Ithmaar Bank was incorporated in the Kingdom of Bahrain on 13 August 1984 under the name of Faysal Investment Bank of Bahrain EC (FIBEC). Until 2003, FIBEC was a wholly-owned subsidiary of Shamil Bank with an investment banking license granted by the BMA and engaged in acting as a manager of funds deposited for investment in accordance with the Sharia.
In October 2003, Ithmaar acquired certain investments from DMI. Through its purchase, Ithmaar indirectly acquired a 49% interest in Faisal Finance (Switzerland) SA and a 28% interest in Faysal Bank Limited of Pakistan.
In addition, Ithmaar purchased on the same date DMI's 40% interest in Solidarity Company BSC for a total consideration of USD 40 million and its 23% interest in Faisal Islamic Bank of Egypt for USD 34.125 million.