Free markets and proto- capitalism existed during the Islamic Golden Age in the Caliphate. Between the 8 - 12 Century, referred to as lslamic Capitalism the early market economy and mercantilism were developed. Due to the strong monetary economy the expansion of levels of ciculation of a high value, stable currency - the Dinaar, grew and spread. Further it integreted monetary areas which were indapendent. Several techniques and innovation concepts were in use since early lslamic banking. They are Bills of Exchange, the types of Partnership for example limited partnership, the earliest and different types of Capital, Capital Accumulation,etc. The issue of cheques, Promissory Notes, Trusts, Startup Business, Transactional Accounts, Loans and assignments. There existed in the medieval lslamic world Organisational Enterprises similar to the present Corporations independent from the state. The Agency lnstitution was also introduced during that timeand many of these early capitalist concepts were copied and adjusted to their needs and requirement in Medieval Europe from the 13th Century.
Riba means excess increase or addition. In lslamic laws, it refers to demanding excess compensation without consideration. The lslamic Jurisprudence defined it as 'surplus value without counterpart'. Based metals or paper used as currency, guanranteed by a government to honor the stated value were allowed to have intealu rest applied to them.
Interest Free banking is a recent innovation and implies to banking through profit sharing rather than interest.....
Egypt pioneered the first modern lslamic Bamking experiment under cover. The lslamic lmage was not projected as it was feared that it might be seen as a manifestation of lslamic Fundamentalism which was not favourable and a drawback to the political regime! lslamic banking has a continuous future growth as its growing at 15/ annually and has more than 300 institutions spread over 51 countries. This includes the United States via companies for example Michigan based University Bank. There are additional 250 Funds that comply with lslamic Banking.
In 2009 about &400 billion asset was reached by the Shariah Compliant. The biggest Shariah Compliance Assets are by lran, Saudi Arabia and Malaysia. In fact lranian banks in 2009 accounted about 40 of total assets of the world's top 100 lslamic Banks.
Bai'a al-inah (sale and buy-back agreement)
in this agreement the customer buys an asset on deferred payment basis from the financier. It is repurchased at once by cash by the financier at a discount. This agreement of buying back permits the bank to hold ownership over the asset so as to protect against any default. In case of late payment it explicitly does not charge interest.
Bai'bithaman Ajil (deferred payment sale)
This refers to the sale of goods on deferred payment. Both the parties have agreed to a price which includes a profit margin.
Bai Muajjal (credit sale)
lt means the sale is on credit basis. Its a system used by lslamic banks thet defives from 'Murabaha Muajjal'. Ln this agreement the bank gains a profit margin on the purchase price. The buyer pays the price of the asset at later dates instalment or in full.
Musharakah (joint venture with capital)
Two or more partners have an agreement to provide funds for a venture and the profits are shared amongst the partners according to the capital invested.
Mudarabah (special partnership)
ln this partnership one partner called Rabb ul Maal, funds in the capital for investment in a commercial enterprise while the other partner called Mudarib is resposible for the management and work.
Murabahah (sale with profit margin)
lts an agreement between both parties of a sale of asset which includes a profit margin too. The sale agreement must clearly state the purchase and selling price, other costs and the margin of profit at the time of the sale. Compensation to the bank is in the form of profit margini for the time value of its money.
Bai al Salaam (advance payment)
This is a contract whereby advance payment is made for goods to be delivered later on. Advance payment is fully made by the buyer at the time of contract and the seller is obliged to supply the goods at a future date. To avoid any dispute later on, the specification of the goods to be purchased is given in detail.
Ijarah (rent/wage)
This agreement is for the rent of premises,equipments,vehicles,etc or for the service provided for the fixed price or wage. The customer avails the use of service of asets/equipments such as plant,office automation,motor vehicle.
Musharakah (profit & loss ratio)
It is a relationship between two parties or more who contributed capital to a business to divide the net profit and loss as per ratio. It is mostly used in investment projects, letters of credit and in purchase of real estate or property. The partners share the profit according to the ratios agreed while the loss is borne by each partner strictly in proportion to respective capital contribution.
Qard al Hassan (goodwill loan)
This is a goodwill loan granted and the debtor has to repay only the borrowed amount. He can pay an extra amount beyond that if s/he wants as his token of appreciation to the creditor, otherwise its truly a loan without any interest.
Sukuk (lslamic bonds)
This is an Arabic name for a Financial Certificate and can regarded as an equivalent to lslamic bond. Islamic prohibits fixed income interest bearing bonds hence Sukuk are securities that agree with the the Shariah - lslamic laws and its investment principles which does not permit the interest payment or charges.
Takaful (lslamic lnsurance)
lt is an lslamic type of lnsurance and is a cover against the risk of loss due to misfortunes.lts a protection against future uncertainity and risks to an individual based on the lslamic thinking of granting a cover provided by a large group through which the concerned individual can benefit the advantage provided as per the lslamic Derivatives.
The lslamic Derivatives according to the global standards were set up in 2010 by the assistance of lnternational lslamic Financial Market based at Bahrain and lnternational Swaps and Derivatives Association based at New York. The agreement allows a strategists through which institutions can trade such as profit rate and currency swaps.
Islamic Laws on Trading
lt is prohibited in the Holy Quran to play any 'game of chance' like gambling, insuring one'health or property. It also prohibits Bai al Gharar that is trading at risk.
Profile of the Company
Abu Dhabi Islamic Bank was established in 1997 as a Public Stock Company by an Amiri Decree No. 9/1997. The operation began in 1998, yet was officially inaugrated by Shaikh Abdullah bin Zayed the Minister of lnformation and Culture in 1999. The lslamic Shariah principles govern all the transactions and operation carried out.
The Abu Dhabi lslamic Bank PJSC offers various banking services like consumer,corporate,investment banking and attracts deposits. Besides these, it also finances in bank purchased automobiles, capital equipment and real estates. It sponsors investment funds, offers letters of credit, property management and evolution services. The money lend is in accordance with lslamic shariah - law.
The Abu Dhabi lslamic Bank - ADIB , as a sign of a new promise is introducing a new brand identity. The opinion that banking has to be 'simple,sensible and transparent' to make one feel at home and be respected has inspired it survey further to enhance their services. Therefore for the past two years thorough research was carried out to probe suitable methods to provide the needs a client requires and whose belief in this bank is to provide special solutions just as 'it is guided and inspired by the timeless rules and principles of Shariah'.
ADIB has been getting closer to the public by fast expansion of its network which is about 60 branches 256 ATM network, open a branch in malls and a 24 hour branch operates at Abu Dhabi Airport. For more convenience and safety an upgraded version of e-ADIB lnternet banking have been launched. Keeping in mind customers' needs and satisfaction, which is their foremost priority, in the next few monthsth ADIB intends to introduce many new products and services. ADIB was one of the top three banksgttthtghttthtyy as a swiftest improving customer service in the UAE.
Indeed the outcome and best result of our improving customer satisfaction and ben efit is proven by our top score.
The Logo
ADIB 's logo points to their future as well as their famed and proud heritage! The base of the customers' trust upon which is being built the new ADIB. The quality of ADIB service is featured by a D element to synmbolise a renewed focus as well as there is always a room for further improvement.
Capital
ADIB started its operation with a paid up capital of one billion UAE Dirhams which was divided into a hundred million shares, each shares value being ten UAE Dirhams. Abu Dhabi Securities Market quote the shares.
Founders
The prominent UAE Nationals and the members of the ruling family, including the Abu Dhabi lnvestment Authority are the founding shareholders of ADIB holding the equity of 71/ while the rest 29/ are held by the founders of ADIB
The Abu Dhabi Islamic Bank PJSC - the first lslamic Telecom Card launched in partnership with ETISALAT & VISA:
The UAE first lslamic Telecom Card in partnership with Emirates Telecommunications Corporation and VISA lnternational Limited was launched by the AbuDhabi lslamic Bank. The Adib-Etisalat Card is in Platinum, Gold and Classic versions and provides best offers to customers for example for every Dirham spent on their card the customers earns free talk -time plus the best -in-market sign-up points. It also offers upon signing up for the new co-branded covered Card up to 70,000 'MORE reward Points' which is equivalent to 2000 minutes of free talk-time
Within the UAE. When purchasing anywhere in the world a cutomer can earn upto 4/ cash return as 'More reward Points'. Other unique privileges enjoyed are to get access to ADIB's Travel Desk and special discounts from national as well as international merchants including the ETISALAT partner network. To mark this partnership launch with ETISALAT, ADIB offers several 'More reward Points' till the end of the current year. Many tempting communications are on and it pulls the non-account holders too with few of its offers via ADIB's network of 73 branches, over 400 ATMs as well as Exchange offices of UAE, Al Ansari and Al Fardan are involved throughout UAE.
ADIB PJSC Announces launch of ADIB Instant Finance
ADIB PJSC announced the launch of ADIB lnstant Finance a facility which faciliates on to the ADIB EMV (chip) enable Debit and Covered card. A key feature of ADIB lnstant Finance is the quick turnaround time that allows a transaction to be completed in a shorter time - a matter of minutes compared to the minimum three days required to approve regular financing facilities.
ADIB Etihad Guest Covered Cards
ADIB has apartnered with Etihad Airways bringing the Shariah Compliant Airline Card in the UAE which is very rewarding. Etihad Guest Miles is rewardable when applied and more miles are earned everytime the card is used. In the summer of 2010 The newl co-brand cards were launched. The 'Best lslamic Card in the Middle East' award was granted to ADIB earlier in the year, at the Banker Middle East Products Awards.
ADIB is the first bank in UAE to bring *161#Banking. Mobile banking couldn't be simplier with no downloads, no fees and access from any ETISAT mobile phone. Its a new mobile banking service that allows to perform almost all banking transactions from checking account balance to buying credit for a mobile phone and Salik account top ups. Its a welcome to try it now and see why the UAE is the top-tierlslamic Financial services institution and an industry leader in new technology initiatives. Just simply dial *161# and log in using your ADIB phone banking.
ADIB Covered and Debit Cards now come with Chip and PIN Technology for enhanced security and peace of mind. In addition the cards Covered feature Pay Wave technology. This enables countless payments and its just to wave the card over the scanner in participating outlets and payment is made.
DANA Women's Banking
this service DANA offers a new suite of products, services and special life style benefits. Its designed to give the female customers the attention they deserve. It prides itself on its uniquely designed women-only areas and branches to highly skilled female relationship managers. DANA Women's Banking allows our lady customers to receive special attention by people who truly understands them.Tashje'a to serve the cause of Emiratization, ADIB launched its Tashjee'a. Initiative to encourage its partners, suppliers and stakeholders to increase their commitment to community development and Emiratisation. The initiative seeks to promote unity amongst all the companies and entities that the bank deals with. ADIB employees are encouraged to contribute to promote activities regarding social responsibilities among the people they deal with from outside the bank.
HRD Award
ADIB is an industry leader in Emiratisation initiative and it has been recognised for its continued support and commitment to Emiratisation. The Emirates lnstitute of Banking and Financial Studies (EIBFS) has presented ADIB the Human Resource Development Award in the first category twice - first in 2009 and next in 2011. The bank also received an appreciation letter for achieving the highest Emiratisation rate in the banking sector in 2011.
ADIB Scholarship Fund
ADIB signed an agreement with the American University of Sharjah (AUS) to establish the 'ADIB Scholarship Fund' with an endowment of AED 5. Students from all AUS Faculties with distinguished academic performance can benefit from the fund.
ADIB Gold
The Gold is a priority banking package that offers a wide range of exclusive products and services designed to help make most of the wealth and with the advice and help of a dedicated Relationship Manager, one is able to choose from awide range of investments, savings and financial solutions.
CONCLUSION
Islamic Banking is banking activities following Islamic Laws - Shar'aa and its practical application through the development of Islamic economy. It forbids interest payment or charges. Formerly these principles were applied for a flourishing economy yet it was in the 20th century that typical lslamic banks sprung up.
Free markets and proto- capitalism existed during the lslamic Golden Age in the Caliphate. Between the 8 - 12 Century, referred to as 'lslamic Capitalism' the early market economy and mercantilism were developed. Due to the strong monetary economy the expansion of levels of ciculation of a high value, stable currency - the Dinaar, grew and spread. Further it integreted monetary areas which were indapendent. Several techniques and innovation concepts were in use since early lslamic banking. They are Bills of Exchange, the types of Partnership for example limited partnership,the earliest and different types of Capital, Capital Accumulation,etc. The issue of cheques, Promissory Notes, Trusts, Startup Business, Transactional Accounts, Loans and assignments. There existed in the medieval lslamic world Organisational Enterprises similar to the present Corporations independent from the state. The Agency lnstitution was also introduced during that timeand many of these early capitalist concepts were copied and adjusted to their needs and requirement in Medieval Europe from the 13th Century.
Riba means excess increase or addition. In lslamic laws, it refers to demanding excess compensation without consideration. The lslamic Jurisprudence defined it as 'surplus value without counterpart'. Based metals or paper used as currency, guanranteed by a government to honor the stated value were allowed to have intealu rest applied to them.
