiguity in the contract.

Islamic Banking caters for the increasing demand for alternatives to conventional banking. The core principles of Islamic Banking are: Prohibition of Interest, Risk- sharing, Transparency, Integrity and Social Responsibility. The essential distinction between Islamic and conventional banking, is in the type of business relationships the bank has with its client, and the precepts that regulate that relationship. The Islamic Bank is a trader, an investor, a lessor, and a service provider to its client. In conventional banking, deposit and loan transactions typically involve monetary exchange, with interest being either earned or charged whereas, in Islamic banking, since money is not treated as  a commodity, transactions are structured as trade or partnerships or service agreements designed to facilitate the customer’s requirements.

As part of its commitment to Shariah compliance, the bank  has an independent Shariah Supervisory Board consisting of scholars with expertise and experience in Islamic banking and finance as well as an internal Shariah Advisory Department and an internal Shariah Audit Department. The bank also undergoes an Independent External Shariah Compliance Audit on an annual basis. The vital roles of these bodies are to ensure the bank’s full compliance with Shariah in its day-to-day business activities. In addition, Al Baraka Bank is a member of the authoritative and respected international Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and voluntarily subscribes to the AAOIFI Shariah Standards. The bank’s financial products are developed, reviewed and audited on an ongoing basis under the guidance of the Shariah Supervisory Board.

At Al Baraka Bank, we endeavour to provide our clients with innovative products and services without compromising on the values of Shariah.

The Bank’s products and services are for all individuals and companies that seek to manage their finances in an ethical and equitable manner.