Dubai: Emirates Islamic Bank has launched a new product that is the 3-year Special Ramadan Deposit. It is a new Shariah-compliant savings product, which will be available to current and potential customers for a limited time, until the end of Ramadan 2013.
According to an official announcement, Emirates Islamic Bank, one of the leading Islamic financial institutions in the UAE, is working in line with its ongoing strategy to encourage a culture of savings in the community. For this, it would launch a series of savings products that would enable customers to focus on future financial planning as a means to making financial stability a reality.
The 3-year Special Ramadan Deposit is the first product to be unveiled in this range. It will also enable customers to meet their financial responsibilities during the Holy Month of Ramadan. “Planning and budgeting are key to ensuring future financial stability,” said Faisal Aqil, Deputy CEO – Consumer and Wealth Management, Emirates Islamic Bank.
He stated, “At Emirates Islamic Bank, we are committed to providing exceptional Shariah-compliant products that promote a culture of saving amongst our customers, and make it easy for them to plan for the future. The 3-year Special Ramadan Deposit is the first in a series of savings-related products that the bank is looking at launching during the course of the year.”
Emirates Islamic Bank’s 3-year Special Ramadan Deposit is a Wakala product, available as a limited-time offer with attractive expected profits. According to Shariah, a Wakala is a contract between the customer and the bank, where the bank as the Agent has the responsibility to invest in Shariah-compliant goods and/or financial assets.
Customers can invest in the Special Ramadan Wakala by depositing a minimum of AED100,000 and up to AED3 million, for a period of three years. Open for customers until the end of Ramadan at a profit rate of 2.5775 percent, Emirates Islamic Bank will share the profits from the Wakala with investors every Ramadan starting from 2014.
The payment structure of the 3-year Special Ramadan Deposit has also been designed to ensure that profits are distributed to customers each year during Ramadan, thereby enabling customers to better manage their future financial planning.
The distribution of profits during Ramadan will also enable Muslim customers to use the funds to meet their Zakat obligations.
“As good and able Muslims, we are all required to contribute towards society and community especially during Ramadan, when all of us are obligated to distribute Zakat. Being an Islamic Bank, it is natural for us to provide a banking solution that would further facilitate Zakat contribution,” Aqil concluded.