Bahrain based Islamic Bank, Baraka Group is set for an expansion into China, Indonesia, and East Africa and further into Morocco where the bank already operates, CEO Adnan Yousuf has said.
The bank which is privately owned by Jeddah-based Saudi businessman Saleh Kamel who controls nearly 75 per cent had issued $400 million of tier one sukuk, (Islamic bonds,) which would cover some of the costs of its ambitious expansion plan.
In an interview with local television, the CEO said the bank aims to raise more funds for its expansion through the sale of its shares to finance the expansion in plan 2019.
“The remaining portion will come through a share offering, which we expect in 2019 or the end of 2019,” he said.
According to Reuters, the company which currently operates in 16 countries including Morocco in Africa aims to get at least 1000 branches worldwide by 2020.
Islamic banking continues to expand in Africa and beyond especially in countries with the small Islamic population, in Kenya, for instance, Islamic banking and Sharia-compliant products continue to grow despite lack of legal frameworks as well as numerous gaps in the Sharia governance framework, consumer protection, liquidity management, resolution and safety nets according to IMF.
