Dubai Islamic Bank (DIB) has announced it had signed a unique agreement with Emirates airline to provide Ijara Islamic finance that will allow customers to fund their travel expenses through the bank.
The agreement adds the airline to the bank’s Sharia approved list. The DIB in turn will now be able to offer finance packages to buy airline tickets that its customers repay in instalments over a period that can vary from 6 to 24 months. This will undoubtedly be a welcome development and will dramatically reduce the burden of huge upfront travel costs for those who suddenly find they have to undertake expensive emergency trips, often with a large family in tow.
Saad Abdul Razak, the DIB’s Deputy Chief Executive Officer, said: “Dubai Islamic Bank is considered one of the foremost banks in the provision of creative services and solutions that go hand in hand with Islamic Shari’a laws and satisfy the needs of the bank’s customers. The bank has also recently launched various initiatives that contribute greatly to its position as the leading Islamic bank in various fields.”
Mansoor Abdulla Al Awadi, Manager of retail banking, DIB, said: “The demand on travel services is growing rapidly in the UAE. Airline passengers are undertaking ever business trips, travel for health purposes, unplanned emergency trips, or tourism travel.
“Recognising the importance of the sector and the scale of the demand on travel services, Dubai Islamic Bank worked on signing this agreement with Emirates airline, one of the biggest companies in the region and one of the fastest growing airline company in the world.”
The DIB launched its Ijara services at the beginning of last year, and the bank is currently working on providing alternative financing for education, healthcare, travel and tourism. (menareport.com)
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