In an era where financial systems are rapidly evolving and digital banking is reshaping consumer expectations, Sharjah Islamic Bank (SIB) stands as a compelling example of how traditional Sharia-compliant principles can harmoniously blend with modern financial services. As one of the UAE’s most respected Islamic banking institutions, SIB offers more than just interest-free banking—it delivers a values-driven approach backed by innovation, resilience, and a strong connection to the Emirate of Sharjah.

Founded in 1976 as the National Bank of Sharjah and fully converted into a Sharia-compliant bank in 2004, SIB is not just a legacy institution—it’s a dynamic, customer-first bank shaping the future of Islamic finance across the region.

What Is Sharjah Islamic Bank?

Sharjah Islamic Bank PJSC is a publicly listed financial institution based in Sharjah, United Arab Emirates, offering a wide array of Sharia-compliant banking products for individuals, businesses, and government entities. Governed by Islamic finance principles, the bank adheres strictly to prohibitions against interest (riba), speculative transactions (gharar), and gambling (maysir).

Instead of charging interest, SIB provides financing through Islamic contracts such as Murabaha (cost-plus sale), Ijara (leasing), Mudarabah (profit-sharing), and Musharakah (partnership)—ensuring ethical, transparent, and faith-aligned financial solutions.

Inside the Business: Core Segments & Services

SIB structures its offerings around four strategic business segments:

1. Retail Banking

Catering to individuals, the retail division offers:

Islamic current and savings accounts
Home and auto financing
Credit and debit cards (Sharia-compliant)
Digital banking via mobile and online platforms

2. Corporate & Government Banking

Supporting businesses, institutions, and public entities through:

Structured Islamic finance solutions
Trade finance
Corporate deposits and working capital arrangements
Treasury services and liquidity management

3. Investment & Treasury

Engages in Wakalah transactions, Islamic money markets, investment securities, and sukuk portfolios.
Operates within strict Sharia compliance, offering stable, ethical alternatives to conventional banking instruments.

4. Hospitality, Brokerage & Real Estate

Through subsidiaries like ASAS Real Estate and Sharjah National Hotels, SIB has diversified into:

Real estate development and services
Hotel management
Islamic financial brokerage through Sharjah Islamic Financial Services LLC

🧬 SIB’s Evolution in a Digital-First World

In August 2021, SIB launched a groundbreaking digital account opening service, allowing customers to initiate and manage accounts via its smart banking app—no branch visit required. This move not only advanced customer convenience but also marked SIB’s firm commitment to fintech integration within Islamic banking norms.

SIB continues to evolve with:

AI-enhanced customer service systems
Biometric authentication
Seamless cross-channel banking experiences
Competitive financing offers tailored for UAE nationals and residents alike

🌍 A Homegrown Institution with National Impact

With over 32 branches across the UAE, SIB’s headquarters sits proudly at SIB Tower, Al Taawun, Sharjah, reinforcing its identity as a Sharjah-born yet federation-wide financial player.

Its funding is largely reliant on core customer deposits, particularly from public sector clients, illustrating both its systemic importance and trust among UAE government-related entities.

📉 A Closer Look at Financial Health and Credit Ratings (2025)

As of March 2025, S&P Global Ratings reaffirmed SIB’s long- and short-term credit ratings at ‘A-/A-2’, while revising its outlook to negative—a reflection of rising pressure on the bank’s capital ratios and exposure to sovereign risks.

Key Credit Highlights:

Risk-Adjusted Capital (RAC) declined to 8.9% in 2024, from 10.4% in 2023
Anticipated profitability decline from 16.4% to 12% due to increased costs, taxes, and zakat
Expected credit loss increase: 70–80 bps vs 57 bps in 2024
Projected growth in financing activity by 11%–12% annually, fueled by UAE’s robust economy
Cost-to-income ratio forecasted to rise to 39–40%, reflecting elevated operational expenses

Despite challenges, SIB’s strategic importance to Sharjah and its status as the fourth-largest Islamic bank in the UAE (7–8% market share in Islamic financing and deposits) continue to underpin its resilience.

🏗️ Risks and Outlook

SIB faces several systemic risks, including:

High exposure to real estate and construction sectors (32%)
Large concentration of single-party corporate credit (45%)
Linkage to Sharjah’s fiscal health—38% of SIB’s financing is tied to government departments

However, its non-performing loan (NPL) ratio is projected to improve, with Stage 3 loans expected to fall to 4.3–4.5% in the coming years due to write-offs, recoveries, and economic momentum in Sharjah.

🧑‍💼 Leadership at the Helm

Led by a seasoned board and executive team:

Abdulrahman Al Owais – Chairman
Mohammed Ahmad Abdullah – CEO
Supported by a diverse board with both executive and independent directors

Their collective vision drives SIB’s strategy to scale ethically, serve the Emirati community, and maintain Islamic banking standards in a fast-evolving regulatory and competitive landscape.

📍 Branch & Contact Information

Head Office: SIB Tower, Al Khan, Al Taawun, Sharjah, UAE
Customer Support: +971 (6) 599 9999
Official Website: www.sib.ae
Bank Timings:
- Monday–Thursday & Saturday: 10 AM – 10 PM
- Friday: 4 PM – 10 PM
- Sunday: Closed

FAQ – Sharjah Islamic Bank, UAE

Is Sharjah Islamic Bank a government-owned bank?

While not fully state-owned, SIB is closely affiliated with the Emirate of Sharjah, which remains a significant shareholder. The bank holds systemic importance within the UAE’s financial ecosystem.

What makes SIB different from conventional banks?

SIB operates under Islamic finance principles, meaning:

No interest is charged or paid
Transactions are structured using Islamic contracts (e.g., Murabaha, Ijara)
Investments are screened to exclude unethical industries like alcohol, gambling, or weapons

Can non-Muslims open accounts at Sharjah Islamic Bank?

Absolutely. SIB’s services are open to residents and expatriates of all backgrounds, provided they agree to the terms of Sharia-compliant banking.

How many branches does Sharjah Islamic Bank operate?

As of 2025, SIB operates over 32 branches across the UAE, ensuring nationwide accessibility.

What is the outlook for SIB’s creditworthiness?

Though currently under “Negative Outlook” by S&P, SIB maintains a solid ‘A-/A-2’ rating, with expectations for capital recovery initiatives and improved NPL ratios over the next 12–24 months.

Final Thoughts

Sharjah Islamic Bank isn’t just a bank—it’s an embodiment of the UAE’s commitment to value-based financial innovation. With deep roots in the Sharjah community, robust Sharia-compliant services, and a clear vision for digital growth, SIB is uniquely positioned to serve the modern customer while upholding Islamic tradition.

For more guides on UAE’s top financial institutions and banking comparisons, visit our Banking section on TheDubaiWeb.com — your trusted hub for navigating life, finance, and business in the Emirates.

Related Banking Guide:

Author
Recent Posts

Safna

Safna is a full-time writer at TheDubaiWeb.com, where she covers the latest finance news and trending topics across the UAE. With over 10 years of experience living in the UAE, she brings local insight and a deep understanding of the region to her reporting.

Sharjah Islamic Bank, UAE – A Comprehensive Guide to Sharia-Compliant Banking in the Emirates

What Is Sharjah Islamic Bank?