Few things are important to be noted while considering the situation of the trading and banking sector in most of the developed regions. If we talk about Dubai with a more focus, there are basically two ways for financing a business – you can either go with the traditional banking method which is also known as a corporative way for financial dealings or you can avail Islamic current account through sharia complainant banking system.
The latter option can provide you some amazing offers and one of the best is interest-free loan packages. This is what we can call the Islamic way of doing business in Dubai. If we check the working parameters of Islamic finance under the banner of an Islamic bank, these are completely different in terms and conditions as compare to traditional units. An Islamic bank, a private or public sector whatever, bodies are jointly working together to facilitate the customers.
The main task of both types of banks is to enhance the capital and revenue of the state and in return to facilitate the account holders. From the last few years, these financial associations have contributed an extraordinary arrangement in the economy of the region and we can see that the lifestyle of the Middle class has increased.
Now we can watch the motivations behind these effects in the market of Dubai, I think internet and technological reforms are the major reasons. This region has made the world’s best markets with expensive and luxurious vocational spots. You can compare the overall lifestyle and general markets in the world, the UAE region is accommodated with all things.
What are the main features of Dubai banking system is need for today’s blog and we will share some of the important points:
- The setup of the Islamic system is a pioneer in the worldwide market for trading and financing solutions including loan packages without any interest rate. Most of the traders and high net worth individuals are connected with this network die to interest-free income and profit especially inspired by other administrations from these banks. When we talk about Mena funds, another form to benefit the account holders, it also works under the guidance of Islamic banks along with conventional financial companies.
- There are plus points and for sure some negative points for utilizing a specific system. It depends on the choice and requirements of a customer, either he or she needs certain services of not. So a lot of benefits can be availed using Islamic finance solutions by approaching any Islamic bank in Dubai. Also, most of the customers in the UAE are pretty much interested in Islamic services due to better and smooth working.
- Keep one thing in your mind that Islamic loans in Emirates vary from the traditional way of providing loans. Obviously, the major difference is the interest rate but it also varies considering the repayment methods. You can take a loan package from an Islamic bank without any interest rate and easy way for repayments while on the other side you have to show your eligibility to avail of a specific package.
Open a Islamic Bank Account in UAE
Keep one thing in your mind that the banking system in UAE either an Islamic bank or a traditional one works in a pattern controlled by the central bank. While on the other hand the trading services and dealing, all are controlled by the Dubai Department of Economic Development. The DED is an abbreviation of the Dubai Department of Economic Development which is the responsible official authority or we can say that governing body for issuing all licenses for Trade administrations to multinational associations. We know that most of the international account holders prefer Dubai banks for trading solutions and other financial projects, so I just want to clear your mind about the governing authorities.
Now come to the main point which is related to open an Islamic current account. Dubai banks and well established Islamic units work with the assistance of the central government, as I said, and you can open an account with few proofs. You can visit any bank and provide your documents and ask them to open a current account. If you are doing a job in UAE or have some financial assets then it would be easy to manage your account. Following are the common requirements:
- A passport which shows that you are a citizen of a specific country
- You must have a job certificate with you so that to enhance your chances to get the best offers.
- One thing which is the most important is your credit history. You can get many smart choices with a good credit score and history. For example, you can approach any bank in the UAE with a good credit history and demand for priority services. But the other side of the picture is not good at all which is in case of bad credit score.
Which bank is most suitable for Islamic banking?
Without any doubt Mashreq bank, a private bank is the most strong and substantial bank considering not only Islamic banking but also the conventional banking offers in Dubai. These banks work in two-way fashion and provide some best facilities to expatriates regarding loan offers. On one hand, it provides usual and traditional finance solutions with the affordable interest rate while on the other hand, one can use the interest-free option as well.
You can take help for all services like wealth management, investment solutions, life insurance policies, and credit card offers. Along with another side it is considered one of the best Islamic banks working from the last three decades in this region. If you are an expat or you hold a permanent residence, Islamic financial solution through Mashreq bank is most legitimate for all to take an initiative.
You can visit the official site of this bank and I would recommend reading all the terms and conditions. Now the time is to make a comparison with any other band and I bet you will see a big difference in the interest rates.