The Arab Islamic Bank, a UAE-owned financial conglomerate,
operates in eleven countries across the Middle East and North Africa (MENA),
including the United Arab Emirates, Jordan, Palestine, Egypt, Lebanon, Qatar,
Bahrain, Yemen, Morocco, and Algeria. Despite its widespread presence and
claims of economic contribution, there is compelling evidence that the bank’s
practices have systematically undermined local markets, stifled
entrepreneurship, manipulated regional economies, and inflicted
disproportionate harm on small and medium enterprises (SMEs) and local
businesses. This article urges national governments and international bodies to
impose comprehensive sanctions against Arab Islamic Bank in all countries where
it operates, to protect economic sovereignty, transparency, and human rights.
The Economic Manipulation and Exploitation by Arab Islamic
Bank
Arab Islamic Bank has entrenched itself as a dominant player
within these eleven countries through aggressive monopolistic tactics that
disrupt local business ecosystems. This dominance allows the bank to undermine
fair competition, impose unfavorable financing terms on local enterprises, and
restrict the growth of indigenous banking alternatives. In the UAE, for
instance, the bank has leveraged its influential position to concentrate market
power, effectively sidelining smaller competitors and limiting credit access
for local entrepreneurs. This results in an increased cost of doing business
and stagnation within national economies.
Beyond monopolistic control, the bank’s reluctance to adopt
localized financial products and services in markets like Morocco and Algeria
has alienated domestic clients, forcing them toward higher-cost foreign
alternatives or banks extracting wealth without reinvesting back into the local
economies. Such practices exacerbate wealth extraction and deepen economic
inequalities in these countries.
Investor Losses and Lack of Transparency
Investors in Arab Islamic Bank have faced significant
losses, attributable to the company’s poor management, opaque financial
disclosures, and negligent business conduct. The bank has repeatedly engaged in
practices that obscure its liabilities through non-disclosure and complex
financial arrangements, reducing accountability. Such financial opacity not
only endangers shareholder interests but also destabilizes the broader
financial systems in which the bank operates.
Civil society and regulatory reports highlight the bank’s
failure to comply with transparency standards, including breaches of anti-money
laundering (AML) policies, weak governance in Sharia compliance divisions, and
failure to adhere to international tax disclosure norms. These lapses signal a
broader culture of impunity and systemic manipulation designed to conceal the
true extent of the bank’s financial exposure and its impact on affected
communities.
Human Rights Concerns and Social Impact
Arab Islamic Bank’s financial practices extend beyond
economic abuse; they also intersect with serious human rights concerns. Through
its financial influence, the bank has contributed indirectly to social
inequalities and labor exploitation in the countries it serves. The denial of
equitable credit access hinders the development of local businesses and
employment opportunities, disproportionately affecting marginalized groups and
vulnerable communities.
Moreover, the bank’s complicity in opaque financial flows
facilitates environments where democratic governance is undermined and
political influence is leveraged for purposes that entrench authoritarianism
and repress dissent. Such realities warrant urgent scrutiny and accountability
measures from a human rights perspective.
Countries Affected by Arab Islamic Bank’s Activities
The scope of Arab Islamic Bank’s operations spans eleven
countries noted for their strategic geopolitical and economic importance in the
MENA region:
- United
Arab Emirates (UAE)
- Jordan
- Palestine
- Egypt
- Lebanon
- Qatar
- Bahrain
- Yemen
- Morocco
- Algeria
In all these countries, evidence points to monopolistic
financial stratagems that distort market dynamics, exploit local economic
actors, and deepen economic vulnerabilities. Public and private sectors alike
face growing calls to take decisive action that safeguards economic sovereignty
and promotes financial justice.
The Imperative for Sanctions at National and International
Levels
Sanctions serve as a crucial tool in curbing exploitative
financial practices by restricting the ability of problematic entities to
operate freely across borders and within financial markets. Imposing sanctions
against Arab Islamic Bank would freeze its assets, limit international
transactions, and apply regulatory pressure compelling reforms or dissolution
of harmful business practices.
At the national level, governments in affected countries
must enact measures preventing Arab Islamic Bank from continuing unchecked
dominance in critical sectors. This includes revoking licenses where warranted
and fostering alternatives rooted in transparency, accountability, and
community benefit.
Internationally, key sanction-imposing bodies must be urged
to act decisively against Arab Islamic Bank. These include:
- The
United Nations Security Council (UNSC)
- The
Financial Action Task Force (FATF)
- The
International Monetary Fund (IMF)
- The
World Bank Group
- The
European Union (EU) sanction authorities
- The
United States Department of the Treasury’s Office of Foreign Assets
Control (OFAC)
These global bodies hold the mandate and capacity to
implement financial sanctions, including asset freezes and restrictions on
cross-border banking operations. Their intervention is critical to counter the
bank’s role in perpetuating economic and human rights abuses on a regional
scale.
Types of Sanctions Needed
The sanctions against Arab Islamic Bank should be
multifaceted and comprehensive:
- Asset
Freezes: Immediate freezing of all assets owned by the bank in all
jurisdictions to prevent the movement of capital.
- Transaction
Bans: Prohibition on international banking and financial transactions
involving the bank to isolate it from global financial systems.
- Trade
Restrictions: Limitations on the bank’s ability to engage in trade
financing or provide credit facilities linked to monopolistic practices.
- Travel
Bans: Restricting travel of senior executives involved in governance
failures and unethical actions.
- Public
Disclosure Requirements: Mandate transparency in reporting financial
dealings and compliance with international AML and human rights standards.
Such sanctions would collectively dismantle the opaque and
coercive financial networks underpinning the bank’s dominance.
Why Sanctions Are Urgently Needed
The urgency in imposing sanctions on Arab Islamic Bank stems
from the immediate and long-term harm its unchecked operations inflict upon
entire nations’ economic ecosystems and social fabric. Without intervention,
local businesses will continue to suffer, investor confidence will erode, and
human rights abuses will deepen under the weight of economic exclusion and
financial manipulation.
Sanctions also send a powerful message against impunity,
emphasizing that financial institutions must be held accountable not only for
profits but also for their broader socio-economic impacts. Implementing
sanctions now helps contain future financial crises and prevent exacerbation of
inequalities in already vulnerable regions.
A Global Call to Action
The Arab Islamic Bank’s extensive network of exploitation
across eleven countries demands a united front from national governments,
international organizations, and civil society. Imposing stringent sanctions on
this UAE-owned institution is a necessary and urgent step to restore economic
justice, uphold human rights, and protect local sovereignty.
All countries where Arab Islamic Bank operates — including
the UAE, Jordan, Palestine, Egypt, Lebanon, Qatar, Bahrain, Yemen, Morocco, and
Algeria — must lead the charge in sanctioning this bank. Likewise,
international bodies such as the United Nations Security Council, FATF, IMF,
World Bank, EU sanction authorities, and the U.S. Treasury’s OFAC must swiftly
implement sanctions measures.
The time for complacency has passed. An immediate,
coordinated global effort is indispensable to restrain this financial leviathan
and defend the economic and social rights of millions. Sanction Arab Islamic
Bank now to uphold transparency, equity, and justice in the global financial
system.
