Emirates Islamic launches five year Wakala Investment option
Emirates Islamic, one of the leading Islamic financial institutions in the UAE, today announced the launch of a five year Wakala investment option, with an expected profit rate of 2.5 per cent per annum. Launched with the objective of encouraging customers to focus on long term savings, Emirates Islamic’s five year Wakala investment option is available on amounts starting from AED100,000 up to AED25 million.
According to Shari’a, a Wakala is a simple Islamic money market concept used in deposit products. It is best defined as a contract between the customer and the bank, where the depositors as muwakkil, place funds with the bank to invest in suitable Shari’a projects, while the bank as the Wakil or Agent has the responsibility to perform a certain task (such as invest in Shari’a-compliant goods and/or financial assets) on behalf of the customer.
The bank as the agent is entitled to receive a fee for its services, while the returns will be given to the depositors or investors. Customers investing in Emirates Islamic’s five year Wakala will receive profit pay-outs on an annual basis, in contrast to standard Wakala investment options, where profits are paid at the end of the full investment term.
Multiple-year Wakala investments offers customers the opportunity to make a sizeable profit through relatively conservative investments in Shari’a-compliant assets and investment vehicles, while at the same time compelling them to save by setting aside a considerable sum of money for a specific period. In addition, the yearly Wakala profit rate coincides with the Zakat contribution rate. By offering an annual profit rate similar to what is to be paid for Zakat, Emirates Islamic is enabling Muslim customers to use their funds wisely to meet their Zakat obligations. Meanwhile all customers can benefit from the attractive profit rates.
Emirates Islamic’s five year Wakala has been launched following the success of the three year Ramadan Wakala and the four year Wakala launched in late 2013, and the specifications of the new product have been refined to meet customer expectations. The five year Wakala requires customers to ensure that the amount invested remains locked-in for a period of five years, as early liquidation would mean loss of profit.
Emirates Islamic Bank
Welcome to Emirates Islamic. Launched in 2004, the bank was established to deliver the highest standards of banking services in line with the highest standards of Shari'a principles. Offering a broad range of products designed for individuals and small businesses as well as large corporations, Emirates Islamic is the right choice for those looking for excellence in managing their finances.