Masraf Al Rayan Q.S.C. invests £75M in Islamic Bank of Britain
Following the recent acquisition of Islamic Bank of Britain (IBB), the UK’s only wholly Sharia compliant retail bank, by Masraf Al Rayan Q.S.C. (Al Rayan) through its UK subsidiary, Al Rayan (UK) Limited, Al Rayan today announced the investment of a further £75.75M in IBB to support the Bank’s immediate growth. This investment takes IBB’s capital to £100M.
In the first public statement since the acquisition was concluded, Sultan Choudhury, Interim Managing Director of IBB, provided an overview of the Bank’s strategy by saying, “IBB is Al Rayan’s gateway into the growing UK market. IBB has attracted over 50,000 customers since its inception in 2004 and it offers the UK’s largest range of Sharia compliant retail financial products. Al Rayan intends to build upon these excellent foundations, not only through the continued growth of Sharia compliant savings and home finance products to UK retail customers, but also by significantly developing the Bank’s commercial business activities.”
He continued, “IBB’s business offering currently consists of the UK’s only Sharia compliant business banking service and commercial property finance. Future plans feature an expansion of property finance to businesses, including development finance. IBB aims to broaden its appeal and customer base further, encompassing both Muslim and non-Muslim professionals. The Bank will also expand its services for Gulf-based customers looking to invest in the UK.”
Mr Choudhury explained how the Bank intends to present itself to the market. He said, “IBB joins the Al Rayan banking group in the same year that it celebrates its 10th anniversary. Over the last 10 years, IBB has established itself as the pioneer of British Islamic banking and it is able to celebrate this milestone with a number of impressive achievements. Its future looks just as exciting, becoming part of such an ambitious, global banking organisation as Al Rayan. Work is in progress to establish how we represent ourselves as part of the Al Rayan family of companies.”
He added, “A review of the Bank’s distribution strategy is also taking place, which includes how IBB can expand its footprint across the UK in the most cost-efficient way. The Bank intends to maintain a network of retail outlets across the country and is looking to expand the agency model, allowing it to provide small, flexible facilities across a larger number of locations. An emphasis on online and telephony channels will also enable the Bank to broaden its geographical reach.”
Mr Choudhury concluded by saying, “IBB’s retail banking operations will remain in Birmingham. However, it will also create a stronger presence in London from where IBB’s commercial and GCC operations will be based.”
About Masraf Al Rayan Masraf
Al Rayan QSC (Al Rayan) is a Qatar-based Islamic bank providing banking, financial, investment and brokerage services through a network of 12 branches located across Qatar. The Bank was incorporated in January 2006 and is licensed by Qatar Central Bank. Al Rayan is the fifth largest Islamic bank in the world, the second largest bank in Qatar and the country’s largest Sharia compliant bank. Its structure consists of three main business divisions: Retail Banking, Wholesale Banking and Private Banking. Al Rayan is listed on the Qatar Exchange and its top 20 shareholders are blue chips in the Qatar investment, corporate and high net worth community.
About Islamic Bank of Britain
Islamic Bank of Britain plc (the Bank, IBB) has pioneered Sharia compliant retail banking in the UK and now offers the largest range of Sharia compliant retail financial products in the UK. These include Sharia compliant mortgage alternatives, the Home Purchase Plan (HPP) and Buy to Let Purchase Plan (BTLPP), current accounts and savings accounts. The Bank was also the first to introduce Sharia compliant business banking to the UK, and now offers a wide range of institutional and business banking products and services, including Commercial Property Finance. Several of the Bank’s products remain unique in the UK retail financial market.
The Bank is authorised and regulated by the Financial Conduct Authority and Prudential Regulation Authority and is a member of Financial Services Compensation Scheme.
Sharia compliant banking operates without the use of interest and is founded on Islamic finance principles derived from trade, entrepreneurship and risk-sharing. IBB has a dedicated Sharia Compliance Officer (SCO) and a panel of respected Sharia Scholars, called the Sharia Supervisory Committee (SSC), which acts as an independent body to ensure that IBB’s products and activities are Sharia compliant. As a Sharia compliant bank, the source of IBB’s funding, profits and business investments must be ethical. They cannot be from businesses that are considered unlawful under Sharia law, i.e. companies that deal in interest, alcohol, gambling, pornography, speculation, tobacco, arms and other commodities contrary to Islamic values.
Whilst IBB offers products and services that are designed in accordance with Sharia principles, it is an inclusive, ethical organisation and welcomes customers of all faiths looking for a bank with a transparent, prudent and community-focused approach.
Notes to editors:
Interviews with Islamic Bank of Britain are available on request. The bank should only be referred to as “Islamic Bank of Britain”. If abbreviated please use “IBB”.
Issued by Islamic Bank of Britain Plc, Edgbaston House, 3 Duchess Place, Birmingham B16 8NH