Pioneering and excellence in Islamic banking Forty-Two years since the launch of Jordan Islamic Bank

On the twenty-second of this September, Jordan Islamic Bank celebrated the forty-second anniversary of its inauguration of the first branch in the center of Amman on 22/9/1979. It is the beginning of the first launch of Islamic banking in Jordan, so that the Hashemite Kingdom of Jordan became one of the first pioneering countries in adopting the establishment and development of Islamic banks. Which is one of the achievements of the first centenary of the establishment of the Jordanian state in the economic field, where Jordan Islamic Bank was established in 1978, to put Jordan’s experience on the map of Islamic banking, and to be a major supporter of the national economy, forming a strong base of customers with it through its practice of banking and investment In accordance with the provisions and principles of Islamic Sharia, achieving a leading position in the world of Islamic banking, the bank now has 108 branches and offices spread all over Jordan. On this occasion, CEO/General Manager of Jordan Islamic Bank, Dr. Hussein Said, said that as we celebrate the anniversary of the founding of Jordan Islamic Bank, and in conjunction with the national celebrations of the first centenary of the founding of the Hashemite Kingdom of Jordan, we remember all those who contributed to the bank’s achievements until this day. Starting with the idea of ​​ Jordan Islamic Bank and the directives of Sharia scholars and the sincere efforts of the successive boards of directors that consisted of Jordanian and arab businessmen and economists and the senior executive management and the people’s circumvented around the bank, which had a great impact by overcoming many of the obstacles and challenges that obstructed the bank’s charitable march, where the bank had a role It is effective in economic and social life, and has been able to grow continuously and consolidate its banking position in the front line of Jordanian banks, and it enjoys annual follow-up from the major international rating agencies like: Standard & Poor’s, Fitch and the International Islamic Rating Agency (IIRA), which indicates the bank’s commitment to excellence in applying the provisions of Islamic Sharia in Its transactions, as the first and largest Islamic bank in Jordan, is committed to applying the highest standards of the legalism commitment. The Bank has also won many awards from international institutions and magazines concerned with successful institutions, including (Word Finance magazines, Global Finance, Banker...etc.) for consecutive years as the Best Islamic Bank in Jordan, Best Islamic Banking Group, Best Brand for an Islamic bank., and Best Bank In the field of sustainability and corporate governance and in the field of social responsibility and sustainability.....etc. Dr. Hussein Said indicated that the bank is working to deepen and develop the principles of corporate governance, develop risk management, and continue to apply Basel III requirements, where corporate governance provides the best rules, systems and procedures that enhance confidence in the bank and its various activities and contribute to the development of the Jordanian banking system and national development. The rapid and growing business of the bank confirms the success of its strategy in development, growth and prosperity. The market share of Jordan Islamic Bank in the Jordanian banking sector reached 8.5% in assets, 11.3% in deposits, and 13.1% in financing and investment. In the Jordanian Islamic banking sector, the share of JIB was 49.6% in assets, 49.3% in deposits, and 51.6% in finance and investment. The total joint investment revenues at the end of the year 2020 exceeded about JD 200 million, and the bank boosted its financial allocations until the end of the year 2020 to face any negative consequences or effects of the Corona pandemic, achieving net profits before tax of about JD 83.8 million and after tax about JD 52.1 million, and shareholders’ equity amounted to about JD 474 million, and the capital adequacy ratio (CAR) at the end of the year 2020 was about 23.74%. and the bank has maintained the integrity of its credit portfolio and the quality of its assets, where the coverage ratio of Non- Performing Finances (NPFs) reached 3.13% and its coverage ratio was about 104%. The shares of Jordan Islamic Bank have been included on the (Morgan Stanley) index of emerging markets, stock funds and fixed income, due to the bank's financial requirements in terms of profits, liquidity, ease of investment and transparency. It is a positive sign and an opportunity to enhance investor confidence in the local market and the national economy. Dr. Hussein Said indicated that the bank started its business with a paid-up capital that did not exceed JD 2 million out of its authorized capital of JD 4 million, and after forty-two years its capital became JD 200 million, and the bank started working with 109 employees in 1980, and the number until 31/ 12/2020 About 2434 employees with sufficient experience to provide Islamic banking services. The Bank has always been keen to raise the level of its employees by sending them on study missions and enrolling them in training courses to keep pace with the various developments witnessed by the Bank in the field of banking technologies and other services. Technological Development Regarding the bank’s keeping up with the most important modern technological developments, Dr. Hussein Said stressed the bank’s continuous endeavor to enhance the expansion of digital banking services and channels, and to develop and introduce a number of advanced banking systems and applications that meet the needs of customers with clarity and transparency. The launch of digital banking services has been expanded, including Islami mobile and Islami internet service, secure online shopping (3D Secure), Islami SMS, bill payment service (E-fawatercom) and e-wallet service (JoMoPay) through the private mobile banking application, in addition to the expansion of offering Digital banking services by opening digital self-services (Islami Digital), according to the latest technologies in financial technology to meet the needs of the bank’s customers in themselves while promoting work with the highest possible degree of efficiency and in accordance with the best risk management standards. In order to maintain communication with the bank’s customers, Islami Messenger (your digital assistant), and call center 24-hour, interactive voice response (IVR), and the bank’s pages on social media platforms (Facebook, Instagram and Linkedin) and the bank’s official website were launched. The bank issues both types of banking cards ( Master and Visa) and adopts contactless payment technology via Near-Field Communication (NFC) technology to implement purchase transactions through points of sale spread throughout the Kingdom and abroad. The bank also provides banking services during official holidays and on Friday, Saturdays and the evening period through a number of its branches and offices. It provides modern and different services through Islami ATM, which has so far in branches and public places throughout the Kingdom 279 ATMs, forming about (13%) of the number of ATMs operating in the Kingdom. The Most Important Services and Products Offered By the Bank The bank provides banking services from accepting deposits and accounts in Jordanian dinars and in foreign currencies through current and demand accounts, joint investment accounts (saving, notice, Term Accounts), specified investment accounts and wakala investment accounts (investment portfolios)), and AL Qard AL-Hassan fund accounts. The bank also employs funds through Shariah formulas, Mudaraba, Musharaka, Murabaha sale, and Ijara Mawsufa Fi al-Dhimmah (Labbaik product to finance Hajj and Umrah trips), (Iqra product to finance education fees), (Shifa product to finance medical treatment costs), and (Tourism product to finance trips). Al-musawama Sale, financing hybrid cars, electric cars, and ““Our Sun” product for financing renewable energy systems for individuals and corporates, Istisna’a , Lease ending in Ownership , direct investment in shares and capitals of companies and possessing and leasing real estates. New banking products were launched, such as a wedding product, a product for maintenance and finishing works, and Musawamah card, in cooperation with the Master Card Company, to pay purchases in installments at the cash price, in cooperation with a group of merchants. The Economic and Developmental Role of Jordan Islamic Bank Dr. Hussein Said, said that: the great efforts made by the Hashemite leadership and the government to attract investment to Jordan by providing an attractive investment environment, an open economic system and an advanced and distinguished banking system supported by providing laws and legislation that stimulate investment and support the national economy contributed to Jordan Islamic Bank having a prominent role in supporting the investment process and economic and social development.  The activities necessary for society and the national economy, support for sustainable development and the promotion of financial inclusion are of great interest in the Bank’s financial investments, as they include funds for the public sector and the private sector from institutions, companies and individuals, and for the Bank to provide funds for several years to the Ministries of Finance and Supply, the Jordan Petroleum Refinery Company and the local government electricity companies. The private sector and the water authority reached about JD 3 billion , and the bank provides banking services to citizens/individuals at retail Where the number of beneficiaries of the bank’s financing to cover the needs of individuals from housing, land and building materials since the establishment of the bank until the end of 2020, about 353,000 beneficiaries, with financing amounting to JD 3.1 billion. As for the number of beneficiaries of Murabaha financing for means of transportation, it reached 352,000 beneficiaries, with financing amounting to JD 3 billion. The number of beneficiaries of furniture financing reached 148 thousand beneficiaries, and the amount of financing reached JD 345 million. The bank invested in the capital of national companies whose main activity does not violate the provisions of Sharia and produce goods and services of general benefit to society and the national economy. The number of companies reached 33, including Al-Omariya Schools, Future Technology Applications Company, Islamic Insurance Company, Sanabel Al-Khair Company for Financial Investments and other companies. In response to the directions and initiatives issued by government institutions and the Central Bank to alleviate the challenges and difficulties that resulted from the spread of the Corona pandemic, the Bank has taken many measures to alleviate its customers from various sectors, individuals or companies and sectors most affected, especially small and medium companies. Social Role of Jordan Islamic Bank Regarding the Bank’s assumption of its social responsibilities, Dr. Hussein SaId, said that: strengthening the bonds of interdependence, compassion and solidarity in society appears in the various activities of the Bank and the continuity of its contribution to the field of sustainable development, through the initiatives it adopts in various vital sectors such as education, health, energy, environment and others, in an attempt to achieve some Specific initiatives such as the initiatives and goals of the United Nations for sustainable development, in addition to providing integrated banking services that meet the requirements of various segments of society, in addition to the special interest it attaches to small and medium enterprises, and in line with the royal vision to combat unemployment and enable young people to establish development projects that provide them with a source of income and provide opportunities To work for them, the bank entered into an agreement with the Central Bank of Jordan to grant financing to young people who obtained a certificate of joining the national self-employment program “Inhad”, and concluded an agreement with the Fund for the Promotion of Renewable Energy and Energy Rationalization to encourage citizens to use renewable energy and facilitate the procedures for granting funds and benefiting from the cash support provided by the Fund.  The Bank also pays attention to customers with disabilities, provides banking services on an equal basis with other customers, and provides financial support and donations to many activities in various fields, such as associations and charitable organizations in the Kingdom, in addition to honoring the winners of competitions for memorizing, reciting the Holy Qur’an within the competitions organized by the Ministry of Awqaf, Islamic Affairs. The total donations made by the bank since its inception until the end of 2020 amounted to about JD 14.9 million. The bank also provides Al-Qard AL Hassan to help citizens face the immediate expenses of some social situations such as treatment, education and marriage. The total number of beneficiaries of Al-Qard AL Hassan provided by the bank since its establishment until the end of 2020 reached about 516,000 citizens, Its total value amounted to about JD 382 million, in addition to the expansion of the mutual insurance fund for the bank’s debtors, which was established in 1994, whereby the participants in it from the bank’s debtors jointly compensate part of the damage caused to one of them by paying the balance of his debts to the bank or part of it in cases of death or Permanent disability or persistent insolvency, The total fund balances for participants in the fund until the end of 2020 amounted to about JD 1.5 billion, the number of cases that were compensated 3135 cases, and the total compensation paid amounted to about JD 14.5 million, while the number of participants in it amounted to about 164.5 thousand subscribers. The Bank contributes to community service by providing job opportunities through its programs and investments, focusing on the program for financing the requirements of projects for people with professions and crafts (craftsmen) that has been applied in the Bank since 1994 within its policy in financing small projects programs and the adoption of the method of diminishing participation ending with ownership in addition to the method of Murabaha as the Bank does Financing small and medium-sized companies, whether through the funds granted to them from joint investment funds or from the funds of wakala investment accounts (investment portfolios) or through agreements signed with the Central Bank in particular. The Bank also established the Al-Samaha Finance and Investment Company in 2013 specialized in providing financing for projects and companies craftsmen, professionals and women's sector projects. The Bank also carries out social activities that are in line with its general orientations, including cooperation with Islamic financial institutions and participation in local and foreign conferences and seminars that are related to its fields of work or that help in the development of Islamic banking business, in addition to its interest in occupational safety and health and care for the affairs of the Holy Qur’an, culture, arts, literature and heritage. Health, energy, environment, water, attention to people with special needs, the less fortunate and the poor, interaction with the local community and its development, touching the basic and necessary needs of citizens in terms of housing and its requirements, And providing funds that have a tangible impact on the life of society as a whole and on the march of the national economy and its development, and within the scope of interest in raising the level and performance of employees, he involved them in conferences, seminars, programs and specialized courses and encouraged them to participate in social activities and voluntary work. The Bank has also issued a Social Responsibility and Sustainability Report since 2012, which includes the most important developments taken by the Bank's management to expand and develop the Bank's social role.