Dubai Islamic Bank (DIB) has launched a Service Leasing Finance (Ijarah) banking product for financing services such as education, health, travel and tourism in addition to leasing contracts for transportation and machines.
“The consumer banking division at DIB has identified the need for Islamic instruments to meet the rising demand for these kind of services. It has worked closely with the Fatwa Committee to ensure full Sharia compliance,” said Executive Vice-President, Retail and Corporate Banking Services, Saad Abdul Razaq.
“DIB will sign contracts with leading service providers such as schools, universities, educational institutions and hospitals and, to create a stronger offering, will seek to obtain special rates to ensure that customers secure finance that is in line with their payment capabilities,” added Razaq.
“As per the Ijarah contract, DIB can undertake contracts for educational, health care, travel and tourism services and then lease these to the consumer at competitive prices. The consumer then pays for the service over a period of time and in instalments,” explained DIB’s Chairman of the Fatwa and Supervision Sharia Committee, Hussein Hamid Hasaan.
The Ijarah scheme will allow customers to more effectively manage their personal finance, distributing the burden over a period of time. It will also assist in overcoming the difficulties arising from seasonal requirements when a series of financial obligations, such as the start of school and university, Hajj, Umrah and the holiday season, coincide.
Established on 1975, DIB is considered to be the first Islamic bank in the world that has implemented the principles of Islam in all its practices. It was founded with active assistance of the United Arab Emirates (UAE) Government, the Central Bank and people of the UAE. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
