Best Islamic bank: Bahrain Islamic Bank
In one of the world’s most established Islamic finance markets, Bahrain Islamic Bank (BisB) has distinguished itself by demonstrating how a mature Shariah-compliant institution can modernise without compromising its foundations.
Rather than treating digital transformation and Shariah governance as separate priorities, BisB focused on integrating Islamic principles directly into its technology, products and customer journeys. Its Shariah Supervisory Board, which has issued more than 2,000 fatwas and resolutions since the bank’s establishment in 1979, continued to provide the foundation for a strategy centred on transparency, accessibility and innovation.
The clearest example of this approach was the launch of AI Murshid, an artificial intelligence-powered Shariah advisory engine that allows customers to access instant guidance on Islamic financial rulings related to products and contracts.
BisB’s retail transformation was equally important. The launch of its Gulf Cooperation Council (GCC) digital onboarding function enabled nationals from across the Gulf to open Shariah-compliant accounts through the bank’s mobile application without visiting a branch, helping drive a shift towards digital-first customer acquisition.
The bank also enhanced financing and savings propositions through instant personal finance top-ups, monthly payment plans, a fully digital long-term savings scheme and expanded prize-linked offerings. By the end of 2025, 91% of new customers were onboarded digitally, 80% of transactions were conducted through digital platforms and the retail customer base had increased by 9.8%.
The bank also strengthened its corporate and small and medium-sized enterprise (SME) proposition, becoming the first financial institution in Bahrain to pilot bulk know your customer (KYC) through the national eKey for Business platform, while introducing solutions such as Tejoori Business and Mastercard SME debit cards.
Customer experience remained central to BisB’s progress, supported by branch-based customer-experience managers, proactive digital-support teams and enhanced security features including biometric authentication and AI-based identity verification.
By combining deep Shariah expertise with digital innovation, BisB demonstrates an effective model for the next phase of Islamic banking in Bahrain.
Best Islamic digital bank: Bahrain Islamic Bank
Bahrain Islamic Bank (BisB) secured the award for Bahrain’s best Islamic digital bank by demonstrating how Shariah-compliant banking can be delivered at scale through fully digitised, customer-led platforms.
A defining differentiator was BisB’s integration of Shariah governance into its digital architecture. The launch of AI Murshid, an artificial-intelligence-powered Shariah advisory engine embedded within the bank’s digital ecosystem, provided customers with direct access to Shariah rulings governing Islamic financial contracts and product structures. By digitising decades of supervisory board resolutions, BisB translated Islamic finance principles into a practical, always-on advisory layer, reinforcing confidence and transparency in digital engagement.
Retail capabilities continued to broaden in depth and usability throughout the review period. The BisB mobile app hosts more than 200 digital services, enabling customers to open accounts, apply for financing, activate savings products and manage cards end-to-end without branch interaction. Key launches included Gulf Cooperation Council (GCC) digital onboarding, real-time identity verification, digitally managed instalment plans on card transactions, fully digital savings products and automated pledge-based financing secured against account balances.
BisB also extended digital infrastructure beyond retail. It became the first bank in Bahrain to pilot bulk corporate know your customer (KYC) via the national eKey for Business platform, aligning digital onboarding with central bank anti-money laundering (AML) requirements, while small and medium-sized enterprise (SME) clients benefitted from digitally enabled onboarding, business savings products and debit cards for expense management.
Operational resilience and trust underpinned delivery. Biometric authentication, AI-led identity verification and proactive digital support teams supported a 95% response rate to customer queries, with no recorded customer data leaks or losses in 2025. Collectively, these outcomes position BisB as the benchmark for Islamic digital banking in Bahrain.
Best Islamic bank for ESG: KFH Bahrain
KFH Bahrain’s strong focus on growing sustainable finance while integrating environmental and social risk considerations into its core banking activities drove measurable environmental, social and governance (ESG) outcomes in the country during 2025.
The bank set overall ESG financing commitments at more than $400 million in 2025, supporting areas aligned with national priorities, such as water desalination, efficiency and safety plans, social housing and energy security investments.
KFH Bahrain’s social housing portfolio, which reached $281.2 million by the end of 2025, with high financing-to-value ratios and long repayment tenors widening access to home ownership for lower-income segments. Additional initiatives, including low-entry savings products and tailored credit solutions, broadened financial participation by lowering entry barriers and extending access to affordable financial services for underserved segments.
Operationally, the bank focused on reducing its environmental footprint through a range of measures, including energy-efficient chillers, LED lighting, solar-power installations and electric vehicle (EV) charging points across key sites. It also reduced printing volume by approximately 75% during the past two years. Following the bank’s rebranding, a structured recycling initiative was implemented to responsibly dispose of materials associated with the former brand identity.
In addition, the share of female employees in the workforce rose to 37% in 2025, with representation in senior/executive management roles increasing to 18%.
These initiatives were supported by formal ESG governance, including dedicated policies, board oversight and mandatory integration of environmental and social risk into all financing decisions, ensuring consistency and accountability across the bank.
