Annual Report 2012 - Al Baraka Investment and Development

president & chief executiVe’s report
(continued)
In 2012 ABG’s commitment to the development of the Islamic
Finance industry was once again demonstrated by its sponsorship
of the 33rd Annual Islamic Economics Forum. This annual gathering
performs a unique role, acting as a ‘think tank’ for the industry
and creating a forum for:
• Spreading knowledge of Islamic jurisdictions (Fiqh) with regard
to contemporary economic and financial transactions;
• Considering problems faced by Islamic banks in the application
of different modes of Islamic finance and exchanging views
of scholars;
• Linking Fiqh to contemporary economic issues and supporting
Islamic economic theory to confront competing theories;
• Enriching banking Fiqh and the Islamic Economic Library with
profound discussion resulting in the issue of new Fatwas by
renowned scholars;
• Meeting the needs of those concerned with Islamic banking
Fiqh worldwide;
• Fulfilling the requirements of all Al Baraka units and other
Islamic financial institutions in the field of Islamic banking
theory and its applications;
• Linking the financing transactions of Fiqh with the principles
of economics;
• Providing scientific reference for research, Shari’a committees
and Shari’a Fatwas within the framework of Islamic banking;
and
• Developing Islamic financing instruments which conform to
technical and Shari’a standards.
The 33rd Al Baraka Islamic Economics Forum was noteworthy
for the first Al Baraka Award in Islamic Economics, awarded to
Professor Mohammed Siddiq Al Dareer, in recognition of his
contribution to the development of Islamic economics and
finance, for his theory entitled Al Gharar (Risk).
During the year we were honoured that no fewer than four of our
subsidiary banks, Al Baraka Algeria, Al Baraka Jordan, Al Baraka
Bahrain and Al Baraka South Africa, received the “Best Islamic
Bank” accolade from Global Finance magazine, in recognition
30 Annual Report 2012
Return to Contents
of their prominent role in the Islamic banking sectors of their
respective countries and considering the quality of products and
services offered and their originality and innovation in banking
operations, as well as a mix of other criteria such as strategic
relationships, geographic reach, profitability and robustness
of financial position. I was myself personally honoured with
the “2012 LARIBA Award for Excellence and Achievement”, by
the US finance house LARIBA. This annual award has become
a tradition since it was first given in 1999 to recognise significant
contributors in the field of Islamic finance and banking, which
I was pleased to accept as a mark of the progress made by
ABG and its subsidiaries in enhancing the image of the Islamic
banking sector.
Review of Units
The following is a brief review of each of our subsidiaries, their
activities and performance over the past year. All figures are stated
in the US dollar equivalents of the audited local currency-based
balance sheets and income statements, prepared in accordance
with the Islamic Accounting Standards issued by the Accounting
and Auditing Organisation for Islamic Financial Institutions
(and IFRS, where AAOIFI was silent) and without any Group level
consolidation adjustments.
Each unit is managed by its respective Board of Directors, whose
reporting lines are ultimately to the Parent, ABG, but whose
decision-making is decentralised within the Group’s overall
strategic direction and in full compliance with the regulations
of the respective countries’ Central Banks.
(All figures in US Dollars unless otherwise stated)