Established under the Company Act, 1994 the Al-Arafah Islami Bank was incorporated as a Limited Company on June 18, 1995. Al-Arafah Islami Bank Limited commenced its business on September 27, 1995, as the third Islami Bank in the country. Some very renowned Islamic personalities and pious businessmen of the country are the sponsors of the Bank.

Al-Arafah Islami Bank is an interest free Shariah Bank of Bangladesh rendering all types of commercial banking services under the regulation of the Bank Company Act, 1991. The Bank conducts its business on the principles of Musaraka, Bai‑Murabaha, Bai‑Muazzal and Hire Purchase transactions approved by Bangladesh Bank. Naturally, its modes and operations are substantially different from those of other conventional commercial banks.

There is a Shariah Council in the Bank who maintains constant vigilance to ensure that the activities of the Bank are being conducted on the precepts of Islam. All activities of the Bank are conducted according to Islamic Shariah where profit is the legal alternative to interest. The Bank’s investment policy follows different modes approved by Islamic Shariah based on Quran and Sunnah.