Arab Bank

Arab Bank is a Jordanian publicly held banking group headquartered in Amman. Founded in Jerusalem in 1930 by Abdul Hamid Shoman, it was established as a private-sector financial institution intended to support economic development and commercial activity in the Arab world. Its headquarters moved to Amman in 1948, when the political upheaval surrounding the end of the British Mandate and the creation of Israel disrupted its Palestinian branch network. The bank's early history was defined by continuity under difficult conditions. After losing branches in Jaffa and Haifa, Arab Bank honored deposit claims from customers who had been forced to leave, a decision that strengthened its reputation and helped it rebuild. Relocated operations were established in Beirut, Amman, Nablus and Ramallah. During the 1940s and 1950s, the institution expanded across the region, while the 1960s brought a stronger emphasis on investment and development finance. It also became one of the first Arab financial institutions to establish an international presence in Switzerland, opening a location in 1961 and creating Arab Bank Switzerland in Zurich in 1962. Nationalization across several Arab countries during the 1960s and 1970s resulted in the loss of numerous branches, and the 1967 conflict caused further disruption in the West Bank and Gaza. Arab Bank nevertheless continued to expand. Under Chairman and General Manager Abd Al-Majeed Shoman, appointed in 1974, the group broadened beyond trade finance and small construction lending into large-scale project finance and syndicated lending. Investment banking was added to the group's capabilities during the 1990s, and the bank later resumed or developed activities in Palestinian territories under the relevant Jordanian and Palestinian regulatory frameworks. The 2000s brought further internationalization. Abdel Hamid Shoman became chief executive in 2000. The group re-established operations in Syria, pursued activities in Iraq, formed Europe Arab Bank in London in 2007, and acquired or invested in financial institutions including Turkland Bank and Al Nisr Al Arabi Insurance. The bank also expanded its branch and subsidiary network in markets such as Australia, Singapore, Germany, the United Kingdom, the United States and Southeast Asia. Its activities have included consumer banking, corporate and institutional banking, trade finance, project finance, treasury, investment banking, wealth management and payments. Arab Bank remains one of Jordan's most important financial institutions and a major regional banking brand. It serves individuals, businesses, governments and other financial institutions through a network extending across multiple continents. The group has also maintained a visible social-development role through the Abd Al-Hameed Shoman Foundation, created in 1978 to support science, education, culture and research in the Arab world, and through later community programs focused on poverty, health, education and environmental issues. The bank has faced significant regulatory and litigation challenges. U.S. authorities imposed a 2005 penalty over deficiencies in anti-money-laundering and suspicious-activity-reporting controls at its New York branch; the associated consent order was terminated in 2018. Civil claims in the United States alleged that the bank had facilitated terrorist financing, but several major cases ended in dismissal, settlement or judgments favorable to the bank. In 2018, the U.S. Court of Appeals for the Second Circuit overturned a liability verdict in Linde v. Arab Bank, and the U.S. Supreme Court affirmed dismissal of Jesner v. Arab Bank. These cases have remained a prominent part of the bank's public history. In the 2020s, Arab Bank continued to present itself as a universal bank with a focus on regional connectivity, digital banking, corporate finance and sustainable finance. The Banker named it Middle East Bank of the Year in 2023. The bank reported 2023 assets of app…

Arab Bank was founded in 1930 in Jerusalem by Abdul Hamid Shoman as a private-sector bank serving the Arab world. The institution's headquarters moved to Amman in 1948, when the conflict surrounding the end of the British Mandate disrupted its Palestinian operations. Rather than leaving depositors without access to their funds, the bank redeemed claims from customers who had been displaced. It subsequently rebuilt its network through relocated branches in Beirut, Amman, Nablus and Ramallah. The bank expanded rapidly during the 1940s and 1950s, reaching dozens of branches across Arab markets. During the 1960s, it increasingly supported investment and economic development projects, while also establishing an international foothold in Switzerland. At the same time, nationalization programs in Egypt, Syria, Iraq, Aden, Sudan and Libya caused the loss of many branches. The 1967 conflict produced additional closures in the West Bank and Gaza, but did not end the bank's expansion. Following the appointment of Abd Al-Majeed Shoman as chairman and general manager in 1974, Arab Bank broadened its business model. It moved beyond trade and small-scale construction finance into major project finance and syndicated lending. The group created the Abd Al-Hameed Shoman Foundation in 1978, adding a long-term cultural, educational and scientific-development dimension to its institutional identity. During the 1990s, investment banking became part of the service portfolio, and the bank received permission to resume operations in the West Bank and Gaza under local and Jordanian regulatory supervision. Abdel Hamid Shoman became chief executive in 2000. During the following decade, Arab Bank reopened activities in Syria, pursued an Iraqi presence, formed Europe Arab Bank in London, invested in Turkish banking and Jordanian insurance, and expanded branches or subsidiaries in Europe, Asia, Australia and North America. Its modern business is that of a universal bank, serving consumers, companies, governments, institutional investors and other financial institutions. The bank's recent history includes both growth and scrutiny. Credit-rating agencies reduced some ratings during the regional political instability of the early 2010s. Arab Bank also confronted U.S. compliance enforcement and terrorism-financing litigation. A 2005 U.S. penalty concerned anti-money-laundering controls at its New York branch. In subsequent civil cases, courts dismissed or overturned claims in several proceedings, including Jesner and Linde, while a 2015 settlement resolved claims by hundreds of victims and relatives in a separate matter. The bank continues to operate as a major Jordanian and regional financial group, with corporate banking, trade finance, retail services, investment activities and cross-border connectivity at the center of its brand.

1. 2023Recognition and sustainable capital issuance

   The Banker names Arab Bank Middle East Bank of the Year, while the group reports growth and issues sustainable additional Tier 1 securities.

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2. 2018Major U.S. litigation and compliance matters reach key decisions

   The Second Circuit overturns the Linde verdict, the Supreme Court affirms dismissal in Jesner, and the New York compliance consent order is terminated.

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3. 2007Europe Arab Bank is established

   Arab Bank creates a wholly owned London-based subsidiary and expands its European platform.

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4. 2000Abdel Hamid Shoman becomes chief executive

   The leadership transition precedes a period of renewed regional and international expansion.

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5. 1978Abd Al-Hameed Shoman Foundation is created

   Arab Bank establishes a foundation supporting science, humanities, education and cultural discussion.

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6. 1974Abd Al-Majeed Shoman becomes chairman and general manager

   The bank enters a broader project-finance and syndicated-lending phase under new leadership.

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7. 1961First international location opens in Switzerland

   Arab Bank establishes a Swiss presence, marking an early international expansion by an Arab financial institution.

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8. 1948Headquarters move to Amman

   The bank transfers its headquarters to Amman and is incorporated in Jordan as a public shareholding company.

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9. 1930Arab Bank is founded in Jerusalem

   Abdul Hamid Shoman establishes Arab Bank as a private-sector financial institution serving the Arab world.

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A regional universal bank connecting Middle Eastern and international markets, with a strong emphasis on corporate banking, trade, development finance and cross-border services.

• Retail bankingConsumer banking

  Arab Bank provides individuals with deposit accounts, payment services, cards, consumer finance and related digital banking capabilities. Retail activities are delivered through branches and electronic channels across its country operations, with product details varying by local regulatory market.

• Corporate and institutional bankingCommercial banking

  Corporate and institutional banking is a core part of the group. Services cover working-capital finance, cash management, trade services, lending, treasury and relationship banking for companies, governments, financial institutions and international organizations.

• Trade and project financeSpecialized finance

  The bank historically built its reputation in trade finance and later expanded into large infrastructure and development transactions. It participates in direct and syndicated lending and supports cross-border commerce across the Middle East and other markets.

• Investment banking and capital marketsInvestment banking1990

  Investment banking was added to the group's activities during the 1990s. The broader offering includes capital-markets, structured-finance and advisory capabilities, alongside treasury and institutional-investor services.

• Wealth managementPrivate banking

  Arab Bank serves affluent and private clients through wealth-management and investment-related services. The precise range is market-specific and is delivered within the group's broader retail, private and institutional banking platforms.

• 2011Jordan development and employment initiative

  Jordan

  The chairman announced cooperation with the private sector and an allocation for development projects intended to address poverty and unemployment in Jordan.

  Outcome. The initiative was presented as a contribution to national development and employment efforts.

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• 2009Together

  Jordan

  Arab Bank launched Together as a corporate-responsibility program linking nonprofit organizations working in poverty reduction, education, orphan support, health and environmental protection.

  Outcome. The program received financial support from Arab Bank and became part of its community-investment activities.

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• 2023Sustainable additional Tier 1 issuanceStrategy

  The group sought to support capital strength while developing its sustainable-finance profile.

  What changed. Arab Bank completed its first sustainable perpetual additional Tier 1 issuance, valued at USD 250 million.

  Aftermath. The transaction added a sustainable-capital milestone to the group's recent strategy.

  Additional Tier 1 capital issuance. USD 250 million issued (2023)

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• 2007Formation of Europe Arab Bank and international investmentsM&A

  Arab Bank sought to strengthen its international platform and broaden its financial-services portfolio.

  What changed. It established Europe Arab Bank in London and acquired or invested in interests including Turkland Bank and Al Nisr Al Arabi Insurance.

  Aftermath. The moves extended the group's European presence and added banking and bancassurance capabilities.

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• 2019Large terrorism-financing lawsuit filed in IsraelControversy

  More than one thousand Israeli victims and families filed a multibillion-dollar claim alleging that Arab Bank assisted or facilitated terrorist activity. The allegation was disputed and the reference material does not establish a final outcome.

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• 2005New York anti-money-laundering enforcementControversy

  U.S. authorities imposed a USD 24 million penalty after identifying weaknesses in the New York branch's anti-money-laundering controls and suspicious-activity reporting. The matter also restricted the branch's ability to process U.S.-dollar payments.

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• 2025Arab Bank included in Forbes Middle East listed-company ranking

  Arab Bank was listed among Forbes Middle East's Top 100 Listed Companies, at number 36 in the cited reference.

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• 2023Arab Bank named Middle East Bank of the Year

  The Banker recognized Arab Bank as Middle East Bank of the Year.

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• 2023Arab Bank reports 2023 growth and sustainable capital issuance

  The group reported higher assets and net income than in 2022 and completed a USD 250 million sustainable additional Tier 1 issuance.

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• 2018U.S. consent order for Arab Bank New York branch terminated

  The Office of the Comptroller of the Currency terminated the consent order associated with the New York branch's earlier compliance deficiencies.

  Regulation
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1. Arab Bank
2. Arab Bank official website