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Finance
Sudan has recently normalized its relations with de-
velopment partners and neighbouring countries and
has sustained a remarkable GDP growth, which has
fluctuated between 5 and 11 percent in the last ten
years. The economic basis for this growth, however,
remains narrow and dependent on oil revenues,
which account for 17 percent of GDP. The drop in oil
prices that accompanied the financial crisis has had a
significantly adverse effect on Sudan, with the current
account deficit widening to 12 percent of GDP in 2009
and external debt reaching 50 percent of GDP. Nev-
ertheless, GDP growth is expected to remain positive
and is forecasted at 4 percent for 2010.
Sudan’s financial system is small compared to its
regional peers. Intermediation is low, the equity and
foreign exchange markets are shallow, and non-
bank financial institutions are small. However, the
financial system is expanding rapidly. The banking
sector is the backbone of Sudan’s financial system
and is the primary source of financing for the domes-
tic economy. As of 2003, the country’s 26 commer-
cial banks, two of which foreign-owned, accounted
for 97 percent of total financial system assets. Non-
performing assets are high, at 23 percent of total
loans, and loan-loss provisioning low. Intermediation
levels are low, with the ratios of deposits to GDP and
credit to GDP both at 15 percent.
The banking system in Sudan is regulated and su-
pervised by the Bank of Sudan (BOS). While pro-
gress has been made in compliance with the Basel
Core Principles of Banking Supervision, compliance
with the 8 percent risk-weighted capital adequacy
requirement is in fact very limited amongst banks:
the ratio of capital to risk-weighted assets stood at
18 percent in 2007.
At present, only a small share of the population has
access to bank services, and enterprises often face
difficulties in obtaining funding from banks or the
capital markets. There is plenty of scope for exten-
sive development of financial institutions as well as
their mechanisms, in the coming decade.
AL SALAM BANK
Osman Mukhtar
General Manager
PO Box 139, Khartoum
Tel: + 249 183 747 008
Fax: + 249 183 747 007
osman.mokhtar@alsalambank.net
www.alsalambank.net
Activity: banking
Date of Creation: 2005 in Khartoum
Capital: 100 billion USD
Ownership: 92% foreign capital, 8% Sudanese
private share
Al Salam Bank is operating in both retail and trade
banking. Its value includes reserves of 140 million
USD and over 500 million USD of assets. The main
branch is in downtown Khartoum and the second
one is in the Al Salam Rotana Hotel. Al Salam Bank
will open other branches: in Khartoum North and and
Port Sudan in 2010, and then others in Omdurman
and in the West of the country.
With an effort to develop its correspondences (from
2 to 14 in a couple of years), Al Salam Bank has
gained an international recognition towards inves-
tors. It also has the advantage to be listed in the
Dubai and Abu Dhabi stock exchanges. It allowed
the bank to handle the 2009 crisis very well and to
be profitable asset-wise. Al Salam Bank’s manage-
ment has been awarded with a prize from the Central
Bank.
It is easy for foreign businessmen to open an ac-
count at Al Salam Bank. They can also be given
advice for investment: how and where to invest,
whether it is for corporate, governmental, public or
private activities. It is also possible for foreigners to
open savings accounts at Al Salam Bank, which is
not always easy to do in Sudan.
Al Salam Bank is very determined on presenting the
most advanced services in Islamic banking to keep
at pace with the fast developments and to face the
future challenges of the local, national and global
markets. Through services and products that can
lead the movement of creativity and innovation, they
are able to achieve the highest returns for both cli-
ents and shareholders. They are able to rise with
Sudan in order to achieve the desired development
in the near future.
Due to the challenges imposed by globalization
today, Al Salam Bank takes the responsibility of
making the vision of development in the industry of
Islamic Banking Services come true. Through pro-
viding innovative solutions and putting all efforts and
resources together, they achieve accurate execution
in all strategies and plans proposed.
The aim of Al Salam Bank is to rise with the bank-
ing sector to the highest standards of dedication
and efficiency to create a difference in the nature
of all banking transactions. This becomes possible
through the creation of innovative Islamic banking