The Abu Dhabi Islamic Bank (ADIB) has launched new Sharia'a compliant financing product, Al-Khair. The facility is available to anyone looking for competitive financing, whether they are Muslim or non-Muslim.
The product features the ability to settle all financial liabilities and conventional loans to start a new transparent and steady financial relationship. It has a fixed profit rate of 4.6 percent and a repayment period of 72 months, which enables reduction of monthly installments in proportion of customers' monthly salary.
Al-Khair has no administrative fees, penalties charges or late payment fees. There is a reward on early settlement of outstanding amounts and eligibility to benefit from ADIB's range of added value products and services.
Al-Khair Financing operates on the bases of an Islamic concept known as Tawarruq that was approved by the Islamic Fiqh Academy. Al-Tawarruq transaction is used in Al-Khair Financing and implements bank purchases of commodity equivalent to the amount of customer's financial liability and conventional loans.
In addition, the bank sells the purchased commodity to the customer on a deferred payment basis at a pre-agreed, clear fixed profit rate. After having the commodity owned by customer and being at his possession, he sells it at the market price to a party different to that which the bank has purchased the commodity from. Sell amount resulting from the step above is then credited to customer's account that will be used by him to settle his financial liabilities and conventional loans.
Established in 1997, Adib is 29 percent owned by individual shareholders and 10 percent by the Abu Dhabi Investment Authority. It is a public joint stock company, whose activities in the United Arab Emirates (UAE) include investment, retail and corporate banking services, in compliance with Islamic Sharia. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
