RakBank isn’t the biggest or best known bank in the United Arab Emirates. But it is playing an outsized role in providing innovative Islamic banking solutions and growing the market.
Chief executive Raheel Ahmed makes a solid case that the bank’s consistent financial performance, solid cross-border capabilities, strong Shariah governance and stable balance sheet has it punching above its weight in the UAE.
Revenue rose 9% in 2022, driven by an 11% jump in net income, reflecting strong growth in customer financing and a general improvement in margins.
In fact, 2022 was something of a banner year for RakBank, with a 19% increase in overall profit. Ahmed credits rigorous monitoring of operational and impairment costs, new products that resonated with customers and increased efficiency via digital channels.
It is this latter category that is transforming RakBank. From the bank’s state-of-the-art mobile app to its online platforms, the bank is becoming a market leader in innovative mobile solutions. Among its more innovative offerings are: simple end-to-end digital account opening via mobile and online platforms; digital products for business banking and asset finance; and best-in-class contactless payment options.
RakBank is also a pioneer in high-end financial literacy. It has invested heavily in a fully digital training platform called Rakislamic Hikmah. In addition, a wide range of virtual training courses, the bank also provides online assessments and certifications.
[Digital training platform] Rakislamic Hikmah is playing an important role in the growth of Islamic finance by making Islamic banking more accessible
It is an example of how RakBank is involved in promoting the adoption of Islamic banking and finance across the Middle East. The bank is also striking strategic partnerships with top regional players and thought leaders, and collaborating with regulators to improve market frameworks.
Rakislamic Hikmah is playing an important role in the growth of Islamic finance by making Islamic banking more accessible, convenient and transparent. It is part of a multi-year strategy focused on increasing business through digital innovation and diversifying revenue streams.
