Who we are
Who we are
By striving to organize banking activities in line with the ethical values of Islam, United Bank of Albania is able to provide unique customer experience to its clients, helping them to save for their families’ futures, expand their businesses or buy their own homes, without compromising their beliefs.
We would like to be recognized by the market for the digital experience, ability to promptly accommodate the ever-changing customer needs but primarily we want to be identified as a provider of financial services consistent with our belief system.
The majority shareholder of United Bank of Albania is Eurosig Sh.A. with 51.02% of the shares and the Islamic Development Bank with 42.20% of the shares.
Eurosig Sh.A., is a reputable insurance operator covering Albania with 25 branches and over 230 agencies. Its operations are regulated by the Law on the Activity Insurance, Re-Insurance and Intermediary in Insurance and Re-Insurance, amended, and other legal and normative acts, and under the supervision of the Albanian Financial Supervisory Authority (AFSA).
The Islamic Development Bank, a multilateral development finance institution that is focused on Islamic finance located in Saudi Arabia owned by 57 shareholding states members of Organization of Islamic Cooperation. IsDB is working to improve millions of lives by promoting social and economic development in Member countries and Muslim communities worldwide, delivering impact at scale.
United Bank of Albania is registered as a juridical person with the Decision No. 4315 date 13.05.1993 of Tirana District Court. Licensed by the Bank of Albania with the License No. 03 date 11.01.1999 “To operate as a bank in the Republic of Albania”.
Islamic banking has unique financial instruments and investment policies. Islamic banks do not finance projects that could harm individuals, society, environment, and the well-being of future generations. Consequently, Islamic banking is highly aligned with the spirit of the United Nations’ Sustainable Development Goals, making it attractive not only to Muslims but to all who use an ethical approach in their investment decision-making process.
There is solid evidence that various cultures, religions, and schools of thought criticize usury and lending with interest. The reasons for such negative opinions could be of divine, ethical and economic nature. In Islam, any type of exploitation including interest-based lending is condemned and should be avoided. Interest can be defined as a predetermined fee to be paid by the borrower to the lender as compensation for the borrowed funds. The amount of the fee is directly correlated to the amount of borrowed funds and the length of the repayment period. So, any lending transaction that earns interest from an Islamic perspective is problematic.
Due to this sentiment during the last century, scholars and finance practitioners in predominantly Muslim countries strove to design banking models that would serve the contemporary financial needs of individuals and businesses while upholding religious values. They needed to construct a model where capital would be mobilized and allocated in society while earning profits but not an interest. The financial instruments that are incorporated in the Islamic banking model were derived from prophetic practices that date back to 14 centuries ago. These financial instruments are mostly based on partnership principles but also include deferred sales, leasing, agency, and project financing.
Even though the Islamic banking industry is relatively new, there are more than 1400 Islamic financial institutions globally. Islamic banking represents one of the fastest-growing banking branches with an average of 17.6% annual growth. However, it is still a marginal phenomenon since it makes up only 0.7% of total world assets with a total value of assets equivalent to $3 trillion.
To find more about Islamic Banking, United Bank of Albania has sponsored translation of famous book titled Introduction to Islamic Finance by Muhamed T. Usmani which can be downloaded below.
United Bank of Albania (UBA Bank) is managed by its Board of Directors and the General Directorate located in Head Quarters in Tirana, Albania.