Islamic Banking Support

1. What is the Covered Card based on?
The Covered Card is structured on a Murabaha of investment using EIFL Certificates. These Certificates represent a common share in a pool of Shariah-compliant assets such as Sukuk, shares, private equity, and Ijarah assets. Each certificate is valued at USD 10.

2. How is the Murabaha transaction conducted?
On the transaction date, or before it, the bank shall purchase the investment certificates, then the bank shall sell these certificates to the customer and sends them an email with a Murabaha Offer Letter, including the number of certificates, cost, monthly profit rate, and number of installments. If the customer does not object within a certain period, it is treated as implied consent (acceptance) and the Murabaha sale proceeds.

3. What can the customer do with the EIFL Certificates?
After taking ownership, the customer can either:

• Sell the certificates via Nasdaq Dubai through a designated brokerage house, or
• Hold the certificates until maturity.

4. What happens if the customer sells the certificates?
The cash proceeds will be credited to an account held with the Bank. This represents the unutilized (unused) limit of the Covered Card.

5. Is the Covered Card product Shariah-compliant?
Yes. The Internal Shariah Supervision Committee (ISSC) has approved the product structure, documents, and mechanisms, confirming their compliance with Islamic Shariah principles.

1. What information does the customer need to provide to apply for Auto Finance?
The customer shall submit a Price Quote that clearly describes the vehicle they wish to finance, including accurate details of the vehicle.

2. Does the customer commit to buying the vehicle from the Bank?
Yes, under a Purchase Undertaking, the customer promises to purchase the vehicle from the Bank on Murabaha basis, after the Bank takes possession of the vehicle.

3. How does the Bank handle the vehicle before selling it to the customer?
The Bank purchases the vehicle from its owner and holds it under constructive possession. The bank shall guarantee the risk of damages and keep the vehicle in the custody of the original seller.

4. At what price does the Bank sell the vehicle to the customer?
The vehicle is sold on Murabaha basis at a price that includes the actual cost of the vehicle plus an agreed-upon profit amount.

5. How will the customer pay the Murabaha amount?
The customer and the Bank shall agree on the payment terms of the Murabaha Price. It is permitted to pledge the vehicle in favor of the Bank to secure payment of Murabaha Price.

6. Is this Auto Finance Shariah-compliant?
Yes. The Internal Shariah Supervision Committee (ISSC) has reviewed and approved all documents and the product structure, confirming it complies with Islamic Shariah principles.

1. What is the structure of Personal Finance product?
The Personal Finance product is based on a Murabaha of investment certificates (EIFL Certificates), where the Bank purchases certificates that represent a share in a pool of Shariah-compliant assets.

2. What are EIFL Certificates made of?
EIFL Certificates represent common shares in a diversified pool of Shariah-compliant assets such as Sukuk, shares, private equity, and Ijarah assets. Each certificate is valued at USD 10.

3. How does the Murabaha transaction work?
On the transaction date, the Bank sells the Certificates to the customer based on Murabaha. The sale price includes the cost of the certificates plus a profit margin, based on agreed payment terms.

4. What can the customer do with the certificates?
After taken ownership of the Certificates, the customer may either:

• Sell the certificates through a designated brokerage house; or
• Hold the certificates until maturity.

5. What happens if the customer sells the certificates?
If the customer chooses to sell, the proceeds are deposited into the customer account with the Bank.

6. Is this structure Shariah-compliant?
Yes. The Internal Shariah Supervision Committee (ISSC) of the Bank has approved the structure, terms and conditions, and documents as compliant with Islamic Shariah principles.

1. How is the application for Ready Property Financing submitted?
The request is submitted either to the Bank with detailed specifications of the asset which he requires to finance, or a pre-approval may be obtained based on credit perspective.

2. What is the next step after Bank approval?
Upon the Bank’s approval for finance, the customer submits a promise to rent the property from the Bank and that happens once the property is purchased and owned by the latter.

3. Who holds ownership of the property during the lease period?
The Bank purchases the underlying property and registers it in its own name or under the name of the customer on a trust basis, while pledging it in favor of the Bank until full settlement is made.

4. How is the rental amount determined in the Ijarah contract?
A lease agreement (Ijarah Muntahiya Biltamleek) is signed for a given period, stating a rental amount that includes the cost of the leased property and the profit margin of the bank the lease tenure.
The rent may be linked to a variable index within a pre-agreed upper and lower limit. The rent for the first rental period must be numerically known.

5. What is the purpose of bank’s Promise to Sell?
The Promise to Sell from the bank undertake to sell the property at a token price after customer’s obligations are fulfilled.

6. Can the Bank sell the property to the customer before the end of the lease term?Yes. The Bank may sell the property to the customer at an agreed early settlement price under a Sale Agreement.

7. When does ownership of the property transfer to the customer?
Ownership is transferred upon fulfillment of all lease obligations and signing of the final Sale Agreement which specifies either the token price or the agreed early settlement price.

8. Is the Ready Property Financing product Shariah-compliant?
Yes. The Internal Shariah Supervision Committee (ISSC) has approved the product structure, documents, and mechanisms, confirming their compliance with Islamic Shariah principles.