SUSTAINABILITY & SOCIAL RESPONSIBILITY REPORT 2016 COMMUNITY SUSTAINABILITY PROSPERITY

Transcription

1 SUSTAINABILITY & SOCIAL RESPONSIBILITY REPORT 2016 COMMUNITY SUSTAINABILITY PROSPERITY Your Partner Bank

2 B Al Baraka Banking Group B.S.C Your Partner Bank Al Baraka Banking Group B.S.C. Al Baraka Headquarters - Bahrain Bay P.O. Box 1882 Manama, Kingdom of Bahrain (Licensed as an Islamic Wholesale Bank by CBB) Albaraka.com

3 Contents INTRODUCTION 02 Mission and Vision 08 Overview PART ONE: AL BARAKA SDG GOALS AL BARAKA SDG GOALS ( ) 18 Healthcare 03 Methodology 12 Al Baraka SDG Goals (SNAPSHOT) PART TWO: GLOBAL OVERVIEW 19 ABG 23 Syria 27 Algeria 20 Bahrain 24 Lebanon 28 Pakistan PART THREE: GLOBAL ACTIVITIES OVERVIEW 31 The Al Baraka Philanthropic Program 36 The Al Baraka Qard Hasan Program 05 Board Social Responsibility Committee 16 Employment 21 Egypt 25 Turkey 29 Tunisia 37 The Al Baraka Economic Opportunities & Social Investments Program 06 Chief Executive Statement 17 Education 22 Sudan 26 Jordan 30 South Africa AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW

4 02 Al Baraka Banking Group B.S.C Our Vision We believe society needs a fair and equitable financial system: one which rewards effort and contributes to the development of the community. Our Mission To meet the financial needs of communities across the world by conducting business ethically in accordance with our beliefs, practicing the highest professional standards and sharing the mutual benefits with the customers, staff and shareholders who participate in our business success.

5 Al Baraka Banking Group B.S.C 03 Methodology Sustainability and Social Responsibility is an integral part of Al Baraka s vision and its business model, and it means to be relevant in the prosperity of the communities in which we operate. 1 By this report, we seek to update Al Baraka Banking Group s stakeholders about our commitment, dedication and contribution towards Sustainability and Social Responsibility. We endeavor to implement our Sustainability and Social Responsibility through various Al Baraka Sustainability and Social Responsibility Programs (these programs are explained in detail in this Report). By way of the process, we send different questionnaires to our banking subsidiaries along with well-developed guidelines in order to facilitate accurate data collection. We receive both qualitative and quantitative data from the subsidiaries. While with the quantitative data we present information in relation to the amounts spent on various programs, the qualitative data focuses on the benefits of these programs. We conduct basic data checks and seek clarifications as appropriate prior to analysis. In order to enable detailed interpretation of the responses, we conduct explanation sessions with the respondents concerned via s, audio and video conferencing. 1 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW 1) We measure our impact on the real economy and the communities based on different considerations. Quantitative information includes: education financing and donation, affordable housing project financing and donation, vocational training, arts, culture and literature sponsorship, promotion and development of scholarly works in Islamic law, banking and finance, youth engagement and sports, environmental and sustainable energy related investments, sponsorship for individuals with special-need, economically challenged communities sponsorship, Qard Hasan, industry & mining financing, construction financing, consumer financing, government financing, technology, media and telecommunications financing, general trade financing, agriculture, fishing and forestry financing, transportation service financing, tourism, hotels and restaurants financing, public service facilities financing, scientific and professional equipment financing, transportation equipment financing, machines, equipment and electric accessories financing, basic metal productions financing, lime and cement financing, glass-related and glass products financing, pottery and ceramics financing, plastic productions financing, rubber productions financing, petroleum refining financing, industrial chemicals financing, paper and paper productions financing, clothing financing (ready-made or otherwise), commercial real estate financing, furniture and wood productions financing, shoes productions financing, services financing, weaving and spinning financing, and export and import financing. Quantitatively, we collect a separate set of information on many of the above economic sectors to measure our contribution. In addition, we receive quantitative and qualitative data on our Al Baraka (SDG) Goals including the number of new jobs created, total amount funded and financed to education and healthcare sectors.

6 04 Al Baraka Banking Group B.S.C The concept of Sustainability and Social Responsibility fits easily with the business ethics of Islam and, therefore, with Al Baraka s traditional principles and philosophy. SHAIKH SALEH ABDULLAH KAMEL Chairman, Al Baraka Banking Group We Believe that Global Goals of Sustainable Development and Islamic finance are based on inherent shared values that Al Baraka will continue to follow and cherish. ADNAN AHMED YOUSIF President & Chief Executive, Al Baraka Banking Group

7 Al Baraka Banking Group B.S.C 05 Board Social Responsibility Committee Dr. Bassem I. Awadallah Mr. Saleh Mohammed Al Yousef Mr. Abdual Ellah Sabbahi Chairman Member Member The Board Committee for Social Responsibility oversees the activities of Al Baraka's Sustainability and Social Responsibility Program, and its role is to: 1. Maintain the continuity of Al Baraka's Sustainability and Social Responsibility Program and update it with the most recent international research and popular strategies to enhance Shari a objectives. 2. Manage and supervise Sustainability and Social Responsibility Program implementation of Al Baraka Group. 3. Ensure that the Program remains one of the leading Programs within the Islamic banking and finance industry in general, by developing new researches in Shari a and economic analyses on the subject. 4. Provide appropriate guidance for the implementation of the Program. 5. Compile, consolidate and publish annual and other periodic Sustainability and Social Responsibility Reports. 6. Develop and update procedures that may result in enhancing the adequacy and effectiveness of the Program at Group level. 7. Exercise all necessary powers in relation to the Program to achieve the objectives and remain consistent with the rationale of the Committee. 8. Coordinate with other local and international Social Responsibility Programs. AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW

8 06 Al Baraka Banking Group B.S.C Chief Executive Statement Our logo Your Partner Bank embodies our vision, and we try our best to live it every day by translating it to our business model. As a result, our Sustainability and Social Responsibility Program goes way beyond philanthropy, to deliver our contribution towards society, and this approach is embedded in our business model. The Program is managed through an integrated governance system with measurement tools, policies and plans that are jointly developed and implemented by all Al Baraka banks. Being committed to Sustainability and Social Responsibility across the Al Baraka network countries and communities, we are continuing to adopt newer strategies to deepen our impact on society. For example, the amount spent towards our Economic Opportunities Program (one of the pillars of our Sustainability and Social Responsibility Program) continues to grow beyond US$5 billion as at As for our commitment and pledge towards the Global Goals for Sustainable Development, we have exceeded our targets for 2016 as detailed below.

9 Al Baraka Banking Group B.S.C 07 Chief Executive Statement (Continued) The Al Baraka (SDG) Goals Last year, we pledged our commitment to fund and finance over US$600 million for Al Baraka (SDG) Goals. The Al Baraka (SDG) Goals are integrated with the following Global Goals for Sustainable Development: We are continuing to increase our financing portfolio for alternate and green energy projects. For this, we are supporting our banking subsidiaries in various ways. Also, we have further increased our afforestation campaigns across the Group, along with increased measures to conserve energy in our operations and buildings. Jobs 1. Creating 50,000 new Jobs within the countries that we operate in through providing financial needs for our existing and new client. Al Baraka (SDG) Goals Education 2. Financing and funding education with US$191 million through financing public and private educational institutes Achievements of Al Baraka (SDG) Goals We believe that Global Goals of Sustainable Development and Islamic finance are based on inherent shared values that Al Baraka will continue to follow and cherish. Therefore, the Global Goals of Sustainable Development will remain an important feature of our future endeavors. ADNAN AHMED YOUSIF President & Chief Executive, Al Baraka Banking Group Healthcare 3. Financing and funding healthcare with US$434 million through financing public and private healthcare projects and initiatives. AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Our 2016 target was to create 10,207 Jobs We helped create 14,535 newer Jobs This counts as 28% of our 5 years target and 142% for our 2016 target Our 2016 target was to fund/ finance US$38,173,398 for education We funded/financed US$41,596,059 for education This counts as 21% of our 5 years target and 108% for our 2016 target Our 2016 target was to fund/ finance US$86,700,977 for healthcare We funded/financed US$96,826,507 for Healthcare This counts as 22% of our 5 years target and 111% for our 2016 target

10 08 Al Baraka Banking Group B.S.C Overview of Al Baraka Sustainability and Social Responsibility Program Sustainability and Social Responsibility is at the core of the Islamic banking and finance industry. Al Baraka s Sustainability and Social Responsibility Program reflects these deep-rooted values and demonstrates our contribution to the real economy and the impact on the communities where we operate. The objective of this Report is to inform our customer and other stakeholders about our commitment and continued progress towards Sustainability and Social Responsibility. This Report is, therefore, an annual milestone in our long-term journey. This Report is organized in three parts. Part ONE highlights Al Baraka (SDG) Goals that illustrate our progress in jobs creation, and funding education and healthcare. Part TWO provides the achievements of Al Baraka subsidiary banks in different countries with regard to (i) the Philanthropic Program, (ii) the Economic Opportunities and Social Investment Program, (iii) the Qard Hasan Program, and (iv) the Time Commitment Program. The consolidated overall contributions of our program are detailed in part THREE. The table below summarizes contribution by Al Baraka s subsidiary banks with regard to the Al Baraka Sustainability and Social Responsibility Program. Dr. ALI ADNAN IBRAHIM First Vice President, Head of Group Social Responsibility Units Philanthropic Program (US$) Qard Hasan (US$) Economic Opportunities & Social Investments Program (US$) Total (US$) Time Commitments (Hours) ABG 206, ,300 Not measured 752,350 Not measured Algeria 594, ,460 Not measured 1,179,321 Not measured Bahrain 2,055, ,599 58,472,149 61,494,451 Not measured Egypt 707,165 2,016, ,376, ,100, Jordan 1,190,219 10,755, ,347, ,293, Lebanon 120, ,558 84,440,478 85,301,798 5 Pakistan 563, , ,896, ,808,507 Not measured South Africa 1.94,000 Not measured 6,338,658 6,338, Sudan 279,858 1,559, ,300, ,139,965 Not measured Syria 113,793 Not measured 1,557,838 1,671,631 Not measured Tunisia 796,693 Not measured 11, ,336 Not measured Turkey 3,931,659 4,798,345 4,216,247,009 4,224,977, Total 10,560,511 22,316,174 5,988,988,758 6,021,865,443 2,649

11 Al Baraka Banking Group B.S.C AFRICA EUROPE CONTRIBUTION CONTRIBUTION CONTRIBUTION US$4,224,977 Jordan, Pakistan, Bahrain, Syria, Lebanon, ABG Head Office Turkey GLOBAL OVERVIEW US$1,351,321,772 US$445,566,658 AL BARAKA SDG GOALS MIDDLE EAST & ASIA 09 GLOBAL ACTIVITIES OVERVIEW Tunisia, Algeria, South Africa, Sudan, Egypt

12 10 Al Baraka Banking Group B.S.C AL BARAKA SDG GOALS ( ) Al Baraka has prioritized its focus for the Sustainability and Social Responsibility activities during 2016 through 2020 on Job Creation, Education and Healthcare.

13 Al Baraka Banking Group B.S.C 11 Employment 50,000 Jobs Creating new 50,000 Jobs within the countries that we operate in through providing financing for our existing and new clients. Education US$191million Financing and funding public and private educational institutes. Healthcare US$434 million Financing and funding public and private health care projects and initiative of job creation 10,207 Total jobs created 14, funding/financing target US$38,173,398 Amounts funded/financed US$41,596, funding/financing US$86,700,977 Amounts funded/financed US$96,826,507 28% of 5 years target 142% of 2016 target 21% of 5 years target 108% of 2016 target 22% of 5 years target 111% of 2016 target AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW

14 12 Al Baraka Banking Group B.S.C Al Baraka SDG Goals SNAPSHOT Al Baraka Banking Group - Head Office, (Bahrain) Al Baraka Goals 5 Year ABG 2016 ABG (5 years target) (%) (2016) (%) Education- Donations US$978,000 US$195,600 US$30,252 3% 15% Healthcare-Donations US$978,000 US$195,600 US$10,075 1% 5% Other Initiatives US$489,000 US$97,800 Not measured 0% 0% Total US$32,445,000 US$6,489,000 US$40,327 0% 1% Al Baraka Islamic Bank (Bahrain) Al Baraka Goals 5 Year Bahrain 2016 Bahrain (5 years target) (%) (2016) (%) Job Creation Not measured 0% 0% Education- Financing US$3,978,780 US$795,756 Not measured 0% 0% Education- Donations US$83,554 US$16,711 US$156, % 936% Healthcare- Financing US$6,631,300 US$1,326,260 Not measured 0% 0% Healthcare-Donations US$464,191 US$92,838 US$81,748 18% 88% Other Initiatives US$194,960 US$38,992 US$216,375, % % Total US$11,352,785 US$2,270,557 US$216,613, % 9540% Al Baraka Bank (Algeria) Al Baraka Goals 5 Year Algeria 2016 Algeria (5 years target) (%) (2016) (%) Job Creation 3, Not measured 0% 0% Education- Financing US$22,000,000 US$4,400,000 US$353, % 8.0% Education- Donations US$93,000 US$18,600 US$113, % 608% Healthcare- Financing US$11,000,000 US$2,200,000 US$14,228 0% 1% Healthcare-Donations US$930,000 US$186,000 US$371,000 40% 199% Other Initiatives US$3,639,000 US$727,800 US$10, % 1.38% Total US$37,662,000 US$7,532,400 US$861,288 2% 11%

15 Al Baraka Banking Group B.S.C 13 AL BARAKA SDG GOALS SNAPSHOT (Continued) Al Baraka Bank (Egypt) Al Baraka Goals 5 Year Egypt 2016 Egypt (5 years target) (%) (2016) (%) Job Creation 10,000 2, % 92% Education- Financing US$31,926,442 US$6,385,288 US$9,842,520 31% 154% Education- Donations US$638,463 US$127,693 US$333,595 52% 261% Healthcare- Financing US$19,156,843 US$3,831,369 US$9,061,463 47% 237% Healthcare-Donations US$2,553,855 US$510,771 US$505,017 20% 99% Other Initiatives US$1,276,927 US$255,385 US$367,826, % % Total US$55,552,530 US$11,110,506 US$387,569, % 3488% Jordan Islamic Bank (Jordan) Al Baraka Goals 5 Year Jordan 2016 Jordan (5 years target) (%) (2016) (%) Job Creation 3, ,810 52% 259% Education- Financing US$40,655,840 US$8,131,168 US$29,269 0% 0% Education- Donations US$916,784 US$183,357 US$218,000 24% 119% Healthcare- Financing US$122,355,224 US$24,471,045 US$42,061 0% 0% Healthcare-Donations US$194,640 US$38,928 US$55,000 28% 141% Other Initiatives US$3,102,962 US$620,592 US$6,102 0% 1% Total US$167,225,450 US$33,445,090 US$350, % 1.5% Al Baraka Bank (Lebanon) Al Baraka Goals 5 Year Lebanon 2016 Lebanon (5 years target) (%) (2016) (%) Job Creation 1, , % 876% Education- Financing US$12,500,000 US$2,500,000 US$175,578 1% 7% Education- Donations US$35,000 US$7,000 US$9,888 28% 141% Healthcare- Financing US$50,000,000 US$10,000,000 US$1,353,238 3% 14% Healthcare-Donations US$60,000 US$12,000 US$34,267 57% 286% Other Initiatives US$90,000 US$18,000 US$73,545, % % Total US$62,685,000 US$12,537,000 US$75,118, % 599% AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW

16 14 Al Baraka Banking Group B.S.C AL BARAKA SDG GOALS SNAPSHOT (Continued) Al Baraka Bank (Pakistan) Al Baraka Goals 5 Year Pakistan 2016 Pakistan (5 years target) (%) (2016) (%) Job Creation 1, Not measured 0% 0% Education- Financing US$7,888,000 US$1,577,600 US$574,074 7% 36% Education- Donations US$240,000 US$48,000 US$34,572 14% 72% Healthcare- Financing US$5,255,000 US$1,051,000 US$2,259,643 43% 215% Healthcare-Donations US$575,000 US$115,000 US$164,725 29% 143% Other Initiatives Not measured Not measured Not measured 0% 0% Total US$13,958,000 US$2,791,600 US$3,033,014 22% 109% Al Baraka Bank (South Africa) Al Baraka Goals 5 Year South Africa 2016 South Africa (5 years target) (%) (2016) (%) Job Creation 2, % 132% Education- Financing US$1,091,099 US$218,220 US$33,534 3% 15% Education- Donations US$10,911 US$2,182 US$10,146 93% 465% Healthcare- Financing US$3,636,430 US$727,286 US$2,041,561 56% 281% Healthcare-Donations US$10,911 US$2,182 Not measured 0% 0% Other Initiatives US$14,550 US$2,910 US$18, % 632% Total US$4,763,901 US$952,780 US$2,103,635 44% 221% Al Baraka Bank (Sudan) Al Baraka Goals 5 Year Sudan 2016 Sudan (5 years target) (%) (2016) (%) Job Creation 4, ,470 62% 309% Education- Financing US$4,790,725 US$958,145 US$1,027,243 21% 107% Education- Donations US$63,876 US$12,775 US$346, % 2712% Healthcare- Financing US$3,992,271 US$798,454 US$11,525, % 1444% Healthcare-Donations US$79,845 US$15,969 US$1,119, % 7013% Other Initiatives US$111,783 US$22,356 US$83,099, % % Total US$9,038,500 US$1,807,700 US$97,118, % 5373%

17 Al Baraka Banking Group B.S.C 15 AL BARAKA SDG GOALS SNAPSHOT (Continued) Al Baraka Bank (Syria) Al Baraka Goals 5 Year Syria 2016 Syria (5 years target) (%) (2016) (%) Job Creation 1, % 72% Education- Financing US$264,808 US$52,962 US$329, % 621% Education- Donations US$38,874 US$7,775 US$9,159 24% 118% Healthcare- Financing US$5,296,160 US$1,059,232 US$212,591 4% 20% Healthcare-Donations US$12,181 US$2,436 US$3,325 27% 136% Other Initiatives US$12,499 US$2,500 US$26, % 1080% Total US$5,624,522 US$1,124,904 US$252,402 4% 22% Al Baraka Bank (Tunisia) Al Baraka Goals 5 Year Tunisia 2016 Tunisia (5 years target) (%) (2016) (%) Job Creation 2, Not measured 0% 0% Education- Financing US$136,323 US$27,265 Not measured 0% 0% Education- Donations US$36,515 US$7,303 US$260, % 3568% Healthcare- Financing Not measured Not measured Not measured 0% 0% Healthcare-Donations US$73,030 US$14,606 US$3,668 5% 25% Other Initiatives US$114,414 US$22,883 US$519, % 2272% Total US$360,282 US$72,056 US$784, % 1088% Al Baraka Bank (Turkey) Al Baraka Goals 5 Year Turkey 2016 Turkey (5 years target) (%) (2016) (%) Job Creation 20,000 4,000 5,728 29% 143% Education- Financing US$50,000,000 US$10,000,000 US$25,432,712 51% 254% Education- Donations US$2,500,000 US$500,000 US$3,289, % 658% Healthcare- Financing US$180,000,000 US$36,000,000 US$68,391,520 38% 190% Healthcare-Donations US$250,000 US$50,000 US$1,031 0% 2% Other Initiatives US$1,000,000 US$200,000 US$385,426 39% 193% Total US$233,750,000 US$46,750,000 US$97,499,736 42% 209% AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW

18 16 Al Baraka Banking Group B.S.C AL BARAKA SDG GOALS EMPLOYMENT ,000 In 2016 we helped create new 14,535 Jobs Country Jobs Jordan 1,810 Sudan 2,470 Lebanon 1,883 South Africa 662 Syria 143 Turkey 5,728 Egypt 1,840

19 Al Baraka Banking Group B.S.C 17 AL BARAKA SDG GOALS EDUCATION Country US$191 million In 2016 we financed and funded education by US$41,596,059 US$000 Jordan 247 Sudan 1,373 Lebanon 185 Pakistan 608 South Africa 43 Syria 338 Tunis 260 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Turkey 28,700 ABG 30 Bahrain 156 Algeria 466 Egypt 10,176

20 18 Al Baraka Banking Group B.S.C AL BARAKA SDG GOALS HEALTHCARE US$434 million In 2016 we financed and funded healthcare by US$96,826,507 Country US$000 Jordan 97 Sudan 12,646 Lebanon 1,387 Pakistan 2,424 South Africa 2,041 Syria 216 Tunisia 4 Turkey 68,392 ABG 10 Bahrain 82 Algeria 385 Egypt 9,566

21 Al Baraka Banking Group B.S.C 19 KINGDOM OF BAHRAIN Al Baraka Banking Group (ABG) Al Baraka Banking Group has participated in the Al Baraka Sustainability and Social Responsibility Program quite actively. The Group participated in the Philanthropic Program by funding various activities and initiatives with an expenditure of US$206 thousand, ranging from education, community development, assisting special needs people as well as contributions to support youth and sports activities US$ Education 46,419 Community Development 34,431 Arts, Culture and Literature 35,809 Promotion and Development of scholarly works 20,048 Youth Engagement and Sports 50,775 Special Needs Services 2,653 Economically Challenged Communities 15,915 TOTAL 206,050 Al Baraka Banking Group provided Qard Hassan of US$546 thousand towards various activities to 46 individuals. ABG Philanthropic Program 2016 US$206,050 Total of ABG Programs (Philanthropic and Qard Hassan) US$752,350 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Youth Engagement and Sports 25% Education 22% Arts, Culture and Literature 17% Community Development 17% Promotion and Development of scholarly works 10% Economically Challenged Communities 8%

22 20 Al Baraka Banking Group B.S.C KINGDOM OF BAHRAIN Al Baraka Islamic Bank Al Baraka Bank Bahrain has participated in Philanthropic Program, Economic Opportunities Program and Qard Hassan Program, under the broad title of Al Baraka Sustainability and Social Responsibility Program during The total amount contributed in Philanthropic Program is 2,055 thousand which was invested in Arts, Culture and Literature and in Environment and Sustainable Energy. Total of Al Baraka Bank Bahrain Programs (Philanthropic, Qard Hassan and Economic Opportunities) US$61,494, US$ 000 Arts, Culture and Literature 729 Environment and Sustainable Energy 1,326 TOTAL 2,055 Al Baraka Bank Bahrain participated in the Economic Opportunities Program by Shari a compliant financing to the tune of US$58,472 where US$39,894 thousand spent on Community Development and US$18,578 thousand on SME and Micro businesses on US$ 000 Community Development 39,894 Local, Micro. and SME 18,578 TOTAL 58,472 Al Baraka Bank Bahrain provided Qard Hassan of US$966 thousand towards various activities. Bahrain Philanthropic Program 2016 Bahrain Economic Opportunities and Social Investment Program US$2,055,703 US$58,472,149 Environment and Sustainable Energy 65% Education 35% Youth Engagement and Sports 68% Education 32%

23 Al Baraka Banking Group B.S.C 21 EGYPT Al Baraka Bank Egypt Al Baraka Bank Egypt has been an active participant of the Al Baraka Sustainability and Social Responsibility Program through the funding of several projects on different levels. Most of these projects recorded for the year of 2016 focused on community development, and investing robustly on housing and healthcare projects with US$707, US$ Education 321,926 Community Development Projects 385,239 TOTAL 707,165 Al Baraka Bank Egypt participated in the Economic Opportunities Program and provided Shari a-compliant financing of US$254,376 thousand for SMEs and Micro businesses in the field of Industries and Trade, and Local Industries US$ 000 Community Development Projects 8,885 Micro, SME, and Local Industries 245,491 TOTAL 254,376 The bank provided Qard Hassan of US$2,016 thousand towards various activities which was provided to 412 individuals. Additionally, as for Al Baraka Bank Egypt s Time Commitment to Sustainability and Social Responsibility, the unit invested 1240 man hours towards contributions and initiatives with the contribution of 6 employees. Egypt Philanthropic Program 2016 US$707,165 Total of Al Baraka Bank Egypt Programs (Philanthropic, Qard Hassan and Economic Opportunities) US$257,100,376 Egypt Economic Opportunities Program US$254,376,335 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Community Development Projects 54% Education 46% Micro, SME, and Local Industries 97%

24 22 Al Baraka Banking Group B.S.C SUDAN Al Baraka Bank Sudan Al Baraka Bank Sudan has participated in the Al Baraka Sustainability and Social Responsibility Program quite actively in 2016, making it one of the most active units especially investing in economically challenged communities through funding a total of US$279 thousand. The Philanthropic Program funding is as follows: Total of Al Baraka Bank Sudan Programs (Philanthropic, Qard Hassan and Economic Opportunities) US$180,139, US$ Education 73,651 Community Development 190,254 Arts, Culture and Literature 9,905 Youth and Sports 2,268 Individuals with Special Needs 3,780 TOTAL 279,858 Al Baraka Bank Sudan participated in the Economic Opportunities Program through providing Shari a-compliant financing to community development by financing projects that supported affordable housing, a spectrum of health care, micro and SMEs businesses in the areas of agriculture, trade, transportation and local industries. The total amount contributed in this Program is around US$178 thousand US$ 000 Community Development 1,667 Micro, SME, Local industries 176,633 TOTAL 178,300 Al Baraka Bank Sudan provided Qard Hassan of US$1,559 thousand towards various activities benefiting 220 people. Sudan Philanthropic Program 2016 Sudan Economic Opportunities Program US$279,858 US$178,300,414 Community Development 68% Education 26% Micro, SME, and Local Industries 99%

25 Al Baraka Banking Group B.S.C 23 SYRIA Al Baraka Bank Syria Al Baraka Bank Syria remained impressive. The Unit participated in the Philanthropic Program by funding various initiatives and activities accounting to US$113 thousand in The funding was done in the following areas. The breakdown of Al Baraka Syria s contribution to the above is as below: 2016 US$ Education 7,346 Community Development 94,383 Arts, Culture and Literature 864 Scholarly and Literary Works 1,280 Youth Engagement 961 Individuals with Special Needs 2,066 Economically challenged communities 6,893 TOTAL 113,793 Al Baraka Bank Syria also contributed to the financing of the Economic Opportunities Program with amount of US$1,557 thousand which was provided to financing local industries projects in accordance with Islamic law and In the context of supporting economic development efforts in Syria in various fields. The following is expenditure details to this category: 2016 US$ 000 Micro. and SME Local Industries 1,557 TOTAL 1,557 Syria Philanthropic Program 2016 US$113,793 Total of Al Baraka Bank Syria Programs (Philanthropic and Economic Opportunities) US$1,671,631 Syria Economic Opportunities Program US$1,557,838 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Community Development 83% Education 6% Economically challenged communities 6% Construction & Real Estate 28% Any others 19% Food and Beverages 16% Clothing 16% Industrial 10% Paper Product 6%

26 24 Al Baraka Banking Group B.S.C LEBANON Al Baraka Bank Lebanon Al Baraka Bank Lebanon has participated in the Al Baraka Sustainability and Social Responsibility Program through Al Baraka Philanthropic Program, Al Baraka Qard Hasan Program and Al Baraka Economic Opportunities Program during As part of the Philanthropic Program, Al Baraka Bank Lebanon funded US$120 thousand, through funding educational institutions and scholarship programs for talented and needy students, community development initiatives, the promotion of art, culture, and literature, in addition to Environment and Sustainable Energy initiatives. Al Baraka Bank Lebanon s contribution to the Philanthropic program is as follows: 2016 US$ Education 4,885 Community Development 70,921 Arts, Culture and Literature 32,830 Youth Engagement 467 Environment and Sustainable Energy 3,728 Special Needs Services 7,931 TOTAL 120,762 The Unit also funded the Economic Opportunities Program with Shari a compliance financing of US$84,440 thousand in the areas of micro and SMEs businesses, as follows: Total of Al Baraka Bank Lebanon Programs (Philanthropic, Qard Hassan and Economic Opportunities) US$85,301, US$ 000 Community Development 10,391 Micro, and SME 74,048 TOTAL 84,440 Al Baraka Bank Lebanon provided Qard Hassan of US$740 thousand towards various activities which was provided to 23 people. Al Baraka Lebanon also has contributed around 5 hours in the Time Commitment Program. Lebanon Philanthropic Program 2016 Lebanon Economic Opportunities Program US$120,762 US$84,440,478 Community Development 59% Arts, Culture and Literature 27% Special Needs Services 7% Local Industries, SME and Micro 88% Community Development 12%

27 Al Baraka Banking Group B.S.C 25 TURKEY Al Baraka Turk Participation Bank Al Baraka Bank Turkey achieved a milestone this year, with a total of US$3,931 thousand invested in the Al Baraka Philanthropic Program: 2016 US$ Education 1,761,521 Community Development 134,188 Arts, Culture and Literature 210,728 Scholarly and literary works 1,751,016 Youth engagement and Sports 403 Environment & Sustainability 73,803 TOTAL 3,931,659 Al Baraka Bank Turkey also contributed in the Qard Hasan Program with an amount equal to US$4,798 given to 3,480 people contributing US$4,216 to the Economic Opportunities and Social Investments Program US$ 000 Community Development 115,380 Local Industries, Micro and SMEs 4,101,202 TOTAL 4,216 Al Baraka Bank Turkey dedicated 91 hours to the Time Commitment Program with 441 employees taking part in Sustainability and Social Responsibility programs including winter clothes support to Aleppo/Syria, and Kidzania entertainment center tour,etc. As a result, the total beneficiaries from these activities were 4,238 beneficiaries. Turkey Philanthropic Program 2016 US$3,931,659 Total of Al Baraka Bank Turkey Programs (Philanthropic, Qard and Economic Opportunities) US$4,224,977,013 Turkey Economic Opportunities and Social Investments Program US$4,216,247,009 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Education 46% Scholarly and literary works 45% Arts, Culture and Literature 5% Micro, SME, and Local Industries 97%

28 26 Al Baraka Banking Group B.S.C JORDAN Jordan Islamic Bank Jordan Islamic Bank has participated in the Al Baraka Sustainability and Social Responsibility Program quite actively during 2016 involving Al Baraka Philanthropic Program, Al Baraka Qard Hasan Program, Al Baraka Economic Opportunities Program as well as the Time Commitment to Sustainability and Social Responsibility Program. Total of Jordan Islamic Bank Programs (Philanthropic, Qard Hassan and Economic Opportunities) US$603,293,035 The Philanthropic Program, which involves funding various activities and initiatives, did not reach the achievements of the previous year, however remained a positive impact on the society. The result amounted to US$1,190 thousand, as well as a funding of US$10,755 thousand in Qard Hassan which was given to 21,900 people. The Philanthropic Program, involved funding infrastructure at existing educational institutions, scholarship programs for the talented and needy students, community development programs, Environment and Sustainable Energy, and special needs services US$ Education 217,819 Community Development 940,666 Arts, Culture and Literature 3,526 Environment and Sustainable Energy 1,410 Special Needs Services 26,798 TOTAL 1,190,219 Jordan Islamic Bank also participated in the Economic Opportunities Program and provided Shari a-compliant financing of US$591,347 thousand towards a range of activities as follows: 2016 US$ 000 Community Development 346,725 Local Industries, Micro, and SME 244,622 TOTAL 591,347 Jordan Islamic Bank s Time Commitment to Sustainability and Social Responsibility, witnessed 1080 hours that were contribution by 1,422 staffs activities that were related to occupational health and safety, initiatives that combat unemployment, training & education, energy, environment and water. Jordan Philanthropic Program 2016 Jordan Economic Opportunities Program US$1,190,219 US$591,347,715 Community Development 79% Education 19% Community Development 59% Local Industries, Micro and SME 41%

29 Al Baraka Banking Group B.S.C 27 ALGERIA Banque Al Baraka D Algerie Al Baraka Bank Algeria has participated in the Al Baraka Sustainability and Social Responsibility Program with efforts in the Philanthropic Program, and Al Baraka Qard Hasan Program. Participation in the Philanthropic Program included the funding of various activities and initiatives totaling US$594 thousand towards education, in particular scholarly and literary works, and community development through funding projects that support affordable housing and healthcare: 2016 US$ Education 288,326 Community Development 61,341 Scholarly and literary works 12,588 Economically Challenged Communities 232,606 TOTAL 594,861 Al Baraka Bank Algeria provided Qard Hasan for various activities in the range of US$584 thousand to 132 people. Algeria Philanthropic Program 2016 US$594,861 Total of Al Baraka Bank Algeria Programs (Philanthropic and Qard Hassan) US$1,179,321 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Education 49% Economically Challenged Communities 39% Community Development 10%

30 28 Al Baraka Banking Group B.S.C PAKISTAN Al Baraka Bank (Pakistan) Limited Al Baraka Bank Pakistan participated in the Al Baraka Sustainability and Social Responsibility Program with a range of activities during 2016, covering the Philanthropy, Economic Opportunities, as well as the Qard Hasan Programs. Al Baraka Bank Pakistan participated in Philanthropy through the funding of infrastructure at existing educational institutions, and through its contribution to the Al Baraka Scholarship Program for talented and needy students and community development. Total Philanthropy Program contribution was US$563 thousand: 2016 US$ Education 20,804 Community Development 160,419 Scholarly and Literary Works 46,969 Arts and Culture 21,359 Youth and Sports 268,209 Special Needs 29,352 Economically Challenged 16,633 TOTAL 563,746 It also provided Qard Hasan of US$348 thousand to 629 people. Al Baraka Bank Pakistan funded the Economic Opportunities Program with US$597,896 thousand, included many contributions in local industries, micro and SME projects, such as real estate, trade, manufacturing, technology, media, telecommunications and others. In addition, the Bank participated in funding various sectors of local industry including, agriculture, real estate, manufacturing, mining, transportation services, consumer finance and others as follows: Total of Al Baraka Bank Pakistan Programs (Philanthropic, Qard Hassan and Economic Opportunities) US$598,808, US$ 000 Community Development 61,954 Local, Micro and SME 535,942 TOTAL 597,896 Pakistan Philanthropic Program 2016 Pakistan Economic Opportunities Program 2016 US$563,746 US$597,896,519 Youth and Sports 48% Community Development 28% Scholarly and Literary Works 8% Special Needs 5% Local, Micro and SME 90% Community Development 10%

31 Al Baraka Banking Group B.S.C 29 TUNISIA Al Baraka Bank Tunisia As a part of its commitment to the Al Baraka Sustainability and Social Responsibility Program, Al Baraka Bank Tunisia participated in the Philanthropic Program as follows during 2016, resulting in a total of US$796 thousand: 2016 US$ Education 66,961 Community Development 647,846 Arts, Culture and Literature 31,517 Individuals with Special Needs 5,855 Scholarly Works 44,514 TOTAL 796,693 Al Baraka Bank Tunisia spent US$11, 643 for Economic Opportunities Program, as follows: 2016 US$ Micro. and SME Industrial 586 Agriculture, fishing and forestry 830 Textile 1,611 Transportation 2,930 Construction & Real Estate 2,271 Food and Beverages 205 Education 195 Sports 63 Craftsmanship & Handicraft 106 Any Others 2,844 TOTAL 11,643 Tunisia Philanthropic Program 2016 US$796,693 Total of Al Baraka Bank Tunisia Programs (Philanthropic and Economic Opportunities) US$808,336 Tunisia Economic Opportunities Program US$11,643 AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Community Development 81% Education 8% Scholarly Works 6% Transportation 25% Any Others 24% Construction & Real Estate 19% Textile 14% Agriculture, fishing and forestry 7% Industrial 5%

32 30 Al Baraka Banking Group B.S.C SOUTH AFRICA Al Baraka Bank Limited, South Africa Al Baraka Bank South Africa participated in the Al Baraka Sustainability and Social Responsibility Program with engagement in the Philanthropic, Economic Opportunities and Time Commitment to Sustainability and Social Responsibility Programs. Al Baraka Bank South Africa participated in the Philanthropic Program by funding various activities and initiatives accounting to US$1.94 thousand. This involved efforts towards funding infrastructure in existing educational institutions, community development, and special needs services, as follows: Total of Al Baraka Bank South Africa Programs (Philanthropic and Economic Opportunities) US$6,340, US$ 000 Education 0.69 Special Needs Services 0.25 Other 1 TOTAL 1.94 Al Baraka Bank South Africa also funded the Economic Opportunities Program amounting to US$6,338 thousand. The Unit provided Shari a-compliant financing towards community development activities, supporting micro and SMEs projects in a variety fields such as, manufacturing, trade, real estate and others, as below: 2016 US$ 000 Community Development 206 Local Industries, Micro and SME Construction (others) 38 Real Estate 2,973 Manufacturing 1,033 General Trade 1,220 Individuals 7 Services 861 TOTAL 6,338 For Al Baraka Bank South Africa s Time Commitment to Sustainability and Social Responsibility, the unit invested 233 man hours with 128 staff sponsoring activities and events related to education, which benefited underprivileged learners, community services, which helped underprivileged patients and students, and welfare activities which supported people with special needs. South Africa Philanthropic Program 2016 South Africa Economic Opportunities Program 2016 US$1.94,000 US$6,338,658 Other 52% Education 35% Special Needs Services 13% Micro, SME and Local Industries 97%

33 Al Baraka Banking Group B.S.C 31 The Al Baraka Philanthropic Program Al Baraka s total funding and contribution for the Philanthropic Program was in the region of US$10,560,511 in The efforts can be classified into the following sub sectors and their impact: EDUCATION Education is one of the most important and effective activities in Al Baraka Philanthropic Program. The total contribution to the education sector was US$2,589,525. The amount spent on new and existing education institutions was US$702,339, while US$1,887,186 was spent on scholarships. Funding New Educational Institutions: Al Baraka Sudan Turkey Jordan Pakistan Funding Existing Educational Institutions: Al Baraka Egypt Sudan Turkey Jordan Pakistan Tunis South Africa Algeria Al Baraka Scholarship Program: Al Baraka US$ 55,941 US$ 646,398 Impact 48 educational institutions sponsored 11,522 new students joined and benefited 1,136 full-time employees worked AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Tunis Syria Lebanon Turkey Jordan Pakistan US$ 1,887,186 Impact 2,371 students benefited

34 32 Al Baraka Banking Group B.S.C The Al Baraka Philanthropic Program (Continued) COMMUNITY DEVELOPMENT Community development is another significant and vital activity and key element of the Philanthropic Program and all units of Al Baraka Group contributed effectively to the program. Community development includes vocational training, funding projects that support affordable housing, healthcare, and any other form of development that would be beneficial to the community. Total contributions towards these activities were US$1,418,024. Total amount sponsored on existing and new healthcare is US$629,839, and total sponsored on building new housing is US$459,983. The total amount contributing to vocational training was US$328,202. VOCATIONAL TRAINING Funding New Vocational Training: Al Baraka Syria Turkey Pakistan Tunisia Funding Existing Vocational Training: Al Baraka Syria US$ 328,202 US$ 1,613 Impact 1,118 vocational training participants 3 vocational training institutes provided by units COMMUNITY HOUSING Funding New Community Housing: Al Baraka Tunis US$ 459,983 Impact 3,070 houses built HEALTHCARE Funding New Healthcare Institutions: Al Baraka Sudan Syria Pakistan Funding Existing Healthcare Institutions: Al Baraka Egypt Sudan Syria Jordan Pakistan Tunis ABG US$ 36,156 US$ 593,683 Impact 24 healthcare institutes sponsored 471,023 patients benefited from healthcare services 2,750 full-time employees worked in healthcare institutions

35 Al Baraka Banking Group B.S.C 33 The Al Baraka Philanthropic Program (Continued) ARTS, CULTURE AND LITERATURE Arts and Crafts Activities: Al Baraka Bahrain Sudan Syria US$ 865,902 Turkey Culture Activities: Al Baraka Sudan Syria Turkey Jordan Pakistan Tunis ABG Literature Activities: Al Baraka Sudan Turkey ABG SCHOLARLY AND LITERARY WORKS Islamic law Scholary works: Al Baraka Turkey Tunisia Banking and Finance Scholary works: Al Baraka US$ 131,083 US$ 46,169 US$ 1,567,644 Impact 46 projects of arts, culture and literature and scholarly and literary works 57 conferences and programs of arts and culture and literature and scholarly literary works 2,008 publications of Islamic Scholary work and arts sponsored 30,150 total individuals benefited from these sponsorships. AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Syria Turkey Algeria Pakistan US$ 308,994 Tunis ABG

36 34 Al Baraka Banking Group B.S.C The Al Baraka Philanthropic Program (Continued) YOUTH ENGAGEMENT AND SPORTS Al Baraka Sudan Syria Lebanon Turkey Jordan Pakistan ABG US$ 324,224 Impact 5 projects sponsored 4,549 individuals benefited from sponsorship ENVIRONMENT AND SUSTAINABILITY Al Baraka Bahrain Lebanon Turkey US$ 1,403,791 Impact 28 projects sponsored 5,281 individuals benefited

37 Al Baraka Banking Group B.S.C 35 The Al Baraka Philanthropic Program (Continued) SPECIAL NEEDS SERVICES Al Baraka Bahrain Jordan South Africa Tunisia Pakistan Lebanon Syria Sudan ECONOMICALLY CHALLENGED COMMUNITIES Al Baraka ABG Pakistan Algeria Syria US$ 78,685 US$ 272,048 Philanthropic Program Impact 17 projects sponsored to individuals with special-needs 335 individuals with special needs benefited from these projects Impact 28 projects sponsored 5,281 individuals sponsored Turkey 37% Bahrain 20% Jordan 11% Tunisia 8% Egypt 7% Algeria 6% Pakistan 5% AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW

38 36 Al Baraka Banking Group B.S.C The Al Baraka Qard Hasan Program Qard Hasan Program is another significant part of the Al Baraka Sustainability and Social Responsibility Program. ABG (Head Office), Bahrain, Egypt, Lebanon, Jordan, Sudan, Algeria, Pakistan and Turkey offered this program with a total contribution of US$22,316,174 in 2016 which was given to a 26,842 individuals. Al Baraka ABG (Head Office) Bahrain Egypt Lebanon Jordan Sudan Algeria Pakistan Turkey US$ 22,316,174 Impact 26,842 individuals benefited Qard Hasan Jordan 48% Turkey 22% Egypt 9% Sudan 7%

39 Al Baraka Banking Group B.S.C 37 The Al Baraka Economic Opportunities & Social Investments Program The Economic Opportunities & Social Investments Program is the third Program in Al Baraka s Sustainability and Social Responsibility Report. Al Baraka units contributed towards economic opportunities and social investment with US$5,988,988 thousand in This program contains the following sub-sectors: Community Development Projects: Al Baraka Bahrain Egypt Sudan Jordan Lebanon Pakistan Turkey South Africa Local Industries, Micro, Small and Medium Enterprises Local Industries, Micro and SME US$ 585,104 US$ 5,404,220 Impact 1. Healthcare: 1,353 institutes sponsored 2,051,027 patients benefited from healthcare projects 164 patients benefited from healthcare institutions 4,133 full time employees worked in healthcare institutions 2. Community Housing: 21,033 housing projects were provided 23,055 individuals benefited from housing projects Local industries, micro & SME is the second sub sector that falls within the Economic and Social Investments Program. To ensure a better understanding of the finance types that are provided for these projects, micro, small and medium projects have been distributed by economic sectors: Distribution by economic sectors Al Baraka group focused on the economic sectors such as agriculture, farming, industrial sector, manufacturing, services, constructions, real estate, trade, tourism, transportation, craftsmanship, handicraft as well as other sectors. Al Baraka s contribution to these sectors for micro and SME financing was US$5,404,220 thousand. Al Baraka Turkey Pakistan Jordan Impact Local Industries, Micro and SME 8,384 business created 16,934 full-time employees worked in these business AL BARAKA SDG GOALS GLOBAL OVERVIEW GLOBAL ACTIVITIES OVERVIEW Economic Opportunities & Social Investments Program Turkey 70% Pakistan 10% Jordan 10%

40 AL BARAKA SUSTAINABILITY AND SOCIAL RESPONSIBILITY PROGRAM Sustainability and Social Responsibility is essential to the Al Baraka s business model in all the countries in which we operate. EUROPE AFRICA CONTRIBUTION CONTRIBUTION US$4,224,977 US$445,566,658 Turkey Tunisia, Algeria, South Africa, Sudan, Egypt

41 MIDDLE EAST & ASIA CONTRIBUTION US$1,351,321,772 Jordan, Pakistan, Bahrain, Syria, Lebanon, ABG Headquarters

42 PARTNERSHIPS FOR THE GOALS NO POVERT Y PEACE, JUSTICE AND STRONG INSTITUTIONS ZERO HUNGER LIFE ON LAND GOOD HEALTH AND WELL-BEING LIFE BELOW WATER QUALITY EDUCATION CLIMATE ACTION GENDER EQUALITY RESPONSIBLE CONSUMPTION AND PRODUCTION CLEAN WATER AND SANITATION SUSTAINABLE CITIES AND COMMUNITIES AFFORDABLE AND CLEAN ENERGY REDUCED INEQUALITIES INDUSTRY, INNOVATION AND INFRASTRUCTURE DECENT WORK AND ECONOMIC GROWTH

43 AL BARAKA SDG GOALS ( ) Al Baraka has prioritized its focus for the Sustainability and Social Responsibility activities during 2016 through 2020 on Job Creation, Education and Healthcare PROGRESS Employment Education Healthcare Total jobs created 14,535 Amounts funded/financed US$41,596,059 Amounts funded/financed US$96,826,507