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National Bank of Fujairah launches Mudaraba Products with Competitive Profit Rates

Bank completes its suite of Islamic banking solutions in response to soaring client demand

National Bank of Fujairah(NBF) PJSC 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.

With these new offerings, the bank continues to cement its position as the financial partner that is committed to fulfilling its clients’ changing needs – both on a personal and professional level – while enabling them to access banking products according to their preferences and build a secure financial future.

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.”

The NBF Islamic Savings Account gives customers access to competitive profit rates to save for the future. With this product, customers can start saving while enjoying the flexibility of free ATM withdrawals across the UAE.

NBF is also launching two Mudaraba deposit product variants offering customers a range of unique savings solutions. The products offer accelerated and competitive profit rates, to allow customers to maximise their returns and meet their savings goals faster while providing access to a host of benefits and privileges. Focused on enhancing the ability of customers to plan their finances, the bank is seeking to empower customers and provide them with the knowledge and the tools to ensure their financial stability.

The NBF Islamic Fixed-Term Deposit gives customers quarterly payments of anticipated profit to their account with competitive profit rates and maturity period options of up to five years. The product is most suitable for individuals who would like to maximise their savings.

Acting as a true financial partner, NBF is committed to supporting its clients’ ambitions for the future by helping them follow a robust savings plan. The Dream Deposit is specially designed to make it easy for customers to set aside regular funds and secure a bright future. Customers can deposit in units as low as AED500 per month and avail attractive profit rates with flexible tenor ranging from 12 to 60 months.

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.”

About National Bank of Fujairah PJSC:

Incorporated in 1982, National Bank of Fujairah PJSC (NBF) is a full services corporate bank with strong corporate and commercial banking, treasury and trade finance expertise as well as an expanding suite of personal banking options and Shari’a compliant services. Leveraging its deep banking experience and market insight within Fujairah and the UAE, NBF is well-positioned to build lasting relationships with its clients and help them achieve their business goals.NBF’s key shareholders include the Government of Fujairah, Easa Saleh Al Gurg LLC and Investment Corporation of Dubai. Rated Baa1/Prime-2 for deposits and A3 for counterparty risk assessment by Moody’s and BBB+/A-2 by Standard & Poor’s, both with a stable outlook, the bank is listed on the Abu Dhabi Securities Exchange under the symbol “NBF”. It has a branch network of 18 across the UAE.

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