Al Baraka Islamic Bank has launched a cross-border account opening service that allows its customers in Bahrain to open and manage accounts in Egypt, extending its regional Islamic banking network beyond domestic branch-based services.The service enables customers to access current accounts, savings accounts and wakala/fixed-term deposit accounts through cooperation between Al Baraka Islamic Bank in Bahrain and Al Baraka Bank Egypt. The move gives individual and business customers a more direct route into Egypt’s banking market while staying within Sharia-compliant banking structures.
The launch marks the next phase of Al Baraka’s cross-border banking model after a similar service with Türkiye last year. That earlier arrangement gave customers broader access to international banking options and provided the operating base for the Egypt corridor now being rolled out. The Bahrain unit is leading implementation of the Egypt service, while the Egyptian subsidiary provides local account access and product support.
The development comes as banks across the region are placing greater emphasis on digital onboarding, remote access, cross-border account services and integrated wealth management. Egypt, with its large population, expanding financial inclusion agenda and growing use of digital banking channels, is becoming a more important market for Gulf-based institutions seeking to serve customers with business, family and investment links across borders.
Al Baraka Group Chief Executive Houssem Ben Haj Amor described the initiative as a milestone in strengthening the group’s regional and international presence. He said the service reflected the group’s aim of offering advanced banking solutions that meet changing customer needs and widen access to Islamic banking services.
Dr Adel Abdullah Salem, Chief Executive of Al Baraka Islamic Bank, said the service was designed to provide an efficient and accessible banking experience. He said the bank expected the partnership with Al Baraka Bank Egypt to support the development of Islamic banking and deliver added value to customers seeking personal and business banking options outside Bahrain.
The account categories covered by the service are significant for customers looking for flexibility rather than a single-purpose deposit product. Current accounts are typically used for day-to-day transactions and payments, savings accounts support liquidity with potential returns, while wakala-based fixed-term deposits allow customers to place funds under an agency structure consistent with Islamic finance principles.
Egypt’s banking sector has been undergoing a steady shift towards financial inclusion and digitalisation. Active transactional account ownership has expanded sharply, with more than 54 million citizens now holding active accounts through banks, Egypt Post, mobile wallets or prepaid cards. The Central Bank of Egypt has also set a second financial inclusion strategy for 2026-2030, giving banks a policy framework for broadening access, improving digital services and serving customers outside traditional banking channels.
That backdrop gives Al Baraka’s Egypt service a wider commercial context. Cross-border account access is no longer limited to high-net-worth customers or large corporate clients. Banks are increasingly looking at retail customers, small businesses, expatriates, professionals and families with financial obligations across markets. Bahrain and Egypt have strong people-to-people and business links, making account portability and easier onboarding more relevant for customers who need banking access in both jurisdictions.
The service also highlights the competitive direction of Islamic banking. Gulf-based Islamic institutions are under pressure to offer the same convenience associated with conventional digital banks while preserving Sharia governance, profit-sharing structures and product transparency. For Al Baraka, the challenge will be to make the customer journey simple enough to attract users who may otherwise rely on separate banks in each country.
Al Baraka Islamic Bank has operated in Bahrain since 1984 and is part of Al Baraka Group, which has a network spanning several markets in the Middle East, North Africa and beyond. The group’s structure gives it an advantage in launching services that depend on cooperation between subsidiaries, though cross-border banking also requires careful compliance with know-your-customer rules, anti-money-laundering controls, currency regulations and local banking requirements.
Egypt’s market presents both opportunity and complexity. The country has a large unbanked and underbanked population, a growing appetite for digital financial services and a competitive banking system that includes state-owned banks, private lenders and Islamic banking providers. Currency pressures, inflation trends and regulatory scrutiny also mean banks must manage customer expectations around returns, foreign exchange access and deposit terms.
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