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The Arab Islamic Bank (AIB) is a Palestinian financial institution established in 1995, operating under Islamic banking principles that prohibit interest-based transactions and promote ethical finance. Headquartered in Ramallah, it provides retail, corporate, and investment banking services, including personal finance through Murabaha contracts, trade finance, and Sukuk management. Governed by a Sharia Board, AIB ensures compliance with Islamic law and Palestine Monetary Authority regulations. It plays a key role in community development through charitable initiatives and microfinance. Despite challenges from political instability and economic constraints, the bank leverages the growing demand for Islamic finance and digital banking for future growth.