About
We at Gulf International Bank (GIB) strive to ensure the implementation of a comprehensive Shari’ah governance framework to guarantee that all products and services are Shari’ah approved and compliant with its principles through GIB’s Islamic Banking Group which provides cross-functional support to all divisions and other activities of the Bank.
Below are some of the tasks entrusted to the Shariah Compliant Banking Group:
- Constitute the Shari’ah Supervisory Boards and engage them in matters related to Islamic transactions.
- Propose and discuss all Islamic business offered by the Bank's business divisions before presenting them to the Shari’ah Supervisory Board.
- Seek advice, directives, and approvals of the Shari’ah Supervisory Board in regard to all Islamic products and services presented to it.
- Coordinate with the other divisions of the Bank to inform them of the Shari’ah Board's decisions and instructions to be acted upon accordingly.
- Develop and create distinctive Islamic products and services that address the needs of the Bank's business divisions in order to attract new clients or fulfil the needs of the current ones.
- Establish and maintain policies, procedures, and systems for all Islamic financial transactions in accordance with the regulatory agencies' guidelines and the Bank's Shariah Board's directives.
- Ensure at all times that the Shari’ah guidelines are followed in all aspects of Islamic financial transaction structuring.
- Continually and thoroughly train all Bank’s employees on Islamic banking and the differences between various Islamic product concepts.
The Islamic Banking Group also provides a range of support services to the GIB’s divisions:
1. Corporate Banking
The Islamic Banking Group aids the Wholesale Banking of the Bank in providing innovative, Shariah-compliant financial solutions in the fields of project finance, structured finance, syndicated and corporate lending, corporate finance advisory and capital market issuances. The Bank is also a premier provider of institutional banking services for Shari’ah compliant financial institutions in the Gulf region.
The Islamic Banking team provide their support through the extensive resources, regional network, and international presence of GIB. The Islamic products and services by Wholesale Banking include the following:
- Trade Finance
- Islamic Capital Markets (Sukuk)
- Treasury Products
- Project and Export Finance
- Asset-backed Finance
- Structured Finance
- Corporate Finance
- Aviation and Shipping Finance
- Acquisition
2. GIB Capital
With its award-winning Islamic structuring capabilities, GIB Capital offers valuation advisory services, advises corporate clients seeking to obtain and restructure Shariah-compliant debt, and participates actively in the sukuk market. GIB Capital has acted as joint lead manager in numerous trend-setting issues and been engaged in the IPOs of Shariah compliant entities as both underwriter and lead manager.
3. Retail Banking – meem
meem Digital Banking by Gulf International Bank is the first digital Shariah Compliant bank in the world.
For more information about meem, click here
4. Treasury
GIB Treasury offers a full spectrum of solutions, ranging from the simple to the innovative. The Sales, Trading and Structuring desks are resourced with skilled treasury professionals who can assess and understand the clients’ unique requirements and prepare bespoke solutions, whilst ensuring regular and ongoing follow up and support. These tailored Treasury products extend to all asset classes and are offered both as conventional products, as well as Shariah-compliant, such as Murabaha placements and deposits or Shariah compliant derivatives. Additionally, the Bank is focused on offering ESG focused Treasury products.
For more information about the Treasury Unit’s locations, click here
What is the difference between Islamic banking and conventional banking?
Islamic banking differs from conventional banking in that it is governed by the principles and provisions of Islamic Commercial Law (Shariah Law). Islamic Banking abstains from engaging in anything that is prohibited by Shariah.
The main differences are as the following three points:
I. Ways to use the money
Islamic banking: The funds are used in Shariah permitted financing and investments. Additionally, the money is not used for illegal or suspicious activities and is only used for activities that are permitted by Shariah.
Conventional banking: The vast bulk of the funds are used for interest-bearing loans, and conventional banking often does not follow Islamic law in its business transactions and investment decisions.
II. Profit and loss
Islamic banking, as opposed to conventional banking, adheres to the profit and loss sharing principle as set out by Shariah, which is one of the most significant characteristics that sets it apart from conventional banks.
III. Oversight
To ensure that it complies with Shariah's rules and principles, Islamic banking is subject to regulatory agencies' financial oversight as well as the Shariah Supervisory Board's oversight. One of the most significant distinctions between Islamic and conventional banking is the former's adherence to Shariah oversight.
Islamic Banking Shariah Supervisory Board:
For the purpose of effective Shariah governance and supervision, GIB has two Shariah Boards: one for global matters and the other specifically for matters related to the Kingdom of Saudi Arabia. The names of the Shariah Board
members are provided below:
Global Shariah Supervisory Board:
1. Sheikh Dr. Mohammed Elgari –– Chairman
2. Sheikh Dr. Nedham Yaquby –– Executive Member
3. Sheikh Dr. Osama Bahar –– Member
Shariah Supervisory Board – Saudi Arabia
1. Sheikh Dr. Adnan Jamaan Al Zahrani –– Chairman
2. Sheikh Dr. Abdulrahman Nafie Al Salmi –– Executive Member
3. Sheikh Dr. Maher Mohammed Al Qurashi –– Member
FAQs
What is meant by Islamic banking?
A banking business model that adheres to the tenets of Islamic Shariah in all dealings and services offered to customers.
What are the principles of Islamic banking?
Islamic banking is based on Shariah principles derived from the Holy Qur’an and the Prophet's tradition, which adopt ethical, social, and economic norms.
These three guiding principles require us to refrain from major prohibitions, some of which are:
All forms of usury;
Dealing in Shariah repugnant activities;
Ambiguity in a manner that may lead to conflict or injustice.
Why choose Islamic banking?
The primary motive for selecting Islamic banking is to make sure that Islamic Shariah is upheld. The highest priority is to follow Shariah law and its directives. Islamic banking also ensures financial stability by putting money on the right track and channelling it toward real investments, avoiding any transactions that are against Shariah, and enforcing the profit-and-loss sharing principle.
What are the Shariah-compliant products offered by the Gulf International Bank?