In this Kurdistan Region of Iraq coverage, we put a spotlight on the Real Estate, Human Capital, ICT, and Agriculture & Water. We also talk to the leading companies on their success stories, future projects and doing business in Kurdistan.
There are currently 11 Islamic banks operating in Iraq. According to the World Bank statement from 2010, "the Islamic banking activities in Iraq started in 1993, where the Iraqi Islamic Bank for Investment and Development was established as the first Iraqi Islamic bank. Islamic banks now have 83 branches and 1504 employees, with the ratio of branches and employees of the Islamic banks to that of all private banks being broadly similar at 19 percent and 17 percent.
The Islamic banks in Iraq offer the following products: Murabaha (Profit-sharing); Musharakah (joint ventures); Mudarabah (Financing); Ijara (Renting); Istisnaa (Industrial - Financing); and Assets and Liquidity Management. In general, financing is of longer term than that of other private commercial banks. Most financial ratios and earnings performance are broadly similar to those of other private commercial banks.
However, in general Islamic banks rely more on capital and reserves as a funding source than do other private banks (and much more so than the State owned banks). CAMEL ratings are only listed for seven of the nine Islamic banks. For six of these, CAMEL ratings are better than the average for private banks as a whole. One Islamic bank is facing difficulties, and the CBI is exploring whether a buyer can be found. The Islamic banks face some challenges in working without specific Islamic banking law and regulations except the internal instructions that were issued in 2006. Also, there is a shortage of qualified people who understand Islamic banking practices not only in the banks but also in the CBI."
Iraqi Islamic Bank for Investment & Development (Baghdad) Elaf Islamic Bank (formerly: Barakaat Bank for Investment & funding) (Baghdad) National Islamic Bank (Baghdad) Dijlah & Furat Bank for Development & Investment (Baghdad) Regional Cooperation of the Islamic Bank for Development & Investment (Baghdad) Bank Al-Bilad Islamic for Investment & Finance (Baghdad) Cihan Bank for Islamic Investment & Finance (Baghdad) International Development Bank for Investment & Islamic Finance (Baghdad) Al-Baraka Turkatilim Bankasi A.S. (Erbil /Near The Entrance to a Tunnel Housing)