Abu Dhabi Islamic Bank: Different From Conventional Banking
By Sunil Kumar S

A bank that has its structures laid in the soil of Islam in UAE is the Abu Dhabi Islamic Bank.

On the 20th of May, 1997, this bank wased established as a joint stock company which is Public. This was done with the Amiri Mandate No. 9 of 1997.

The working started from the 11th of November, 1998. The launch was done by the UAE Minister of Details and Culture, His Highness Sheikh Abdullah Bin Zayed Al Nahyan, on 18th April 1999.

The Abu Dhabi Protection Market has its shares estimated on it.

Close to 100,000 individuals are the investors and share 61% of the equities with the founders of this Islamic Bank that have 39% of the shares.

These founders are the family members that is in policy, the ADIA (Abu Dhabi Investment Authority) and the crucial nationals of UAE.

The commercial functioning of the Abu Dhabi Islamic Bank started with a sum of one billion Dirhams separated in some hundred million shares, equating every show to 10 Dirhams.

Being a bank that follows Islam extremely strongly, the banking system is unique by itself. Faith is an important criterion to work and the procedures need to be based on Quran and Sunna.

This results right into Halal activities just. Likewise, values play a crucial role in the entire banking situation.

The bank does not support in funding alcohol manufacture, transportation, storage space or company distributions.

To manage the procedures of the bank, Islamic Law are also worked with that are the experts in the filtering system of various cash deals on the current basis.

Reba or the passion in Islam is forbidden. Hence, the bank makes only through the fees on the economic services that it asks from its customers. The bank, unlike other financial institutions constantly ignores the concept of passion.

For this reason, for customers, the profit from them originates from the revenue of the bank. Hence, the returns on savings depend directly upon the performance of the bank. Instead of the interest, the depositors appreciate share in the profit of the bank itself.

This sort of banking increases worries psychological of a normal consumer. The bank however, has an answer. As opposed to the traditional banking, this bank guarantees professional purchase negotiations also if the earnings is guaranteed or otherwise. Also, the current accounts are dealt with as safekeeping or Amanat. They are taken as Quard and are without any loss threats and could be drawn by the customer inning accordance with his very own will. This is a major difference in this kind of banking and various other banking treatments.

One more distinction in between the standard means of banking and this kind of banking is in relation to the equilibrium between ethical and product need. In standard banks, credit cards remain in usage really frequently and this debt in funding leads to several economic problems. While, in [http://www.dubai-information-site.com/abu-dhabi-islamic-bank.html] Abu Dhabi Islamic Bank, over or excessive extension of credit scores is restricted by the task of the possession of the physical asserts before resale.

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