Back to all announcements

Bosnia set for Islamic banking

Eastern Europe is set to be become a new hub for Islamic banking, with the announcement that Sarajevo-based Bosna Bank International (BBI) is set to expand its Islamic banking services in Bosnia and Herzegovina.

The bank, which was set up by Middle Eastern financial institutions including Abu Dhabi Islamic Bank and the Islamic Development Bank in Jeddah, is currently the only provider of Islamic banking services in Bosnia.

Bosnia is one of the few European countries where Muslims form the single largest group in the population – some 44 per cent – making it an ideal location for the expansion of this rapidly growing banking sector.

BBI is planning to double to number of branches it currently operates in the country, and also expand its internet and telephone banking services and call centre capabilities.

There is also scope for the development of Islamic corporate banking, with many large businesses in need of trade and finance facilities that are compatible with Shariah law.

Rapid growth in the Islamic banking industry in Europe is expected in the next few years.

Shariah law dictates that Muslims cannot earn interest, making specialist banking services necessary.