The AIB's extraordinary general assembly that took place on 22 March approved modification to some articles of its banking pracises, the Central Bank of Egypt announced.

 

The move will put AIB subject to central bank jursidiction, ending its decades-long exclusive status.

 

New changes will mean the bank will be allowed to deal in Egyptian pounds and not only in foreign currencies as was previously the case. Any branch created in another country will have to submit to the relevant local banking laws.

 

The AIB was established under international treaty by five Arab sovereigns in 1974 as an Egypt-based offshore banking unit. 

 

Political turmoil in Egypt highlighted the awkward situation of AIB. It is suspected that heavy outflows were transferred from this bank in the early days of the country's 25 January popular revolt.

 

At the time the bank was headed by Atef Ebeid, Egypt's prime minister from 1999 to 2004. Ebeid was dismissed from his post in April 2011 by the country's military-appointed prime minister Essam Sharaf.

 

The principal shareholders remain the Egyptian and Libyan states with stakes of 38.76 per cent apiece. Other stakeholders are Abu Dhabi, with 12.503 per cent, Qatar with 4.984 per cent, and Oman with 2.49 per cent.