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University of PalestineUniversity of Palestine

Collage of ManagmentCollage of Managment

Concepts of ManagmentConcepts of Managment

Prepared by :Prepared by :

Abed Al Kareem Rafeek Abed Al Kareem Rafeek AlfarraAlfarraPresented To:Presented To:

Eiz El-Arab El-Aroor Eiz El-Arab El-Aroor

Arab Islamic BankArab Islamic Bank

Outlines Introduction

Why Arab Islamic Bank ?

Arab Islamic Bank services

Treasury & Investment Banking

The biggest Shareholders

Board of Directors

Management & Directors

Most Important Financial Indicators (Million Dollars)

Management Challenges

Arab Islamic Bank Branches

The Financial Crisis

Introduction Introduction

• The Arab Islamic bank (AIB) was established as a The Arab Islamic bank (AIB) was established as a Palestinian publicPalestinian public

• Shareholding company in Jericho – Palestine on Jan 8, Shareholding company in Jericho – Palestine on Jan 8, 1995 under commercial registration Number 1995 under commercial registration Number 563201011 .563201011 .

• The Bank was granted the rights to start is services The Bank was granted the rights to start is services by the companies comptroller in Ram Allah early 1996. by the companies comptroller in Ram Allah early 1996.

• The Bank aims at accommodating banking and other The Bank aims at accommodating banking and other financial services and trading activities in accordance financial services and trading activities in accordance with Islamic Shariah (Laws) and as authorized by the with Islamic Shariah (Laws) and as authorized by the Palestinian Monetary Authority. Palestinian Monetary Authority.

• The Bank operates from its head office in EL-Bireh and The Bank operates from its head office in EL-Bireh and has 7 branches and one office operating in Palestine.has 7 branches and one office operating in Palestine.

IntroductionIntroduction

1.1. VisionVision To establish the Islamic banking systems as the To establish the Islamic banking systems as the

favored choice for banking and to facilitate the favored choice for banking and to facilitate the implementation of an equitable economic system in implementation of an equitable economic system in order to provide a strong foundation for establishing order to provide a strong foundation for establishing a fair and just society for humankind .a fair and just society for humankind .

2.2. Mission StatementMission Statement The Arab Islamic Bank is committed to developing The Arab Islamic Bank is committed to developing

and introducing innovative and pioneering Islamic and introducing innovative and pioneering Islamic banking solutions and services that meet the highest banking solutions and services that meet the highest quality standards through the continuous promotion quality standards through the continuous promotion of Islamic economic principles, teamwork approach, of Islamic economic principles, teamwork approach, staff training and valuing advises from all to better staff training and valuing advises from all to better serve the community …..serve the community …..

IntroductionIntroduction

3.3. Strategic Objectives Strategic Objectives 1 . Meet or exceed the needs and expectations of 1 . Meet or exceed the needs and expectations of

our customers according to the principles of the our customers according to the principles of the Islamic Shari a and maximize returns for depositors Islamic Shari a and maximize returns for depositors and shareholders and shareholders

2 . Develop and provide pioneering Islamic 2 . Develop and provide pioneering Islamic

banking solutions and services through latest banking solutions and services through latest technologies and communications methods in technologies and communications methods in response to increasing competition and customers response to increasing competition and customers demands for innovation …..demands for innovation …..

3 . Develop and improve the skills of our employees 3 . Develop and improve the skills of our employees

and utilize best available technologies well as and utilize best available technologies well as implement highest and professional standards ….implement highest and professional standards ….

Why Arab Islamic Bank Why Arab Islamic Bank ??

1 . Larges Islamic bank operating in Palestine in terms of 1 . Larges Islamic bank operating in Palestine in terms of assets, deposits and total financing and shareholders assets, deposits and total financing and shareholders equity …equity …

2 . Fifth largest bank among all banks operating in Palestine 2 . Fifth largest bank among all banks operating in Palestine Group and it is the second largest national bank ….Group and it is the second largest national bank ….

3 . The only Palestinian Bank with a rating (Capital 3 . The only Palestinian Bank with a rating (Capital Intelligence B+ - 2005) .Intelligence B+ - 2005) .

4 . A network of branches covering all major cities the West 4 . A network of branches covering all major cities the West Bank and Gaza Strip in addition to network of ATMs …..Bank and Gaza Strip in addition to network of ATMs …..

5 . Significant and distinctive correspondent banking 5 . Significant and distinctive correspondent banking relations with Islamic banks and financial institutions …relations with Islamic banks and financial institutions …

Arab Islamic Bank Arab Islamic Bank servicesservices

1.Commercial Finance

2.Retail Banking &Finance

3.Consumer finance products

Treasury & Investment Treasury & Investment BankingBanking

AIB actively pursues and employs an international investment strategy that is designed to deliver better

and consistent returns. Our Treasury and capital markets team of

professionals seeks to identify and participate in well structured and diversified vehicles and international investment opportunities that centers around trade

deals, Shock, and commodities. Our investors can participate in such deals to take advantage of professional and expert analysis as well

as avail excellent investment opportunities . We view our investors as partners keeping with the

spirit of Islamic banking and finance and as such we share the risks and returns.

The biggest The biggest ShareholdersShareholders

The Shareholder name

Global Investment House Company

AL Sharqia Chemical Company For Production Medicines

Bank of Jordan

The Arab Gulf Company For Investment and General Transport

Jordanian Al Eqbal Company Trade

The Arab Distribution Company

Tawfik Shaker Fakhouri

Rema Talal kazem Nasser AL Din

Amwal Company Invest

Jan Joseph Eissa Shamoun

Board of DirectorsBoard of DirectorsMr.Walid T. Fakhouri- Chairman Of The Board Of Directors- Mr.Walid T. Fakhouri- Chairman Of The Board Of Directors-

Representative- The Arab Gulf Company For Investment & General Representative- The Arab Gulf Company For Investment & General TransportTransport

Mr. Yahia Zakariah Qadamani – Vice Chairman of The DirectorsMr. Yahia Zakariah Qadamani – Vice Chairman of The Directors

Mr. Mohie Eddin Al-Hussaini-Represntatie – Jordanian Al Eqbal Co. Mr. Mohie Eddin Al-Hussaini-Represntatie – Jordanian Al Eqbal Co. For General Trade For General Trade

Mr. Salah Eddin Al-sharifMr. Salah Eddin Al-sharif

Mr. Shaker Tawfiq FakhuoriMr. Shaker Tawfiq Fakhuori

Mr. Sam Bahour – Representative – Farah Appliances Appliances Mr. Sam Bahour – Representative – Farah Appliances Appliances CompanyCompany

Mr.Ragheb Nader Al-Aref – Representative – Norh International Mr.Ragheb Nader Al-Aref – Representative – Norh International International Industrial Co.International Industrial Co.

Mr.Atiyeh Shananier – Representative Al-yamama co.Mr.Atiyeh Shananier – Representative Al-yamama co.

Dr. Solaiman Al-abbadi – Representative – The Arab Distribution Dr. Solaiman Al-abbadi – Representative – The Arab Distribution CompanyCompany

ManagemManagement ent & &

DirectorsDirectors

Management Executive

Atiyeh A. Shananier – General Manager

Abed Al-Fattah Odeh – Deputy General Manager

Taghrid Amireh – Assistant General Manager

Monther Odeh – Executive Dirctor Financr Finance & Investment

Amjad G.Jaabari – Executive Director – Banks Operaion

Hamoda Abu Azize - Executive Director – Treasury & Capital Markets

Tayseer Katoosh – Director of Financial Department

Khaled Awartani – Director of Organization and Work Procedures

Riyad Jaddal – Risk Management

Mustafa Abu Khezaran – Communication and IT Development

Ibrahem Abu Raida – Director of SMES

Saeed Shabaneh – Director of Human resources

Abdul Nasser Khewish – Director of Human resources

Jamal Qadamani – Director of Facilities & Supplies

Mohammad Al Qadee – Direcor Deputy of Retail Financing

Walid Al-Shayed - Director of Legal Department

Nabil Hafez – Compliance Officer

Most Important Financial Most Important Financial IndicatorsIndicators

(Million Dollars)(Million Dollars) The Future Plan 2009 Includes: 1- To maintain increasing the of returns on assets

and capital to reach about 2-3% and 15-20% respectively .

2- Maintain a growth rate on the budget level of not less than 20% .

3- Expand the area of the banks activity with special focus on the retail and retail and corporate sectors as well as the institutional and investment activity of the bank .

The Future Plan 2009 Includes:

Most Important Financial Most Important Financial IndicatorsIndicators

(Million Dollars)(Million Dollars)

4- Continue developing human resources and training plans in order to elevate the skill level, scientific knowledge, and the experience of our staff, utilizing the best and most up-to-date tools and methods and raise the level of professional satisfaction.

5- Continue implementing a number a strategic projects and plans related to work procedures and restructuring, including centralizing operations and increasing the number of marketing operations and reducing costs.

Management ChallengesManagement Challenges

Item 2003 2004 2005 2006 2007

Total Asses 109.04

144 185 219 302

Net Financing 43.31 69.50

91 92 95

Checking Accounts 25.62 83.44

39 38 54

Saving Accounts and Deposits

58.02 73.07

80 91 113

Restricted Investment Accounts

43.11 35.54

47 69 104

Paid-Up Capital 16.88 16.88

21 31 36

Shareholders Rights 17.29 17.71

24 34 41

Total Revenue 3.89 5.85 9.57 10.81 14

Total Expenditures 3.48 4.88 5.27 6.10 7.8

Net Income Before Taxes And Zakat

0.41 0.97 4.30 4.71 6.2

Arab Islamic Bank Arab Islamic Bank BranchesBranches

Headquarter – 92 Employees

AL-Bireh Branch – 11 Employees

Tulkarem Branch – 8 Employees

Jenin Branch – 10 Employees

Nablus Branch – 8 Employees

Hebron Branch - 11 Employees

Gaza Branch – 13 Employees

Khanyunes Branch – 10 Employees

American University Office – 3 Employees

The Financial CrisisThe Financial Crisis

The Arabic Islamic Bank was not affected with the financial crisis due to the fact that Gaza strip is under closures and is separated from the outer world …. The only effect is that the share has changed from 1.92 to 1.16 …

Thank You…Thank You…

Question ?!Question ?!