National Bank of Fujairah, NBF, has announced the expansion of its NBF Islamic portfolio by launching a suite of savings products based on the Islamic principle of Mudaraba.
FUJAIRAH, (Pakistan Point News - 03rd Sep, 2018) National Bank of Fujairah, NBF, has announced the expansion of its NBF Islamic portfolio by launching a suite of savings products based on the Islamic principle of Mudaraba. By doing this, the bank complements the existing Sharia’-compliant Murabaha and Wakala deposits by adding savings accounts, fixed-term and dream deposits.
Mudaraba is one of the most credible Islamic products based on profit and loss principles where actual profit and loss sharing is announced for each deposit period and only indicative profit rates are known to customers. A Mudaraba contract is signed between the client and the bank whereby the client acts as a capital provider, with the bank acting as the manager. The bank pools all clients’ funds together with its own capital in Sharia’-compliant investments. The earned profit is shared between the bank and the clients according to predetermined and mutually agreed-upon ratios.
Commenting on the expanding portfolio, NBF’s CEO Vince Cook said, "Ensuring that we meet our customers’ needs with utmost transparency is our priority. We have launched our NBF Islamic proposition in response to clients’ demands for banking products that are aligned with their preferences and values. Seeing a growth in customer demand for Islamic banking products over the past years, we invested in building robust systems and processes in place to take the next step in our journey. We are very proud that our expanded suite of Shari’a-compliant solutions enables customers to plan for their future and grow their wealth in line with their financial capability."
Colin Dallas, NBF’s Head of Retail Banking, said, "Mudaraba-based long term deposits are unique in the sense that customers benefit from changes in market rates since the rates are announced for every quarter based on actual profitability of bank’s Mudaraba investments. In an increasing market rate scenario, customers will be able to get better profit rates in line with market payouts and subject to NBF’s profitability."
