Islamic Banking

Bespoke Shariah compliant financial solutions aligned to your values

A new addition to our offering

Islamic Banking is a new addition to our Arab Bank Europe offering, designed to provide Shariah compliant financial solutions tailored to the needs of our clients. By leveraging our expertise and global reach, we are introducing products that align with Shariah principles.

We have developed a range of Shariah compliant deposits, financing and investment products, helping clients diversify their portfolios in accordance with their values.

Our Services

Islamic Current Account

Our Islamic Current Account is structured as Qard Hassan, where your funds are treated as an interest-free benevolent loan, prudently managed by the bank in compliance with Shariah principles. No arranged overdraft facilities are available.

Real Estate Financing

Real Estate Financing options are available for UK-based residential real estate for personal use and buy to let investments.

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Islamic Fixed Term Deposit Account

Our Islamic fixed term deposit account is based on Wakala whereby the bank will deploy your monies on your behalf in Shariah compliant investments such as properties and commodities to achieve an expected profit rate payable to you.

Additional Banking Services

Whilst we continue to expand our Islamic banking offering, you can still benefit from Visa debit cards and foreign exchange that also align with Shariah principles.

A Foundation Built on Trust and Expertise

Our Islamic Banking services leverage on Arab Bank Europe’s experience in ethical finance and customer-focused solutions. Arab Bank Europe, in collaboration with leading Islamic Banking experts, can deliver sophisticated financial services that meet our clients’ expectations while ensuring adherence to Shariah principles.

Contact your Arab Bank Europe relationship manager directly or send an enquiry via the below contact button to explore how our innovative Islamic financial solutions can help you meet your financial goals while upholding your values.

Our Commitment to Shariah Compliance

Arab Bank Europe has appointed Mufti Abdul Kadir Barkatulla as an independent Shariah Adviser to provide guidance, supervision, and certification for our Islamic banking products and services.

Mufti Abdul Kadir Barkatulla is a prominent Shariah scholar in the UK with a strong background in Islamic banking and finance and provides Shariah advisory services to leading financial institutions.

Frequently asked questions (FAQs)

What is Islamic banking?

Islamic banking is simply an alternative financial system that operates under Shariah principles, prohibiting interest and requiring asset-backed/linked ethical investments.

Can money be traded as a commodity in Islamic banking?

No, Islamic banking treats money as a means of exchange, not as a commodity that can be traded for profit.

What are the acceptable ways to make returns in Islamic banking?

Islamic banking allows Shariah compliant returns, primarily generated from leasing or renting assets, establishing partnerships and business investments, trading of commodities, and charging fees for providing services.

What types of investments can Islamic banking providers engage in?

Islamic banking providers can only deploy funds in investments that are Halal (permissible under Shariah), avoiding sectors such as alcohol, gambling, or interest-based financial services.

How does Arab Bank Europe ensure Shariah compliance in its Islamic banking products and operations?

We have appointed an independent Shariah Adviser, Mufti Abdul Kadir Barkatulla, to provide guidance, supervision, and certification for our Islamic banking products and services. We also work closely with IFAAS UK, an independent advisory firm that oversees the Shariah compliance of our Islamic banking offering through regular Shariah compliance support and external Shariah audits.

What fees does Arab Bank Europe charge for Islamic banking products and services?

Arab Bank Europe’s fees are transparent and pre-agreed in advance, varying by product type.